JPEX revelation: Orderly Network proposes new ideas for integration

Recent news has revealed some of the shortcomings in the centralized cryptocurrency exchange (CEX) space - JPEX, a Hong Kong-based centralized cryptocurrency exchange, was accused of falsely claiming to have licenses from foreign regulators. The China Securities Regulatory Commission issued a statement stating that it had received a large number of complaints and media reports before. Investors said they were unable to withdraw assets from the platform, and the balances of some users JPEX accounts had also been tampered with.

JPEX denied the accusations made by the Securities Regulatory Commission, claiming that it had been treated unfairly by relevant Hong Kong institutions and that its funds had been maliciously frozen by third-party market makers. In response to these issues, the platform had to take measures, including increasing transaction fees to $1,000 and setting a $1,000 withdrawal limit.

Among the many challenges faced by centralized exchanges, although the JPEX incident was accidental, it is undeniable that the risks of third-party custody services are still a core issue in this field. In this article, we will explore the challenges currently faced by centralized exchanges and introduce the solutions provided by Orderly Network.

Quick tour of the article:

• JPEX Incident: Hong Kong-based JPEX faces revocation complaints after being accused of falsely claiming to have a license.

• Concerns about CEX: The centralized nature raises regulatory, transparency and control issues, taking FTX and JPEX as examples.

• Limitations of DEX: DEX solves the CEX problem, but faces liquidity challenges and operational threshold limitations.

• Orderlys converged solution: a full-chain CLOB infrastructure that combines transparency, composability, speed and performance.

• Key Features: Full user ownership, CEX-level performance, and diverse integration options.

• Security: Transactions are transparently recorded on the chain, with a high degree of trust.

• Orderly Extension: The launch of Orderly Omnichain will unify cross-chain liquidity and Dapp integration.

The double-edged sword of centralized exchanges

Centralized exchanges (CEXs) have played a key role in the development of the cryptocurrency field. Their simple and friendly user interface and sufficient liquidity have made them the best channel for users to enter the world of digital assets. However, the nature of centralization, regulatory challenges, opaque practices and the inability of users to control their own private keys are still pain points that CEX cannot solve so far in the development of the industry, especially for institutional traders.

Before FTXs collapse in November 2022, there were actually signs of management problems on the platform, and now JPEXs increase in transaction fees and withdrawal limits has expanded the markets concerns about CEX.

Is DEX the optimal solution?

As part of the DeFi field, decentralized exchanges (DEXs) have, to a certain extent, solved many of the security vulnerabilities and regulatory problems of CEXs. However, despite solving the hidden dangers of centralization, there are still challenges in the field of DEXs. Insufficient liquidity often leads to market differences between different DEXs. In addition, for users who are already familiar with the CEX trading order book, the entry threshold for DEX is too high, and users need to go through a difficult learning and education path, which will seriously affect the users product experience.

Although the limitations listed above cannot be eliminated, they illustrate an innovation space we can build: a new space that integrates advantages and abandons pain points.

Converged solutions – combining the best of both worlds

Orderly Network firmly believes that there must be a bridge between centralized exchanges (CEXs) and decentralized exchanges (DEXs). Therefore, our converged solution includes an order book-based trading infrastructure and a robust liquidity layer capable of delivering both spot and perpetual futures order books.

This means that developers can use Orderly to build powerful DApps, and the products can take into account the advantages of CEXs. That is to say, it can not only have a simple and easy-to-operate order book trading interface, but also completely independently host asset settlement on the chain, which essentially innovates and optimizes the construction logic of DApps, and combines transparency, composability, speed and performance.

Key Benefits of Orderly Fusion Solution

Self-hosted:Orderly Network gives complete ownership of assets to users. Users can have unlimited control over their assets through independent private key access, eliminating the concerns about withdrawals or bankruptcy issues that commonly occur in CEXs.

Combined with CEX performance:Robust infrastructure will enable developers to strike the perfect balance between performance and decentralization. Orderlys matching engine can ensure low latency for high-frequency trading strategies, while all transactions are uploaded to the chain to ensure security and transparency.

Ready-to-use liquidity:For many trading platforms, liquidity is a core issue, but with Orderly Networks solution there is no need to worry. The cooperation of multiple first-class market makers enables Orderly to maintain sufficient liquidity and solve the root cause of this problem.

Seamless integration across chains:Developers building products using the Orderly Network can simultaneously integrate swaps, spot and perpetual futures trading into their projects. Our products can provide integrations in the form of suites to enhance various DApps, including brokers, aggregation platforms, wallets, custodians, high-frequency trading platforms, trading bots and games/DApps, etc.

Security and transparency:Through the Orderly Network, every transaction, settlement and liquidation is recorded directly on the chain, providing a clear and auditable path. Users benefit from on-chain security guarantees because there is no need to blindly trust a single platform. In the event of any disruption, all important data will be protected and accessible on-chain, ensuring continued trust and consistency.

Orderly Network OmniChain 

Orderlys mission is to redefine DeFi and DApps by providing builders with the tools they need to build functional cross-chain projects. Therefore, bridging the gap between native chain and EVM is our core goal. Now, with Orderly Omnichain, builders will have the ability to create cross-chain DApps, and traders can experience full-chain transactions without cross-chain bridges. Orderly is committed to providing unified liquidity, enhancing collaborative ecosystems, and providing CEX-like capabilities in the DeFi field experience.

With the recent launch of the Orderly Omnichain testnet, Orderly is expanding its innovative infrastructure into the broader DeFi ecosystem, allowing developers to leverage the strengths and capabilities of different networks to create a more powerful and versatile DeFi ecosystem.

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