CoinDesk Report:
Author: Paul Veradittakit, Partner at Pantera Capital; Translator: xiaozou
1. Background
Centralized exchanges (CEX) like Coinbase, Binance, and Kraken have flourished as the preferred choice for cryptocurrency traders, shaping much of our industry’s history. Users are drawn to these platforms primarily for their robust liquidity and compelling user experience (UX) — shortcomings well-known in decentralized exchanges (DEX) applications.
But what if there was an exchange that combined CEX’s speed and liquidity with the transparency, sovereignty, and settlement of decentralized finance (DeFi)?
Enter Orderly Network.
Orderly Network is building a trading infrastructure to address legacy issues of early DeFi applications, aggregating liquidity. Orderly creates an efficient and reliable trading ecosystem offering superior price discovery, lower slippage, deeper liquidity, and execution speeds comparable to CEX, while maintaining DeFi’s advantages.
2. Overview
Orderly is an L2 solution providing:
Order Book-based trading: Similar to CEX, Orderly uses an order book to match buyers and sellers, ensuring smooth and efficient trades.
Cross-chain liquidity: Aggregating liquidity from various blockchains, Orderly offers broader asset pools and narrower spreads.
High-speed execution: Prioritizing swift trade execution to minimize latency and friction.
Orderly uses a unified order book where users trade across different chains but within the same order book, eliminating the need for bridges.
Orderly itself plays a crucial role in enhancing overall efficiency and reliability of DeFi transactions, quickly becoming a major liquidity source for permissionless Web3 trading.
3. Key Achievements and Impact
Orderly Network has made significant waves in the DeFi space:
Total trading volume exceeding $50 billion.
Integration across six major blockchains (Arbitrum, Optimism, Polygon, Base, etc.).
Total Value Locked (TVL) surpassing $560 million.
Over 215,000 unique wallet addresses.
4. The Future of DeFi Trading
With its innovative infrastructure and strong partnerships, Orderly Network is poised to be a key player in future DeFi trading.
Key factors setting them apart from competitors include:
Cross-chain capability: Orderly supports seamless transactions across different blockchains, offering users more choices.
On-chain settlement: All transactions settle on a secure dedicated blockchain, ensuring transparency and finality.
Support for DeFi projects: Orderly provides institutional-grade liquidity for spot and perpetual contract trading.
Their collaborative ecosystem includes WOOFi, LayerZero, NEAR, Optimism, Arbitrum, Base, Elixir, Polygon, and others.