Nado

If you have been searching for a perpetual futures DEX that actually feels like trading on a centralized exchange, Nado deserves your attention. We spent several weeks testing this platform during its open beta on Ink, the Layer 2 chain built by the team behind Kraken. Our honest take? Nado is one of the most polished order-book DEXes to launch in 2025, and it has already racked up serious volume. But it is still early, still single-chain, and still proving itself in a field crowded with well-funded competitors. Here is our full assessment of what Nado gets right, where it falls short, and who should consider using it in 2026.

What is Nado?

Nado is a vertically integrated decentralized exchange for spot and perpetual futures trading, built on Ink, the Ethereum Layer 2 chain developed by Kraken. The platform uses a central limit order book (CLOB) architecture with an off-chain sequencer for speed and on-chain settlement for transparency. In simpler terms, your orders are matched in milliseconds off-chain, but all final settlement happens on the Ink blockchain where anyone can verify it.

What makes Nado stand out from the growing number of perps DEXes is its connection to the Kraken ecosystem. Ink is not some obscure chain built by an anonymous team. It is an Optimistic Rollup powered by the OP Stack, the same technology behind Base, Optimism, and other major Layer 2 networks. Kraken, a publicly listed company with over 10 million users, developed Ink to bridge its centralized exchange user base into DeFi. Nado is the flagship trading protocol on this chain, and Kraken itself introduced Nado directly on its official channels.

The platform launched into private alpha in mid-2025 and quickly gained traction. During its first three weeks of private alpha testing, Nado processed over $5 billion in cumulative perpetual volume with more than 1,000 active traders. By the time it entered open beta, the daily perp volume was hovering around $400 million, with open interest exceeding $40 million. Those are not small numbers for a platform that has been live for less than a year.

Nado supports both spot and perpetual futures trading through a unified margin system. This is a genuinely useful feature that most competitors do not offer. Instead of managing separate accounts for spot and perps, you deposit collateral into a single account. Your margin is computed at the portfolio level, meaning profits from one position can offset losses in another. The risk engine tracks your overall health in real time, which translates to better capital efficiency for active traders.

The NLP (Nado Liquidity Provider) vault sits at the center of the liquidity model. LPs deposit USDT0 into the NLP vault, which then routes capital into market-making and liquidation strategies on the perpetual order book. LPs earn passive exposure to trading fees and liquidation proceeds, while traders benefit from deeper order books and tighter spreads. The NLP vault filled its initial $2 million capacity quickly, with individual deposits capped at $20,000, signaling strong early demand.

As of early 2026, Nado is running Open Beta Season 1, a structured points program that rewards trading activity, NLP participation, and referrals with weekly point distributions. Points are expected to convert to $INK tokens at a future token generation event. The platform also airdropped an NFT collection to the top 30% of users by points, which provides fee tier benefits and serves as an identity layer within the ecosystem.

Features and Functionality

Trading Interface and Order Types

When we first loaded the Nado trading interface, the comparison to a centralized exchange was immediate. The layout follows the standard format that professional traders expect: price chart in the center, order book on one side, and trade entry panel on the other. TradingView integration provides access to the full suite of technical indicators, drawing tools, and multiple timeframe views that serious traders need.

Nado supports the core order types you would expect from an order-book exchange: market orders for instant fills, limit orders for price-specific entries, and stop orders for risk management. We tested limit orders across multiple pairs during different market conditions and found that fill rates were solid on major pairs like BTC-PERP and ETH-PERP, though thinner liquidity on smaller pairs sometimes meant partial fills on larger limit orders.

The matching speed is genuinely impressive. Nado claims 5 to 15 millisecond order matching latency, and in our testing, orders did execute almost instantly. This is significantly faster than most on-chain DEXes, where you might wait several seconds or even a full block confirmation. The off-chain sequencer handles the speed, while the on-chain settlement on Ink provides the verifiability. It is a good compromise between performance and decentralization.

One feature we particularly appreciated is the unified margin display. Your account overview shows your total collateral, unrealized PnL across all positions, account health percentage, and maintenance margin requirements in a single view. There is no need to switch between tabs or accounts to understand your overall exposure. For traders managing multiple positions simultaneously, this is a meaningful quality-of-life improvement.

Perpetual Futures

Perpetual futures are clearly the main attraction on Nado. The platform supports up to 20x leverage on major pairs including BTC, ETH, SOL, BNB, and XRP, with USDT0 as the settlement currency. The leverage cap is conservative compared to some competitors that offer 50x or even 100x, but honestly, 20x is more than enough for the vast majority of traders. Higher leverage mostly benefits the liquidation engine, not the trader.

The funding rate mechanism works as expected for a perps platform. Long and short positions exchange funding payments based on the deviation between the perpetual price and the spot index price, keeping the two aligned over time. We monitored funding rates across several pairs during our testing period and found them generally in line with rates on larger platforms like Hyperliquid and dYdX.

The unified margin system is where Nado really differentiates itself in the perps category. Nado describes its margin model as "kinetic collateral" that dynamically flows across positions. In practice, this means your margin is not siloed per position. If you have a profitable BTC long and an underwater ETH short, the BTC profits help support the ETH position automatically. Your liquidation threshold is calculated at the account level, not per position. This gives you more breathing room and reduces the chance of unnecessary liquidations on individual trades.

We tested this by opening multiple simultaneous positions and confirmed that the margin system behaved as described. The health indicator updated in real time as positions moved, and the liquidation price adjusted dynamically based on the aggregate portfolio. It works well.

Spot Trading and Margin

Beyond perpetuals, Nado offers spot trading with margin capabilities. You can buy and sell assets on the spot order book and use the same unified collateral pool. This means you can hold spot positions alongside your perp positions, and both contribute to your overall margin calculation.

The spot pair selection is still limited in early 2026, focusing primarily on major assets. But the integration with the unified margin system means that spot positions are not dead weight in your account. They contribute to your portfolio margin, which is a feature typically reserved for institutional-grade platforms.

NLP Vault and Liquidity

The NLP vault is Nado's primary mechanism for bootstrapping liquidity. It accepts USDT0 deposits from liquidity providers and deploys that capital into market-making strategies on the perps order book. The vault also participates in liquidations, capturing the liquidation fees when overleveraged positions get closed.

For LPs, this offers a passive way to earn from trading activity without needing to actively manage orders. The returns come from a share of trading fees and liquidation proceeds. However, LPs should understand that the NLP vault is not risk-free. Market-making strategies can lose money in highly volatile, one-directional markets where the vault ends up holding inventory on the wrong side. This is a common risk for any market-making vault, and Nado does not hide it.

During our testing, the NLP vault was consistently at or near capacity, suggesting strong LP demand. The $2 million initial cap with $20,000 per-account limits has since been expanded as the platform grew. TVL across the platform (including deposits and the NLP vault) reached approximately $50 million by early 2026.

Points Program and NFTs

Nado runs an active incentive program through Open Beta Season 1. Points are distributed weekly based on trading volume, NLP vault participation, and referral activity. The program is structured into Trading Tiers ranging from Breeze (lowest) to Tornado (highest), determined by weekly points rankings. Up to 8 million bonus points may be allocated during Season 1.

The Nado NFT collection was airdropped to the top 30% of private alpha users by points. Holding an NFT provides an automatic fee tier improvement based on the NFT's "Wind Force" attribute, plus additional benefits that the team says will roll out progressively. NFTs are tradable on OpenSea, giving holders instant liquidity if they prefer to sell.

While points programs are common across DeFi, the connection to $INK tokens (Ink chain's native reward token) gives the Nado program more credibility than average. Points are expected to be convertible to $INK at a future TGE, though the exact conversion rate has not been announced.

Fees and Pricing

Fee Structure

Nado uses a volume-based maker-taker fee model, which is standard for order-book exchanges. All fees are calculated in basis points (bps, where 1 bp equals 0.01%) on the trade's notional value and settled instantly in USDT0 from your collateral.

At the entry tier (under $25 million in 30-day volume), takers pay 3.5 bps (0.035%) and makers pay 1 bp (0.01%). As your volume increases, fees decrease and makers eventually earn rebates. At the elite tier ($5 billion or more in 30-day volume), takers pay just 1.5 bps (0.015%) and makers receive a 0.8 bp rebate, meaning the platform pays you for providing liquidity.

The tiered structure rewards high-volume traders significantly. Here is the full breakdown:

Gas fees on Ink are minimal. Because Ink is an Optimistic Rollup on the OP Stack, transaction costs are a fraction of Ethereum mainnet fees. During our testing, we paid between $0.001 and $0.05 per transaction depending on network congestion. For practical purposes, gas is effectively negligible on Ink.

NFT holders also receive an automatic fee tier improvement, which means active alpha participants who earned an NFT are effectively trading at lower fees than their volume tier would normally dictate. This is a nice perk for early adopters.

How Nado Fees Compare

Let us compare Nado's entry-tier fees against the most relevant competitors:

Nado's entry-tier taker fee of 0.035% places it in the middle of the pack. It is cheaper than dYdX and significantly cheaper than GMX, but more expensive than Hyperliquid and Vertex at the base level. The maker fee of 0.01% is competitive, though Hyperliquid and Vertex offer free maker trades from the start.

Where Nado becomes more competitive is at higher volume tiers. The elite tier taker fee of 0.015% and the maker rebate of 0.8 bps are genuinely attractive for professional traders. And the near-zero gas costs on Ink mean that the all-in cost of trading on Nado can be very low for active participants.

Real-World Cost Examples

Here is what trading on Nado actually costs at the entry tier:

1. A $1,000 perpetual trade costs approximately $0.35 in taker fees plus $0.10 in maker fees (if you use a limit order) plus under $0.05 in gas. Total for a market order: roughly $0.40.
2. A $10,000 perpetual trade costs approximately $3.50 as a taker, or $1.00 as a maker, plus negligible gas. Total for a market order: roughly $3.55.
3. A $50,000 perpetual trade costs approximately $17.50 as a taker, or $5.00 as a maker, plus negligible gas.

For an active day trader making 20 taker trades of $5,000 each, the daily cost would be approximately $35 in fees at the entry tier. On Hyperliquid, the same activity would cost $20. On GMX, it would cost $70 plus gas. Nado sits comfortably in the middle.

Security and Safety

Architecture and Settlement

Nado's security model is built on a hybrid architecture: an off-chain sequencer for speed and on-chain settlement on Ink for verifiability. This means that while trades are matched off-chain in milliseconds, the final settlement of funds happens on the Ink blockchain. Users can verify all settlements on-chain, which provides a layer of transparency that purely off-chain systems lack.

Ink itself inherits security properties from Ethereum through the Optimistic Rollup model. The chain uses permissionless fault proofs, with both Gelato and Kraken running challengers. This makes Ink one of the first Superchain networks to feature multiple independent challengers at launch, which strengthens the bridge security between Ink and Ethereum mainnet.

The self-custodial nature of Nado means that users retain control of their funds. You are not depositing into a centralized entity's custody. Your collateral sits in smart contracts on Ink, and withdrawals are processed on-chain. This eliminates the counterparty risk that plagues centralized exchanges, though it introduces smart contract risk instead.

Bug Bounty Program

Nado has established a bug bounty program through HackenProof, a well-known security platform in the blockchain space. The program invites security researchers to identify vulnerabilities in Nado's smart contracts and report them for rewards. This is a positive signal. Active bug bounty programs create an ongoing incentive for white-hat hackers to find and report issues before they can be exploited.

That said, we should note what is missing. As of early 2026, we have not seen published audit reports from major smart contract auditing firms like Trail of Bits, OpenZeppelin, Spearbit, or CertiK. For a platform backed by the team behind Kraken, we would expect formal audits from named firms to be completed and published. The bug bounty is a good start, but it is not a substitute for comprehensive third-party audits.

Kraken Connection and Trust

The relationship with Kraken is both Nado's greatest security asset and an area that requires nuance. Kraken is a publicly listed company (COIN alternative) with years of regulatory compliance, millions of users, and a strong track record in security. The fact that Kraken developed the Ink chain and publicly introduced Nado lends the project significant credibility compared to anonymous DeFi protocols.

However, Nado operates as a decentralized protocol, not as a Kraken product with Kraken's guarantees. If something goes wrong with Nado's smart contracts, Kraken is not necessarily on the hook for user losses. The distinction between "built by the Kraken team" and "backed by Kraken's balance sheet" is important, and users should not assume that Kraken insurance or support extends to Nado.

Code Transparency

Nado's codebase is not open source as of early 2026. This limits the ability of independent researchers to audit the code beyond what the bug bounty program covers. Open-source code is generally considered a best practice in DeFi because it allows the broadest possible review by the security community. Platforms like GMX and dYdX have open-source codebases that have been reviewed by hundreds of developers.

The closed-source approach is not uncommon for newer platforms, and some argue that it reduces the risk of copycat attacks where adversaries study the code to find exploits. But in a space built on transparency and trustlessness, closed source remains a trade-off that security-conscious users will weigh carefully.

Overall, Nado's security profile is decent for a platform at this stage. The Kraken connection, Ink's Optimistic Rollup security, the bug bounty program, and the self-custodial design are all positives. The missing formal audits and closed-source code are the main gaps. We would rate the security a 7 out of 10 and recommend that users start with smaller positions until the platform builds a longer track record.

Getting Started with Nado

Setting Up Your Wallet

To use Nado, you need a wallet that supports the Ink network. Since Ink is an EVM-compatible chain built on the OP Stack, most Ethereum wallets work. MetaMask is the most common choice. You will need to add the Ink network to your wallet manually or use a service like ChainList (chainlist.org/chain/57073) to add it with one click.

Ink network details for manual setup: Chain ID is 57073, the native currency is ETH, and the RPC endpoints are available through the Ink documentation. If you have used any Ethereum L2 before (Arbitrum, Optimism, Base), the process is identical.

Bridging Funds to Ink

Since Nado operates exclusively on Ink, you need to bridge assets to the chain before trading. The Ink bridge allows you to transfer ETH and other supported tokens from Ethereum mainnet to Ink. Third-party bridges like Relay, deBridge, and others also support Ink.

Here is a practical tip from our experience: bridge more ETH than you think you will need for gas. While gas fees on Ink are very low (usually under $0.05 per transaction), you still need ETH in your wallet to sign transactions. We recommend keeping at least 0.01 ETH reserved for gas at all times. Bridging from Ethereum mainnet typically takes 5 to 15 minutes depending on congestion.

Once your funds are on Ink, you will also need USDT0 for trading collateral on Nado. USDT0 is the bridged version of USDT that operates across multiple chains. You can swap ETH for USDT0 on Ink through other DEXes on the chain or bridge USDT0 directly.

Making Your First Trade

Visit app.nado.xyz and connect your wallet. The platform will detect your Ink network connection and display your available balances. Navigate to the deposit section and transfer USDT0 from your wallet into your Nado trading account. Deposits are confirmed on-chain within seconds.

Once funded, select a trading pair from the market list. The BTC-PERP pair typically has the deepest liquidity, making it the best starting point. Choose between a market order (fills immediately at the best available price) or a limit order (fills when the market reaches your specified price). Set your position size and leverage (up to 20x), review the estimated liquidation price and fees, then confirm and approve the transaction in your wallet.

Your position will appear in the positions panel within seconds. You can monitor PnL in real time, set take-profit and stop-loss levels, or close the position manually at any time. The unified margin display shows your account health as a percentage, making it easy to gauge your overall risk at a glance.

Withdrawing Funds

Withdrawals follow the reverse process. Close any open positions, navigate to the withdrawal section, and transfer funds from your Nado account back to your wallet on Ink. From there, you can bridge assets back to Ethereum mainnet or other chains. Withdrawal processing on Nado is nearly instant on-chain, though bridging back to Ethereum mainnet involves the standard Optimistic Rollup challenge period if you use the native bridge.

User Experience

Desktop Platform

The desktop web application is where Nado delivers its strongest experience. The interface is fast, responsive, and visually clean. The dark theme is easy on the eyes during long trading sessions, and the layout makes efficient use of screen space. TradingView charts render smoothly with full indicator support, and order book updates happen in real time without noticeable lag.

We tested the platform across Chrome and Firefox over a multi-week period and encountered no crashes, freezes, or broken UI elements. Order execution was consistently fast, with market orders filling in under a second and limit orders posting to the book almost instantly. The overall experience genuinely feels closer to a centralized exchange than most DEXes we have tested.

The unified margin dashboard is a highlight. Everything you need to understand your risk is on one screen: total account value, unrealized PnL, margin usage, available balance, and account health. The position management panel lets you adjust leverage, add or remove collateral, and close positions without excessive clicks.

Where the desktop experience could improve is in customization. You cannot rearrange panels, save multiple chart layouts, or create custom workspaces. Power users who are accustomed to the flexibility of platforms like Hyperliquid's interface or professional terminal-style layouts may find Nado's fixed layout limiting. The charting is solid thanks to TradingView, but the surrounding UI is not yet as configurable as we would like.

Mobile Experience

Nado does not offer a dedicated mobile application as of early 2026. The web interface is accessible on mobile browsers and renders reasonably well on smaller screens, but it is not optimized for mobile trading. The order book and chart compete for space, and precise order entry on a phone screen is difficult.

For traders who need to manage positions on the go, the mobile web experience is functional enough for monitoring and closing positions in a pinch. But we would not recommend actively trading on Nado from a phone. If mobile-first trading is a priority for you, platforms like HoldStation or Hyperliquid's mobile interface provide a better experience.

Community and Support

Nado's community is active and growing quickly. The platform gained significant attention from influential crypto figures in late 2025 and early 2026, leading to rapid follower growth. Discord is the primary community hub, and during our time there, we found the conversations substantive and the team responsive to questions.

Documentation is available at docs.nado.xyz and covers the essentials: how trading works, fee structures, the NLP vault mechanics, and account management. The docs are clear and well-organized, though they lack the exhaustive depth of documentation on more established platforms like dYdX or GMX.

Customer support is handled through Discord and social channels. We did not encounter any issues that required direct support during our testing, so we cannot fully evaluate the support experience. But the team's presence in Discord and their responsiveness to community questions was a positive sign.

Nado vs Competitors

The perpetual DEX space in 2026 is highly competitive. Here is how Nado stacks up against the most relevant alternatives:

Nado vs Hyperliquid: Hyperliquid is the dominant perps DEX in 2026 with billions in daily volume and its own Layer 1 chain. Nado cannot match Hyperliquid on liquidity, pair selection, or raw volume. Where Nado differentiates is the unified margin system (which Hyperliquid does not offer), the Kraken ecosystem backing, and the Ink chain's connection to the broader Optimism Superchain. If you are already in the Ink ecosystem or value unified margin, Nado is worth considering. For pure trading volume and deepest liquidity, Hyperliquid remains the standard.

Nado vs dYdX: dYdX is the established veteran running its own Cosmos-based appchain. Both platforms share a CLOB architecture and similar base fee structures. dYdX has deeper liquidity, more trading pairs, and a longer track record. Nado's advantages are the unified margin model, faster matching speeds (5-15ms vs dYdX's block-time-dependent execution), and the growing Ink ecosystem. For new traders choosing between the two, dYdX is the safer bet, but Nado offers a more modern trading experience.

Nado vs GMX: These platforms take fundamentally different approaches. GMX uses an AMM/oracle model that does not require an order book, while Nado runs a full CLOB. GMX offers higher leverage (up to 100x) and has deeper liquidity pools. Nado offers tighter spreads on limit orders, lower fees, and faster execution. If you prefer order-book mechanics and lower fees, Nado is the better fit. If you want higher leverage and battle-tested security on Arbitrum, GMX has the edge.

Nado vs Vertex: Vertex is perhaps the closest competitor in spirit, also offering an order-book model with unified margin. Both platforms target sophisticated traders who want capital efficiency. Vertex has more liquidity, more pairs, and a longer operating history. Nado's advantages are the Kraken backing, the Ink chain's Superchain benefits, and lower gas costs compared to Arbitrum. The competition between these two is worth watching through 2026.

Who Should Use Nado?

After several weeks of hands-on testing, here is our honest assessment of who benefits most from Nado and who should look elsewhere.

Best for:

1. Traders who want an order-book perps experience with unified margin across spot and futures
2. Users already active in the Ink or broader Optimism Superchain ecosystem
3. Active traders who can benefit from volume-based fee tiers and maker rebates
4. Early adopters looking to earn points toward a potential $INK token distribution
5. Traders who value the credibility of Kraken-connected infrastructure over anonymous DeFi protocols

Not ideal for:

1. Traders who need the deepest possible liquidity for large position sizes ($100K+)
2. Users who want a wide selection of long-tail altcoin perpetuals
3. Mobile-first traders who need a polished app experience
4. Those who require open-source code and formal third-party audit reports before committing funds
5. Traders looking for DeFi features beyond trading, such as lending, staking, or farming

Nado occupies an interesting middle ground in 2026. It is not the biggest, cheapest, or most feature-rich perps DEX. But its combination of CEX-grade speed, unified margin, Kraken backing, and the Ink ecosystem gives it a distinct identity. The platform is clearly designed for traders who want a professional order-book experience on a chain they can trust, and it delivers on that promise.

Final Verdict

Nado earns an overall rating of 7.4 out of 10 in our assessment. The platform delivers on its core promise of fast, professional-grade order-book trading for perpetual futures and spot on Ink. The unified margin system is genuinely useful and represents a real competitive advantage over platforms that silo margin by position. The Kraken connection provides a level of institutional credibility rare in the DEX space, and the trading experience is polished enough that experienced CEX traders will feel right at home.

The weaknesses are real but manageable. Liquidity, while growing rapidly, still trails the biggest players by a wide margin. The closed-source codebase and absence of formal published audits from named firms are gaps that matter. The platform is single-chain (Ink only), which limits accessibility for users on other networks. And the pair selection, while adequate for major assets, does not yet match the breadth of Hyperliquid or dYdX.

Our recommendation: Nado is worth using if you are trading perpetual futures and you value the combination of speed, unified margin, and Kraken ecosystem trust. The fee structure is competitive, especially at higher volume tiers. Start with moderate position sizes, take advantage of the points program during Open Beta Season 1, and let the platform prove itself as it matures. For traders who need the deepest liquidity or the widest asset selection, Hyperliquid remains the default choice in 2026. But Nado is building something genuinely differentiated, and we expect it to be a serious contender in the perps DEX rankings by year-end.