Solving the Liquidity Challenge: Orderly Networks Next-Generation Trading Infrastructure Enhances DeFi Efficiency with Institutional-Grade Liquidity
By integrating liquidity, streamlining user experience, and supporting diverse trading solutions, platforms like Orderly Network are revolutionizing the landscape of DeFi and paving the way for broader adoption. As of June 2024, the total value of Decentralized Finance (DeFi) is nearing $100 billion, with analysts predicting a six-fold increase in the market by 2032.
Despite the enormous potential of DeFi, it faces challenges such as poor user experience on decentralized exchanges (DEXs), limitations of automated market makers (AMMs) affecting efficiency, and issues like missing limit order functionality, low capital efficiency, high slippage, and impermanent loss hindering smooth trading and scalability.
By 2032, the DeFi market is projected to reach approximately $601.5 billion. Additionally, trading delays, complexity in usage, and lower transaction speeds are weaknesses of some DEXs. Liquidity dispersion and heavy reliance on cross-chain bridges further exacerbate the issues with DeFi user experience, making it difficult for ordinary users to transition to DeFi due to the complexity of obtaining a simpler, faster trading experience.
Recognizing these challenges, developers at Orderly Network have been working tirelessly to create a more comprehensive, user-friendly, and efficient DeFi ecosystem. This includes consolidating liquidity to strengthen financial operations and drive widespread adoption.
Orderly Network: Unifying Liquidity for Seamless Cross-Chain Transactions
Orderly Network is a full-chain derivative liquidity layer project that integrates liquidity for any asset, any public chain, and any product interface to address challenges in the DeFi industry. Orderly Network helps different 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 transaction-related data, including user balances and trading data.
Orderly Chain, leveraging Celestia’s data availability and LayerZero’s cross-chain protocol, allows exchanges on different public chains to share a liquidity pool, currently supporting 6 public chains, making it the second most active protocol on LayerZero. Through these innovations, Orderly Network ensures smooth operation even in the event of a shutdown in the matching engine order book. This resilience enables market makers to manage trading positions and user balances flexibly and seamlessly, ensuring uninterrupted service.
Orderly Network’s system creates a platform beyond a single blockchain, enhancing trading efficiency, increasing liquidity depth, narrowing spreads, and achieving cross-network capabilities in DeFi, akin to the role of the Chicago Mercantile Exchange (CME) in traditional finance, providing unified integrated liquidity and order book functions for users within the system.
Enhancing Cross-Platform Trading Efficiency
After wallets and custodial institutions integrate with Orderly, they provide users with optimal trading rates and prices for major assets and create custom exchange widgets based on Orderly Network’s ecosystem. Trading platforms and established traders can use Orderly Network’s APIs to access low-latency order execution experiences comparable to centralized exchanges.
Spot aggregators can leverage Orderly Network’s extensive liquidity to obtain the best market rates, drive trading volume, and earn trading fees. Perpetual contract aggregators can create front-ends for integrating the perpetual contract ecosystem for C-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 integrating Orderly Network’s in-game exchange tools. Trading bots can access ideal spot and perpetual contract trading prices by using features like stop-loss and limit orders, gasless trading, and customizable fees.
Furthermore, Orderly Network provides hedging tools to protect positions on 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 such as surpassing $500 billion in cumulative trading volume and a 100% growth in total value locked (TVL), reaching $40 million in just one month.
Orderly Network has deployed treasury vaults in the ecosystems of six major public chains including Near, Polygon, Arbitrum, Optimism, Base, and Mantle, further solidifying the infrastructure of the entire ecosystem. 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.
Orderly Network supports over 14 DEXs, ranking in the top five on DeFiLlama’s data aggregator.
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 our business in the next phase and continue to drive the development of DeFi trading.”
Omnichain SDK, Token Launches, and Future Plans
Orderly Network has introduced the Omnichain SDK, designed to simplify the development of perpetual contract protocols and advanced trading tools for EVM developers. The functionality of this tool kit is similar to a “plug-and-play” system, allowing developers to quickly and easily build order book-based perpetual DEXs, significantly reducing development time and workload for Web3 teams.
To prepare for token launches, Orderly Network launched The Road to the Order campaign. This initiative rewards active traders with points for each transaction, including merits, which have the chance to receive airdrops after the TGE. The campaign 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 segregated margin to improve risk management and trading flexibility. Segregated margin allows traders to allocate specific amounts of margin for individual positions, effectively reducing potential losses and limiting them within the margin range set for each transaction.
Another significant new feature is the multi-collateral function, which will greatly enhance the platform’s versatility and flexibility. With this feature, investors can use multiple assets as collateral for positions.
Additionally, Orderly Network plans to integrate on-chain oracles into its ecosystem. This integration will provide continuous, transparent, and diversified data sources for pricing, enhancing the platform’s reliability and security.
As Orderly Network continues to roll out new features and expand its coverage, the platform is poised to promote smoother, more efficient trading and redefine the standards for liquidity and risk management in DeFi.