In the fast-paced world of Solana on-chain trading, efficiency is everything. Onchain market makers and takers—who are the backbone of liquidity and trading activity respectively—need a platform that not only supports their strategies, but also minimizes costs and eliminates the risks of transaction failures.

Deriverse is a fully decentralized and on-chain trading ecosystem, purpose-built to optimize trading for both makers and takers. By leveraging advanced compute unit (CU) optimization via Solana’s newest features like versioned transactions, Deriverse significantly reduces costs, improves reliability, and maximizes profitability for its users. In this blog, we’ll explore how Deriverse is setting a new standard for market makers and takers by creating a cost-efficient, and scalable trading experience.

How Deriverse Optimizes Trading Experience for Market Makers

Market makers are the backbone of any trading ecosystem. They provide liquidity, tighten spreads, and ensure robust market activity. But being a market maker comes with challenges: frequent order placements, cancellations, and replacements consume large amounts of computational resources—and with it, transaction fees. Furthermore, market makers on Solana need to contend with high transaction failure rates. As per Figure 1, it is estimated that as much as 35% of non-vote Solana transactions fail.

At Deriverse, we understand these pain points and have optimized our platform to minimize compute unit (CU) usage, reduce transaction failure rates, and cut costs dramatically. Deriverse fully supports versioned transactions, which enable smaller transaction sizes through Address Lookup Tables (ALTs), lower fees for high-frequency operations, higher throughput capacity for more complex trades and faster processing speeds, allowing market makers to stay ahead of volatile market conditions. With versioned transactions, market makers can batch multiple actions—like placing, canceling, and rebalancing orders—into a single transaction, reducing costs and increasing efficiency. Market makers on Deriverse will be able to enjoy the following benefits:

1. Lean Transactions for Cost Efficiency: Deriverse has optimized its compute units (CU) to dramatically lower the cost of transaction execution with simple spot trades consuming  5k – 20k CU per transaction. Compared to main Solana competitors, which consume ca. 130k CU per transaction, Deriverse is up to 7x more efficient. For market makers, this means less wasted computational power and more profitability.

2. Lower Transaction Failure Rates: On Solana, 35% of daily transactions fail due to different reasons, with ca. 92% of these failures attributed to high-frequency traders making over 5,000 transactions per day. At Deriverse, we’ve designed our protocol to ensure market makers can trade reliably and build complex orders without the need of chaining multiple CU-intense transactions.

What Are Compute Units, and Why Do They Matter?

Compute Units (CU) measure the computational power required to execute transactions on the Solana blockchain. Each transaction consumes a specific number of CUs, and exceeding the limit results in failure. For market makers and takers, CU efficiency is critical: Market makers need to frequently cancel, replace, and rebalance orders, making them the largest consumers of CUs. Takers rely on fast, efficient execution to capture price opportunities. By minimizing CU consumption, Deriverse ensures that both makers and takers can trade seamlessly without wasting resources or incurring excessive costs.

How Deriverse Optimizes Trading Experience for Takers

Takers, who execute trades by matching existing orders in the orderbook, are equally critical to the trading ecosystem. However, takers often face high fees, which eat into their profitability. This is the case particularly for high-volume traders like arbitrageurs and algorithmic traders. Deriverse introduces a new subscription-based fee model that reduces taker fees by up to 10x, making it the most cost-efficient decentralized trading platform for algorithmic trading. Deriverse value proposition for takers comes in two forms:

1. Subscription-Based Taker Fees: Deriverse offers a membership program where traders can prepay taker fees to unlock significant discounts: Users can deposit up to $50,000 into a smart contract to prepay fees. Discounts scale with the amount prepaid, offering up to 75% off taker fees (as low as 0.5bps per transaction). This model benefits high-volume traders by reducing their costs while providing Deriverse with predictable revenue streams.

2. Competitive Baseline Fees: Compared to industry benchmarks, Deriverse taker fees start at 2bps, which is lower than the average DEX taker fee of ca. 3.6bps and competitive with most centralized exchanges (ca. 3.9bps on average). Many algorithmic traders operate on profit margins as low as 5bps. With Deriverse’s lower taker fees, traders can remain profitable even at high volumes, making strategies like various types of arbitrage and algorithmic trading viable on-chain.

A Platform Built for Efficiency

Deriverse isn’t just another decentralized exchange—it’s a trading ecosystem optimized for the most active and demanding users: market makers and professional takers. By leveraging Solana’s latest tech, including compute unit optimization and versioned transactions, Deriverse delivers a fast, reliable, and cost-efficient trading experience for everyone.

Thank you for shaping the future of decentralized derivatives trading with us! Stay tuned for our next article! Please consider giving us a follow on X or join our Discord server.

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