Solving the Challenge of Liquidity: Orderly Networks Next-Generation Trading Infrastructure Enhances DeFi Efficiency with Institutional-Grade Liquidity
By integrating liquidity, streamlining user experience, and supporting diverse trading solutions, innovative platforms like Orderly Network are revolutionizing the landscape of DeFi, paving the way for wider adoption. As of June 2024, the total value of Decentralized Finance (DeFi) approaches nearly $1 trillion, with analysts predicting a sixfold market growth by 2032.
Despite the immense potential of DeFi, it faces challenges such as poor user experience on decentralized exchanges (DEX) and limitations of automated market makers (AMM) affecting efficiency. Additionally, the lack of limit order functionality, low capital efficiency, high slippage, and impermanent loss hinder trading fluidity and scalability.
It is projected that by 2032, the DeFi market size will reach approximately $6.015 trillion (Source: Vision Research).
Furthermore, weaknesses in some DEX platforms include trade delays, complexity of use, and slower transaction speeds. Liquidity dispersion and heavy reliance on cross-chain bridges further exacerbate user experience issues in DeFi. These factors impede the transition of ordinary users to DeFi as they struggle to access simpler and faster trading experiences.
Recognizing these challenges, developers at Orderly Network have been working diligently to create a more comprehensive, user-friendly, and efficient DeFi ecosystem. This includes integrating liquidity to strengthen financial operations and drive widespread adoption.
Orderly Network: Achieving Seamless Cross-Chain Transactions through Unified Liquidity
Orderly Network is a full-chain derivative liquidity layer project that integrates liquidity for derivatives across all chains, providing liquidity and settlement support for any asset, any public chain, and any product interface to address challenges in the DeFi industry. Orderly Network helps various DeFi users, such as DEXs and traders, operate more efficiently and enhance cross-platform trading experiences.
To facilitate these functions, Orderly Network utilizes the OP Stack to establish the Orderly Chain, serving as the primary settlement layer and ledger function, recording all relevant data of transactions, including user balances and trade data.
By leveraging Celestia’s data availability and LayerZero’s cross-chain protocol, Orderly Network enables exchanges on different public chains to share a liquidity pool, currently supporting six chains, making it the second most active protocol on LayerZero. Through these innovations, Orderly Network ensures smooth operation even in the event of downtime in the matching engine order book. This resilience allows market makers to effectively manage trading positions and user balances, maintaining uninterrupted service.
Orderly Network’s system creates a platform that transcends individual blockchains, enhancing trading efficiency, deepening liquidity, narrowing spreads, and achieving cross-network capabilities in DeFi, akin to the role of the Chicago Mercantile Exchange (CME) in traditional finance, providing integrated liquidity and order book functions for users within the system.
Improving Cross-Platform Trading Efficiency
Once wallets and custodial institutions integrate with Orderly, they provide users with optimal trading rates and prices for major assets, creating custom exchange widgets based on Orderly Network’s ecosystem. Trading platforms and mature traders can utilize the Orderly Network’s application programming interface (API) to achieve low-latency order execution experiences comparable to centralized exchanges.
Spot aggregator merchants can leverage Orderly Network’s extensive liquidity to obtain the best market rates, drive trading volume, and earn transaction fees. Perpetual contract aggregators can create front-ends for an integrated perpetual contract ecosystem for end-users by accessing Orderly Network’s shared order book and liquidity.
Games and decentralized applications (dApps) can enhance user experience by seamlessly exchanging tokens through integrated game exchange tools from Orderly Network. Trading bots can access features such as stop-loss and limit orders, gasless trading, and customizable fees to achieve ideal spot and perpetual contract trading prices.
Additionally, Orderly Network provides hedging tools to protect the positions of other exchanges through its comprehensive order book, ensuring effective risk management.
Boosting Liquidity and Attracting a Large Number of Investors
Orderly Network has rapidly grown, achieving significant milestones including a cumulative trading volume exceeding $500 billion and total locked value (TVL) growing by 100%, reaching $40 million in just one month. Orderly Network has deployed treasury vaults in the ecosystems of six major public chains, further solidifying the infrastructure of the entire system. Currently, Orderly Network has also launched on the Ethereum mainnet, allowing users to trade directly from the base layer for a seamless experience. Deposits and withdrawals between Ethereum and any supporting chain have been simplified.
Through high-profile partnerships, Orderly Network is expanding its ecosystem.
Co-founder of Orderly Network, Ran Li, emphasizes the importance of liquidity in the dynamic DeFi space, stating: “As innovators in launching a full-chain ecosystem, we aim to provide liquidity and settlement support for any asset, any chain, or any interface to different DeFi and Crypto users.” He added, “We look forward to expanding business in the next phase and continuing to drive the development of DeFi trading.”
Omnichain SDK, Token Issuance, and Future Plans
Orderly Network has introduced the Omnichain SDK to simplify the development of perpetual contract protocols and advanced trading tools for EVM developers. The functionality of this toolkit is similar to a “plug-and-play” system, enabling developers to quickly and easily build order book-based perpetual DEX, significantly reducing development time and workload for Web3 teams.
To prepare for token issuance, Orderly Network has launched The Road to the Order event. This event rewards active traders with related points for each transaction, including merits, with the opportunity to receive a share of airdrops after TGE. The event has entered its 10th phase, with over 57,000 active traders participating weekly. Users can track their progress and rewards through a dedicated webpage.
Looking ahead, Orderly Network will focus on enhancing platform capabilities and user experience in the second half of 2024. Key initiatives include introducing isolated margin to improve risk management and trading flexibility. Margin allows traders to allocate a specific amount of margin for each position, effectively reducing potential losses and limiting them within the margin range set for each trade.
Another significant addition is the multi-collateral function, which will significantly enhance platform versatility and flexibility. With this feature, investors can use multiple assets as collateral for positions.
Furthermore, Orderly Network plans to integrate on-chain oracles into its ecosystem. This integration will provide continuous, transparent, and diverse data sources for pricing, enhancing the platform’s reliability and security.
As Orderly Network continues to introduce new features and expand its coverage, the platform is poised to facilitate smoother, more efficient trading, redefining liquidity and risk management standards in DeFi.
