Conversation with Orderly Network Lianchuang Ran: From meme to RWA, Orderly creates “Taobao in the perpetual contract world”

Interview: Mensh, ChainCatcher

Guest: Ran, Orderly Network Co-founder

Organized by: Mensh, ChainCatcher

With the advent of the bull market in 2024 and the launch of Pump.fun's one-click coin issuance function, memecoin has become the standard bearer of the bull market, causing the entire market to go crazy. The current market value of memecoin has exceeded 100 billion. With the skyrocketing market value of memecoin, the demand for leveraged trading has surged. The memecoin perpetual contract can not only solve transaction needs, reduce friction costs and improve security, it has become a hot target. Major exchanges are rushing to launch the latest memecoin perpetual contract. However, compared to centralized exchanges, players prefer decentralized exchanges with higher odds and more diverse gameplay .

Among them, Orderly Network, as the main force in issuing memecoin perpetual contracts, has chosen to compete differentiatedly with dYdX and Hyperliquid by building a cross-chain order book, aiming to become an infrastructure that breaks the boundaries of transactions and allows users to trade on any chain at any time. Can be traded easily.

Just like Taobao provides a platform for merchants and consumers to interact, Orderly provides an infrastructure, and different liquidity providers and decentralized exchanges are the suppliers, buyers, and sellers who settle on Taobao. In addition, Taobao is not only a simple buying and selling platform, it integrates multiple functions such as payment, logistics, and customer service. Similarly, Orderly provides functions such as risk engine, matching engine and shared asset pool, providing dApp with comprehensive financial instrument support, such as spot trading, leverage trading, perpetual contracts and lending.

In addition, Orderly aims to provide efficient liquidity by working with professional market makers to ensure that its network has sufficient liquidity to support transactions, similar to how Taobao ensures that there is sufficient supply of goods in the market. At the same time, Orderly Network is committed to reducing transaction delays and costs, and providing execution efficiency close to that of centralized exchanges.

The most important thing is that Orderly is an open market like Taobao, and anyone can become a "seller" or "buyer". Orderly Network also supports multiple blockchain networks, providing a wider market and higher liquidity.

Just as Taobao aims to "make it easy to do business anywhere in the world," Orderly Network integrates the liquidity of assets across the entire chain, allowing decentralized exchange platforms or products with liquidity needs to solve the fragmented liquidity problem in one stop. The in-depth and cross-chain issues are designed to make transactions easy in the world.

On January 10, 2015, Solana ecosystem Dex Raydium announced its integration with Orderly Network and launched a beta version of perpetual contract trading driven by Orderly's full-chain order book. Raydium has 8.4 million active users, including more than 600,000 daily active traders, and will provide strong support for the Orderly platform.

Currently, Orderly has deployed 10 chains including Solana, Near, Polygon, Arbitrum, Optimism, Base and Mantle. Up to now, Orderly has launched the perpetual contracts of more than 80 assets including BIO, RUNE, PENGU, TURBO, AI16Z, etc., and the total trading volume has exceeded 90 billion US dollars.

This time, Chain Catcher was fortunate enough to invite Ran, CEO of Orderly Network, and chat with him about the market performance after the cooperation with Raydium, Orderly’s upcoming multi-asset pledge and the chassis pool mechanism that brings more trading freedom to retail investors.

**Solana is the most powerful provider of perpetual contract trading

needs in the ecosystem.**

ChainCatcher: Orderly and Radium have just reached a cooperation on liquidity integration. Can you introduce this cooperation in detail?

Ran: The tradable perpetual contracts on Raydium are provided on Orderly. They become our dealers. Raydium is the largest decentralized exchange on Solana, and is naturally also the center of meme perpetual contracts. There are now nearly 30 meme perpetual contracts on Raydium. AI agents, WIF, and AI16Z, which have attracted widespread market attention recently, already have perpetual contracts.

ChainCatcher: From the data point of view, is there any performance that exceeds expectations?

Ran: The trading volume of AI16Z exceeded expectations. The volume was not large before the launch of the perpetual contract, but now it is very large. Overall, the results of the cooperation are very gratifying. With the support of Orderly, Raydium launched the perpetual contract in less than a month, with a trading volume of more than 14 million, which is basically increasing every day. Its TVL is also increasing every day. The number of its users has also grown significantly. Without any marketing, the data was very good in just a few days. We will do more activities in the future .

ChainCatcher: What is the significance of this cooperation to Orderly?

Ran: As the largest decentralized exchange on Solana, Raydium is equivalent to a powerful customer acquisition portal. For people who buy the Solana meme, when they want to increase leverage, go short or hedge, the first thing they think of is Raydium.

At the same time, we will also cooperate with more decentralized exchanges on Solana. We will eventually build a liquidity infrastructure. Anyone who wants to integrate our liquidity can integrate our SDK and achieve automation without permission, so that more and more front-ends will use our infrastructure and liquidity.

**Stay innovative and seize the huge growth space of meme perpetual

contracts**

ChainCatcher: Could you please introduce the memecoin perpetual contract on the Orderly platform?

Ran: We started to list memecoin perpetual contracts very early, and now there are 20 memecoin perpetual contracts on the platform, including the most popular Wif, Popcat, and Peanut on Solana. We are usually the first DeFi company to list these popular memecoin perpetual contracts. platform.

Orderly is currently supported by about 40 market makers, such as Wintermute and Selini, and they have strong skills in providing liquidity. We can quickly capture a new asset and provide liquidity to it. Our current public asset listing mechanism is: fully diluted valuation (FDV) above US$20 million, three price feed sources, and liquidity providers. Our goal is to make a permissionless perpetual contract like Uniswap, allowing anyone to easily list any asset.

---

ChainCatcher: Amid the meme hype, what new ways can meme perpetual contracts bring to investors?

Ran: Everyone likes memes. Some people like certain animals or concepts because of a sense of belonging. Some people feel that memes are very volatile and very exciting. All meme perpetual contracts, especially newly listed assets, may increase more than ten times in a short period of time. Perpetual contracts can meet the further liquidity needs of the market and provide leverage for different emerging spot assets.

Meme perpetual contracts have higher traders, trading volume, and participation than perpetual contracts of other assets. Because the overall meme user base is larger and more active.

From Pump.Fun to Raydium, when the market value of assets is only a few hundred thousand, there is no need for perpetual contracts. There is no need for short selling, and investors prefer to buy spot stocks directly. But when the market value of assets reaches 20 million or even 100 million US dollars, traders begin to have demand for derivatives.

When the trading volume of an asset increases, various gaming requirements will appear, such as market making in quantitative trading, or arbitrage of funding rates, or leveraged long or short selling. The law of market development is that when the trading demand for an asset continues to develop, there will be demand for derivatives, and we must quickly meet this demand. Memecoin is just one of the popular asset classes. In the future, more assets will be like memecoin. From the initial spot listing only, to the demand for perpetual contracts as the market value grows.

Taobao in the perpetual contract world , **with the fastest launch of

on-chain assets and the deepest liquidity**

ChainCatcher: Orderly Network is not only an exchange, but also a platform like Taobao. Can you elaborate on the logic behind the analogy?

Ran: We can understand Orderly as "a liquid Taobao platform in the Web3 field". We provide an integrated and convenient trading environment that allows various trading activities to proceed smoothly, allowing buyers, sellers and liquidity providers to find each other, match needs, and conduct efficient and secure transactions. Trading users are buyers, and brokers are like sellers' stores on Taobao. They open a store on the Orderly platform and use the resources and infrastructure provided by the platform to provide users with various trading services. And WooFi, which we focus on cooperation with, is similar to Tmall Mall. On WooFi, users can find higher quality goods and services.

For users, they can choose their preferred chain to interact to avoid cross-fund losses. Users always control their own funds and can experience transactions supported by strong liquidity; while for ecological decentralized exchanges and developers, they can Utilize the liquidity of the platform to develop more comprehensive financial products to meet user needs; for project parties, they can obtain resource support from decentralized exchanges and market makers on the Orderly platform, list perpetual contracts, and increase transaction scale.

ChainCatcher: Crypto market maker Wintermute once said that compared with other decentralized exchanges, Orderly Network has the best liquidity in DeFi perpetual contracts. Can you share your advantages and characteristics in this regard?

Ran: We have focused on liquidity from the beginning, because we are building the underlying infrastructure and liquidity layer, deploying it on multiple chains, and creating a shared order book, which means that merchants on our platform can directly provide cross-chain transaction services.

In addition, we have 40 market makers providing liquidity, and the platform provides them with various incentives, such as setting up a proprietary fund pool to share the revenue with market makers in the form of tokens. At present, this pool is mainly aimed at professional market makers. In the next step, we will also launch a pool for individual investors. Anyone can provide liquidity, and professional market makers call these funds and share the profits to thicken the liquidity.

Moreover, based on our previous experience and background in exchanges, we can determine who is the best market maker and who is most capable of providing liquidity for each asset. Specifically, I am the co-founder of WOO, and we worked closely with WOO in the early days. Different market makers specialize in different areas, which also needs to be understood. For example, some market makers are only good at market quotations, which can generate a large trading volume, but they do not have the ability to provide depth; some market makers mainly do arbitrage, but we should pay attention to the excessive arbitrage in some of them. situation, although it generates large trading volumes, it hurts liquidity. Based on the different styles of different market makers, we will set up certain defense mechanisms and incentives to encourage them to "effectively make markets."

**The competitive landscape of decentralized exchanges has changed

drastically. On-chain perpetual contracts are about to explode.**

ChainCatcher: Why can Hyperliquid achieve such a high volume this cycle?

Ran: Hyperliquid does a few things well. In terms of products, it has innovated the HLP vault, and its own team is a major market maker. HLP user funds can be used to make market transactions. This mechanism attracts many people. In addition, its products are very simple. Using other people's funds placed in the robot to make markets will bring good liquidity, which will become a virtuous cycle. Hyperliquid has also launched some innovative products, such as its spot auction system.

But on the other hand, this product also has a certain ceiling. Currently, Hyperliquid's spot exchange only lists Hyperliquid's native assets that meet the HIP-1 standard. This means that the quality of the tokens in its ecosystem may not be particularly high.

ChainCatcher: Compared to Hyperliquid, what are the competitive advantages of Orderly Network? What are the similarities and differences between the two?

Ran: Our biggest difference is that Hyperliquid is building a chain that allows everyone to go on this chain, whether it is for development or trading. We build a managed smart contract on each chain, and the user's assets can be kept on the original chain. Our current model is to empower mainstream applications on each chain so that they can call our existing perpetual contracts product.

Our advantage is that users can stay on their own chain without transferring assets to other chains. Of course, we also have a chain, but this chain is used for settlement, which reduces friction costs for users and improves efficiency. Security. Moreover, Hyperliquid only has four verification nodes, which is actually very centralized. We are more decentralized.

We currently only support U as margin. When we support more assets as margin in the future, the advantages will be more obvious. Our goal is to create a DeFi with the same user experience as Binance. Any user can deposit and withdraw local assets and support multi-chain experience. At the same time, everything is transparent and on-chain.

ChainCatcher: What do you think of the future development of perpetual contracts? What was not done well before? What can be improved on the product in this cycle?

Ran: There is very, very huge room for development of perpetual contracts. Decentralized perpetual contracts account for 3% to 5% of centralized perpetual contracts, with Hyperliquid leading the way now. In the past, only dYdX and GMX were doing perpetual contracts, but now there are many different players, and the products are getting better and better. Generally, within a reasonable range, the ratio of perpetual contract trading volume to spot trading volume should be approximately 3: 1 to 4: 1. It’s probably similar in DeFi. Calculated based on this ratio, the recent DeFi daily spot trading volume is 13 billion US dollars, and the perpetual contract is only 10 billion US dollars. The reasonable size of the perpetual contract should be 40 billion US dollars, but even 40 billion US dollars only accounts for 6% of CeFi ~ 10%, so this space is very large, and the spot and perpetual contracts on the chain will definitely develop faster.

In this cycle, the pricing power of many spot assets has already occurred on DeFi, and most of the trading volume and liquidity are on Raydium. In the last cycle, the price discovery of any coin was on CeFi. Small coins were launched on Matcha, Gate.io, and later on Binance. However, with the iteration of products and wallets, the market share of decentralized exchanges continues to increase, and the next stage is the explosion of perpetual contracts.

But perpetual contracts also require some innovations, such as machine gun pools or perpetual contracts that have many assets that cannot be listed on CeFi, or are faster than those on CeFi, or are self-listing.

Committed to becoming the “preferred trading infrastructure”

ChainCatcher: How did you go from traditional finance to WOO and then start Orderly Network?

Ran: I first did bond derivatives in the United States, and then returned to China to do private equity. I have always had a trading background. In 2018, two of my college classmates who were working on Kronos recruited me to join them, and I chose to become CEO and partner with them. Kronos is currently a high-frequency trading company, and this is our first company.

We established WOO in 2019. We started as a dark pool, which is equivalent to an institutional exchange. At that time, we felt that the infrastructure of the exchange was too poor, so we might as well try it ourselves. Then we started WOO, and now it has become A 2C exchange.

After DeFi Summer, WOO launched a product called WOOFi. WOOFi's daily trading volume now reaches hundreds of millions of dollars, and its contracts are built on Orderly.

I believe that DeFi is the next iteration of finance. The migration of investors from CeFi to DeFi will become a trend, and finance will become more and more decentralized, whether it is a chain or a wallet. In the future, most of the infrastructure for cryptocurrency transactions will be placed on the chain and in DeFi, whether it is spot or contract. After DeFi spot trading became popular in 2021, we felt that the next stage of the order book should be perpetual contracts, so we incubated Orderly with Near.

ChainCatcher: What are Orderly Network’s short-term priorities and long-term roadmap?

Ran: Orderly’s long-term roadmap is to become a preferred trading infrastructure. Different transactions may involve Orderly’s infrastructure, although users may not have direct contact.

Any APP with transaction needs can easily access Orderly. Like Taobao, merchants will find us to open an account at the transaction and liquidity layer, and then it is owned by the community. Any contributor can be a stakeholder and all receive the incentives they deserve. We will share 60% of the handling fee with token holders, and it may be 100% in the future. Then they will govern it. However, governance has not yet been launched, but Orderly will definitely become more and more decentralized.

In the short term we plan to launch some core products. One is the machine gun pool, which allows anyone to initiate and raise funds from the user side, and its funds can be traded on Orderly, or even traded on other platforms through custody. Produce various sources of income, which are used to improve our liquidity and trading volume, so that ordinary investors can obtain relatively generous income. This feature is planned to be rolled out in late January or early February. The second important product is multi-asset mortgage, which can receive more assets as margin, and these assets can earn interest on Orderly.

Our ultimate goal is to make asset issuance simple, automated, and transparent. Based on the established mechanism, anyone can list any asset for everyone to trade.