# Reya Network

Reya Network liberates the application layer of DeFi by creating an autonomous, specialized and optimized infrastructure that solves for the following 3 core pillars:

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## Liquidity

Capital staked into Reya Network is used productively to support trading via a novel passive liquidity pool mechanism. This design creates instant shared liquidity for all exchanges operating within the Reya ecosystem, enhancing market depth, lowering the barriers for market entry and enhancing users' trading experience.

But the liquidity benefits don’t stop there. With financial logic incorporated into the network design, Reya acts as a clearing protocol across exchanges. This removes liquidity fragmentation and allows liquidity to be organised as a network between exchanges.

With market makers free to share liquidity across exchanges, ecosystem growth enhances the potential trading conditions for each individual exchange. In this way, we create a flywheel of 'interoperable liquidity' for the very first time in DeFi.

## Capital Efficiency

Margin engine logic is embedded into the Reya Network itself, meaning that users have a single margin account that can be used across multiple exchanges. In many respects, this creates the first decentralised clearinghouse.

Reya Network’s margin engine logic is the most advanced in crypto, providing up to 3.5x improvements in capital efficiency for traders, and up to 6x improvements in capital efficiency for LPs. Any exchange on the Reya Network automatically inherits this logic just by operating on the network.

## Performance

Performance improvements are critical, and so we’ve made Reya Network lightning fast. With blocktimes of 100ms and throughput of up to 30,000 transactions per second, Reya Network is one of the fastest EVM rollups.

Moreover, transactions are executed on a ‘first-in-first-out’ (FIFO) basis with zero gas fees, removing front-running and harmful MEV. This functionality is built leveraging the Arbitrum Orbit tech stack. Over time, additional optimisations will be built, including the continued movement of application-specific logic into the network design itself.

The significance of performance cannot be understated - DeFi presently represents less than 5% of all crypto volume, in part because it cannot compete with the high performance and powerful user experience of CeFi venues. However, when performance improvements are combined with modularisation and blending of the underlying financial logic, we have to start asking why we can’t finally capture CeFi volume and bring it on-chain for the first time. Not only will this bring huge volume to DeFi, but it will also dramatically improve the transparency, robustness and composability for all the traders joining our DeFi ecosystem.


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