How has Orbs evolved since its inception in 2017, and what challenges has the project faced?
Since its inception, the crypto market has seen significant innovations and shifts, including the DeFi boom and NFT craze, among many others. Orbs had to adapt to these changes. Initially, we aimed to bring established enterprises into the crypto space, using Orbs as a public enterprise network. However, it became evident that enterprises were not ready for this leap. In 2021, Orbs shifted its focus to DeFi, leveraging its network as a layer 3 blockchain.
Orbs’ unique features, designed for interoperability with both Ethereum Virtual Machine (EVM) and non-EVM blockchains, and its decentralised network of nodes, make it ideal for enhancing smart contracts. Today, with the launch of four main layer 3 products and widespread integration with leading DeFi projects, Orbs is focused on its core mission: bringing CeFi-level execution to DeFi for superior on-chain trading
How did the relationship with SYMMIO and IntentX develop for the Liquidity Hub?
Perpetual futures are the most popular trading instrument in centralised exchanges but lag in DeFi due to poor capital efficiency. To address this, Orbs launched Perpetual Hub, a one-stop shop for intent-based perpetual futures. Perpetual Hub includes Hedger, Liquidator, and Price Oracle components.
SYMMIO and IntentX were the first projects to integrate Perpetual Hub. SYMMIO serves as the smart contract layer, while IntentX manages the frontend UI. This collaboration has resulted in architecture for intent-based perpetual futures trading, offering improved liquidity and capital efficiency compared to existing platforms.
What does it mean for Liquidity Hub to be an optimisation layer above automated market makers (AMM)?
Liquidity Hub provides an optimisation layer for AMM-based decentralised exchanges by leveraging external liquidity sources for better price quotes and reduced price impact. Unlike typical swaps that search for the best route within limited liquidity pools, Liquidity Hub accesses a network connecting multiple on-chain, off-chain, and cross-chain liquidity sources. This allows DEXs to execute trades without passing through the AMM, avoiding price impact. If Liquidity Hub cannot offer a competitive price, the trade falls back to the AMM contract and executes as usual.
Why did Liquidity Hub choose intent-based execution as its preferred model?
Intent-based execution, akin to RFQ (Request for Quotation), is a well-known method among CeFi brokers. When a user enters swap details, Liquidity Hub initiates an on-chain solver Dutch auction, where third-party solvers compete to fill swaps using on-chain liquidity sources or their inventory.
This process ensures the user receives the best rate available, enhancing the trading experience by leveraging multiple liquidity sources and competitive bidding.
How does Liquidity Hub differ from UniswapX?
While similar, Liquidity Hub offers several improvements over UniswapX. It introduces decentralised orders via API, allowing institutional and professional traders to submit bids and compete to fill swaps. Its unique fee model avoids LP cannibalisation, enabling DEXs to continue incentivising liquidity providers without diminishing their LP base.
Liquidity Hub’s main advantage is keeping DEXs competitive against UniswapX and other aggregators, providing smaller DEXs access to deeper liquidity and competitive rates.
How does Orbs plan to address revenue and monetisation issues of its dTWAP and dLIMIT products?
dTWAP and dLIMIT are decentralised protocols for advanced trading orders, integrated with over 10 DEXs, including PancakeSwap and Quickswap. Currently, both products are focused on increasing usage and trading volume through more integrations. They have the ability to activate a fee switch, which may be implemented later alongside a broader tokenomics model for the ORBS token.
How does Orbs improve the on-chain user experience for DeFi compared to CeFi?
Users prefer on-chain trading for enhanced privacy, security, anonymity, ease of onboarding, and lack of counterparty risk. However, on-chain execution often falls short due to smart contract limitations, interoperability issues, liquidity fragmentation, and uncompetitive pricing.
Orbs Layer 3 addresses these challenges by bringing CeFi-level capabilities to DeFi, enabling advanced trading products and services. This includes protocols like dLIMIT and dTWAP for sophisticated orders, and products like Liquidity Hub and Perpetual Hub for more competitive pricing and lower fees.