Kal Ali | November 19 2020
Kal Ali | November 19 2020
Open finance represents a remarkable power shift of asset ownership from large centralized entities to the individual. The promotion and growing adoption on a mass scale will allow for the creation of a new financial system - one that is more democratic, more efficient, and more vast than what we’ve seen. However, the development of such a system comes with its own challenges. Chief among these challenges is liquidity, with crypto itself having been described as nothing more than a “fight for liquidity.”
Currently, crypto assets are distributed over 700+ exchanges competing for a finite amount of liquidity. Orion Protocol is solving this by aggregating the liquidity of the entire crypto market into one decentralized platform. Aggregating the liquidity, order book depth, and price discovery from every centralized and decentralized digital asset market enables the creation of our flagship product, Orion Terminal: the decentralized gateway to the entire digital asset market.
Meanwhile, Bonded Finance aims to aggregate dormant value so it can be realized. Through an algorithmic model that aims to unlock, aggregate and de-risk ~50 billion in dormant value distributed amongst untapped digital assets, Bonded Finance will allow supporters of qualifying altcoin projects to borrow against these assets, or pool them and start earning.
With a common goal of bringing greater liquidity, accessibility, and value to the digital asset market, Orion Protocol and Bonded Finance have joined forces to enable yield generation opportunities and the efficient liquidation of digital assets.
Locked and staked ORN tokens will be made available for yield generation through Bonded smart contracts. As a listed asset on Bonded Finance, ORN holders will be able to access Ionic, Bonded’s lending/borrowing product, in order to:
Furthermore, this partnership will further increase the utility of the ORN token by unlocking earning potential across a suite of solutions in Bonded’s roadmap, while continuing to drive demand for ORN by removing tokens from circulation.
Alexey Koloskov, CEO + Co-Founder of Orion Protocol states “With a shared mission of bringing greater liquidity, accessibility, and value to open finance, we’re proud to be partnering with Bonded Finance. This will enable ORN holders to further monetize their assets by unlocking even deeper yield generation opportunities, earn liquidity incentives, and loan and borrow ORN - all while furthering ORN’s utility within Bonded’s growing ecosystem.”
Loaning platforms like Bonded Finance require collateral in order to effectively enable borrowing and lending. In the event that collateral for a loan decreases in value, immediate liquidation at the best price would be required in order to prevent the collateral from going under the value of the underlying loan.
Orion Protocol’s liquidity APIs will allow for streamlined liquidation of assets available on Bonded’s platform, performing a market wide sweep across every exchange in the market to efficiently handle potential liquidations. This will allow Bonded Finance to transact large quantities of assets strategically without the associated risks, allowing for the preservation of token value on the secondary market. In addition, this integration will allow more projects to qualify for listing on the Bonded platform.
Paul Mak, CEO of Bonded Finance, states, "To have a single-source liquidity provider amidst this fragmentation is a small miracle. As we move forward, Orion's solution will allow us to list more assets and provide smaller projects with needed support. It's a win for the space."
Built on the most advanced liquidity aggregator ever developed, Orion Protocol aggregates the liquidity of every single crypto exchange into one platform: providing a decentralized gateway to the entire digital asset market. In doing so, Orion is building a protocol on which to bridge the worlds of crypto, traditional finance, and real world assets.
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The Bonded platform was created to incubate and deploy experimental, high-yield, smart-contract driven, financial instruments that push the bounds of open finance. Bonding is an algorithmic model that aims to unlock, aggregate and de-risk ~50 billion in dormant value distributed amongst untapped digital assets by allowing supporters of qualifying altcoin projects the opportunity to borrow against these assets or pool them and start earning.