Last updated on March 8th, 2026 at 04:59 pm
Chake Protocol has unveiled a new Layer 1 blockchain built specifically for on-chain derivatives, marking a shift in how crypto trading infrastructure is designed. Instead of launching a decentralized exchange on top of an existing blockchain, Chake has built its own network from the ground up with a perpetual futures engine at its core.
The project says its chain can handle more than 2.5 million transactions per second, aiming to deliver the speed of centralized exchanges while keeping trading fully on-chain. The move reflects growing demand for faster, more reliable derivatives trading in crypto markets.
From DeFi summer to the onchain derivatives era, Chake Protocol represents a structural rearchitecture of decentralized finance at the base layer. Rather than deploying a decentralized exchange on top of a generalized blockchain, Chake is engineered as a purpose built Layer 1… pic.twitter.com/NrHFkrtjD2
— Chake Protocol (@chakeprotocol) February 18, 2026
Built for speed and real-time risk control
At the centre of Chake’s system is a trading engine that processes order books, margin updates, funding rate changes, and liquidations directly on the blockchain. This means trading activity is not treated as an add-on feature but as a core function of the network.
Transactions are grouped into smaller processing units and run through a pre-execution layer that calculates trade matching and risk impact before final confirmation. According to the team, this setup allows thousands of markets to operate at once while maintaining fast settlement times measured in milliseconds.
A new approach to on-chain liquidity
Chake also introduces a liquidity system designed for derivatives-heavy trading. Instead of locking funds into separate market pools, capital is pooled and dynamically allocated based on volatility and demand. This aims to improve capital efficiency while supporting high trading volumes.
The network uses a hybrid consensus model to validate transactions and maintain security without slowing down performance. By combining parallel processing with streamlined validation, Chake positions itself as infrastructure built specifically for the next phase of on-chain derivatives growth.
As crypto markets continue to mature, purpose-built chains like Chake signal a broader push toward specialized blockchain networks tailored for advanced financial trading.
In another on-chain development, Lighter launched the world’s first perpetual futures contracts for South Korean blue-chip stocks, including Samsung Electronics, SK Hynix, and Hyundai Motor.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
