Alexey Koloskov | 29 May 2020
It was the loss of trust in centralized entities that gave birth to blockchain in the hopes of redefining the concept of trust for the next wave of financial systems. Yet for a technology that arose out of the need for a decentralized and democratic alternative to the centralized finance world, the industry is at risk of centralization changing the very foundation of why crypto was born.
Traders are being forced to trust large monopolized exchanges with their assets in order to access the liquidity they need to trade - entities that are prone to the very issues that crypto is supposed to eliminate - leaving traders at risk.
Decentralized alternatives have arisen to provide traders with access to liquidity while retaining ownership of their assets, but decentralized exchanges often lack the liquidity, trading pairs, user experience, and features traders are looking for.
Insufficient liquidity: the decentralized liquidity aggregators available only pull from decentralized exchanges, leaving out a major source of liquidity from centralized exchanges.
Few non-custodial solutions: the liquidity aggregators that do pull from centralized exchanges are themselves centralized, custodial solutions.
Lack of accessibility: most decentralized aggregators carry ERC20 tokens only, while those that are multi-chain are custodial and therefore not decentralized.
Unscalable solutions: swapping protocols have become popular, yet the pools are often not large enough to sustain increasing demand. Some pools could be wiped out with as little as a single $5k order and leaves the token price susceptible to manipulation.
Built on the most advanced liquidity aggregator ever developed, Orion Protocol exists to solve some of the largest problems in DeFi by aggregating the liquidity of the entire crypto market into one decentralized platform – pulling from every major centralized exchange, decentralized exchange, and swapping pool.
Positioned as the future of trading, Orion Terminal is a solution that provides traders with what they need: allowing them to tap into the liquidity and markets of every crypto exchange directly from their private wallets - without any third-party risk.
Time: traders no longer need to waste time exchange-hopping. For the first time, they can access the liquidity of the entire crypto market in one place.
Money: traders no longer need to worry about finding the best price for their assets. Orion aggregates all major exchange liquidity into one seamlessly aggregated order book to provide them with the best price possible. By aggregating every order book, Orion provides the best prices and lowest fees in market with almost zero spread and zero slippage.
Assets: traders no longer need to risk their assets to access liquidity. Now, they can simply connect their wallet and execute their order across any major exchange - even those they don’t have accounts with.
This mechanism fulfills every function on the protocol from order execution, to clearing, to the governance of choosing a broker, and everything in between, via a decentralized brokerage with the native ORN token at its core. Brokers with exchange accounts run Orion Broker Software, automatically executing trades routed from the liquidity aggregator based on how much ORN they stake, while Non-Broker Stakers stake ORN to ‘vote’ for their choice of Broker based on the variable benefit share offered.
Brokers never get access to traders’ accounts or funds as the terminal is governed by smart contracts to enforce secure conditions of the token exchange. Only if the order is filled by a selected broker will the transfer of assets occur atomically within the smart contract: the trader gives the sold asset in exchange for the bought asset. The exact amounts of exchanged assets are strongly enforced by the conditions specified in the order and cannot be altered by the broker.
Orion’s MainNet V1 is due to be released in Q3 of this year and will feature trusted brokers from major exchanges, OTC desks, and market-makers.