We’ve just launched Sprk.fi on the Fuel mainnet, and it feels like the perfect time to reflect on how we got here and the vision driving everything we’ve built. This launch isn’t just a milestone—it marks the beginning of what we believe will be the future of on-chain trading. With the market starting to recover and our product finally live, we’re ready to show the world what a true Central Limit Order Book (CLOB) on Ethereum can look like.
Our journey started two years ago, in the chaotic days of November 2022, when the crypto space was shaken by the collapse of FTX and the hacking of Mango Markets. In the aftermath of those events, many projects fell apart—including Serum, a critical piece of Solana’s ecosystem. Serum had been more than just an order book—it was the foundation of Solana’s vision for an “on-chain Nasdaq.” Its downfall was a wake-up call for us.
We realized that CLOBs, not Automated Market Makers (AMMs), were the key to professional, on-chain trading. Our vision was simple: take what made Serum powerful and bring it to Ethereum, but with even more stability, scalability, and user experience improvements. However, we needed more than just Ethereum to make this work—we needed Fuel, a Layer 2 solution built for high-performance DeFi.
Why CLOBs Are the Future
CLOBs offer a completely different trading experience from AMMs, and that’s where we saw our opportunity. AMMs, like Uniswap, rely on algorithms baked into smart contracts to create liquidity and offer passive yield for liquidity providers (LPs). But that model isn’t suitable for traders looking to run active strategies. With AMMs, liquidity is often overpriced, leading to high slippage and poor execution—it’s like trying to exchange money at an airport: easy but expensive.
In contrast, order books give traders the best possible liquidity, more responsive pricing, and minimal slippage. This is critical for anyone running algorithms, bots, or high-frequency trading strategies. CLOBs have been the backbone of traditional finance for centuries, and we believe they belong at the core of DeFi’s next chapter.
However, building an on-chain order book requires high throughput and low transaction costs, which Ethereum alone couldn’t provide. Solana had made some progress, but technical challenges like state bloat and frequent outages limited its potential. That’s when we turned to Fuel—a new Layer 2 solution that could solve these problems and unlock the full potential of on-chain trading.
Why We Chose Fuel for Spark
Fuel offers everything we need to power a CLOB-based exchange: parallel execution, low fees, millions of transactions per second (TPS), and a stateless design.
When we first explored Fuel’s potential, we knew it was the right foundation for Spark. Its CEO, Nick, introduced us to Fuel’s predicate model, which tackles state bloat—one of the biggest bottlenecks we encountered on other chains.
After building a minimum viable product (MVP) in early 2023, we presented it at EthDenver. Back then, the market was still deep in the bear cycle, and launching another DeFi exchange didn’t spark much enthusiasm. But now, in November 2024, with Spark live on the Fuel mainnet and the market rebounding, the timing couldn’t be better.
What Makes Spark.fi Different
At its core, Spark is more than just an exchange—it’s designed to become the execution layer for Ethereum DeFi, helping users transition from AMMs to order book-based trading.
Here’s what we’ve built so far:
1. Fully On-Chain CLOB with SDKs
Spark’s order book and matching engine live entirely on-chain, offering a decentralized, transparent alternative to centralized exchanges. Developers can use Rust and TypeScript SDKs to build custom DeFi products on top of Spark. If you’re looking for inspiration, just explore what Serum did on Solana—or reach out to the Compolabs team on Discord.
2. Spot Exchange
Spark’s spot exchange offers real-time, order-book trading, giving users the kind of execution they’re used to on traditional exchanges.
https://www.youtube.com/watch?v=hUgMu7wq5es
With bots and algorithms, traders can run advanced strategies on-chain, without worrying about high slippage or expensive fees.
3. Perpetual Contracts (Perps)
Perps have become a must-have in DeFi, allowing users to trade with leverage and profit from both bullish and bearish trends. Spark offers fully on-chain perps, extending our product suite for advanced traders.
4. Market Maker (MM) Vaults (Coming Soon)
We’re working on MM Vaults, which will blend the benefits of AMMs with the precision of order books. These vaults will allow LPs to earn passive yield while benefiting from Spark’s superior liquidity infrastructure.
Why Spark Will Succeed
The key to Spark’s success lies not just in the tech but in the people and the mindset behind it. Building a product like this requires a deep understanding of Ethereum, order books, and DeFi, along with a willingness to push through a long and expensive R&D process. Our team has worked tirelessly to bring Spark to life, and now we’re ready to scale.
Our edge isn’t just technical—it’s also strategic. Fuel offers some of the lowest fees and fastest transactions in the space, making it the ideal environment for both retail traders and institutional players. We’re also offering incentives: traders who use USDC, USDT, or ETH on Spark will earn double rewards, boosting profits and attracting liquidity.
But this isn’t just about fees or speed—it’s about mentality. Many developers and users from chains like Solana, Aptos, and Near want to migrate to Ethereum, but the EVM can feel complex and unwelcoming. Fuel makes that transition easier, offering a more accessible starting point while delivering a superior experience.
On-Chain Trading: The Future is Now
I firmly believe that centralized exchanges (CEXes) are obsolete. They’re plagued by manipulation, censorship, and data exploitation, and they leave users vulnerable to regulatory pressure. The future of finance is on-chain, where trading is transparent, secure, and decentralized.
The regulatory landscape is also shifting, with more scrutiny on off-chain platforms. Fully on-chain solutions like Spark offer a level of safety and compliance that off-chain platforms can’t match. If your execution and settlement are on-chain, you’re in a much better position than relying on centralized intermediaries.
What’s Next for Spark.fi
Every DeFi application is slowly evolving into its own appchain, and Spark will be no exception. We plan to run Spark Chain on Fuel’s shared sequencers, allowing seamless liquidity movement across Ethereum and other Layer 1 and Layer 2 networks. With intent-based bridges, users will be able to trade on Spark while keeping their assets on other chains and L2s.
Ready to Ignite the Future
The journey to bring Spark to life hasn’t been easy. But with Spark now live on the Fuel mainnet, we’re ready to lead the transition to on-chain order book trading. We’ve built a product that combines the precision of traditional finance with the transparency of DeFi, and we’re just getting started.
With better liquidity, lower fees, and the right incentives, we believe Spark will capture market share and become the go-to platform for traders and developers alike. The future of finance is on-chain, and Spark.fi is here to ignite it.
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