Timothea Horwell | May 27 2020
Timothea Horwell | May 27 2020
Built on the most advanced liquidity aggregator ever developed, Orion Protocol will aggregate the liquidity of every single crypto exchange into one decentralized platform: providing a singular, non-custodial, gateway to the entire digital asset market. By providing access to the digital asset market in one place, we're building a protocol on which to bridge the worlds of crypto, traditional finance, and real world assets.
The Orion Protocol will aggregate the liquidity, order book depth, and price discovery from every centralized and decentralized digital asset market. This enables the creation of the Orion Terminal, and an array of other much-needed products for consumers and businesses.
Orion Terminal: providing access to the liquidity of the entire crypto market on one decentralized platform, without the need for users to ever give up their private keys.
Orion Margin + Lending: Through aggregating the liquidity of and depth of all major centralized exchanges, Orion Protocol will be the first project to enable high-margin trading not seen on a decentralized platform. Orion users will be able to earn passive income on assets by lending their assets in our decentralized margin trading solution.
Orion Developer Kit: an open source repository to allow anyone to build decentralized apps on the protocol. The entire protocol's functionality will be available to developers and businesses, enabling you to build powerful financial tools - whether for personal use or financial gain.
Orion Price Oracle: Orion Protocol enables the market-leading price oracle that is resilient to price manipulation due to price derivation from every order book in the market. This is incredibly advantageous to external DeFi products that have been regularly exploited due to inefficiencies in price oracles.
Orion DEX Kit: Blockchains need an ecosystem to be sustainable, but building your own DEX can be extremely costly and time consuming. Our DEX Kit allows blockchains to build decentralized exchanges, specific to their chain, in just hours.
Orion Liquidity Boost Plugin: A pluggable liquidity source to any centralized or decentralized market. Exchanges can utilize the Orion Plugin to improve their order book depth and liquidity.
Orion Enterprise Widget: A middle layer between crypto projects with utility tokens and all available liquidity of the token on the markets. Tokenized projects' enterprise clients can purchase tokens directly from the project's platform or website by routing orders from all exchanges carrying the token, returning tokens for immediate use.
Orion Collateral Optimization: Lending platforms require collateral. In the event that collateral for a loan decreases in value and hits its predetermined strike price for liquidation, immediate liquidation at the best price would be required 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 across any exchange in the market. This will allow for the transaction of large quantities of assets strategically without the associated risks, allowing for the preservation of token value on the secondary market.
Orion Wallet Swap SDK: With traders increasingly storing their assets in wallets, why not remove any friction and allow decentralized trading of assets directly from users' wallet of choice? Orion Wallet Swap SDK allows users of third party crypto wallets the ability to access Orion’s liquidity via a swap widget directly integrated within the wallet’s interface. Wallet users will be able to swap crypto without leaving their wallet of choice, using liquidity of exchanges without the need for any exchange accounts. This will allow for the least slippage of any solution in market.
Every solution built on the protocol to date has been created to address the issues of liquidity, custody, accessibility, and scalability.
Governing the protocol is the proprietary staking mechanism, Delegated Proof of Broker, fulfilling 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.
Designed using advantages from PoS, DPoB consists of two core components: Brokers and Non-Broker Stakers.
Brokers with exchange accounts run Orion Broker Software, automatically executing trades routed from the liquidity aggregator. Brokers are chosen to execute trades based on how much ORN, Orion’s native token, they stake.
Non-Broker Stakers stake ORN to ‘vote’ for their choice of Broker based on the variable benefit share offered. Brokers are incentivized to offer them attractive rates to grow their stake and increase their chance of being chosen.
Rather than minting new tokens for rewards, staking payments are generated via Orion’s revenue streams - preserving the integrity of the underlying ORN token over time.
Brokers never get access to traders’ accounts or funds. When a trader signs an order, it’s a commitment to exchange assets at the specific terms included in the order - these parameters are signed in the order message and cannot be changed by any parties.
Traders assets are protected by smart contracts and no funds are transferred at the moment of creating the order. 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.
Additionally, traders' assets are protected by broker collateral held during the brokers’ tenure. If malicious activity is seen from brokers, they will lose their collateral and will be banned from the brokerage, while the collateral will be used to reimburse traders.
It’s through this governance mechanism that Orion remains decentralized, non-monopolized, and democratic. Learn more here.
At the core of Orion Protocol is the ORN token. Orion has ensured deep utility of the token across the ecosystem, integrating it into all main transactions to take the form of an internal currency or utility token. It’s required for payments, staking, participation, and the unlocking of advantageous network access with discounts on trading, oracle usage, and Protocol access.
Orion Terminal: Similar to the tokens integrated with platforms like Binance, ORN will give holders a range of benefits, plus additional functionality that will add further value to users. Orion Terminal users can gain a fee discount when paying with the ORN token, and also are able to earn additional transaction fees by staking ORN.
Decentralized Brokerage: Brokers must stake ORN tokens to be chosen to execute trades, while non-brokers stake ORN tokens to vote for their broker of choice.
Orion Enterprise: The token utility of each DeFi solution lies in the integral role the ORN token plays in the decentralized brokerage, with every transaction within each solution acting as a trade being carried out by a broker. Profit share from each transaction will be shared back to the respective brokers in the form of ORN tokens.
Orion has built sixteen different revenue streams across the protocol and counting, all using the ORN token. This ensures that from day one, Orion will be generating both network fees for stakers and operational profit, ensuring sustainability as a business.