Orbs partners with SYMMIO

Published on: 16.02.2024

Orbs partners with SYMMIO a protocol for Symmetrical Contracts. Upon examining leading centralized exchanges such as Binance, OKX, KuCoin, and others, Orbs has observed a significant increase in perpetual futures trading volumes compared to spot trading. According to CCData, derivatives accounted for 78.2% of the total cryptocurrency trading volume on centralized exchanges in July 2023.

The significant factor contributing to these high volumes is that derivatives trading can involve leverage, sometimes up to x100, allowing traders to amplify their positions beyond what their cash balance alone would permit.

The main reason is that prominent on-chain derivatives platforms like GMX and dYdX function with an order book or virtual liquidity mechanism, which necessitates LPs and over-collateralization when leveraging, resulting in reduced capital efficiency.

Symm.io offers “Unlimited Liquidity” with intent-based execution.

Symm.io aims to address the capital efficiency challenges faced by on-chain derivatives platforms by introducing innovative technology for intent-based OTC derivatives trading.

When a user wants to initiate a position on a SYMM-powered frontend, hedgers provide quotes to these frontends in advance. The frontends then autonomously choose the most suitable quote for the users, taking into account their preferred market, price, maintenance margin, and other factors. Once the user sets the parameters, the front end generates an intent, which is then transmitted on-chain by the user. If the parameters align with the quote, the solver approves the intent, carrying out the trade on-chain. At this point, both parties have securely locked collateral.

Symm’s technology allows hedgers to access external liquidity from various sources, including CEXs like Binance, enhancing liquidity and capital efficiency compared to other platforms.

Creating RFQ Protocols with Layer-3 Technology for Orbs

Orbs has just introduced its premier product, Liquidity Hub, a decentralized aggregated liquidity protocol for DEXs that utilizes Orbs’ layer 3 technology.

Liquidity Hub is a decentralized optimization layer above AMMs, addressing fragmented liquidity in DeFi by connecting DEXs to external sources for improved swap prices.

In contrast to the conventional method that relies on swapping within a single DEX’s constrained liquidity pools to find the optimal route, integrating the Liquidity Hub software protocol enables DEXs to augment this process by accessing alternative liquidity sources, like solvers, through its decentralized RFQ mechanism.

Orbs and Symm: Establishing a Strategic Partnership for On-chain Derivatives.

Liquidity Hub offers an RFQ optimization layer for DEXs (spot market), while Orbs aims to enhance its services for the on-chain derivatives market. The strategic collaboration between Orbs and Symm.io will concentrate on exploring potential applications in the on-chain derivatives sector utilizing Orbs’ layer 3 technology.

Off-chain/on-chain communication oracle
Collaboration on building the bidding system for hedgers.

The Orbs project is thrilled about the partnership with Symm.io and the possibilities it brings for on-chain derivatives and the future of DeFi in its entirety!