How RISE Chain is Building the Infrastructure for On-Chain Order Books

• On-chain order books require infrastructure that matches centralized exchange performance. RISE Chain achieves 3ms latency and 100k TPS through architectural innovations.
• Sequential execution is the real bottleneck. Order book trades must execute sequentially—each trade changes the state for the next.
• Shreds technology enables continuous execution instead of discrete blocks. These sub-blocks deliver 60x faster confirmations than existing L2s.
• Based sequencing provides decentralization without bootstrapping new security. RISE leverages Ethereum validators rather than running independent consensus, achieving censorship resistance at lower cost.
• Geographic concentration of builders is acceptable. Traditional financial markets already operate with co-location—RISE embraces this reality rather than pretending distributed validators can achieve HFT-level performance.
• Platform architecture beats single-app chains. Multiple CLOBs can compete on RISE with full EVM composability from day one.
• Gigagas measurement reveals true computational capacity. RISE targets 1 billion gas units/second—equivalent to 800 Ethereum L1s sharing state.

The promise of decentralized finance has always been about recreating traditional financial markets on-chain—transparent, permissionless, and accessible to all. Yet one piece has remained elusive: the central limit order book (CLOB). While AMMs revolutionized DeFi, professional traders and market makers still flock to centralized exchanges for one simple reason: order books work.

Now, a new wave of blockchain infrastructure is finally making on-chain CLOBs viable. RISE Chain is an Ethereum Layer 2 that's matching the performance of centralized exchanges while maintaining decentralization.

Central limit order books are the backbone of traditional financial markets. They enable:

• Price discovery through transparent bid/ask spreads
• Capital efficiency via limit orders that only execute at desired prices
• Market making strategies that provide liquidity and tighten spreads
• Complex trading including stop losses, iceberg orders, and algorithmic execution

Binance's top-tier market makers can place 250 orders per second—on a single account. Meanwhile, Base can handle about 400 Uniswap swaps per second globally. The infrastructure gap is glaring.

Building performant CLOBs on-chain requires solving multiple technical challenges simultaneously:

Sequential Execution

Unlike AMM swaps that can theoretically execute in parallel, order book trades must process sequentially. Each trade changes the order book state, affecting subsequent trades. You can't parallelize that. This makes the much-hyped parallel EVM execution less impactful than many assume. RISE discovered that parallel execution delivers only 2-6x improvements, and primarily for independent operations—not the sequential trades that dominate CLOB activity.

Ultra-Low Latency

Professional traders measure latency in microseconds. Traditional blockchain confirmation times of seconds or minutes simply don't work. RISE addresses this through their innovative Shreds technology—small, verifiable sub-blocks that deliver:

• 10ms round-trip latency
• Continuous processing rather than discrete blocks
• Economically secured preconfirmations

Throughput at Scale

A single active CLOB can consume enormous throughput. RISE targets 100,000 TPS steady-state capacity, but more importantly, they measure performance in Gigagas—billions of gas units per second. This metric better captures the computational intensity of complex operations like order matching and settlement.

RISE's approach combines several key innovations:

Based Sequencing for Decentralization

Rather than running their own validator set, RISE leverages Ethereum's validators through based sequencing. This provides:

• Inherent decentralization from Ethereum's validators
• Censorship resistance through rotating block proposers
• Lower costs by avoiding the need to bootstrap security

The trade-off? Geographic concentration of builders for low latency. But this mirrors how traditional financial markets already operate, with co-location being standard practice.

Composability from Day One

Unlike app-specific chains like Hyperliquid, RISE maintains full EVM compatibility. This enables:

• Multiple competing CLOBs on the same chain
• Immediate integration with existing DeFi primitives
• Innovation through permissionless competition

Celestia for Data Availability

By using Celestia for data availability, RISE achieves the throughput necessary for high-frequency trading without the costs of posting to Ethereum.

RISE's vision extends beyond just enabling CLOBs. They see order books as the primitive that unlocks entirely new categories of on-chain applications:

• Automated market making strategies that hedge positions across CLOBs and AMMs
• On-chain options with dynamic hedging
• Cross-margin trading with composable risk management
• Decentralized prime brokerage services

The goal isn't to build the winning CLOB, but to create the infrastructure where the best CLOBs can emerge through competition.

Building for CLOBs requires accepting certain realities:

Latency vs. Decentralization

Achieving microsecond latency means accepting some geographic centralization of block builders. RISE argues this is acceptable given similar dynamics in traditional markets.

Liquidity Fragmentation

Multiple CLOBs mean fragmented liquidity. However, on-chain aggregation and arbitrage can mitigate this, similar to how DEX aggregators work today.

MEV Considerations

Order flow creates MEV opportunities. RISE's approach allows applications to implement their own MEV mitigation strategies rather than enshrining one approach.

RISE's testnet is already live, demonstrating their performance claims. For builders, this represents an opportunity to finally build applications that were previously impossible:

• Professional trading interfaces with sub-second execution
• Perpetual futures with funding rates updated every block
• Options protocols with dynamic delta hedging
• Gaming and prediction markets with instant settlement

The infrastructure excuse is evaporating. As blockchain performance approaches—and potentially exceeds—centralized systems, the question shifts from "can we build this on-chain?" to "why wouldn't we?"

The race to build performant on-chain CLOBs represents more than just recreating centralized exchanges. It's about proving that decentralized infrastructure can match and exceed traditional financial systems while maintaining the core values of transparency, permissionlessness, and composability.

The era of "good enough" blockchain performance is ending. The era of on-chain CLOBs has begun.

As teams race to deliver sub-10ms latency and CEX-level performance onchain, the infrastructure you choose today will determine your competitive edge tomorrow.

Gelato RaaS provides the battle-tested infrastructure to launch your high-performance trading rollup. Get started with Gelato RaaS today