Binance, via its custody arm Ceffu, has partnered with the decentralized exchange infrastructure provider Orderly Network. This enables Orderly to support decentralized perpetuals trading for its users but keep the custody of assets on Binance. The live integration also allows real-time deployment of capital across both centralized and decentralized markets without the need for traditional on-chain bridging or asset transfers.
The system enables strategy providers and trading institutions to transfer capital directly within Binance to Orderly. Binance holds the money in its custody system (via Ceffu), and the trading happens on Orderly infrastructure. This implementation brings about a new model of digital asset strategy management that offers secure and gasless access to DeFi marketplaces through the liquidity of centralized exchanges.
Efficiency in the Operations of Market Players
This integration has multiple advantages to strategy providers in its operations. The capital currently staked on Binance can now be used to trade on Orderly without having to bridge funds or interact with the blockchain manually. It also facilitates live rebalancing across Binance and Orderly, which means trading within platforms can have more responsive strategies.
Moreover, the fee tiers will be shared in sub-accounts associated with a strategy provider master Binance account to maximise cost structures. It has cross-market trading approaches, such as arbitrage and funding rate trading, and enables the hedge between centralized spot markets and decentralized perpetual markets.
Strategic Flexibility and Liquidity Expansion
Orderly Network was initially constructed to solve the issue of fragmented liquidity in DeFi with a shared orderbook, multi-collateral margin, and chain-agnostic market access across chains including Arbitrum, Base and Solana. Orderly is building out its infrastructure to allow institutional-grade capital flows and execution with the introduction of centralized liquidity provided by Binance.
The integration is likely to maximize liquidity on Orderly and enhance execution performance among retail and institutional users. The alliance offers a platform through which strategy providers could reach deeper markets and implement superior strategies across the DeFi-CeFi interface.
