Orderly Network is a Layer 2 cloud liquidity infrastructure that relies on smart contracts for peer-to-peer transactions and provides users with risk management and shared asset pools.
Gate.io listed Orderly Network (ORDER) trading on 10:00 AM Aug 26th, 2024 UTC. Additionally, from 10:00 AM on August 26th - 10:00 AM on September 5th (UTC), 2024, users can also participate in the Startup Mining project on Gate.io, where you can earn rewards in $ORDER tokens by staking your assets or providing liquidity.

Preface

Even though early decentralized exchanges (DEXs) had slight advantages in terms of transparency and decentralization, they struggled to compete with centralized platforms in the perspectives of liquidity, transaction speed, and user experience.
Orderly Network was born in this situation.
In response to the industry’s gap and in order to build an efficient trading ecosystem that meets users’ needs for liquidity and speed while maintaining decentralization and transparency, Orderly Network functions to combine the liquidity and trading speed advantages of CEXs while retaining DeFi’s transparency, sovereignty, and on-chain settlement features.

Mechanism

Unified Trading Architecture

Simply put, one of Orderly Network’s solutions to the illiquidity of DEXs is its innovative Unified Trading Architecture, which provides a wider pool of assets and tighter spreads by aggregating liquidity across multiple blockchains.
Traditional DEXs are normally limited to a single blockchain, which may result in liquidity being spread across different chains and not fully utilized. The Orderly Network, on the other hand, brings together liquidity from multiple blockchains (e.g. Arbitrum, Optimism, Polygon, Base, etc.) into a unified Orderbook through cross-chain liquidity aggregation.

Pic from https://orderly.network/
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, and also enables smaller spreads between buy and sell orders, allowing users to trade closer to market prices and reduce slippage.

The Orderbook

Orderbook Mechanism
In addition, Orderly Network adopts a unified orderbook mechanism whereby users can conduct transactions on different blockchains, but all transactions are managed in the same Orderbook.
This mechanism eliminates the need for bridging operations that users typically face when conducting cross-chain transactions, which makes cross-chain transactions more seamless and efficient.
By centralizing liquidity into a unified platform, Orderly Network effectively reduces liquidity fragmentation and improves overall market depth and trading efficiency.
The Perps aggregator in the on-chain Orderbook system also records and manages all buy and sell orders in real time. Through the Orderbook, the aggregator is able to quickly match trade requests from both buyers and sellers, ensuring quick execution of trades.
One of its target audiences is leveraged traders, who can utilize perpetual contracts for long/short hedging or speculation. As the aggregator provides fast trade execution and deep liquidity, traders are able to leverage their operations with greater efficiency.

Pic from https://orderly.network/
It is worth mentioning that such an on-chain orderbook also provides a flexible and powerful infrastructure for decentralized applications (DApps).
With this on-chain orderbook, developers can leverage their on-chain orderbook to build modular DApps that can range from simple trading interfaces to complex financial instruments such as perpetual contracts, lending platforms, and more.
Additionally, Orderly Network provides plug-and-play SDKs and APIs that enable developers to easily integrate Orderbook functionality into their DApps without the need to develop complex trading systems from scratch. This significantly reduces development costs and time.
As for the users, DApps can also access real-time market prices and order-matching information through the on-chain Orderbook, providing users with an efficient and transparent trading experience. By integrating Orderly Network’s chain-wide liquidity, DApps can obtain liquidity from multiple blockchains. For example, on mainstream public chains such as Arbitrum, Optimism, Polygon, Base, Mantle, and Near, DApps can utilize the liquidity resources of the same Orderbook. In addition, such on-chain Orderbooks prioritize the efficient execution of transactions, so that users’ orders can be quickly matched and executed, thus reducing the risk of transaction delays and failures.
The choice to build on the NEAR blockchain also empowers Orderly Network. One is 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, allowing NEAR to remain efficient even as the volume of transactions on the network increases dramatically. This scalability is critical to support data-intensive platforms like Orderly Network that process large numbers of orders and transactions.
In terms of transaction speed, the NEAR blockchain has a block time of around 1 second, and transactions are typically confirmed within 1-2 seconds. This ability to confirm quickly allows Orderly Network to provide a near real-time transaction experience, reducing transaction latency and risk of failure. NEAR’s high-throughput and low-latency transaction processing capabilities are designed to ensure that the platform matches buy and sell orders quickly and that transactions are executed quickly and without network congestion.

In addition, Orderly Network also integrates with EVM and non-EVM blockchain ecosystems, supporting popular Layer 2 chains such as Arbitrum, Optimism, and Polygon PoS as well as non-EVM NEAR protocols.

Tokenomics

The $ORDER Token is the Orderly Network’s token designed to decentralize the protocol, drive network scaling, incentivize user participation, and maintain the economic stability of the platform.
Regarding the functionality of the $ORDER Token, users can pledge $ORDER Tokens to gain governance rights, earn VALOR (a measure of pledge status), increase trading and market-making incentives, and can also be used for upcoming products and future utilities in the third-party DeFi protocol.

Pic from https://orderly.network/docs/introduction/tokenomics/distribution-and-emission-schedule
The maximum supply of $ORDER tokens is 1,000,000,000. For the distribution, the community receives the largest allocation of tokens at 55% of the total supply. 13.3% of this allocation is used for retroactive airdrops to reward early backers. 15% is allocated for trading rewards to incentivize active traders. Of this amount, 13.3% of the tokens were used for retroactive airdrops to reward early backers, and 15% were allocated for trading rewards to incentivize active traders. In addition, 10% is used for market-making incentives to ensure that the platform has sufficient liquidity. To support platform building and innovation, 8.35% of the tokens are allocated to builder incentives, while a further 8.35% are allocated to the development and release of future products.
In addition to community incentives, Orderly Network also allocates 15% of tokens to strategic investors. This portion of tokens was given to strategic investors who provided financial support for the early development of the platform. Teams and advisors also receive a 20% token allocation. This token allocation is usually accompanied by a lock-up period to ensure the long-term commitment of team members and advisors. The base portion is 10% of the total supply and is used for ecosystem grants, marketing campaigns, partnership building, and $ORDER liquidity support on the Centralized Exchange (CEX) and Decentralized Exchange (DEX).

Pic from https://orderly.network/docs/introduction/tokenomics/distribution-and-emission-schedule
In terms of the token release, in the first year, 25% of the tokens will be released, primarily to incentivize early users and investors and to provide sufficient liquidity for the initial development of the platform. As the platform grows, the release percentage drops to 18.3% in the second year to gradually reduce the supply of tokens in the market. In the third year, the release ratio was further reduced to 11.7% in order to stabilize the supply in the market and prevent large fluctuations in the token price. Finally, in the fourth year, 5% of the tokens will be released.

Conclusion

Orderly Network, as a DEX, has smooth overall logic in its product design through its on-chain order book and cross-chain liquidity aggregation mechanism, providing derivative trading functions such as spot and perpetual contracts.
In addition, $Order tokens have risen more optimistically in recent days after Gate.io went online for trading and Startup’s new coin mining. All in all, with its innovative infrastructure and partnerships, Orderly Network is expected to be a major player in the future of DeFi trading.