SynFutures Unveils ‘Entropy’ to Improve On-Chain Order Book Infrastructure

Decentralized exchange SynFutures has unveiled Entropy, a technology aimed at improving infrastructure for on-chain derivatives trading.

SynFutures announced on July 9 that Entropy, a core technology designed to improve the efficiency of on-chain order books, will be deployed alongside the launch of its proprietary Layer 1 blockchain mainnet.

Entropy is focused on solving the increase in gas costs that has accompanied the implementation of order book structures on blockchain-based exchanges. Previously, execution costs rose sharply when trades crossed multiple price ranges, limiting the processing of large orders.

The company said the technology was designed to keep execution costs constant regardless of trade size. That makes limit orders more practical in on-chain environments.

Entropy uses a mathematical algorithm to process order book data without storing it directly on-chain. The algorithm's stability was verified through more than 1 million tests.

"Real-world financial markets run on order books," Mark Lee, a core contributor at SynFutures, said. "Entropy is a key technology that makes that possible on-chain."

Entropy will be introduced as a key feature of SynFutures v4 and will also be adopted by Monday Trade, a decentralized derivatives exchange developed through the builder program. The platform operates on the Layer 1 blockchain Monad.