Layer-3 blockchain project Orbs has recently introduced a groundbreaking blueprint aimed at transforming the decentralized finance (DeFi) landscape by integrating centralized finance (CeFi) trading standards into decentralized platforms. This strategic move seeks to elevate the DeFi trading experience, enabling decentralized exchanges (DEXs) to offer onchain trading capabilities that rival those of centralized exchanges.
Bridging the Gap Between DeFi and CeFi
Orbsâ innovative Layer-3 (L3) infrastructure has been meticulously designed to support advanced onchain trading by providing deep liquidity on demand. This key feature enables DeFi platforms to execute trades with a level of efficiency and precision typically associated with CeFi platforms. By bridging the gap between DeFi and CeFi, Orbs empowers decentralized trading platforms with the tools necessary to offer users a more competitive and seamless trading experience.
At the core of Orbsâ solution is the aggregation of liquidity across the omnichain landscape. By offering this aggregated liquidity, Orbs enables DEXs to deliver onchain pricing that is competitive with the prices available on centralized exchanges. This enhancement is not limited to spot trading but extends to the realm of onchain derivatives as well. Orbsâ technology supports leveraged trades executed at market prices, providing traders with a robust and versatile platform for executing complex financial strategies.
Advanced Trading Capabilities
One of the standout features of Orbsâ blueprint is its ability to facilitate complex trading strategies through advanced order types and decentralized derivatives. This level of sophistication grants users unprecedented control and flexibility in their trading activities. Importantly, these capabilities are achieved without necessitating the migration of liquidity to a new chain.
Instead, Orbs acts as a decentralized backend for decentralized trading platforms, ensuring that users can leverage advanced tools while maintaining the security and privacy inherent in onchain trading. While DeFi trading is lauded for its privacy, security, and the absence of counterparty risk, it is not without its challenges.
Issues such as liquidity fragmentation, inferior user experience, and uncompetitive pricing have historically hindered the growth and adoption of DeFi platforms. Orbs addresses these challenges head-on by providing a robust execution layer that enables DEXs to circumvent these obstacles. As a result, DeFi users can enjoy a trading experience that is on par with, if not superior to, their centralized counterparts.
The Power of Orbsâ Execution Layer
Orbsâ execution layer currently powers four main protocols, each of which plays a critical role in enhancing the DeFi trading experience:
Liquidity Hub: This decentralized optimization layer allows DEXs to tap into external liquidity sources, ensuring that users receive CeFi-competitive prices on their swaps. By aggregating liquidity, the Liquidity Hub enables DEXs to offer more favorable trading conditions.
Perpetual Hub: A comprehensive suite of services, including hedger, liquidator, and oracle functionalities, which enables intent-based onchain perpetual futures trading. This hub empowers traders to engage in perpetual futures with the confidence that their trades are executed at market prices.
dTWAP Protocol: An advanced order type that allows DEXs to execute time-based TWAP (Time-Weighted Average Price) orders onchain, mirroring the capabilities traditionally available in CeFi platforms. This protocol ensures that traders can optimize their entry and exit points in the market with precision.
dLIMIT Protocol: Another advanced order type that enables DEXs to offer CeFi-level limit orders onchain. This protocol provides traders with greater control over their trades, allowing them to set specific price points for their transactions.
A New Era for Decentralized Finance
The integration of these protocols into decentralized trading platforms marks a significant step forward for DeFi. By providing traders with advanced tools and platforms, Orbs ensures that decentralized trading is not only secure and scalable but also efficient and competitive. The technology enables the execution of sophisticated trading strategies and taps into external liquidity sources, paving the way for a new era of DeFi that is no longer constrained by onchain liquidity limitations.
Orbsâ Layer-3 technology stands as a testament to the potential of decentralized finance when equipped with the right tools and infrastructure. By bringing CeFi-level execution capabilities to DeFi, Orbs is set to redefine the decentralized trading landscape, offering users a trading experience that is secure, efficient, and on par with the best that centralized platforms have to offer.