Ethereum L2 Project Spark Launches On-Chain Order Book On Fuel Network To Enhance Trading
08 Novembre 2024 - 3:30AM
NEWSBTC
Spark, a decentralized trading protocol, announced the first fully
on-chain order book for the Ethereum ecosystem. Launching on Fuel
Network, the project aims to provide solutions for some of the
limitations in the Decentralized Finance (DeFi) landscape and offer
traders fast, secure, and transparent trading with minimized state
and reduced storage. Related Reading: Solana (SOL) Looks ‘More
Bullish Than Before’ After Flipping BNB As 4th Largest Crypto Spark
Brings First On-Chain Oder Books To The Ethereum Ecosystem
Decentralized trading protocol Spark is launching the Ethereum
ecosystem’s first fully on-chain order book, seeking to offer
traders a “secure, efficient, and decentralized” experience. Per
the announcement, the state-minimized order book will move
execution fully on-chain to enhance transparency. Moreover, it’s
set to reduce data storage and processing needs to ensure faster
transactions without compromising security. The Ethereum L2 project
aims to address the limitations of Automated Market Makers (AMMS)
and Centralized Exchanges (CEXs). Despite being instrumental in
DeFi’s growth, AMMs struggle to meet the “advanced demands of
institutional traders in high-frequency and algorithmic trading.”
Meanwhile, CEXs have been criticized for the lack of transparency
and control expected in decentralized systems. The project argues
that DeFi needs to use traditional trading mechanisms to attract
institutional traders. As a result, Spark will introduce Central
Limit Order Books (CLOBs) to tackle these limitations. CLOBs are
trading mechanisms used in traditional stock markets to match all
bids and offers according to time priority and price. With this
implementation, Spark is set to provide better price discovery,
faster execution, and deeper liquidity while maintaining security
and transparency. Additionally, it seeks to offer “the precision
and capabilities necessary for professional and institutional
traders.” Vitali Dervoed, Spark’s CEO and co-founder, highlighted
the importance of order books for institutional and retail traders
who seek accuracy and transparency while controlling their assets:
Order books are the backbone of professional, institutional, and
advanced retail traders who rely on precise execution and
transparency. Spark’s shift to on-chain trading represents a
significant leap in eliminating the trade-offs associated with
off-chain systems. With full visibility into order depth and
liquidity, users are protected from risks like front-running and
manipulation while enjoying the security of self-custody. Unlike
centralized exchanges, Spark ensures users have complete control
over their assets, making it an ideal platform for traders
prioritizing security, transparency, and efficiency. A ‘New Era’
For Decentralized Trading? Launched in October, Fuel is a modular
rollup operating system designed for Ethereum. After three weeks,
it achieved a Total Value Locked (TVL) of $33.5 million. According
to data from DeFiLlama, Fuel saw a 700% TVL increase in one day,
followed by a 1200% weekly increase. Spark is one of the first
dApps in the Fuel Network. The Ethereum Layer 2 project is powered
by Fuel’s modular architecture, aiming to “push DeFi closer to
mainstream adoption” with speed, scalability, and interoperability.
Related Reading: Shiba Inu (SHIB) Gearing Up For Massive Bullish
Wave Following 8% Daily Surge, 110% Rally Ahead? The projects look
to build a “new era for decentralized trading” that unlocks “new
possibilities for institutional-grade DeFi” and evolves the
Ethereum landscape. Ultimately, Fuel Network’s CEO, Nick Sway,
noted Spark’s launch as a vehicle to “push” DeFi boundaries: Fuel’s
mission is to foster an environment where builders can push the
boundaries of DeFi, and Spark is a testament to this vision. By
leveraging Fuel’s powerful high-performance design, Spark
introduces a new level of transparency and efficiency to
decentralized finance through on-chain order book trading, setting
a new benchmark for scalability and precision. Featured Image from
pexels.com, Chart from TradingView.com
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