The Reya Network is a modular Layer 2 solution designed for transaction optimization. Its goal is to provide DeFi traders and liquidity providers with the deepest liquidity, best capital efficiency, and highest performance. Reya Network tackles real issues in DeFi scaling that general Layer 2 solutions can’t solve. Reya Network is solving these issues by offering a new approach to scaling, focusing on DeFi trading, and optimizing three key areas: liquidity, capital efficiency, and performance.

What is Reya Network?

The Reya Network is a trading-optimized L2 modular DeFi platform offering lightning-fast execution, deep liquidity, and capital efficiency. It supports spot and perpetual trading with CeFi features like 100-ms block times, real-time price feeds, and cross-margining. Reya provides builders with a powerful infrastructure for integrating advanced trading capabilities and offers staking for liquidity providers to earn trading fees.

Reya Network Background

Reya Labs, the creator of Reya Network, is run by a team of experienced DeFi veterans who have previously launched several successful startups, including Voltz Protocol, which reached over $30 billion in trading volume within 12 months. They are supported by some of the most prominent companies in the industry and have raised $10 million from venture capital firms such as Framework, Coinbase, and Wintermute.

Component of Reya Network

Currently, the Reya Network consists of two key components: the chain layer, which focuses on optimizing speed, throughput, and security for trading, and the protocol layer, which provides modular tools like PnL settlements, margin management, and liquidations.

The Chain Layer

This layer is powered by Arbitrum Orbit, which optimizes speed and addresses security issues such as front-running and harmful MEVs. The Arbitrum Orbit makes it one of the fastest EVM rollups, which can perform 100 ms block times and up to 30,000 transactions per second. It addresses front-running and harmful MEV by implementing FIFO transaction ordering. Future updates aim to integrate trading-specific logic into block building, enhancing efficiency.

The Protocol Layer

The protocol layer uses vertical integration to enhance the DeFi applications by modularizing components like PnL settlements, margin requirements, and liquidations that a trading application needs. This layer consists of three parts: the financial layer, the liquidity layer, and the governance layer.

Financial Layer

It is an open-layer architecture and is responsible for doing financial work such as holding value, settling payments and trading in the most capital-efficient manner possible on the Reya Network. This layer has two modules for token settlement. The first is the Stablecoin Protocol for stablecoin tokens, specifically rUSD, and the Derivatives Clearing Protocol, which is responsible for cross-collateralizing tokens different from the settlement token.

Liquidity Layer

The Reya Network integrates an LP pool that enhances liquidity by using price indices for contract creation. Initially, external indices are leveraged, enabling traders to execute with low risk. This mechanism, built on the derivative clearing logic, is highly capital-efficient for passive LPs. It also acts as the system’s ultimate liquidity backstop and enhances the liquidity of any exchange operating on the Reya Network.

Governance

To protect users’ funds, Reya ensures no entity can control the network, providing transparency and trust to the system’s end users. This can accelerate adoption and deepen liquidity, creating a strong decentralized ecosystem.

Incentive Program of Reya Network

The incentive program is designed for users who contribute to network success. The mechanism discourages network exploitative behavior and rewards constant participation. At the moment, the incentive program has three core mechanism tools: Experience (XP), Boosts, and Ranks.

Experience (XP)

XP is the fundamental mechanism of an incentive program and determines what behavior is to be rewarded on the network, such as action-based and holding-based. Traders earn XP by executing trades, network staking, liquidity staking, rebalancing trades, and holding positions over time. The system incentivizes behaviors that contribute to liquidity and exposure to the network, with additional rewards for actions that help balance the passive pool.

Boosts

The boosts are layered over the XP mechanisms and work without altering the actual mechanism of XP. This reward is special only for early contributors or highly active users. Action-based boosts offer multipliers up to 100x for trading or 1x-3x for deposits, while holding boosts apply randomly every 48 hours, ranging from 1x to 10x.

Ranks

To rank up, users need to earn more XP than other users. These ranks are then used to determine rewards and voting power for governance. Users can increase or decrease their rank on a weekly basis at the end of an event based on XP.

Reya Exchange

Reya Exchange is a high-performance decentralized perpetual futures exchange built on Reya Network with lightning-fast transactions and gas-free trading. Its UI/UX delivers a seamless trading experience with an intuitive interface for perpetual futures, while a simple dashboard lets users manage all margin assets. Key features include cross-collateralization, allowing multiple asset types (including yield-bearing) as margin, and cross-margining for optimal capital efficiency.

Trading Types on Reya Network

Reya Network supports several primary trading types, which include:

Flash Swap

Reya has integrated flash swapping, which allows atomic changing of collateral assets in one click. This functionality lets users close their open position without needing wallet confirmation. When the one-click trading is activated, the wallet won’t be prompted to sign the transaction, and the tokens will go in and out from the selected margin account with no wallet interaction and no token approval.

Swaps occur seamlessly via Camelot’s liquidity pools, integrated directly into the Reya DEX UI. Key highlights:

• No Wallet Interaction: Tokens move in/out of margin accounts automatically.
• Margin Health: The post-swap margin ratio is calculated in real time.
• Price Calculation: Pricing includes slippage from Camelot pools and Stork Price Feed for margin balances.

Margin

The margin account is used to manage collateralized and derivatives positions. Users can here deposit various tokens as collateral, which will then be credited to the margin account in rUSD. Each account can only hold its contract with shared PnL and isolated margin. Each of the margin accounts enables:

Specific Margining: Contracts requiring isolated margining need a dedicated margin account.

Cross-Margining: Accounts allow the sharing of PnL and collateral across positions, enabling:

• PnL Offsetting: Profits from one position offset losses from another.
• Efficient Leverage: Leveraging portfolio-wide profits immediately.
• Margin Reduction: Minimizing requirements by recognizing offsets in PnL across positions.

Perpetual Future

Reya Network offers perpetual trading where users can use lower margin and high leverage with unmatched capital efficiency for traders and LPs. Key features include portfolio-wide P&L offsetting, instant leveraging of profits, and reduced margin requirements through P&L recognition across positions.

Conditional Order

Reye supports conditional orders so users can set their own “Stop Loss” or “Take Profit” against open positions, and this order is triggered when the market price hits a specified level, executing a market order to close the position. Stop Loss or Take Profit conditional orders can be canceled by traders at any time. Conditional orders require prior authorization and a unique signature for execution, ensuring trader control and security. However, due to market volatility, specific price achievement isn’t guaranteed.

Autoexchange and Liquidations

The Reya Network employs auto-exchange, liquidation, and auto-deleveraging mechanisms for margin accounts:

• Auto-Exchange: Converts collateral tokens to rUSD to meet settlement obligations, with penalties applied for negative balances.
• Liquidation: Positions are closed if the account falls below the liquidation margin requirement, with fees supporting the insurance fund.
• Auto-Deleveraging: As a last resort, insolvent accounts’ positions are closed against counterparties, potentially at a loss, to maintain pool solvency.

Spot Market

Reya is planning to deploy spot trading in the future. Reya will include spot markets in addition to derivatives trading. This will unlock synergies with the rest of the network, particularly related to rUSD distribution, by creating markets against other stablecoins, as well as auto-exchange and CDP liquidations, which imply conversion of different types of collateral.

Reya Network App

The Reya network app allows users to tarde, stake, bridge, and manage their portfolio in a single place by connecting their wallet.

Trade

The Reya Network app allows users to trade in perpetual futures with over 35 coins listed against rUSD. The trading screen is designed for ease of use, enabling seamless switching between cross and isolated margin modes, long and short positions, as well as market and limit orders.

Stake

Staking allows users to stake their assets and earn rewards like APY, Elixir Potions, and Reya Network XP (RXP). The staking mechanism is designed to boost liquidity, offering an 8x XP boost on deposits with additional weekly loyalty rewards, up to 15x. Users can view their APY, deposit balance, boosts, and earned XP in real time, with flexible withdrawal options and transparent bridge fees.

Bridge

Reya Bridge allows users to transfer assets in and out of the Reya Network. Users can choose the source and destination chain, input the desired amount, and connect their wallets for cross-chain bridging. It details bridge fees and estimated transaction time, ensuring a transparent process.

Reya Derivatives Clearing Protocol

The Derivatives Clearing Protocol on Reya Network offers unmatched capital efficiency by aggregating positions across multiple markets and multiple exchanges into a single margin account. The whole mechanism is peer-to-pool and non-custodial, meaning that all settlement and margin funds are safeguarded on the blockchain. This provides both traders and LPs with unprecedented capital efficiency by offsetting:

• Losses from one position with profits in another, and enabling leveraging of all portfolio profits immediately
• Margin requirements, by recognizing the P&L offset that can happen between positions
• P&L and margin across exchanges, by aggregating all positions into a single settlement and clearing layer

Reya Passive Liquidity Mechanism

The passive liquidity mechanism on the Reya Network is an on-chain trading protocol that creates a unified market for makers and takers, generating a single price for trades. This innovative passive liquidity pool mechanism allows funds to support trading effectively. This design creates shared liquidity for all exchanges within the Reya ecosystem, enhancing market depth, lowering entry barriers, and improving the trading experience. This mechanism can:

• Aggregates Liquidity: Creates a unified market for makers and takers, generating a single price for trades.
• Ensures Permanent Liquidity: Always quotes a price, allowing trades if prices are acceptable.
• Enables Passive LPing: LPs can provide liquidity without actively managing positions.

What is Riya Stablecoin (rUSD)?

rUSD is a native stablecoin of the Reya Network used for payment settlement within the ecosystem. Users can still use cross-collateralization features to deploy multiple types of tokens, but the system’s native stablecoin (rUSD) ensures uniform settlement across the network, balancing diversity with operational consistency. The rUSD is a temporary network development, which is just wrapped USDC on the Reya Network. When USDC is deposited into a margin account, it is automatically converted to rUSD. Users can also unwrap this rUSD back to USDC for withdrawal if the amount is not locked for margin requirements. Some key features of rUSD include:

• Native Yield: Designed with integrated mechanisms within the Reya Network, rUSD offers native yield, making it a neutral settlement means for derivatives and a viable store of value within the system.
• Synergy with the Protocol Layer: Reya Network’s unique development approach integrates all protocol layer components to support each other. Eventually, rUSD will become the first stablecoin deeply embedded in a trading system.
• Universal Currency Mode: Once complete, rUSD will be the universal currency within the Reya Network. All fees within Reya will be charged in rUSD. Additionally, insurance funds and any underwriting and staking vaults will be denominated in rUSD.