Ryoma Martin | August 3 2022
Ryoma Martin | August 3 2022
Transitioning from TradFi to DeFi
More than a year since “DeFi Summer”, a period in 2020 that saw dramatic growth in DeFi, the traditional banking system has continued to face multiple disruptions. While traditional finance (TradFi) has long been the standard for financial services, the emergence of Decentralized Finance (DeFi) has since brought many flaws in the industry to light.
With DeFi, traders have the ability to manage their own security through non-custodial wallets. Users also have access to more innovative financial opportunities in DeFi than their TradFi counterparts. DeFi breaks through limitations in TradFi to deliver more tools for freedom and opportunity in any given trading experience.
Transitioning from TradFi to DeFi is therefore necessary to use the best tools in finance at our disposal. Orion facilitates this transition by aggregating the largest sources of liquidity in the industry on a versatile cross-chain trading platform. The result is a simplified trading experience to access all that DeFi has to offer.
Managing your security
When adapting from TradFi to DeFi, security becomes particularly important. A crucial aspect of decentralized technology is the self-custody of assets. With the use of digital wallets, DeFi traders can optimize security of their funds through clear ownership.
The importance of asset ownership is especially highlighted in different emergency situations a user may face. For instance, in a recent turn of events, many financial institutions faced insolvency due to opaque operations. Clients’ assets from companies such as Celsius, Voyager Digital, and Three Arrows Capital could not be withdrawn. Clients had to comply with the insolvency of those institutions because the latter had custody over said assets.
With Orion Protocol, users can leverage DeFi self-custody to connect to a variety of centralized exchanges (CEXs) and decentralized exchanges (DEXs) without compromising the security of their assets. Orion’s non-custodial wallet integration allows users to withdraw their funds at any time.
Orion Protocol functions under a decentralized node (server) structure. This optimizes the efficiency of the protocol while minimizing the risk of network downtime as nodes/servers function independently and are located in different geographies.
Orion provides all the security features at the core of DeFi’s competitive advantage while allowing compatibility with CEXs, DEXs, and cutting edge DeFi protocols. It is a one-stop DeFi solution; thus making Orion a great bridge for transitioning from TradFi to DeFi.
Trading in unregulated markets can be a daunting, but rewarding experience. DeFi traders can tap into incredible opportunities and never-ending innovation facilitated by new technologies.
On the one hand, TradFi values the preservation of intellectual property and competitive advantage. This is to the detriment of pure innovation as each institution must incubate innovation internally. Additionally, TradFi users must go through lengthy processes of profile creations due to private databases.
On the other hand, DeFi’s open-sourced nature, coupled with composability and interoperability features, allow for new technologies to blossom at a rapid rate. This allows users to go in and out of multiple protocols with a single digital wallet.
Through a code-centric approach to financial services, decentralized innovations can scale at a significant pace. Human input is optimized, and supported by algorithms, software functions and databases.
Orion implements the interoperability of DeFi into its protocol so traders can seamlessly navigate from one exchange to another while staying on the same platform. The protocol continues to grow through its novel liquidity aggregator, which allows access to new assets, swap pools and order books.
Shifting from TradFi to DeFi with Orion is synonymous with shifting your financial exposure toward opportunities fostered by the open, composable and interoperable environment of DeFi.
Making the leap from TradFi to DeFi enables more freedom for traders via smart contracts. Smart contracts are the backbone of what constitutes DeFi; they are pieces of code that complete an action when predetermined conditions are met.
This allows around-the-clock trading as traders are not constrained to exchanges that limit operations to regular business hours. As the DeFi market is open 24/7, users can trade on their own time, beyond the usual schedules of TradFi.
DeFi is also location-agnostic in that an individual can interact with any protocol, wherever they are, unlike traditional financial institutions, which typically require clients to be located in a specific area to access their services.
Orion takes it a step further by aggregating liquidity from multiple CeFi and DeFi platforms, and offering the Orion SDK for trading software development. Orion gives freedom of time and choice by democratizing automated trading and deep order books. Users of the Orion protocol can save time and effort looking for the best asset prices and tightest spreads, because Orion provides the deepest order book in the industry. Using the Orion SDK to create their own trading algorithms, Orion’s users can maximize their trading time while having access to an ever growing asset pool.
From TradFi to DeFi with Orion
Over the years, TradFi left several consumer experience issues unresolved. DeFi has grown dramatically to improve financial services, but the shift from TradFi is not yet an intuitive process. In order to bridge the gap between TradFi and DeFi, Orion Protocol has leveraged its advanced liquidity aggregator and versatile trading platform to address those issues.
Traders are incentivized to gain exposure to DeFi for the security, freedom, and trading opportunities unmatched by TradFi. DeFi improves on TradFi by prioritizing secure ownership and access of funds so traders can engage with financial services in a programmatically decentralized manner at all hours of the day. DeFi also allows users to tap into new opportunities due to the composability, interoperability and accessibility inherent with decentralized technology. Orion Protocol helps bring DeFi’s broad scope into focus by providing a single platform where the best resources in DeFi are easily accessible.
With non-custodial trading, exchange aggregations, and unlimited possibilities for cross-chain functionality, Orion offers the best of DeFi for any trader looking to make transition away from TradFi.