Introducing Reya Network — the world’s first trading-optimized modular L2.

The network design creates the deepest liquidity, best capital efficiency, and highest performance for DeFi traders and liquidity providers.

Keep reading to find out why Reya Network is a paradigm shift for DeFi scaling, with optimisations that move beyond performance only and also focus on liquidity and capital efficiency.

Why create Reya Network?

Reya Network is not another generalisable L2. It’s also not another unsubstantial hype-narrative. Instead, we solve real problems in DeFi scaling that can’t be addressed through generalisable designs. As a team of DeFi OGs, we know what these problems are. And best of all, we’ve figured out how to solve them.

The most significant limitation for DeFi scaling is the mass liquidity fragmentation that has emerged, where each new exchange built on a generalisable rollup competes for a limited supply of liquidity.

This leads to shallower markets across all exchanges, hurting traders and market participants. Generalisable designs also inherit issues such as front-running and harmful-MEV, and have performance limitations due to the inability to parallelise execution.

Reya Network shifts the paradigm of how we think about scaling. We believe networks don’t need to be generalisable, but instead can be optimised for a single use case. By focusing on a single use case, we move beyond technical improvements only, and also focus on financial logic and liquidity. Hence Reya Network focuses on DeFi trading by optimising for the three pillars of Liquidity, Capital Efficiency and Performance.

1. Liquidity

Capital staked into Reya Network is used productively to support trading via a novel passive liquidity pool mechanism. This design creates instant shared liquidity for all exchanges operating within the Reya ecosystem, enhancing market depth, lowering the barriers for market entry and enhancing users’ trading experience.

But the liquidity benefits don’t stop there. With financial logic incorporated into the network design, Reya acts as a clearing protocol across exchanges. This removes liquidity fragmentation and allows liquidity to be organised as a network between exchanges.

With market makers free to share liquidity across exchanges, ecosystem growth enhances the potential trading conditions for each individual exchange. In this way, we create a flywheel of ‘interoperable liquidity’ for the very first time in DeFi.

2. Capital Efficiency

Margin engine logic is embedded into Reya Network itself, meaning users have a single margin account that can be used across multiple exchanges. In many respects, this creates the first decentralised clearinghouse.

Reya Network’s margin engine logic is the most advanced in crypto, providing up to 3.5x improvements in capital efficiency for traders, and up to 6x improvements in capital efficiency for LPs. Any exchange on the Reya Network automatically inherits this logic just by operating on the network.

3. Performance

Performance improvements are critical, and so we’ve made Reya Network lightning fast. With blocktimes of 100ms and throughput of up to 30,000 transactions per second, Reya Network is one of the fastest EVM rollups.

Moreover, transactions are executed on a ‘first-in-first-out’ (FIFO) basis with zero gas fees, removing front-running and harmful MEV. This functionality is built leveraging a customised version of the Arbitrum Orbit tech stack. Over time, additional optimisations will be built, including the continued movement of application-specific logic into the network design itself.

The significance of performance cannot be understated — DeFi presently represents less than 5% of all crypto volume, in part because it cannot compete with the high performance and powerful user experience of CeFi venues. However, when performance improvements are combined with modularisation and blending of the underlying financial logic, we have to start asking why we can’t finally capture CeFi volume and bring it on-chain for the first time. Not only will this bring huge volume to DeFi, but it will also dramatically improve the transparency, robustness and composability for all the traders joining our DeFi ecosystem.

Who’s behind Reya Network?

Reya Labs, the creator of Reya Network, is run by a team of DeFi OGs with multiple successful start-ups launched in the past, including Voltz Protocol, which grew to over $30B of notional traded within just 12 months.

We are backed by some of the best names in the industry including Framework, Coinbase and Wintermute. Alongside this, we’re supported by an incredible community! Many of our community members have been with us through our previous projects, and now help drive product development and accelerate the adoption of Reya Network.

What’s our Roadmap?

Reya Network is a revolution coming in stages.

As a liquidity network, the logical first step is to kickstart the network with the inflow of liquidity. That is why first up on our roadmap is a Liquidity Generation Event (LGE) scheduled for April. More details on the LGE will follow soon, so watch this space.

Straight after the LGE, we’ll prove the concept of the Reya Network by deploying a fully functional perpetual DEX, Reya Exchange. Reya Exchange will be the first exchange on the network, and will also act as a vehicle to attract even more liquidity and traders, creating powerful network effects for the exchanges that follow.

Reya Network will then open up to other exchanges, ultimately becoming the substrate on which a new generation of DeFi can live.

Join our community and subscribe to email notifications on Medium to stay up-to-date with all things Reya!

Website | Gitbook | Twitter | Discord | Blog