DeFi
A Conversation with Ran Hammer, VP of Business Development at Orbs – DL News
How has Orbs has evolved since its launch in 2017, and what challenges has the project faced?
Since its inception, the cryptocurrency market has seen significant innovation and change, including the rise of DeFi and the NFT craze, among others. Orbs has had to adapt to these changes. Initially, our goal was to onboard established enterprises into the crypto space, using Orbs as a public enterprise network. However, it became clear that enterprises were not ready for this leap. In 2021, Orbs shifted its focus to DeFi, operating its network as a Layer 3 blockchain.
Orbs’ unique features, designed for interoperability with Ethereum Virtual Machine (EVM) and non-EVM blockchains, and its decentralized network of nodes, make it an ideal tool for enhancing smart contracts. Now, with the launch of four major Layer 3 products and widespread integration with leading DeFi projects, Orbs is focused on its core mission: bringing CeFi-grade 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 on centralized exchanges, but they are lagging in DeFi due to low 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 handles the front-end user interface. This collaboration resulted in an intent-based perpetual futures trading architecture that offers improved liquidity and capital efficiency compared to existing platforms.
What does it mean for Liquidity Hub to be an optimization layer on top of automated market makers (AMMs)?
Liquidity Hub provides an optimization layer for AMM-based decentralized exchanges by leveraging external liquidity sources for better pricing and reduced price impact. Unlike traditional swaps that seek 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 going 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.
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Why did Liquidity Hub choose intent-based execution as its preferred model?
Intent-based execution, similar to request for quote (RFQ), is a well-known method among CeFi brokers. When a user enters the details of a swap, Liquidity Hub launches 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 that the user receives the best available rate, enhancing the trading experience by leveraging multiple liquidity sources and competitive auctions.
How is Liquidity Hub different from UniswapX?
While similar, Liquidity Hub offers several improvements over UniswapX. It introduces decentralized orders via API, allowing institutional and professional traders to submit bids and compete to fill swaps. Its unique fee model prevents LP cannibalization, allowing DEXs to continue incentivizing liquidity providers without diminishing their LP base.
The main benefit of Liquidity Hub is to keep DEXs competitive with UniswapX and other aggregators, by providing smaller DEXs with access to deeper liquidity and competitive rates.
How does Orbs plan to address revenue and monetization issues for its dTWAP and dLIMIT products?
dTWAP and dLIMIT are decentralized protocols for advanced trading orders, integrated with over 10 DEXs, including PancakeSwap and Quickswap. Currently, both products aim to increase usage and trading volume through more integrations. They have the ability to enable a fee change, 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 privacy, security, anonymity, ease of integration, 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-grade 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.