Timothea Horwell | May 20 2021
Timothea Horwell | May 20 2021
Orion Terminal always searches for the best price across the market. Often, the minimum ask price on one exchange is higher than the maximum bid price on another, creating ‘negative spread’. On Orion Terminal, simultaneously buy assets from one exchange and sell on another for immediate profit - directly from your wallet without the need for accounts or KYC on any exchanges.
The crypto market is incredibly fragmented, with assets spread across hundreds of exchanges. Such a variety of exchanges has made discrepancy in asset price the norm: creating problems of best price discovery, and filling the market with arbitrage opportunities. Volatile markets can bring a great sense of unrest to traders, but amidst this volatility, many opportunities can be found. Volatility in the market can mean that an arbitrage opportunity can vanish quickly — but conversely, erratic changes in prices often present new ones.
While arbitrage is often practiced on the crypto markets – particularly the deeper and more liquid/active Bitcoin markets – there are limits to the degree to which it is practical for many altcoins, due to the requirements of holding funds on all relevant exchanges and monitoring all markets constantly, in order to be able to take split-second advantages of the opportunities as soon as they arise.
Due to the liquidity aggregator at its core, Orion is in a unique position to take advantage of inefficiencies in the crypto markets.
As Orion Terminal searches for the best price across exchanges, it is often the case that the minimum ask price on one exchange will be higher than the maximum bid price on another, creating ‘negative spread’ on Orion Terminal. It is therefore possible to buy assets from one exchange and simultaneously sell them on the second, profiting from the difference. In the example below, a negative spread of -1.81% is shown across KuCoin and Binance, as well as an example of a recent arbitrage opportunity in the transaction history.
Orion Terminal always searches for the best prices on the market, allowing you to carry out arbitrage opportunities - directly from your wallet and without the need for accounts or KYC on any exchange. As more DEXs and CEXs are connected as Orion Terminal expands to integrate the entire crypto market into one decentralized platform, arbitrage opportunities will become even more frequent and lucrative. Meanwhile, Orion Protocol is open source, and will soon launch its Developer Kit to enable anyone to build dApps on the protocol, including payment gateways and arbitrage bots.
In volatile markets, ownership of assets is more important than ever. Having your assets held by a third-party centralized exchange limits your control of your own funds. At any point, your access can be denied and withdrawal of funds remains unavailable. Just yesterday, trading was halted across several major exchanges, preventing traders access to both their assets and trading opportunities. Orion Terminal doesn't hold ownership of your funds, and can never halt trading or withdrawals.