The decentralized finance (DeFi) landscape has been marked by remarkable innovation and rapid growth over the last decade, yet it grapples with inherent challenges. Orderly Network, initially established on the NEAR blockchain, is poised to transcend these obstacles through its revolutionary omnichain transition. This move is set to usher in a new era for DeFi builders, offering a comprehensive solution to the industry’s prevailing issues.
This article is an exposé of Orderly’s landmark innovation, explaining what the current realities are in DeFi and how Orderly’s impending omnichain transition will redefine DeFi forever.
DeFi’s innovative landscape is undoubtedly one that’s experienced significant growth over the course of the years. This growth, however, has not come without its fair share of challenges and limitations. While the challenges are numerous, they mostly center around users’ lack of trust in centralized exchanges and the cumbersome nature of decentralized exchanges. Below is a summary of the core DeFi issues Orderly is tackling;
DeFi’s Usability Dilemma
DeFi’s rise has been fueled by users seeking refuge from centralized exchanges (CEXs). However, the path to decentralized exchanges (DEXs) — particularly for traders — is fraught with challenges. Latency concerns, complex interfaces, slow speeds, and security issues given the overreliance on bridges. These bottlenecks compromise the efficiency of DEXs compared to their centralized counterparts, posing a dilemma for mainstream users seeking a seamless trading experience.
CeFi Transparency Gap
While DeFi offers transparent on-chain settlement, centralized finance (CeFi) still struggles with a trust deficit. CeFi’s centralized nature means fewer public records and less visibility into transactions and operational decisions, case in point the FTX crash. This opaqueness can raise concerns about hidden risks, unfair practices, frozen assets, or even fraud. Consequently, traders might face unexpected pitfalls, highlighting the need for greater transparency and accountability in CeFi platforms to bolster trust and security.
Automated Market Makers (AMMs) serve as the heart of DeFi platforms, offering superb decentralized trading systems. However, challenges such as the lack of limit order functions, poor capital efficiency, high slippage, and impermanent losses. These limitations collectively hinder the scalability of DeFi and restrain its capacity to compete with traditional financial markets.
Orderly Network aims to merge the strengths of both CEXs and DEXs. Our dual model fuses an order book-centric trading framework with a solid liquidity layer, supporting both spot and perpetual futures orderbooks. Leveraging a hybrid and omnichain approach, Orderly Network provides the infrastructure for developers to create powerful dApps that incorporate the user-friendly orderbook features of CEXs, but with on-chain settlements and complete self-ownership. Essentially, we enable dApps that blend the efficiency and structure of CEXs with the open-access spirit of DEXs.
Orderly Network aims to solve these major challenges facing DeFi with the imminent launch of the Orderly Omnichain, currently in testnet, and soon coming to mainnet. The mainnet launch will make Orderly’s innovative solutions available to all DeFi builders across all blockchain networks, starting with the EVM ecosystem.
Orderly Omnichain offers DeFi builders the tools they need to seamlessly integrate their dApps through a simplified plug-and-play interface. Ultimately, we are working towards building the ultimate DeFi trading Lego that will position Orderly Network as the DeFi solution of the present and the future.
The key components of the Orderly Omnichain for DeFi builders include:
Orderly’s Centralized Limit Order Book (CLOB) trading infrastructure will bring in the sleek user interface of a centralized exchange (CEX). This simplifies trading experiences for traders of all kinds. — eventually becoming the backbone for institutional and retail traders. Orderly’s infrastructure facilitates high-volume, sophisticated trading strategies through a robust order book system.
Orderly addresses liquidity concerns with a commitment to deep liquidity, driven by top-tier market makers. We intend to deploy and support enhanced liquidity across blockchains through our robust omnichain journey.
Already, top dApps like WOOFi Pro currently leverage Orderly Omnichain in testnet with billions of dollars in trading volume. Overall, Orderly’s omnichain transition will ensure tight spreads, depth, and 100% uptime, setting a new standard for DeFi platforms.
In emulating the performance of CEX, Orderly offers CEX-like throughput and low latency. Users benefit from swift transaction execution while retaining the critical feature of self-custody. Thus, our omnichain infrastructure relies on a hybrid system that combines the speed and friendliness of a CEX with the composability and self-custody of a DEX.
It is no news that blockchains are siloed ecosystems that often rely on cross-chain bridges for asset transfers. Aside from the risk of asset hacks associated with bridges, the siloed nature of blockchain also has implications for cross-chain communications and DeFi liquidity. Orderly’s transformative omnichain approach unifies trading across blockchains, serving as a backend layer to support out-of-the-box development of dApps. This breakthrough enables seamless omnichain execution, marking a paradigm shift in the overall DeFi user experience.
Orderly Network sits at the pinnacle of DeFi, hence, our aim is to continually develop innovative solutions that make DeFi seamless, convenient, and accessible to users and project developers. On this note, Orderly’s Omnichain mainnet launch will transform DeFi as a whole, as it will eliminate the limitations placed on DeFi by the inherent challenges domiciled within blockchains (siloed nature of blockchains).
While Orderly Network in itself has no front-end, the launch of its omnichain infrastructure will facilitate the creation of robust dApps fitted with deep liquidity and omnichain capabilities. Ultimately, it will serve as a central point for the consolidation of blockchain interoperability and DeFi liquidity without reliance on traditional methods for cross-chain communication. This connotes a bright future for dApp developers, and especially for DeFi builders.
Orderly Omnichain delivers a simplified DeFi trading experience. Users can execute trades seamlessly across different blockchains from a single unified interface., eliminating the need for multiple accounts and convoluted bridging mechanisms.
Liquidity is often the achilles heel of many DeFi projects. Orderly Omnichain architecture consolidates liquidity. serving as a shared liquidity layer deep enough to cater to the demands of retail and institutional traders.
Lastly, by retaining the self-custody of assets on-chain, Orderly Network directly addresses the major cause of concern among many users who often have to entrust their assets to CEXs in order to enjoy an uncomplicated interface during trading. Now, DeFi can be presented without any of its complex components, offering enhanced security and transparency, while combining the best of both decentralized and centralized exchanges (the very pillars of DeFi).
Orderly Network’s Omnichain transition marks a pivotal moment in the evolution of decentralized finance. By addressing the current challenges in the DeFi space and providing a comprehensive solution, Orderly is poised to become the backbone of permissionless Web3 trading and serve as the liquidity layer of DeFi — think a decentralized NASDAQ.
Orderly’s Omnichain transition is a transformative journey toward a more interconnected, efficient, and user-friendly DeFi ecosystem. As we get set to take Orderly Omnichain to mainnet, Orderly Network is poised to be the catalyst for the next epoch in decentralized finance, redefining the boundaries of what is possible in the world of blockchain and financial innovation.