Timothea Horwell | October 7 2020
Timothea Horwell | October 7 2020
- This integration will see all of Chainlink’s oracles serve as a reference price for issuing loans and triggering on-chain liquidations in Orion’s Decentralized Brokerage, by ensuring that all broker services are fully collateralized by ORN.
- Orion Protocol will be using and supporting an upcoming Chainlink-powered ORN/ETH price oracle, as well as integrating all price oracles available.
- Orion Protocol will provide Chainlink with data from its advanced liquidity aggregator to bolster Chainlink’s price oracle services, making Orion Protocol’s trading data available to other DeFi dApps via the Chainlink Network.
- The decentralized structure and real time price feeds from all CEX, DEX, and swap pools in the market will provide Chainlink with rich data to enhance their price oracles – adding reliability and accuracy to their ecosystem.
Orion Protocol, the DeFi platform building B2B and B2C solutions on the most advanced liquidity aggregator ever developed, is pleased to announce an exclusive integration with market-leading oracle network, Chainlink. This integration will see all of Chainlink’s oracles serve as a reference price for issuing loans and triggering on-chain liquidations in Orion’s Decentralized Brokerage.
Integrating Chainlink’s secure, decentralized price feeds is an important step in bringing trustless settlement to the Orion Protocol, particularly by ensuring that all broker services are fully collateralized by ORN. Orion Protocol will be using and supporting an upcoming Chainlink-powered ORN/ETH price oracle, as well as integrating all price oracles available.
Orion Protocol, The Singular Gateway to Crypto
Orion Protocol is a decentralized liquidity aggregator, offering the first singular, non-custodial gateway to all the liquidity available in the crypto market. Orion Protocol makes this possible by aggregating the liquidity of every centralized exchange, decentralized exchange, and swap pool in the market. Through Orion’s flagship product, the Orion Terminal, all major exchange liquidity is aggregated into one decentralized terminal.
Governing the protocol is a proprietary staking mechanism known as Delegated Proof of Broker, fulfilling every function via a decentralized brokerage with the ORN token at its core. Brokers with exchange accounts (or exchanges themselves) can run Orion Broker Software to automatically execute trades routed from the liquidity aggregator. Their ability to provide brokerage services will be dependent on how much ORN they stake.
Maintaining Collateralization of ORN Using Chainlink
Chainlink is a decentralized oracle network that allows public blockchains and smart contract platforms to use external, off-chain data to trigger on-chain operations without sacrificing on security and reliability. While Chainlink is a general purpose oracle network, it’s price oracles currently secure $3.5 billion in value across leading DeFi protocols, including Aave, Synthetix, and yEarn.
Orion Protocol will leverage Chainlink’s industry leading price feeds to help manage its Decentralized Brokerage. Settlement within the Decentralized Brokerage will be implemented using Chainlink price oracles: the platform’s smart contract logic will rely on Chainlink’s price feed to give brokers temporary no-cost loans for a clearing period until brokers withdraw necessary funds from exchanges.
Part of running the brokerage involves giving brokers temporary no-cost loans for a clearing period until they can withdraw the necessary funds from exchanges. This allows traders to use bought assets instantly after a trade is settled on the blockchain, while allowing brokers to withdraw assets several times per day, instead of after every trade.
The smart contract automating the brokerage needs to know the ORN/ETH price for both issuing temporary loans at fair market value, and ensuring the ORN collateral backing these loans is fully collateralized. If it is not, then liquidations may occur to protect the protocol against downside price action. Thus, a reliable ORN/ETH price feed is key to the security of the entire platform, as ORN drives all of Orion Protocol’s features.
Furthermore, Orion Protocol will be using Chainlink for all price data oracles to price collateral for a wide variety of crypto loans, including:
Because of the central importance of this price feed, Chainlink was an obvious choice as Orion’s go-to oracle solution. Chainlink’s price reference data framework provides Orion Terminal users several guarantees around:
- High Quality Price Data - Chainlink price feeds are sourced from numerous premium data aggregators, ensuring the price feed is able to maintain strong market coverage across all trading environments.
- Secure and Reliable Price Updates - Chainlink oracles are secured by a decentralized network of independent, Sybil resistant nodes ran by leading blockchain DevOps, with price updates occurring every small deviation in price, ensuring the price feed updates alongside market volatility.
- Transparent Operations - Chainlink price feeds are supported by on-chain visualizations, empowering Orion users to track the real-time performance of the oracle network and its individual node operators.
- Proven Performance - Chainlink is the most widely used oracle network in the market, counted on by 40+ teams to secure billions of dollars in user funds live on mainnet.
In addition to using Chainlink oracles, Orion Protocol will provide Chainlink with data from their advanced liquidity aggregator to bolster Chainlink’s price oracle services, making Orion Protocol’s trading data available to other DeFi dApps via the Chainlink Network. The decentralized structure and real time price feeds from all centralized exchanges, decentralized exchanges, and swap pools in the market will provide Chainlink with rich data to enhance their price oracles – adding reliability and accuracy to their ecosystem.
By aggregating every exchange order book and trading pair in the market, Orion Terminal will consistently provide high-quality price feeds for numerous trading markets, further strengthening Chainlink’s product offering and decentralizing their price feed options. The pair look forward to further integration opportunities.
“We’re excited to provide a critical oracle functionality that secures Orion Protocol’s decentralized brokerage, ultimately allowing brokers to get access to short term capital to fund operations while ensuring the protocol as a whole stays fully collateralized,” said Dan Kochis, Director of Business Development, Chainlink. “By doing so, the Orion Protocol is able to combine the liquidity of CeFi with the permissionlessness and trustlessness guarantees of DeFi.”
“The ORN token is important to maintaining an active network of secure and reliable brokers to the DeFi ecosystem, providing strong crypto-economic guarantees to back their services,” said Orion Protocol CEO Alexey Koloskov. “By integrating Chainlink’s price oracles for accurate and transparent reference prices, we can provide unrivaled liquidity to traders, while maintaining built-in protections that shield the protocol against unpredictable market volatility. Furthermore, we look forward to fostering a mutually beneficial collaboration, providing Chainlink with rich trading data to strengthen their price oracles.”
Chainlink is an open-source blockchain abstraction layer for building and running decentralized oracle networks that give your smart contract access to secure and reliable data inputs and outputs. It provides oracles to leading DeFi applications like Synthetix, Aave, and Bancor; numerous blockchains such as Ethereum, Polkadot, and Tezos; as well as large enterprises including Google, Oracle, and SWIFT.
Built on the most advanced liquidity aggregator ever developed, Orion Protocol solves some of the largest issues in DeFi by aggregating the liquidity of the entire crypto market into one decentralized platform.
Governing the protocol is the proprietary staking mechanism Delegated Proof of Broker, fulfilling every function via a decentralized brokerage with the ORN token at its core. This underpins each industry-critical solution built on the protocol, including the flagship product Orion Terminal: aggregating all major exchange liquidity into one decentralized terminal.
Orion Enterprise provides much-needed solutions for businesses in the space, including blockchains and exchanges, while their roadmap includes a price oracle and a high-margin DEX.