Sebastian Sinclair

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 <li>The DEX protocol is looking to bootstrap liquidity for budding decentralized applications built on the NEAR blockchain</li>
 <li>Capital will go toward hiring efforts, product development, partnerships and growth of its ecosystem, Orderly said</li>
 </ul>
 
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Orderly Network, a permissionless, decentralized exchange protocol built on the NEAR blockchain, has picked up $20 million in a seed funding round from some of the industry&#8217;s top venture capitalists.



Three Arrows Capital, Pantera Capital, Dragonfly Capital, Sequoia China, Jump Crypto, Alameda Research and GSR Ventures co-led the round, betting that the protocol can enhance the crypto trading experience.



Funding will go toward the protocol&#8217;s recruitment efforts as well as the development of new and existing products, Orderly said in a statement Thursday. Capital will also be allocated to drive partnerships and grow its ecosystem.



Orderly Network uses a decentralized on-chain order book to provide liquidity and lets traders execute orders directly utilizing smart contracts while providing desired flexibility with order sizes and pricing. Its platform features a risk engine, matching engine and shared asset pools for decentralized applications (dApps) to build on top of in a modular fashion.



Orderly&#8217;s composability, the protocol&#8217;s developers said, will let developers build dApps for financial instruments such as derivatives, spot and margin trading as well as lending and borrowing.



&#8220;For a chain to accommodate applications seeking mass adoption, they need ready access to liquidity,&#8221; Woo Network&#8217;s head of marketing and growth Ben Yorke told Blockworks.



<blockquote class="wp-block-quote">&#8220;Orderly advances this concept by being able to backstop institutional liquidity including spot, margin, and derivatives, with an order book matching engine that can accommodate high throughput and rate limits.&#8221;</blockquote>



Founded in October last year, the project is the incubation lovechild of NEAR and the WOO Network — a liquidity provider connecting traders, exchanges and institutions. The project plans to integrate with existing bridges to provide deposits and withdrawals from most layer-1 blockchains.



DEX (decentralized exchange) volumes are down sharply so far in June and have been generally on the decline since the market peak in November 2021, according to <a href="https://defiprime.com/dex-volume" target="_blank" rel="noreferrer noopener">data from Dune Analytics</a>. Automated market maker-based DEX Uniswap continues to dominate, claiming more than half of all trading volume.



Order book trading interfaces built on top of automated market maker liquidity pools are a relatively new concept in the industry.



&#8220;Infrastructure being built for traders by traders — results in better products that are designed to meet the specific needs and provide the best possible trading experience,&#8221; Three Arrows Capital co-founder Kyle Davies said. &#8220;Pairing this product-first ethos with best-in-class liquidity options and a team with a proven track record, we believe that Orderly is primed for success.&#8221;



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