Reya Network: What do we do differently?
Reya Network redefines the DeFi fundamentals, introducing unique innovations poised to transform its future. Rather than viewing the DeFi revolution solely through the lens of dApps, it presents a narrative centred around DeFi infrastructure and overcoming the current hurdles to development.
The main pain point Reya Network addresses are vertically integrated applications that segment liquidity and allocate capital inefficiently, and generalizable rollups constraining performance and user experience.
Reya takes both a modular and holistic approach here. Modularly by splitting it into a series of trading specialized components; but holistically by designing them in tandem so that they remain composable and integrated. Uniquely, Reya creates a blend between the financial and the technological layers, truly reimagining DeFi foundations.
The application layer can be liberated by creating an autonomous, specialized and optimized infrastructure solving liquidity, capital efficiency and performance issues of modern DeFi.
Let’s dive deeper into each aspect.
Liquidity
One of the major flaws of modern DeFi structure is fragmentation of liquidity between various chains and protocols. The biggest percentage of liquidity usually goes to the first-movers or the most marketed DEXes on each chain, while less established protocols have to work hard for their share of the market.
Liquidity fragmentation is not only a question of interoperability between chains, but also between applications. And vertically integrated apps are an obstacle to that.
We see Reya as the Liquidity Network in the sense that it creates the environment where dApps have instant access to liquidity of the whole Network from day 1. So instead of starting from scratch and competing for liquidity, each new exchange can offer perks to its users and further enrich the ecosystem.
This is possible due to various features aggregated in Reya’s liquidity layer that are also bolstered by blending liquidity in the network with trading liquidity, making it work double for both pooled security and trading conditions.
Reya Network attacks the problem of fragmented liquidity from both the chain and the application sides.
First of all, Reya’s chain layer itself offers a neutral meeting point for liquidity as we deploy our own modular L2 working towards achieving full interoperability.
Secondly, Reya Network works as a decentralized clearing protocol where:
- DEXes can share instrument logic and ownership, ensuring interoperability
- Users can consolidate all their positions into the same clearing mechanism (margin account) across all markets and exchanges deployed on Reya Network
In practice it means that users can easily and efficiently test any competitive new feature by trading on a DEX without the need to move capital at all, as their liquidity is available to any DEX on the Network. This organically keeps the internal competition between protocols but takes liquidity fragmentation out of the picture.
Capital efficiency
Capital efficiency is another cornerstone of DeFi trading that Reya Networks takes up a notch.
We figured out a way to provide up to 3.5X capital efficiency for traders and up to 6X for LPs, safely, including the most advanced margin engine in crypto to our Network design.
Reya’s clearing mechanism connects the liquidity across all networks, making the Liquidity Network possible.
By consolidating all their positions into a single margin account across all markets and exchanges deployed on Reya Network users can:
- Offset losses from one position with profits from another one as well as leverage all portfolio profits immediately
- Offset and reduce margin requirements by recognizing the P&L offset that can happen between positions
- Offset both P&L and margin across exchanges by aggregating all positions into a single settlement and clearing layer
All of this is accomplished with all the security of on-chain settlement and clearing. We take security very seriously and designed a system where all capital is safeguarded by a smart contract, so there is no “FTX-risk”.
Performance
We heard ‘DeFi to the masses’ so many times, but in reality less than 5% of all transactions with crypto happen on DEXes.
Why? In great part because decentralised exchanges in the current state can’t compete with the high performance and powerful user experience of centralised venues.
At Reya Network we thought to tackle this problem by focusing on building a trading optimized L2 leveraging the Arbitrium Orbit tech stack. It helps us achieve blocktimes of 100ms and throughput of up to 30,000 transactions per second, making Reya Network one of the fastest EVM rollups around.
When associated with modularization and blending of the underlying financial logic, the question then becomes why can’t crypto trading experience on centralised exchanges be replicated in a decentralised environment. It is important to pay attention to ease of use, speed of trading and ensure interoperability with market orders of larger magnitude.
The modular view of the blockchain world makes it possible to envision composability between specialized components. Yet, DeFi applications built on generalizable rollups are greatly limited.
Reya Network is here to change all that by bringing you superior liquidity, capital efficiency and performance!
