Original title: Why create Reya Network
Author: Reya Network
Compiler: Hailsman, ChainCatcher
This article is excerpted from Reya Network official documentation.
Reya Network is not another generic L2, nor is it another hype narrative with no substance. Instead, we solve real problems in DeFi scaling that cannot be solved by universal design. As the DeFi OG team, we know what these issues are. Best of all, we have found solutions to these problems.
The most important limitation of DeFi scaling is the massive liquidity fragmentation that has occurred, with every new exchange built on a universal rollup competing for limited liquidity Sexual supply. This results in shallow markets on all exchanges, harming the interests of traders and market participants. Generalizable designs also inherit issues such as run-ahead and harmful MEV, and have performance limitations due to the inability to execute in parallel.
Reya Network changes the way we think about scaling. We believe that networks need not be general-purpose but can be optimized for individual use cases. By focusing on a single use case, we go beyond technical improvements to focus on financial logic and liquidity. Therefore, Reya Network focuses on DeFi trading, optimizing for the three pillars of liquidity, capital efficiency, and performance.
Reya Network liberates by creating autonomous, professional and optimized infrastructure The DeFi application layer addresses the following 3 core pillars:
Capital invested in Reya Network is effectively used to support transactions through a novel passive liquidity pool mechanism. This design creates instant shared liquidity for all exchanges operating within the Reya ecosystem, enhances market depth, lowers market entry barriers, and enhances users’ trading experience.
But the benefits of liquidity don’t stop there. By incorporating financial logic into the network design, Reya acts as a clearing protocol across exchanges. This eliminates liquidity fragmentation and allows liquidity to be organized as a network between exchanges.
Since market makers can freely share liquidity between exchanges, the growth of the ecosystem enhances the underlying trading conditions on each exchange. In this way, we create a flywheel of "interoperable liquidity" for the first time in DeFi.
Margin logic is embedded into the Reya Network itself, meaning users have a margin account that can be used on multiple exchanges . In many ways, this creates the first decentralized clearinghouse.
Reya Network’s margin engine logic is the most advanced in cryptocurrency, providing up to 3.5x capital efficiency improvements for traders and up to 6x capital efficiency improvements for LPs. Any exchange on the Reya network will automatically inherit this logic as long as it runs on the network.
##Performance improvements are critical, so we make Reya Network Fast as lightning. With a block time of 100 milliseconds and a throughput of up to 30,000 transactions per second, Reya Network is one of the fastest EVM rollouts.
Additionally, transactions are executed on a "first in, first out" (FIFO) basis with zero gas fees, eliminating front-running and harmful MEV. This feature is built using the Arbitrum Orbit technology stack. Over time, more optimizations will be made, including continuing to move application-specific logic into the network design itself.
The importance of performance cannot be underestimated - DeFi currently accounts for less than 5% of all cryptocurrencies, in part because it cannot compete with the high performance and strong users of CeFi venues Experience competition. However, when performance improvements are combined with the convergence of modularity and underlying financial logic, why can’t we finally capture CeFi volume and put it on-chain for the first time? Not only will this bring massive trading volume to DeFi, it will also greatly increase transparency, robustness, and composability for all traders who join our DeFi ecosystem.
Reya Labs is the creator of Reya Network and is operated by the DeFi OG team. It has launched many successful projects in the past of startups, including Voltz Protocol, which grew to over $30 billion in notional trading volume in just 12 months.
We are backed by some of the biggest names in the industry and have raised nearly $10 million from VCs like Framework, Coinbase, and Wintermute.
Reya Network is a revolution that takes place in stages.
As a liquidity network, the logical first step is to launch the network with an inflow of liquidity. That’s why first on our roadmap is ’s Liquidity Generation Event (LGE) scheduled for April.
After LGE, we will prove the concept of Reya Network by deploying a fully functional permanent DEX Reya Exchange. Reya Exchange will be the first exchange on the network and will also serve as a tool to attract more liquidity and traders, creating strong network effects for subsequent exchanges.
Subsequently, Reya Network will be opened to other exchanges, eventually becoming the foundation on which the new generation of DeFi depends.
A Liquidity Generation Event (LGE) is the time when Reya Network directs liquidity before trading begins. Since liquidity is critical for trading, our goal is to attract as much liquidity as possible.
The oldest LP will receive an XP boost.
For example:
The earliest LP deposited into the mining pool can get 10 times the income. This means that instead of accumulating (for example) 50% annualized XP, they receive 500% annualized XP on the capital deposited during this period.
#LP deposited into the pool later may earn you 2x.
If multiple deposits have different boosts, the final boost will be calculated as a capital-weighted average. For example, if you deposit 10,000 rUSD in 10x increments and 5,000 rUSD in 2x increments, your final increments are calculated as follows:
LP will continue to utilize the capital deposited during the LGE period until exit. When withdrawing money, you lose the multiplier on the amount you withdraw (but keep the amount you deposited).
#EVM compatible wallets can be used to connect to the LGE page. Funds can be deposited from Ethereum mainnet, Arbitrum One, Polygon PoS and Optimism mainnet.
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