Alexey Koloskov | April 12 2022
Alexey Koloskov | April 12 2022
Orion deploys the world’s first Virtual Order Books
Orion Protocol deploys Orion Virtual Order Books (VOBs) to Orion Terminal, thereby combining the power of complex swaps with classical order books. The addition of VOBs dramatically enhances the Terminal’s ability to aggregate CEXs, DEXs and swap pools with an exceptional level of efficiency.
Orion Terminal aggregates liquidity from various centralized and decentralized sources, providing users with an unmatched experience in terms of decentralized trading from their own wallet. VOBs take this concept to another level of performance.
Up to now, the calculations required to combine multiple orders into one (i.e. “complex swaps”) process “on the fly” when a user requests to complete a swap. Complex swap calculations automatically perform continuously, and at near instant speeds, in order to create “virtual order books” which are then combined with Orion’s other aggregated order books. Traders’ orders execute on Orion’s order books, augmented by VOBs.
Example: In the ORN/USDT market below, some complex swaps (e.g. USDT>BNB>ORN or USDT>ETH>ORN) offer better prices than simple USDT>ORN sell orders.
Under Orion’s order books on the right side of the Terminal, the “Virtual paths“ column displays the “Path” routed for the VOB, with the '“Total” tab displaying the total market liquidity.
Orion’s proprietary technology
We strongly believe that the VOB technology we have successfully deployed after several months of intense development is a testament to Orion’s sheer willpower and capacity to deliver complex and unrivaled liquidity aggregation tools. In a competitive space where various projects claim to offer similar solutions, none have had either the ambition or capacity to deliver what is now another proprietary Orion technology. Orion VOBs offer a visual proof of the power and unmatched capabilities of Orion’s backend aggregator and smart router.
Liquidity efficiency + unique arbitrage opportunities
Having this VOB feature in place creates a foundation which effectively leverages the potential for continuous added value against each of the new exchanges implemented. VOBs work seamlessly with both Orion Pool and centralized/decentralized exchanges, ensuring optimum compatibility within future iterations. This means that, once integrated, DEXs such as Uniswap and PancakeSwap can seamlessly combine with centralized order books’ liquidity, generating unparalleled opportunities for users of Orion Terminal to reach the best price via the deepest smart liquidity. VOBs create new unique arbitrage opportunities, a feature only available via Orion Terminal.
Advanced order splitting + algorithms
Currently, routing priority lies with either the ordinary Orion Terminal order book or the VOBs themselves–without combining them. Combining and splitting these further will be possible in the future once network and Terminal commissions are considered in complex swap calculations, extending the practicality of VOBs as a whole on Orion. Algorithms for Orion VOBs currently identify the most profitable path using combinatorics–an advanced branch of mathematics which studies the relations between the enumeration, combination and permutation of sets of elements. Although theoretically there is no limit to the number of steps and pairs involved in a VOB for a single order, increasing the virtual path length beyond a certain number of steps may eventually become inefficient. Orion’s VOBs and smart routing consistently seek the most profitable path, effectively negating any inefficient scenarios.
Market fluctuations + performance
With general free market fluctuations, relying upon a guaranteed set pricing is not possible. However, to help this where possible, a small built-in temporary allowance is involved, although it does not guarantee set pricing execution for the transaction as such.
Start using the new Orion VOBs today: trade.orionprotocol.io