In this cutting-edge frontier of Web3, full of opportunities and risks, we've heard too many stories of overnight riches and too many tragedies of total losses. True alpha comes from understanding infrastructure transformation.
Especially as DeFi evolves from early AMMs (Automated Market Makers) to decentralized trading infrastructure based on order books (Orderbook), a new 'passive income' paradigm is quietly emerging.
Today, I want to set aside those meme coins and 'pump-and-dump' projects, and dive deep into a severely underestimated sector: the omnichain central limit order book (Omnichain CLOB), and how protocols like Orderly Network enable ordinary users to achieve 'passive income while sleeping'.
1. Bid Farewell to Impermanent Loss: The Paradigm Shift from AMM to CLOB
Early DeFi miners have all experienced this pain: You provide liquidity on Uniswap (LP), earn fees, but when token prices fluctuate, severe 'impermanent loss' can eat up all your profits.
It's like picking up sesame seeds while losing watermelons.
And Orderly Network represents the next evolution of DeFi. It's not just a simple DEX, but a fully on-chain liquidity layer built on the blockchain.
Underlying logic: It aggregates liquidity from different chains such as NEAR, Arbitrum, and Optimism, building an order book with depth comparable to centralized exchanges (CEX).
Shift in yield logic: Here, yield is no longer solely dependent on token inflation (mining and selling tokens), but instead shifts toward real yield (Real Yield). For users seeking long-term and stable returns, this is a major advantage.
2. The 'On-Chain 13F' of Web3: A Revolutionary Decentralized Copy Trading
The feature I'm most excited about in the Orderly ecosystem is its on-chain copy trading system.
In traditional finance, if you want to copy Warren Buffett or a quant giant's trades, you usually have to wait for the quarterly 13F filings, by which time the opportunity has already passed—extremely lagging.
But in the Web3 Orderly ecosystem, The Board (Trading Leaderboard) completely changes the rules:
Absolute transparency (Don't Trust, Verify): The leaderboard displays in real time each trader's PnL (profit and loss), Sharpe ratio, and maximum drawdown. Since the data comes directly from the blockchain, it cannot be falsified (unlike some 'signal providers' who are Photoshop experts).
Smart contracts execute automatically: When you choose to copy a trader, smart contracts automatically replicate their positions and exits in proportion.
The real 'set-and-forget' model: You only need to deposit USDC into the copy trading vault; the rest is handled by professional traders. The system automatically settles profits and deducts the agreed-upon share (typically 10%-20%) for the signal provider.
💡 How to avoid copy trading turning into 'copy losses'?
Although the operation is passive, risk management must be proactive. Many beginners rush in, picking the highest return, only to blow up the next day. My strategy is to build an 'on-chain FOF portfolio':
Filtering: Don't just look at high returns—look at drawdown control (Max Drawdown).
Diversification: Follow 3-5 traders with different styles (e.g., one trend-following, one high-frequency arbitrage, one mean-reversion).
Monitoring: Even with automated copy trading, regularly check whether the signal provider’s style has suddenly changed (e.g., from conservative to aggressive).
3. Protocol Shareholders: Staking and Liquidity Pools
Besides copy trading, if you're a more conservative DeFi farmer, Orderly also offers a 'shareholder' opportunity.
$ORDER Staking: This is a classic model for capturing protocol value. The more trading volume Orderly generates, the higher the fees. Stakers earn VALOR points, essentially sharing the ecosystem's Real Yield. It's like buying shares in the Nasdaq and receiving dividends.
Automated Market Maker Vaults (MM Vaults): This is a relatively neutral (Delta Neutral) strategy. By depositing funds into professionally managed vaults, you place limit orders at bid and ask prices to profit from spreads. This approach is less affected by market spikes and crashes, primarily earning from volatility and trading volume.
4. Risk Warning: Don't just look at returns
To protect your principal, we must clearly understand the risk layers in Web3:
Smart contract risk: Code vulnerabilities are the biggest enemy. Always choose protocols audited by top-tier audit firms (e.g., CertiK, Halborn).
Infrastructure risk: Orderly uses LayerZero as its underlying communication layer, and does not lock assets itself, greatly reducing single-point risks.
Web3 is moving from the 'pump-and-dump' era to a 'professionalized' era. Orderly Network demonstrates a possibility: letting professional institutions and traders handle complex strategies, while enabling ordinary users to share in the rewards through transparent mechanisms.
In this market, building a sustainable cash flow system is more important than chasing '100x coins'.
Regarding the specific configuration of Orderly and how to use on-chain data to identify truly reliable traders, due to space limitations, detailed explanations cannot be provided here.
If you're interested in this 'passive income' strategy or want to learn about the practical steps, please like and follow, and leave a comment. I'll select some of you to discuss my configuration logic in depth.