Reya facilitates shared liquidity among native decentralized exchanges.<\/p>\n
Reya, a modular Layer 2 network optimized for trading applications, is the latest web3 project to drive impressive growth off the back of a points campaign for early adopters.<\/p>\n
Reya announced the\u00a0launch<\/a>\u00a0of its \u201cLiquidity Generation Event\u201d (LGE) on April 22, offering boosted points to users who provide assets to the network during the two weeks leading up to the launch of the Reya Perps decentralized exchange.<\/p>\n Reya attracted more than $100 million within 18 hours, with the protocol\u2019s total value locked (TVL) currently sitting at $167.6 million around 40 hours later.<\/p>\n \u201cThe Liquidity Generation Event (LGE) is live and accessible via the Reya dApp, allowing early supporters to stake capital into the Network,\u201d Reya\u00a0said<\/a>\u00a0in a blog post. \u201cThis bootstrapping event will kickstart the interoperable liquidity flywheel for future DEXes.\u201d<\/p>\n Reya exclusively supports deposits in the form of USDC during its LGE.<\/p>\n The Reya team first\u00a0teased<\/a>\u00a0the project on social media in December. In March, the team\u00a0announced<\/a>\u00a0the completion of a $10 million funding round that attracted backing from major web3 investors including Coinbase Ventures, Framework Ventures, and Wintermute in a now-deleted tweet.<\/p>\n The project bills itself as a \u201ctrading-optimized Layer 2\u201d built on top of Arbitrum\u2019s Orbit tech stack via Gelato\u2019s rollup-as-a-service platform. Reya claims a maximum throughput of 30,000 transactions per second and block times of just 100 milliseconds while boasting a gas-free network architecture to prevent MEV and transaction front-running.<\/p>\n However, the team emphasizes the provision of shared network liquidity to native DEXes as the primary point of difference between Reya and rival L2s.<\/p>\n \u201cThe one thing which we\u00a0really\u00a0focus on is interoperable liquidity, meaning that the network itself\u00a0actually\u00a0provides liquidity through to the DEXes that build on the network,\u201d said Simon Jones, the co-founder and CEO of Reya Labs, during an April 23\u00a0stream<\/a>\u00a0hosted by Arbitrum. \u201cThe way that works is users\u00a0basically\u00a0stake capital into the network, that capital gets passed through a passive LP pool, and then gets made available to all of the DEXes on Reya.\u201d<\/p>\n Jones said Reya\u2019s interoperable liquidity mechanism prevents capital fragmentation on the network, deepening markets and improving trading conditions.<\/p>\n \u201cWe believe that generalizable L2 can\u2019t scale DeFi,\u201d Jones said in a recent blog post. \u201cReya Network is optimized for DeFi trading only, meaning we\u2019re able to improve performance and add a novel liquidity design into the network, creating the best network for DEXes to build on.\u201d<\/p>\n Churro, a community manager at OffChain Labs, the team behind Arbitrum, described Reya as \u201ca crowning achievement to what DeFi on Orbit chains can achieve.\u201d<\/p>\nShared liquidity<\/h2>\n