Introduction

Quick TLDR first:

Orderly Network is an EVM chain built using the OP stack and Celestia for DA. The chain comes with pre-built tooling and powerful SDKs to easily launch a perp DEX. In addition to the SDKs, the chain itself is a liquidity layer so a project will have immediate liquidity from day one.

It uses an on-chain order book to provide a platform complete with a risk engine, matching engine, and shared asset pools for decentralized applications(dApps) to build on top of.

Key Features

There are many added features Orderly provides in comparison to Centralized exchanges and on-chain derivatives exchanges. Our infrastructure will provide:

• Highest throughput + lowest latency in DeFi
• Best top-of-book liquidity in DeFI
• Low fees and tight spreads
• Access to deep, aggregated liquidity from DeFi and CeFi platforms
• Composability
• Platform-wide community pool
• Strong tokenomics:
  • 60% of net fees to stakers in USDC!
  • Huge benefits for traders & market makers
  • Omnichain via LayerZero_Labs
  • OFT Standard
  • Key role in governance

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.

Okay, now that you have a quick overview, let’s dig deeper into the rabbit hole.

Centralized exchanges (CEXs) have long dominated the market for crypto trading venues. But what if we could merge their friendly UIs with DeFi’s transparency and sovereignty?

Orderly Network is an L2 delivering a permissionless liquidity layer for Web3 trading, with one shared orderbook across different blockchains — powered by Orderly Chain and LayerZero. Essentially, they sit at the backend providing the necessary liquidity and robust infrastructure support for efficient permissionless trading.

Orderly provides an orderbook-based trading infrastructure and unified liquidity for numerous DEXs/brokers, while facilitating a unified clearing and settlement on the Orderly Chain.

To deliver this powerful functionality, Orderly built the Orderly Chain on the OP Stack, harnessing Celestia’s data availability and LayerZero’s cross-chain messaging protocol.

Their mission is to empower trading on any chain, on any asset, and on any interface.

Orderly Network addresses liquidity challenges that plague DeFi by converging all orders into the same orderbook across multiple chains. DeFi pales in leveraged trading volumes compared to its CeFi counterparts, majorly due to the fragmented liquidity, leading to inefficiencies in perps trading.

With an omnichain liquidity guaranteed, Orderly establishes a chain-agnostic liquidity landscape that improves trading efficiency, delivers deeper liquidity, tighter spreads, and unlocks cross-netting capabilities previously unavailable in DeFi, similar to the function of a CME in TradFi.

Central to achieving this is the Orderly Chain, which serves as the settlement and ledger for all transactions (i.e. transaction data, user data balances, and trading data) on Orderly Network, maintaining seamless operations even in the unlikely event of a downtime to the matching engine orderbook.

This resilience means that brokers on Orderly Network can confidently manage trading positions and user balances, ensuring uninterrupted service.

It facilitates liquidity, and aids in clearing and settlement matters for various DEXs, all while upholding the transparency and decentralized nature of blockchain and DeFi. This approach eliminates numerous cross-chain challenges and risks.

Orderly enables DEXs/brokers on different chains to access a unified liquidity pool. Currently, it supports 6 chains, including Near, Polygon, Arbitrum, Optimism, Base, and Mantle.

If you want to see a quick video that explains Orderly Network in 1 min, then click here or watch below.

Unique features

Orderly launched its Omnichain SDK, which offers a robust and expansive platform tailored for EVM developers, streamlining the creation of perpetual protocols and sophisticated trading tools. This toolkit is akin to a plug-and-play set, offering the flexibility and simplicity of Lego blocks. It empowers developers to construct orderbook-based Perp DEX with precision and ease, significantly reducing development time and effort for web3 teams.

Orderly Merits Campaign: The Road to the Order

As part of the build-up to our token launch, Orderly Network introduced “The Road to the Order’’ campaign, a gamified initiative designed to engage and reward active traders with “Merits.” Currently in its X epoch (week), this campaign allows traders to earn “Merits” with every trade, contributing to their portion of the upcoming airdrop this summer, post-TGE. Users can track their Merits, ranks, and history through a dedicated webpage upon connecting their wallets.

https://app.orderly.network/

The campaign has already attracted over 57,000 weekly active traders, spread across six tiers of active trading within the Orderly Merits program.

Tokenomics for the $ORDER token

The token will launch now in August, more details on their token – including the exact launch date, emissions, process for claiming, and more – will be shared soon.

One billion $ORDER will be created at genesis. Fifty five percent will be reserved for ecosystem development (including the airdrop), 20% for the Orderly team & advisors, 15% to strategic investors, and 10% retained in the Orderly Foundation treasury to foster exchange liquidity and related endeavors. Out of total supply, 13.3 percent is allocated for the airdrop.

PS! The entirety of the airdrop will be unlocked immediately at TGE.

Staking

Once the Orderly Network token is launched, tokenholders will be able to stake the Orderly token, and in return, will cumulatively receive 60% of our net trading fees in return.

To date, Orderly has generated more than $8 million in net fees (even after accounting for our frontend builders’ share) – after TGE, 60 percent of those new net fees will continually accrue to Orderly stakers. Staking rewards will be paid out in USDC when redeemed.

Staking the Orderly token will also provide extra rewards for any traders utilizing an Orderly Network-integrated DEX, as well as being a key factor in the calculation of both trading and market making rewards moving forward.

Governance

Similar to many other decentralized projects, Orderly Network plans to split into a developer entity, and a foundation overseeing the protocol.

Launch plans for 2nd Half of 2024

• Isolated Margin: Introducing Isolated Margin to our platform brings focused risk management and enhanced trading flexibility. This feature allows traders to allocate specific amounts of margin to individual positions, limiting potential losses to the margin assigned to each trade. It promotes precise control over risk exposure and enables strategic use of leverage, ensuring a safer and more tailored trading experience.
• Multi-Collateral: Adding Multi-Collateral functionality elevates our platform’s versatility and inclusivity. Traders can now use a variety of assets as collateral for their positions, enhancing liquidity and enabling more strategic, diversified trading approaches. This feature broadens access to our services, allowing users to leverage their entire portfolio, not just a single asset type, for a more efficient and flexible trading experience.
• On-Chain-Oracles: By integrating On-Chain Oracles, we enhance our platform’s reliability and security beyond traditional CEX-based pricing. These oracles ensure continuous, transparent, and diversified data sources for pricing, acting as a dependable backstop against single-source vulnerabilities. This advancement means stronger protection and greater confidence for our users in every transaction.

Orderly Network Stats:

• $75 billion in cumulative trading volume with 400,000+ onchain users
• 286,201 unique wallets and 413,942 total accounts
• Vaults deployed on 7 chains: NEAR, Polygon, Arbitrum, Optimism, Base, Eth Mainnet and Mantle
• Over 19 DEXs built on it
• Makes up 28% of all LayerZero messaging and 35% of Celestia’s volume
• Orderly is consistently in the top 5 of DeFiLLama, our daily trading volumes also consistently hit over $1B

Background and how the Orderly Network team got together

The founders, Ran and Terrence, are seasoned professionals with over 25 years combined experience in global asset management and technical expertise in TradFi. Ran, having witnessed the 2008 financial crisis first-hand, carried a skepticism for traditional banking systems without any real solution in sight. That was until Bitcoin’s emergence. Quitting TradFi, he delved into the world of crypto.

Driven by a shared skepticism of centralized exchanges as it was effectively bringing a Tradfi solution to crypto, Ran and Terrence co-founded Orderly with a mission to bring a centralized exchange experience to DeFi. Although CEXs deliver a seamless user-experience compared to their DeFi counterparts, they aren’t really inline with what crypto was supposed to be achieving as it carried over the opaqueness of TradFi systems.

A few months after launching Orderly, FTX went down. Once again, Ran encountered the problem of opaque financial systems, this time in the crypto industry. FTX’s bankruptcy fueled the drive even more.

Ran, the co-founder, was once asked in an interview: “How do you see Orderly transforming the DeFi space?”

“Orderly tackles several issues. First, it addresses fragmented liquidity across chains and poor performance in terms of speed and costs in the DeFi sector. The objective is to blend DeFi’s transparency with the user experience of CeFi, streamlining integration for developers. This strategy could lead to a more cohesive and effective DeFi ecosystem.”

During the seed round, Orderly secured $20 million in investment from renowned institutions such as Pantera, Sequoia China, Laser Digital, Dragonfly, and Jump.

Today, Orderly has become one of the largest liquidity sources for Web3 trading while delivering CEX-like trading experiences for DeFi traders.

Conclusion

Orderly Network is a Layer 2 (L2) solution offering:

• Orderbook-based trading for efficient matching.
• Omnichain liquidity from various blockchains.
• High-speed execution to minimize delays.

Orderly Network combines the speed and liquidity of CEXs with the transparency, decentralization, and instant settlement of DeFi, addressing early decentralized applications’ pain points.

With a unified orderbook, Orderly eliminates the need for bridging completely.

TLDR: Liquidity fragmentation happens when assets and trading volumes are spread across different Layer 2 solutions. This poses a considerable challenge in the Ethereum ecosystem, and similar issues could arise on other blockchain networks.

Orderly Network aims to address this challenge by unifying liquidity across various Layer 2 solutions while maintaining a balance between scalability, security, and decentralization.

Disclaimer：

1. This article is reprinted from [The Black Swan]. All copyrights belong to the original author [Route 2 FI]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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