The Future of DeFi Trading on NEAR: Unlocking the Power of Perps
Ref Finance envisions itself as the ultimate DeFi hub tailored specifically for the NEAR ecosystem. Embarking on its journey as a decentralised exchange (DEX), Ref Finance has meticulously refined its operations within the DEX realm, exemplified through the evolutionary Ref v2 DL-AMM framework to provide concentrated liquidity for higher capital efficiency. Building on this foundation, Ref has ambitiously broadened its horizons to encompass the lending/borrow money market domain. This expansion has been magnified through the strategic acquisition of Burrow, a paramount lending project within the NEAR ecosystem.
Ref is unwavering in its pursuit of excellence, consistently pushing the boundaries of innovation. This commitment is vividly showcased through the recent collaboration with Orderly Network. By seamlessly integrating with and forging partnerships within the Orderly Network, Ref is poised to introduce perpetual futures trading to the NEAR landscape.
In summary, Ref’s trajectory encompasses not only its role as a pioneering DEX of the Near ecosystem but also its strategic foray into lending, bolstered by the acquisition of Burrow. This path culminates in a profound synergy with Orderly Network, as Ref introduces the realm of perpetual futures trading to the NEAR ecosystem, starting with 3 assets: NEAR, ETH, BTC.
This multifaceted evolution underscores Ref’s dedication to shaping a comprehensive and cutting-edge DeFi ecosystem on the NEAR blockchain.
Understanding Perpetual Contracts: A Game-Changing Trading Mechanism
Perpetual Contracts, or Perps, are contracts between two parties where the long side pays an interim cash flow, known as the “funding rate,” to the short side. The short side, in turn, rewards the long side based on the timing of entry and exit prices of the futures contract. Perps offer several advantages over traditional spot trading, including bidirectional trading, leverage, and enhanced liquidity.
Unlike spot trading, where traders can only profit from price appreciation, Perps allow traders to profit from price fluctuations in either direction. This bidirectional trading mechanism provides increased flexibility and potential for profit.
Perps offer greater capital efficiency through leverage. Traders can open positions with a fraction of the required capital compared to spot trading. For example, with 10x leverage,assuming a Bitcoin price of $30,000, a trader can open a position equivalent to 1 BTC with only 3,000 USDC.
The futures market generally has higher trading volume than spot trading, resulting in deeper liquidity. This increased liquidity ensures minimal price impact and allows traders to execute orders more efficiently.
Orderly Network: Powering DeFi with Perpetual Futures
Orderly Network plays a pivotal role in enabling the seamless integration of Perpetual Futures into the DeFi ecosystem of Near Protocol. They provide a highly-efficient off-chain oracle, improve oracle functionality through a combination of off-chain efficiency and upcoming on-chain solutions, promote transparency and security through on-chain documentation, revolutionize liquidations, and enhance scalability.
Orderly is building the ultimate trading lego for seamless dApp integration. They are transforming DeFi by combining the transparency and composability of DEXs, with the speed and performance of CEXs, with the ease of use Ref’s UI enables. The Orderly team, boasting both a robust background in market making and a profound knowledge of crypto, offers deep insights into trader needs.
The world of Decentralized Finance (DeFi) is rapidly evolving, with developers constantly seeking innovative tools to drive the industry forward. One of Orderly’s signature offerings is perpetual contracts, commonly known as “Perps”. Perps now occupy over 80% of total crypto trading volume.
Highly-Efficient Off-Chain Oracle
Orderly Network utilizes an off-chain oracle to ensure high-frequency and accurate pricing. This oracle aggregates price feeds from multiple centralized exchanges, mitigating the risk of market manipulation and providing reliable market data for developers.
Oracle Improvement: Off-Chain Efficiency and On-Chain Solutions
In addition to their off-chain oracle, Orderly Network is actively exploring the incorporation of decentralized oracles. This combination of off-chain efficiency and on-chain solutions helps mitigate common issues associated with fully decentralized oracles, such as toxic arbitrage risks.
Transparency and Security: On-Chain Documentation
Orderly Network promotes transparency by documenting all transactions on-chain. This eliminates the need for blind trust, allowing users to easily verify and validate the integrity of transactions. By adopting on-chain documentation, Orderly Network fortifies the security and trustworthiness of their platform.
The Advantages of Offering Perpetual Futures
Perpetual Futures contracts, or Perps, have already captured a significant market share, accounting for 75% of all crypto trading volume. By offering Perps, platforms can tap into this established market and attract a wide range of traders. Additionally, the futures market generally outperforms spot trading in terms of volume, providing deeper liquidity and more trading opportunities for users.
Orderly’s PerpMaster SDK: Rapid Deployment of Perpetual Futures
Orderly Network offers the PerpMaster SDK, a powerful tool that enables developers to rapidly deploy Perpetual Futures contracts into their decentralized exchanges (DEXes). With this SDK, DEX builders can seamlessly integrate advanced trading options and enhance the functionality of their platforms.
Why DEXes Choose Orderly Perps: Ref at the forefront
DEXes opt for Orderly Perps due to the reliability of their off-chain oracle. By leveraging Orderly’s off-chain oracle, DEXes can access reliable market data and protect their platforms against market manipulation. This ensures a robust foundation for decentralized applications (DApps) built on these DEXes.
Ensuring Trust with Full Transparency
Transparency is a fundamental principle in the DeFi ecosystem, and Orderly Network fully embodies this ethos. They document all transactions on-chain, guaranteeing full transparency and easy verification. By implementing price range and price scope limits, Orderly Network ensures fair and secure trading, protecting users from market manipulations.
Scalability is key
Scalability is crucial for the long-term success of any DeFi application. Ref Finance and Orderly Network addresses this need by supporting pairs with high open interest, ensuring liquidity providers are protected from significant losses. This scalability unlocks the full potential of DApps built on Orderly Network, allowing them to thrive in high-demand situations. As well as promoting more liquidity pairs to LPs and assets to trade on Ref’s UI.
Tap into our Robust Liquidity Layer and Network of Market Makers
Orderly’s Perps not only offer advanced trading features but also provide a robust liquidity layer. This ensures smooth operation and deep liquidity for DApps even during periods of high demand. Additionally, Orderly Network has an insurance fund and Auto-Deleveraging (ADL) mechanisms in place to prevent insolvency and protect users from market volatility.
Security is of paramount importance in the DeFi space, Ref Finance and Orderly Network prioritizes it. Their platform is architected with robust security measures to safeguard against potential threats. Both platforms have undergone stringent audits by reputable cybersecurity firms, including BlockSec, DeFi Safety, and other industry-leading security audit companies. These audits validate the security of the platform, providing confidence to developers, traders and users to build and utilize Ref Finance and its partners.
Accessible on Ref, Powered by Orderly
The collaborative effort between Ref Finance and Orderly Network to introduce a groundbreaking perpetuals (perps) trading platform marks a significant milestone in the realm of decentralized finance (DeFi). This strategic partnership brings together the strengths of both platforms to create a sophisticated trading ecosystem that caters to the evolving needs of crypto traders and investors.
The partnership between Ref Finance and Orderly Network also holds promise in terms of addressing some of the key challenges facing existing DeFi platforms. Scalability and security concerns have often hindered the mass adoption of decentralized exchanges and trading platforms. By leveraging Orderly Network’s advanced blockchain infrastructure, the collaborative project intends to provide a seamless trading experience that is not compromised by issues related to network congestion or vulnerabilities.
Ref Finance’s collaboration with Orderly Network in introducing Perpetual Contracts, or Perps, signifies a transformative step in the evolution of DeFi trading for the Near ecosystem. With a focus on enhancing trading mechanisms, Perps bring bidirectional trading, leverage, and heightened liquidity, outshining traditional spot trading approaches. The integration of Orderly Network’s highly-efficient off-chain oracle, transparent practices, innovative liquidation strategies, scalability, and robust security protocols underscores their influential role in the DeFi arena. Thus, Ref Finance perpetuates its strong market positioning with key ecosystem partners to keep on building the DeFi space in a secure and accessible manner.
Ref Finance does not endorse or promote any of the projects, platforms or cryptocurrencies mentioned in this blogpost. Any descriptions of functionality and services provided are for information only. Ref Finance is not responsible for any loss of funds or other damages caused as a result of using the projects, platforms or cryptocurrencies described above.