Orderly Network: An Orderbook Exchange Protocol built on NEAR
Orderly Network is a permissionless, decentralized exchange protocol and modular ecosystem built on top of NEAR. It uses an on-chain order book to provide a platform complete with a risk engine, matching engine, and shared asset pools for dApps to build on top of. dApps built on the Orderly will allow for financial instruments such as:
- Spot Trading
- Margin Trading
- Perpetual Swaps
- Lending and Borrowing
Orderly Network aims to provide the most robust liquidity layer infrastructure for any dApp to utilize and build on. With the help of our incubators WOO Network and NEAR, we are able to leverage the knowledge and experience from both teams in order to achieve this vision.
There are more and more professional traders and market makers entering the DeFi space. AMMs are designed for retail traders and often don’t facilitate a more sophisticated trading strategy. Orderbook style DEXs are in high demand, however — very few of them are currently able to provide the trading experience required. Many fall short on liquidity, speed of transactions and cost of trading.
Orderly Network will offer CeFi level trading infrastructure by leveraging WOO Network’s experiences in building trading platforms and decentralized exchanges. Bootstrapping liquidity has always been a key challenge for any orderbook DEX which is why we are glad to have the support of market makers such as Kronos Research for liquidity from the very beginning. Kronos Research is one of the leading market makers in the crypto space and will be able to support our offering of deep liquidity.
To further enhance liquidity, Orderly Network will launch community lending pools where token holders are able to lend assets to market makers while enjoying single-sided liquidity provision with sustainable yields.
Current Issues and Solutions
While the on-chain trading experience has improved drastically in the last couple of years, there are still some pretty obvious issues:
- DEX trading has high gas fees, commissions, and slippage
- Pro traders rarely trade on defi — they require fast and liquid markets
- There aren’t any whitelabeling solutions for derivative DEXs
Here are some of the solutions Orderly Network will offer:
- Orderly will be integrated with bridges that will allow for smooth deposits/withdrawals from any ‘layer one’ blockchain.
- Thanks to the combination of orderbook efficiency and on-chain settlement, Orderly will offer market-leading execution with low latency and minimal fees.
- Orderly will launch with immediate access to deep liquidity thanks to some of the largest market makers in the space.
There are many added features Orderly provides in comparison to Centralized exchanges and on-chain derivatives exchanges. Our infrastructure will provide:
How Does it Work?
Orderly uses an on-chain order book built for composability. This provides a platform for modular dApps to utilize and build on. Professional market-makers ensure ample liquidity for the network at all times.
NEAR is currently one of the most scalable, fast and user-friendly layer one blockchains in space. This sort of technology is a preferred and an ideal match for supporting an order book trading platform.
NEAR is one of the faster growing layer one blockchains. As you can see below, the chain has skyrocketed with the number of total transactions. They have also just crossed 12 million active wallets!
On top of users, it’s also increasingly gaining traction with developers. Part of this is because NEAR is Rust compatible, one of the reasons Solana has attracted its developer base. On top of that, the network is incredibly cheap. This is a prerequisite for any sort of on-chain derivatives platform.
NEAR x WOO
WOO Network and NEAR can help push DEX spot and derivatives markets by combining centralized orderbook efficiency with on-chain settlement. The Orderly Network will offer market-leading order execution with low latency and minimal fees at scale.
On-chain perpetuals are quickly growing in the crypto space. However, it is still in its nascent stages compared to more well established, centralized financial platforms. As seen in the graph above, there has already proven to be a multitude of successful platforms in this sub-sector of DeFi. There have been a number of large firms who have looked to build trading platforms on Solana, utilizing protocols like Project Serum. There are specific reasons developers, traders, and investors were interested in that. A lot of those same specifics port over to building on the NEAR blockchain, including Rust compatibility, speed, low latency, and low transaction cost.
For the reasons stated above, NEAR will be a great host (in regards to layer ones) for this sort of platform. Along with a central order book model, and the deep liquidity from professional market makers, Orderly should provide a superb experience for on-chain trading.