Orderly Network is a DeFi platform that combines an orderbook-based trading infrastructure with a robust liquidity layer.
Unlike traditional exchanges, Orderly operates as a backend infrastructure, enabling developers and businesses to build powerful trading applications without starting from scratch. Its key innovation lies in merging the high performance of centralized exchanges with the principles of decentralization, offering on-chain settlements and self-custody of assets.
Orderly’s DEX white-label solution allows builders to create trading platforms efficiently, accessing pre-established liquidity and professional-grade infrastructure.
The platform’s vision extends to creating an omnichain protocol, aiming to seamlessly connect traders across different blockchain networks within a single orderbook.
Orderly Network’s Core Components
Orderly Network’s architecture is built on three fundamental components that work in harmony to create a powerful and efficient trading environment.
The first is its unified trading infrastructure, which ingeniously combines the benefits of centralized and decentralized exchanges. This infrastructure enables high-performance trading across different blockchain networks while maintaining the principles of decentralization, setting a new standard for cross-chain interactions.
The second core component is Orderly Network’s robust liquidity layer for both spot and perpetual futures markets. By aggregating liquidity from various sources, including professional market makers, this layer ensures efficient trade execution with minimal slippage.
The support for both spot and perpetual futures markets within the same ecosystem allows traders to implement more sophisticated strategies and manage their risk more effectively.
The third pillar of Orderly Network’s architecture is its orderbook-based system. Unlike many decentralized exchanges that use automated market makers, Orderly Network opts for a more traditional orderbook model, offering greater transparency and enabling advanced order types such as limit orders and stop-loss orders.
What sets this system apart is its implementation in a decentralized context: while the orderbook is maintained off-chain for performance reasons, all settlements occur on-chain, ensuring both speed and security.
Getting Started with Orderly Network
Getting started with Orderly Network involves a few key steps, tailored to your role in the DeFi ecosystem.
For end-users, the journey begins by connecting with one of Orderly’s partner platforms or applications that have integrated Orderly’s infrastructure.
These could be decentralized exchanges, wallets, or trading applications built on top of Orderly. You’ll typically need to connect your Web3 wallet, such as MetaMask, to the chosen platform.
Once connected, you can start trading or using the services offered by that particular application, benefiting from Orderly’s deep liquidity and efficient orderbook system.
For developers and businesses looking to build on Orderly, the process involves engaging with Orderly’s documentation and development tools. Orderly provides comprehensive APIs and SDKs that allow for seamless integration of its trading infrastructure into new or existing applications.
This might involve setting up a developer account, obtaining necessary API keys, and familiarizing yourself with Orderly’s architecture and protocols. It’s important to note that Orderly Network itself doesn’t have a direct user interface; instead, it powers the trading experiences on partner platforms.
The $ORDER Token
The $ORDER token is the lifeblood of the Orderly Network ecosystem, designed to align the interests of various stakeholders and drive the platform’s growth and decentralization.
As an ERC-20 token on Ethereum and an Omnichain Fungible Token (OFT) on other chains, $ORDER serves multiple crucial functions within the network.
Primarily, it acts as a governance token, allowing holders to participate in key decisions about the platform’s future through a decentralized governance process.
Staking $ORDER tokens generates VALOR, which represents a user’s stake in terms of amount and duration, entitling them to a share of the protocol treasury.
For traders, staking $ORDER boosts their trading rewards, while market makers can increase their share of market-making rewards through staking.
The token’s utility extends to various aspects of the Orderly ecosystem, including potential use in upcoming products and third-party DeFi protocols.
With a maximum supply of 1 billion tokens, $ORDER’s distribution is carefully structured to support long-term growth, with allocations for community incentives, strategic investors, team members, and ecosystem development.
Users can acquire $ORDER through various means, including participation in trading activities on Orderly-powered platforms, contribution to liquidity provision, or through secondary markets once the token is publicly traded.
Trading on Orderly Network
Trading on Orderly Network offers a unique blend of centralized exchange performance with decentralized finance principles. At the heart of Orderly’s trading system is its orderbook, which aggregates liquidity from various sources to ensure deep markets and efficient price discovery.
Unlike many DeFi platforms that use automated market makers, Orderly’s orderbook allows for limit orders, market orders, and even advanced order types like stop-loss and take-profit orders, giving traders greater control over their positions.
The platform supports both spot trading for direct asset exchanges and perpetual futures for leveraged trading, catering to a wide range of trading strategies.
One of Orderly’s standout features is its gasless trading mechanism, where users can execute trades without paying blockchain transaction fees for each order, significantly reducing costs for active traders.
This is achieved through a layer-2 solution that batches transactions off-chain while ensuring final settlements occur on-chain for security.
Orderly also introduces cross-chain trading capabilities, allowing users to trade assets across different blockchain networks seamlessly within the same orderbook.
When it comes to fees, Orderly employs a maker-taker fee model, often offering rebates to market makers to encourage liquidity provision. Traders can potentially reduce their fees by staking $ORDER tokens, adding another layer of utility to the native token.
Rewards and Incentives
Orderly Network has implemented a comprehensive rewards and incentives program to encourage participation and foster ecosystem growth.
At the forefront is the trading rewards program, which allocates 15% of the total $ORDER token supply to users trading on Orderly-powered platforms.
This program operates on an epoch basis, with rewards distributed over approximately 200 epochs, each lasting 14 days. The reward structure is designed to incentivize long-term engagement, with higher rewards in the initial bootstrapping phase gradually tapering off in later epochs.
Alongside trading rewards, Orderly offers a market making rewards program, allocating 10% of the total $ORDER supply to liquidity providers.
This program aims to ensure deep, consistent liquidity across all trading pairs. Both trading and market making rewards are calculated based on a combination of trading volume and $ORDER token staking, encouraging users to not only actively trade but also hold and stake the platform’s native token.
In recognition of early supporters, Orderly has allocated 13.3% of the total $ORDER supply for a retroactive airdrop.
This airdrop rewards early adopters on both EVM and NEAR chains, as well as participants in social campaigns and long-term incentive programs.
The rewards system extends beyond token distribution, with fee discounts offered to high-volume traders and enhanced rewards for those staking larger amounts of $ORDER.
Security and Self-Custody
Security and self-custody are paramount principles in Orderly Network’s architecture, blending the robustness of decentralized systems with the performance of centralized exchanges.
At its core, Orderly Network upholds the ethos of “not your keys, not your coins” by ensuring that users retain full custody of their assets at all times. This is achieved through a sophisticated system where users’ funds remain in their own wallets or smart contracts, only moving to trading contracts when actively participating in trades.
The platform utilizes advanced cryptographic techniques and secure multi-party computation to enable fast, off-chain order matching while maintaining on-chain settlement for all transactions. This hybrid approach allows for high-speed trading without compromising on security.
Orderly Network also implements a comprehensive set of security measures, including regular smart contract audits, bug bounty programs, and multi-signature wallets for protocol-owned assets.
To enhance user security, the platform offers features like customizable trading limits and optional two-factor authentication for critical operations. In the event of any security breaches, Orderly has established incident response protocols and maintains insurance coverage to protect users’ assets.
Future Developments
Orderly Network’s vision extends far beyond its current capabilities, with ambitious plans to revolutionize the decentralized finance landscape.
At the forefront of these developments is the platform’s push towards becoming a true omnichain protocol. This initiative aims to seamlessly connect traders from both EVM (Ethereum Virtual Machine) and non-EVM chains within a single, unified orderbook.
Such integration would eliminate the need for complex bridging processes, allowing users to deposit funds from any supported chain and trade effortlessly across multiple networks.
Orderly is also focusing on expanding its suite of financial products, with plans to introduce more sophisticated trading instruments like options and structured products. These additions will cater to advanced traders and institutions, potentially attracting more liquidity to the platform.
On the technical front, Orderly is continuously working on improving its layer-2 scaling solutions to enhance transaction speeds and reduce costs further.
The team is exploring cutting-edge technologies like zero-knowledge proofs to bolster privacy and security while maintaining transparency. Community engagement remains a priority, with plans to introduce more governance features and incentives for long-term token holders.
Conclusion
Orderly Network represents a significant leap forward in decentralized finance, bridging the gap between centralized exchange performance and decentralized principles.
Its unified trading infrastructure, deep liquidity pool, and orderbook-based system cater to a wide range of market participants, from individual traders to institutions.
Key features like gasless trading, cross-chain functionality, and the $ORDER token ecosystem set Orderly apart in the DeFi landscape.
The platform’s commitment to security, self-custody, and community governance ensures a truly decentralized experience.
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