Denaria's journey started almost one year ago with the first deployment of the demo version of the perpetual DEX and the launch of the DXP campaign. Since then, a lot has been developed, and Denaria has evolved into an onchain testnet with thousands of users.

Today, we are announcing a major testnet update that will strengthen the overall technical infrastructure and bring us a step closer to mainnet deployment.

As mentioned above, after months of offchain demo testing, on March 19th we deployed the onchain version of the perpetual DEX on the Linea Sepolia testnet. This was a critical milestone, as it allowed us to test our smart contracts in a more realistic environment.

Since its inception, Denaria has onboarded 8,250 users, with 5,700 completing the human verification process and we are very thankful to all of them who have joined us and contributed to improving the smart contracts.

All these traders have actively tested the system, and the testnet stats confirm it clearly. In the last 5 months, cumulative trading volume on the Denaria Testnet reached $3.8 billion, with over 130,000 completed trades.

Thanks to all the tests carried out by the community, we have identified several areas of the technological stack where improvements can be made. In the upcoming update, expected to go live in around one week, we will improve the following aspects of the perpetual DEX:

• Solidity version → Linea is about to release a major update for their Sepolia testnet, upgrading Solidity to version 0.8.25. This allows us to update our own smart contracts accordingly and provide a more stable and faster trading experience.

• Partial liquidations → Liquidations are a key component of the perpetual DEX, ensuring the system remains solvent and fair for all participants. In the upcoming update, we will improve the partial liquidation mechanism, enhancing both stability and execution. This update will also improve the auto-deleveraging feature, as well as the visualization of liquidations in the user interface.

• Funding rate optimizations → In Denaria, the funding rate mechanism balances open interest and keeps trader exposure aligned between long and short positions. In the next release, we will introduce optimized parameters that will result in a more stable funding rate compared to the previous implementations.

• General smart contract improvements and optimizations → All smart contracts have been carefully analyzed for potential optimizations, with the main goal of reducing gas costs.

Besides the improvements made directly for the app and traders, there are additional minor updates that will be included in the next release:

• Liquidity Provision Frontend → Although still in closed beta, the LP frontend has undergone extensive internal testing. With the upcoming update, we will also resolve all bugs and issues identified during testing.

• Multicall → This feature will Improve the UX for liquidity providers (e.g., adding collateral, changing strategy). A single operation will now handle allowance and asset deployment, preventing stalled transactions from causing UX issues.

The entire Denaria team is working hard to reach mainnet deployment as quickly as possible. Meanwhile, an internal audit is ongoing, and once completed, it will allow us to kick off the external audit, expected to start on September 1st.

Please note that this testnet update, like the previous ones in recent months, will result in a reset of the stablecoins held in users’ wallets. However, DXP will not be affected, and every user will continue to hold their DXP even after the update.

Denaria is improving fast and this is a crucial step for bringing us to the mainnet.

Denaria's journey started almost one year ago with the first deployment of the demo version of the perpetual DEX and the launch of the DXP campaign. Since then, a lot has been developed, and Denaria has evolved into an onchain testnet with thousands of users.

Today, we are announcing a major testnet update that will strengthen the overall technical infrastructure and bring us a step closer to mainnet deployment.

As mentioned above, after months of offchain demo testing, on March 19th we deployed the onchain version of the perpetual DEX on the Linea Sepolia testnet. This was a critical milestone, as it allowed us to test our smart contracts in a more realistic environment.

Since its inception, Denaria has onboarded 8,250 users, with 5,700 completing the human verification process and we are very thankful to all of them who have joined us and contributed to improving the smart contracts.

All these traders have actively tested the system, and the testnet stats confirm it clearly. In the last 5 months, cumulative trading volume on the Denaria Testnet reached $3.8 billion, with over 130,000 completed trades.

Thanks to all the tests carried out by the community, we have identified several areas of the technological stack where improvements can be made. In the upcoming update, expected to go live in around one week, we will improve the following aspects of the perpetual DEX:

• Solidity version → Linea is about to release a major update for their Sepolia testnet, upgrading Solidity to version 0.8.25. This allows us to update our own smart contracts accordingly and provide a more stable and faster trading experience.

• Partial liquidations → Liquidations are a key component of the perpetual DEX, ensuring the system remains solvent and fair for all participants. In the upcoming update, we will improve the partial liquidation mechanism, enhancing both stability and execution. This update will also improve the auto-deleveraging feature, as well as the visualization of liquidations in the user interface.

• Funding rate optimizations → In Denaria, the funding rate mechanism balances open interest and keeps trader exposure aligned between long and short positions. In the next release, we will introduce optimized parameters that will result in a more stable funding rate compared to the previous implementations.

• General smart contract improvements and optimizations → All smart contracts have been carefully analyzed for potential optimizations, with the main goal of reducing gas costs.

Besides the improvements made directly for the app and traders, there are additional minor updates that will be included in the next release:

• Liquidity Provision Frontend → Although still in closed beta, the LP frontend has undergone extensive internal testing. With the upcoming update, we will also resolve all bugs and issues identified during testing.

• Multicall → This feature will Improve the UX for liquidity providers (e.g., adding collateral, changing strategy). A single operation will now handle allowance and asset deployment, preventing stalled transactions from causing UX issues.

The entire Denaria team is working hard to reach mainnet deployment as quickly as possible. Meanwhile, an internal audit is ongoing, and once completed, it will allow us to kick off the external audit, expected to start on September 1st.

Please note that this testnet update, like the previous ones in recent months, will result in a reset of the stablecoins held in users’ wallets. However, DXP will not be affected, and every user will continue to hold their DXP even after the update.

Denaria is improving fast and this is a crucial step for bringing us to the mainnet.