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The Reconstruction War of On-chain Transactions: The Underlying Changes, Who is Really Involved?
Written by: 0xResearcher
From on-chain integration to on-chain rewriting, DeFi has started to mess with the underlying again.
In the DeFi Summer of 2021, everyone was issuing coins, mining, and making minor innovations; in 2023, DeFi is being reconstructed again. But this time it is not about module integration or gameplay innovation, but about rolling back layer by layer from the bottom.
You will find more and more projects that are not building the wheels of the previous generation, but are questioning:
Is this wheel designed wrong?
Thus, the matter of on-chain transactions began to take two routes:
Today, let's talk about the ongoing underlying reconstruction battle. It's not about the projects themselves, but rather what problems these projects are addressing and why we should care about this trend.
Question 1: Why are on-chain transactions still not done well?
On-chain trading, starting with AMM (Uniswap) revolution, once broke through the market-making threshold, but also shattered efficiency.
If you want depth, there is no efficiency; if you want efficiency, matchmaking will have to return to centralization.
In recent years, on-chain transactions have aimed to upgrade from AMM to "on-chain CEX". The result has been either creating L2 (which has cheap gas but no users) or developing chains (which were created but have no connections). Ultimately, everyone realized that the problem was not TPS at all, but rather:
So, the current direction is not "a better DEX", but to directly redo the trading system foundation.
Hyperliquid: On-chain trading system, perhaps it shouldn't be layered at all.
Hyperliquid's approach is: do not differentiate between L1/L2, do not differentiate between matching / settlement, simply create a native high-performance chain, and directly write the matching and trading modules into the chain logic.
The benefits are:
In simple terms, it means:
"It's not that there's a DEX on the chain, but the chain itself is the exchange."
This idea is somewhat like looking at Solana, but without using a VM, directly customizing for transactions. The cost is high coupling and poor scalability, but the experience is really smooth.
Orderly resembles a multi-chain version of Hyperliquid, adopting a strategy of encircling the city from the countryside—not relying on a single dominant chain, but using modularity and a multi-chain layout to allow more chains and projects to access "native exchange" level performance and liquidity.
Ethena: Synthetic assets that can create on-chain dollar savings accounts without the need for stablecoins.
Ethena solves not the transaction problem, but the stablecoin + on-chain interest rate problem.
USDe is essentially not a stablecoin, but rather a delta-neutral combination created using spot ETH/BTC and perpetual hedging shorts:
This logic is not new, but Ethena has packaged it with strong operational design:
"On-chain dollar savings account" + "Stable income entry"
The key is that it does not rely on centralized reserves or bonds, but instead combines on-chain assets + perpetual contracts to create a consumer-grade product with an on-chain Cash & Carry strategy. Moreover, everyone participates in DEX, generating more profits and more possibilities.
In short, Orderly is a "DIY toolbox for ordinary people to have a stablecoin ecosystem and decentralized exchange."
Orderly: Not creating products, but writing the "standard components of on-chain transactions"
Orderly chose a third path: a modular trading infrastructure.
It is not fully self-developed like Hyperliquid, nor does it turn financial strategies into products like Ethena. Instead, it deconstructs the on-chain trading system into multiple combinable "standard components" that are available for projects to freely assemble. Its core philosophy is to build reusable, verifiable, and aggregable trading components that serve the entire multi-chain DeFi ecosystem.
The key design of Orderly includes:
Centralized matching + On-chain settlement: Ensuring performance off-chain while achieving transparency and verifiability on-chain;
It is especially worth mentioning that Orderly is currently one of the few high-performance trading systems that can natively integrate with Solana. Solana is known for its extreme performance, but its architecture is not compatible with EVM, making it difficult for many multi-chain DeFi projects to effectively incorporate it. Orderly replicates the trading experience of a "quasi-centralized exchange" on Solana through a unified account structure and modular abstraction—this not only fills the gap of high-performance chains in multi-chain trading systems but also introduces a new paradigm of shared liquidity and modular trading infrastructure to the entire Solana ecosystem.
In other words, Orderly transforms Solana's performance into "a part of a multi-chain system" rather than "a special capability of an island chain."
Orderly does not create end products, but serves builders of perp projects, market-making vaults, stablecoin protocols, etc., providing a standardized trading framework.
Just as Stripe provides payment infrastructure for Web2, what Orderly aims to do is to create "standard components for trading services" on the blockchain, allowing developers to avoid reinventing the wheel while achieving exchange-level performance and modules.
In the Solana ecosystem, Orderly has been deeply integrated with Raydium, aggregating the spot and perpetual trading liquidity of core assets including SOL, USDC, and USDT through a unified order book, achieving a trading experience with nearly zero slippage, truly bringing a "centralized-like smoothness" to the on-chain world.
This is not only a technological integration but also a successful implementation of the modular trading system concept. By deeply integrating with Raydium, its unified order book supports both spot and perpetual dual liquidity, significantly reducing users' trading costs and slippage, and bringing unprecedented systemic liquidity aggregation to Solana. This model is gradually becoming a template for building multi-chain trading infrastructure on high-performance chains, allowing builders for the first time to enjoy a trading experience comparable to that of CEX on Solana.
So what is OmniVault? Just a facet product.
Since you are building infrastructure, how can retail investors participate? Orderly has provided a side entrance: OmniVault.
Essentially:
It is not mining, nor relying on token incentives, but using real trading profits to reward liquidity participants.
This is completely different from the early DeFi logic of "relying on subsidies to attract liquidity"; it is more like HFT strategy funds in traditional finance—just turned into an on-chain version with a lower threshold.
DeFi is not getting simpler, but becoming more "system engineering-oriented".
The current DeFi is far from the situation in 2020 where it was just about "modifying contracts and mining."
Either you can do full chain self-research like Hyperliquid and achieve extreme performance;
You can be like Ethena, combining on-chain tools into "real financial scenarios";
Otherwise, like Orderly, build standard components that allow others to quickly assemble products.
There is no right or wrong among these three approaches; rather, they each address the "engineering structural shortcomings" of DeFi.
The future hit products may not necessarily create their own chains, nor will they necessarily issue their own coins, but they will definitely leverage these structures.
If you are still concerned about "which coin can rise", you might have already missed the deepest narrative of this round.
The protagonist of this round is not the coin, but the structure itself.