Nado Complete Guide: Kraken DEX on Ink L2

What is Nado? The Next Generation of Decentralized Trading

Nado represents a paradigm shift in decentralized exchange architecture, combining the speed and sophistication of centralized exchanges with the transparency and self-custody of DeFi. Built by former Kraken engineers on Ink L2 (Kraken's own Ethereum Layer 2), Nado delivers what many consider the most advanced unified trading experience in the decentralized space.

Unlike traditional perpetual DEXs that rely on AMM mechanisms, Nado employs a Central Limit Order Book (CLOB) architecture that achieves 5-15 millisecond latency—comparable to major centralized exchanges. This technical achievement, combined with its unified margin system that spans spot, perpetuals, and money markets, positions Nado as a serious contender for traders seeking institutional-grade execution without sacrificing self-custody.

Key Metrics (January 2026):

• Private Alpha Volume: $5B+ (in just 3 weeks)
• Daily Perp Volume: ~$500M
• Open Interest: $90M+
• Daily Active Traders: 2,000+
• TVL: ~$20M
• Execution Latency: 5-15ms (comparable to CEX)
• Max Leverage: 100x
• Funding Rate: 24-hour interval

Why Nado Matters for Crypto Traders

The perpetual futures DEX landscape has evolved dramatically, with platforms like Hyperliquid capturing significant market share. However, Nado introduces several innovations that differentiate it from existing solutions:

1. True Unified Margin: A single collateral pool serves all trading activities—spot, perpetuals, and lending. This means holding spot BTC can offset margin requirements for BTC perpetual positions, dramatically improving capital efficiency.

1. Kraken Heritage: The team behind Nado built exchange infrastructure at Kraken, one of the most trusted names in cryptocurrency. This institutional experience translates into robust risk management and reliable systems.

1. 24-Hour Funding Rate: Unlike the standard 8-hour or 1-hour funding intervals, Nado's 24-hour funding rate reduces transaction costs for longer-term positions and simplifies position management.

1. INK Token Ecosystem: As part of Kraken's Ink L2 ecosystem, Nado participants may benefit from future INK token distributions and ecosystem incentives.

Nado's Revolutionary Architecture

Understanding Nado's technical architecture helps traders appreciate why it achieves performance levels previously thought impossible for decentralized exchanges.

Two-Pillar Design:

Off-Chain Sequencer:

• Order matching within 5-15 milliseconds
• MEV protection via order batching
• Faster than most traders can perceive
• All trades published to on-chain clearinghouse

On-Chain Clearinghouse (Ink L2):

• Real-time risk computation
• Margin & collateral management
• Settlement verification
• Cannot manipulate orders or front-run
• Full transparency on blockchain

The Unified Margin Revolution

Nado's unified margin system represents perhaps its most significant innovation. Traditional DEXs isolate positions—your ETH spot holdings have no relationship with your BTC perpetual position. Nado changes this entirely.

How Unified Margin Works:

A single margin account manages all your trading activities:

• Spot Holdings: Use as collateral (e.g., 10 ETH = $35,000)
• Perp Positions: Long or short with leverage (e.g., Short 5 BTC = $525,000 notional)
• Money Market: Lend idle assets for yield (e.g., $50,000 USDT lending)

Key Benefits:

• Hedged positions recognized (reduced margin requirements)
• Idle assets earn yield while serving as collateral
• Cross-asset strategies in a single account
• Maximum capital efficiency

Practical Example: Basis Trading

Consider a trader executing a cash-and-carry arbitrage (basis trade):

• Long 1 BTC spot at $105,000
• Short 1 BTC perpetual at $105,500

On isolated margin systems, both positions require full margin. On Nado, the system recognizes this as a hedged position with minimal directional exposure, requiring significantly less margin. This allows traders to execute sophisticated strategies with far greater capital efficiency.

Complete Registration Guide

Nado is currently in Private Alpha, requiring an invitation code for access. Here's how to get started:

Step 1: Prepare Your Wallet

Nado supports EVM-compatible wallets. Recommended options:

• MetaMask (most popular)
• Rabby Wallet (multi-chain focused)
• Coinbase Wallet
• WalletConnect compatible wallets

Step 2: Obtain an Invitation Code

Current active invitation codes:

• app.nado.xyz/?join=KpD91Vl
• app.nado.xyz/?join=Ky31etZ
• app.nado.xyz/?join=11hJvyJ
• app.nado.xyz/?join=7Tvexab

Step 3: Connect to Nado

1. Visit Nado Official
2. Click "Connect Wallet" in the top right
3. Select your wallet provider
4. Approve the connection request
5. Complete any additional verification prompts

Step 4: Add Ink L2 Network

If your wallet doesn't automatically detect Ink L2, add it manually:

Ink L2 Network Settings:

• Network Name: Ink
• Chain ID: 57073
• Currency Symbol: ETH
• RPC URL: https://rpc-gel.inkonchain.com
• Block Explorer: https://explorer.inkonchain.com

Depositing Funds

Nado accepts multiple collateral types, each serving as margin for your trading activities.

Supported Collateral Assets

• USDT0 (Primary stablecoin)
• USDC
• kBTC (Ink-native wrapped BTC)
• wETH (Wrapped ETH)
• NLP tokens (Nado Liquidity Provider tokens)

Bridge Options for Ink L2

To move funds to Ink L2:

1. Official Ink Bridge: Use Kraken's official bridge at ink.xyz
2. Third-Party Bridges: LayerSwap, Orbiter Finance, and similar services
3. Direct from Kraken: If you have a Kraken account, direct withdrawal to Ink L2 may be available

Deposit Process

1. Navigate to "Account" or "Deposit" section
2. Select the asset you wish to deposit
3. Enter the deposit amount
4. Approve the token spending (first time only)
5. Confirm the deposit transaction
6. Funds appear in your unified margin account within seconds

Trading on Nado

Nado's trading interface integrates TradingView charting with professional order entry tools.

Perpetual Trading

1. Select Market: Choose from available pairs like BTC-PERP, ETH-PERP
2. Set Leverage: Maximum 20x leverage available
3. Choose Order Type:

• Market Order: Immediate execution at best available price
• Limit Order: Execute only at your specified price or better

1. Enter Size: Position size in USD or contract units
2. Set Risk Parameters: Stop loss and take profit levels
3. Confirm Order: Review and execute

Spot Trading

The unified margin system allows spot trading within the same interface:

• Spot purchases add to your collateral
• Spot holdings serve as margin for perpetual positions
• Seamless conversion between spot and margin positions

Fee Structure

Nado maintains competitive fees, especially for active traders.

Perpetual Trading:

• Taker Fee: 0.015% (1.5 bps)
• Maker Fee: -0.008% (rebate!)
• Funding: Every 24 hours

Spot Trading:

• Taker Fee: Variable by tier
• Maker Fee: Rebate available

Money Markets:

• Interest: Variable based on utilization

Volume-based discounts available for active traders.

Fee Comparison with Competitors

Nado's 0.015% taker fee compares favorably:

• Hyperliquid: 0.035% taker (Nado is 57% cheaper)
• Traditional CEXs: 0.04-0.10% taker
• Most DEXs: 0.05-0.10% taker

The maker rebate (-0.008%) means professional market makers are paid to provide liquidity, ensuring tight spreads.

NLP Vault: Passive Income from Market Making

The Nado Liquidity Provider (NLP) Vault allows users to earn yield by providing capital for market-making and liquidation activities.

How NLP Vault Works:

Your Deposit (USDT0) → NLP Vault → Market Making & Liquidations → Rewards

NLP Vault Features:

• Participate in market making strategies
• Earn from liquidation execution profits
• Variable APY from trading fees
• NLP tokens serve as collateral for your trades!

Current NLP Vault Parameters

• Total Vault Capacity: $2M (fills quickly)
• Individual Deposit Limit: $20K per account
• Accepted Asset: USDT0
• APY: Variable based on trading activity and market conditions

Key NLP Benefits

1. Passive Income: Earn from market-making spreads and liquidation profits
2. Collateral Utility: NLP tokens count toward your unified margin
3. No Lock-up: Withdraw anytime (subject to liquidity)
4. Automatic Rebalancing: Professional strategies managed by the protocol

Points System and Airdrop Potential

Nado is building toward a token launch, with the current points system likely converting to $INK tokens.

Earning Nado Points

• High Points: Perpetual trading volume
• Medium Points: Spot trading volume
• Medium Points: NLP vault deposits
• Bonus Points: Early adopter multipliers

Airdrop Strategy Recommendations

1. Consistent Trading: Regular activity signals genuine usage
2. Diverse Actions: Trade perps, spot, AND use NLP vault
3. Referrals: Invite others using your referral link
4. Early Participation: Private alpha participants typically receive larger allocations

INK Token Connection

Nado has announced that points will be convertible to $INK tokens. As part of Kraken's ecosystem, this integration suggests meaningful token utility within the broader Ink L2 environment.

Risk Management and Security

Trading Risks

• Leverage Risk: 20x leverage means 5% adverse move = 100% loss
• Liquidation Risk: Thin liquidity during volatility can cause unfavorable liquidation prices
• Funding Rate Risk: Positions held across funding intervals incur costs (or receive payments)
• Smart Contract Risk: As with all DeFi, code vulnerabilities pose risks

Security Best Practices

1. Verify you're on the official domain: nado.xyz or app.nado.xyz
2. Never share your wallet's seed phrase
3. Use hardware wallets for significant amounts
4. Start with small positions to test the platform
5. Set stop losses to limit potential losses

Geographic Restrictions

Nado is not available in certain jurisdictions:

• Belarus, Cuba, Iran, North Korea, Russia, Ukraine
• Limited access in USA and Canada
• Users are responsible for compliance with local regulations

Nado vs. Other Perpetual DEXs

╔══════════════════════════════════════════════════════════════╗
║              PERPETUAL DEX COMPARISON                        ║
╠══════════════════════════════════════════════════════════════╣
║                                                              ║
║  Feature          Nado        Hyperliquid    Paradex         ║
║  ─────────────────────────────────────────────────────────   ║
║  Chain            Ink L2      Custom L1      Starknet        ║
║  Funding          24h         1h             8h              ║
║  Max Leverage     20x         50x            20x             ║
║  Unified Margin   Yes         No             No              ║
║  Taker Fee        0.015%      0.035%         0.02%           ║
║  Development      Kraken      Independent    Paradigm        ║
║  Token Status     Planned     HYPE live      STRK (chain)    ║
║                                                              ║
╚══════════════════════════════════════════════════════════════╝

When to Choose Nado

• Capital efficiency matters (unified margin advantage)
• Lower fee priority
• Prefer longer funding intervals for position management
• Interest in Kraken/Ink ecosystem

When to Choose Alternatives

• Need higher leverage (Hyperliquid offers 50x)
• Want established token with liquidity (HYPE)
• Prefer specific chain ecosystem

Conclusion: Is Nado Right for You?

Nado represents the cutting edge of decentralized exchange technology. Its unified margin system, institutional-grade latency, and competitive fees make it a compelling choice for serious traders seeking CEX-level performance with DeFi principles.

Ideal for Traders Who:

• Execute sophisticated strategies requiring unified margin
• Value capital efficiency and low fees
• Trust Kraken's engineering heritage
• Want early exposure to potential INK token distribution
• Prefer 24-hour funding for longer-term positions

Consider Alternatives If You:

• Need maximum leverage (50x+)
• Prefer established, liquid token ecosystems
• Trade primarily in jurisdictions with restrictions

As the perpetual DEX market matures, Nado's technical innovations position it well to capture significant market share. The private alpha results—$5B+ volume in three weeks—demonstrate strong product-market fit.

Check Nado Real-time Funding Rates →