APY reaches a maximum of 50%, why is Orderly OmniVault referred to as the "Ethena Evolution"?

Author: momo, ChainCatcher

Recently, with Binance announcing the launch of Ethena USDe (USDe), ENA has experienced a significant surge, once again showcasing the immense potential of innovative products like CeDeFi Vault in the market.

Following Ethena, Orderly's cross-chain liquidity vault OmniVault has also begun to emerge. After integrating Binance liquidity through Ceffu, OmniVault has shown strong performance: its TVL quickly surpassed $21 million, with nearly $600 million in trading volume over the past 30 days. This impressive performance has also helped Orderly successfully qualify for the BNB Chain Annual Awards in 2025.

The rapid rise of OmniVault not only marks its evolution from the Ethena model but also reveals its ambition to create a core entry point for future on-chain asset management and become a liquidity hub in the CeDeFi ecosystem.

Why is OmniVault considered an evolved version of Ethena Vault?

High Yield with Low Drawdown Performance

Orderly is a modular trading infrastructure that provides developers with a composable and pluggable trading system. In April this year, Orderly launched the OmniVault, a full-chain liquidity vault, which has become a representative vault product of the CeDeFi model through its integration with Ceffu. OmniVault aims to provide users with a more stable on-chain wealth management channel while pursuing higher yields.

Using OmniVault is not complicated; after users deposit USDC, their funds can automatically participate in market-making activities on the Orderly network, running Kronos Research strategies across multiple chains such as Arbitrum, Optimism, and Base, thereby earning real and verifiable LP returns. Notably, OmniVault supports flexible deposits and withdrawals every three hours, which is rare in the DeFi space.

The yield performance is also quite attractive. In its early days, the APY (annual percentage yield) exceeded 50%, while the recent 30-day APY has maintained around 20%, higher than most traditional DeFi vaults. Additionally, its risk control capabilities are solid, with the maximum drawdown kept within 0.13%.

Three Major Evolutions Compared to Traditional DeFi Vaults

The ability to achieve such high yield with low drawdown stems from three key evolutions that OmniVault has realized compared to traditional DeFi vaults:

1) Support for Multi-Strategy Trading. Unlike traditional DeFi vaults that generally rely on a single strategy, "simulated matching," or "internal loop trading" for yield, OmniVault combines the dual advantages of CeFi and DeFi to implement diverse trading strategies and sources of yield, allowing returns to come from real on-chain order matching trades, thus possessing stronger sustainability and volatility resistance.

For example, OmniVault collaborates with professional institutions like Kronos Research to adopt high-frequency multi-exchange trading strategies, obtaining stable returns through hedging operations across multiple exchanges. This strategy has typically been used only in professional trading institutions, but OmniVault makes all operations and yield distributions transparently recorded on-chain, opening it up to ordinary users. This allows users to enjoy the high execution efficiency and stable returns of CeFi without sacrificing the low threshold, openness, and transparency of DeFi.

2) Integration of CeFi Liquidity. OmniVault integrates with Binance's institutional custody platform Ceffu to access Binance liquidity while retaining some funds in on-chain smart contracts. This design preserves the liquidity and trading opportunities of centralized exchanges while ensuring the transparency and security of on-chain operations. Additionally, the Orderly protocol allocates up to 40% of net income and part of the insurance fund fees to the vault, further enhancing the stability and volatility resistance of returns.

3) Multi-Chain Support. Traditional DeFi vaults are often limited to a single chain, while OmniVault relies on Orderly's full-chain liquidity layer, allowing users to seamlessly deposit and withdraw across multiple chains. For instance, users can deposit USDC on Optimism and withdraw on Base, reducing operational costs caused by liquidity fragmentation and providing capital efficiency.

Beyond Ethena: Full-Chain Expansion and Diverse Strategies

Overall, OmniVault can be seen as an evolution of the Ethena model. Ethena primarily operates within the Ethereum ecosystem, generating yields through staking ETH derivatives and hedging strategies, with relatively singular strategies and limited cross-chain expansion capabilities.

In contrast, OmniVault natively supports multiple chains and has successfully accessed the liquidity of mainstream exchange Binance through its integration with Ceffu, establishing a more efficient connection between CeFi and DeFi. More importantly, it plans to introduce multiple managers and diversified strategies, allowing users to flexibly allocate assets based on their risk preferences while enjoying a transparent and convenient trading environment with richer yield path options.

Behind High Growth: On-Chain Wealth Management Shifting from Speculation to Real Returns

If the innovative product design laid the foundation for OmniVault's explosive growth, its actual performance post-launch confirms the market's demand for this model.

Data shows that OmniVault's trading volume in the past 30 days has approached $600 million, with its TVL surpassing $21.7 million in a short time, attracting nearly a thousand deposit users and generating over $640,000 in cumulative returns for depositors.

"The data performance has indeed exceeded our initial expectations," said Orderly co-founder Ran in a recent interview, acknowledging that OmniVault meets users' essential needs for stable on-chain wealth management. OmniVault has not conducted large-scale marketing; its funds have naturally flowed in entirely based on "performance."

The rapid emergence of Orderly OmniVault from Hyperliquid also indicates that as the benefits of DeFi airdrop subsidies fade, current on-chain funds are shifting from "speculative assets" to "structured investments," accelerating the flow of capital towards new infrastructures that can generate real returns and enhance trading efficiency.

Hyperliquid has created a system that closely aligns with the needs of professional traders through "centralized experience + on-chain asset settlement," becoming a dark horse in the DEX space, while Orderly OmniVault, with its "CeFi-level asset management strategies + on-chain transparent yield distribution" CeDeFi structure, is pioneering a new paradigm of on-chain wealth management with higher yields and stronger stability, becoming a new choice for more on-chain users.

Currently, the synergistic effects of OmniVault and the Orderly ecosystem are becoming evident. OmniVault not only optimizes strategy execution by leveraging Orderly's liquidity depth but also feeds back into the ecosystem, attracting more traders and funds. Since the launch of OmniVault, the overall TVL of Orderly has surpassed $51 million, with the user base approaching 900,000.

The Ambition to Become the "Core Entry Point for On-Chain Asset Management"

OmniVault's ambition goes far beyond being a single blockbuster product. According to Orderly co-founder Ran, its long-term goal is to create a true on-chain asset management entry point, building a closed-loop ecosystem of "on-chain financing and off-chain yield generation."

He emphasized in the interview that on-chain asset management is on the verge of an explosion, with crypto users' wealth management needs gradually shifting from centralized exchanges to on-chain. "In the future, centralized exchanges will serve as entry points for fiat deposits and KYC services, guiding users and funds into on-chain liquidity and wealth management. Following Aave and Pendle, more complex and higher-yielding on-chain wealth management products will emerge."

In this vision, OmniVault's business boundaries are expected to continue expanding. In the short term, the team will support more asset types, expanding from the current USDC to mainstream currencies like USDT and Ethereum, to meet users' diverse asset allocation needs. At the same time, the platform plans to introduce multi-strategy management and a multi-manager system, breaking the reliance on a single strategy and providing users with a range of risk products from conservative to high-yield.

In the long run, as TVL continues to grow and the integration with infrastructures like Ceffu deepens, OmniVault is likely to evolve along the "reverse path of Ethena": from the existing DEX + Vault model to gradually issuing native stablecoins, exploring more forms of yield tokenization, enhancing capital liquidity and composability, and forming a more complete asset closed loop and value cycle.

OmniVault is steadily moving towards its goal of becoming the core entry point for on-chain asset management and hopes to redefine the future form of CeDeFi asset management.

How Can Ordinary Players Participate in OmniVault?

For ordinary users, participating in OmniVault is very simple and does not require complex on-chain operations or strategic knowledge.

Users only need to log in to the official OmniVault page of Orderly and connect a supported wallet. For example, users can directly deposit USDC into the OmniVault using Binance Wallet and automatically enjoy real passive income generated by strategies managed by professional market makers like Kronos Research. After depositing, users can check their asset status and accumulated returns at any time and have flexible redemption rights every three hours.

It is worth mentioning that with Binance Wallet, OmniVault has access to a user base in the hundreds of millions and the potential for billions of dollars in liquidity.

Regarding users' concerns about asset security and transparency, all user funds in OmniVault are stored in audited smart contracts, with key operations supervised by a decentralized governance mechanism. Additionally, through institutional-level custody and multi-signature risk control in collaboration with Ceffu, asset security is further ensured. Users can verify all position statuses, transaction records, and yield distributions on-chain in real-time, minimizing information asymmetry.

The insurance fund mechanism of the Orderly protocol and the design of part of the protocol's income feeding back also provide an additional buffer layer to cope with extreme market conditions.

Conclusion: Can it Become the Liquidity Hub of the CeDeFi Ecosystem?

The rapid rise of OmniVault signifies not just the success of a single product but also marks a new stage in on-chain asset management, shifting from "short-term speculation" to "infrastructure reconstruction."

With its innovative CeDeFi architecture, OmniVault has achieved a yield-risk ratio far superior to traditional models, and more importantly, it has validated a sustainable and scalable way of organizing on-chain liquidity.

Currently, OmniVault is still in its early development stage, but its performance clearly points to a grander future: it is no longer just the growth engine of the Orderly ecosystem but is gradually becoming the underlying hub connecting CeFi and DeFi liquidity, multi-chain assets, and user yield demands.

Its continuous evolution not only provides growth momentum for the Orderly ecosystem but also offers a practical example for the industry to explore the next generation of on-chain asset management models.