Problem



Thousands of trader-centric on-chain applications have been built but have yet to scale collectively. With more than 90% of trading volumes on Centralized solutions, traders and protocols that depend on trader-centric applications are forced to continue aggressively seeking centralized solutions.

A famous recent example would be Ethena Labs, a synthetic dollar protocol built on Ethereum that ensures its USDe's stability through delta hedging derivatives positions against protocol-held collateral. All its delta-neutral positions are currently held on centralized exchanges because onchain exchanges can't correctly scale the amount of Open Interest the protocol controls presently.

Also, because of the need for appropriate guard rails on onchain exchanges, protocols like Ethen cannot safely trust that onchain exchanges can at all times pay out the required PnL processed by the protocol.

Tradable addresses crypto's most prominent and most apparent immediate need: secure, scalable, non-custodial trading. 80% of users who read to this point still go on Centralized exchanges to trade, most times due to a lack of sufficient liquidity onchain



Trading as a sector generates the most revenue in crypto, and most of that, both in the form of yield and flat payouts, continues to lay in the hands of centralized solutions.



For any functional financial system to work at scale, users need flexibility in the collateral types they can use, not to be constrained by systems scattered across several blockchains, and to be able to securely move large sums of money into financial applications without worrying about counterparty risk.

A network for exchanges free of the shortcomings of legacy virtual machine infrastructure is required for both the growth of onchain liquidity on exchanges and the entry of new traders to onchain trader-centric applications. We'd provide the core collateral for securing and funding exchanges and building the layer for flexibility. Without a system like ours, onchain exchanges, VAMMs, order books, etc., are inherently fragile and would be a game of users only using protocols till their incentives dry out.