Background
With the rapid development of DeFi and blockchain technology, many centralized exchanges (CEXs) such as Coinbase, Binance and Kraken have emerged in the industry. However, these centralized platforms also generally have some problems, especially in terms of transparency and asset control. There have been many cases of CEX bankruptcy or running away in history. For example, in the FTX exchange bankruptcy incident in 2022, users' assets were misappropriated, resulting in a large number of user assets being frozen or lost.
But at the same time, despite their advantages in transparency and decentralization, early decentralized exchanges (DEXs) have struggled to compete with centralized platforms in terms of liquidity, transaction speed, and user experience.
Orderly Network was born in this context. It combines the liquidity and transaction speed advantages of CEXs while retaining the transparency, sovereignty and on-chain settlement characteristics of DeFi. It aims to build an efficient trading ecosystem that can meet users' needs for liquidity and speed while maintaining decentralization and transparency.
Mechanism Details
Simply put, one of Orderly Network’s solutions to the problem of insufficient liquidity in DEXs is its innovative full-chain liquidity aggregation mechanism: by aggregating liquidity from multiple blockchains, it provides a wider asset pool and tighter price spreads.
Traditional DEXs are usually limited to a single blockchain, which results in liquidity being scattered across different chains and cannot be fully utilized. The Orderly Network aggregates liquidity from multiple blockchains (such as Arbitrum, Optimism, Polygon, Base, etc.) into a unified order book through cross-chain liquidity aggregation.
By aggregating the liquidity of multiple chains, Orderly Network is able to provide a wider pool of assets to meet the trading needs of different users. It also makes the price difference between buy and sell orders smaller, allowing users to trade closer to market prices and reduce slippage.
In addition, Orderly Network uses a unified order book mechanism, where users can trade on different blockchains, but all transactions are managed in the same order book. This mechanism eliminates the need for bridging operations that users usually face when conducting cross-chain transactions, making cross-chain transactions more seamless and efficient. By centralizing liquidity on a unified platform, Orderly Network effectively reduces the problem of liquidity fragmentation and improves the overall market depth and transaction efficiency.
The Perps aggregator in the on-chain order book system can also record and manage all buy and sell orders in real time. Through the order book, the aggregator can quickly match the transaction requests of buyers and sellers to ensure the rapid execution of transactions. One of its audiences is leveraged traders, who can use perpetual contracts for long-short hedging or speculation. Because the aggregator provides fast transaction execution and deep liquidity, traders can leverage operations with higher efficiency.
It is worth mentioning that such an on-chain order book also provides a flexible and powerful infrastructure for centralized applications (dApps). Through this on-chain order book, developers can use their on-chain order book to build modular dApps. These applications can range from simple trading interfaces to complex financial instruments such as perpetual contracts, lending platforms, etc. In addition, Orderly Network also provides plug-and-play SDKs and APIs, allowing developers to easily integrate order book functions into their dApps without having to develop complex trading systems from scratch. This greatly reduces development costs and time.
For trading users, dApps can also obtain market prices and order matching information in real time through the on-chain order book, providing users with an efficient and transparent trading experience. By integrating the full-chain liquidity of Orderly Network, dApps can obtain liquidity from multiple blockchains. Whether on Ethereum, BSC or other blockchains, dApps can use the liquidity resources of the same order book. In addition, such an on-chain order book prioritizes the efficient execution of transactions, and users' orders can be quickly matched and executed, thereby reducing the risk of transaction delays and failures.
The choice to build on the NEAR blockchain also empowers Orderly Network in many ways. One of them is its scalability: the NEAR blockchain uses a sharding technology called "Nightshade" to allow the network to scale horizontally. Each shard handles a portion of the network's transactions and data, so that NEAR can maintain efficient operation even if the transaction volume in the network increases significantly. This scalability is critical to supporting data-intensive platforms like Orderly Network that need to handle a large number of orders and transactions.
In terms of transaction speed, the block time of the NEAR blockchain is about 1 second, and transactions are usually confirmed within 1-2 seconds. This fast confirmation capability enables Orderly Network to provide a near real-time transaction experience, reducing the risk of transaction delays and failures. NEAR's high throughput and low-latency transaction processing capability design also ensures that the platform can quickly match buy and sell orders, and transactions can be executed quickly without being affected by network congestion.
Additionally, Orderly Network integrates with the EVM and non-EVM blockchain ecosystem, supporting popular layer 2 chains such as Arbitrum, Optimism, and Polygon PoS as well as the non-EVM NEAR protocol.
$ORDER Token
The native token of Orderly Network is $ORDER, which is also the core driver of the Orderly Network ecosystem.
Its specific functions are as follows:
Governance Rights: As the governance process becomes formalized, $ORDER staking enables token holders to participate in the decentralized governance of key aspects of the ordered network. More details will be announced in due course.
Earn VALOR: VALOR measures a user’s $ORDER stake based on amount and duration, entitling the user to a corresponding share of the protocol treasury.
Increased trading rewards: By staking $ORDER, traders can earn a higher share of trading rewards.
Increased Market Maker Rewards: Staking $ORDER allows market makers to earn a higher share of market maker rewards.
Additional Utilities: Additional $ORDER token utilities will be introduced in Orderly Network’s upcoming products and third-party DeFi protocols.
The maximum supply of $ORDER tokens is 1,000,000,000 and the supply is as follows:
The release times are as follows:
Performance Analysis
According to DeFiLlama data, as of August 20, Orderly Network's total locked value was US$21.15 million; the 24-hour trading volume was US$136,843, the 24-hour derivatives trading volume reached more than US$109 million, and it also had a user base of more than 215,000 independent wallets.
In addition, Orderly Network has also achieved good financing results. According to disclosed information, it has received a total of US$25 million in three rounds of financing, including support from well-known investors such as Pantera, GSR, Dragonfly Capital, and Jump Crypto.
All in all, with its innovative infrastructure and strong partnerships, Orderly Network is poised to become a major player in the future of DeFi trading. However, Orderly Network also faces some challenges: while Orderly Network provides fast transactions and deep liquidity, its success depends largely on whether it can continue to attract enough users and liquidity providers. In addition, it is also worth paying attention to whether the economic model of the $ORDER token can effectively incentivize long-term participation or is just a short-term hype tool. Let us wait and see the future development of Orderly Network.
