- Ondo Network replaces the planned Ondo Chain Layer 1 project.
- The platform separates trade execution from public blockchain settlement.
- Ondo Perps becomes the first application on the network.
Ondo Finance has introduced the Ondo Network as a new execution layer designed to improve blockchain trading speed while keeping asset settlement on public networks. The company announced the shift on July 27, replacing its earlier Ondo Chain Layer 1 blockchain plan.
The Ondo Network focuses on private execution, self-custody, and blockchain-based settlement. CEO Ian De Bode said the move represents an evolution of Ondo Chain, adding that both systems will not operate together.
Ondo Network Targets Faster Onchain Market Execution
In a blog, Ondo Finance announced it changed its approach after developing Ondo Perps and speaking with potential users. The company said those discussions showed execution speed was the main challenge for onchain trading platforms competing with centralized exchanges.
Traditional blockchains handle execution, verification, and settlement through the same public ledger. While this provides transparency, it can expose trading activity and create delays for applications requiring fast transactions.
The Ondo Network separates these functions by allowing trades to execute away from the public ledger while final asset transfers remain onchain. Applications operate through trusted execution environments, also known as secure hardware enclaves.
These enclaves process applications without revealing private information, including open positions and order flow. A decentralized group of attestors controls which code can operate within the system, preventing a single party from approving unauthorized actions.
Asset transfers currently settle on Ethereum, with plans to expand support to additional blockchains. Ondo also plans to add more independent watchers, bonded participation, and cryptographic verification methods.
Ondo Network Brings Ondo Perps to First Application
Ondo Perps becomes the first application launched on the Ondo Network. The platform offers perpetual futures linked to equities and commodities while allowing users to use tokenized real-world assets as collateral.
The product launched earlier in July for users outside the United States. It supports leverage of up to 20 times on selected markets and allows traders to hold long or short positions without fixed expiry dates.
According to Ondo Finance, the network launch does not change the role of the ONDO token. The token continues to support governance and the broader real-world asset ecosystem.
The Ondo Network is designed for more than trading applications. Ondo said developers can utilise the infrastructure for lending, structured products, settlement systems, and other applications that require private execution with blockchain verification.
At press time, ONDO is down 5.99% to $0.389 in 24 hours after the announcement, gaining 1.1% over the same period with a market capitalisation of approximately $1.96 billion, according to CoinGecko.
Disclaimer:Ā This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
