Introduction
In the crypto market there is no lack of options for trading platforms, from traditional centralized exchanges (CEXes) to the newest decentralized platforms (DEXes).
The main characteristics of the centralized platforms are the centralized custody of the assets, the centralized availability of the order book and the total control in the execution of operations. A centralized exchange is one in which the investor trusts third parties to custody his assets, which is totally contrary to the idea of blockchain technology. Custody of users’ assets can also create a number of problems for both individuals and platforms, which raises security concerns against hacker intrusion and custody theft, which has been observed in several incidents recently, as in Kucoin, Liquid and Exmo.
In decentralized platforms, custody of assets is, in theory, exercised by the holders themselves, with automated operations through protocols and software developed for this purpose. DeXEx presents itself as an alternative the security problem and the risks involved in centralized custody. However, a common problem in DeXes is the low liquidity they have compared to CEXes and the absence of platforms that provide a market maker service to increase the liquidity of certain assets, making it difficult for investors to trade a large volume of assets. Another problem faced by DEXes is the delay in processing the information entered by users, such as placing orders or even later cancellation, resulting in a delay in the execution of orders, and may even cause the price of the asset to vary between placing the order and its subsequent execution.
What if we could combine the advantages of CEXes and the advantages of DEXes without their respective problems in a single trading platform? This is the solution that the Orion Protocol proposes.
Orion Protocol
Orion aims to be the most advanced liquidity aggregator on the market, solving DeFi’s biggest problems by aggregating liquidity across the crypto market on a decentralized platform — extracting from all major centralized exchanges, decentralized exchanges and swap pools. Orion will be operable from three blockchains: Elrond, Holochain, and Wanchain. The Orion Protocol adds liquidity, order book depth and price discovery for all centralized and decentralized digital asset markets. This allows the creation of the Orion Terminal and a variety of other products much needed by consumers and businesses.
Orion Terminal is a platform that, although decentralized, contains the advantages that the trader is used to using centralized platforms. That is, unlike decentralized trading platforms that have poor UI/UX, Orion is similar to CEXes, having a pleasant and easy to use interface. In addition, Orion Terminal also has the common operations that an experienced trader uses such as Stop Order, Stop Limit among others, something unthinkable on decentralized platforms.
Orion uses a protocol called Delegated Brokerage Test, fulfilling all the functions of the protocol, from order execution, clearing, governance to choosing a broker, and everything else through a decentralized broker.
DPoB consists of two main components: Brokers and Non-Broker Stakers.
According to its whitepaper, DPoB has two types of components: Brokers and Non-Brokers. Brokers with exchange accounts run Orion Broker Software, automatically executing trades routed from the liquidity aggregator. Brokers are chosen to execute trades based on how much ORN, Orion’s native token, they stake. Non-Broker Stakers stake ORN to ‘vote’ for their choice of Broker based on the variable benefit share offered. Brokers are incentivized to offer them attractive rates to grow their stake and increase their chance of being chosen.
One of the premisses of Orion Terminal is its security. Brokers never have access to traders’ accounts or funds. Trader’s assets are protected by smart contracts and no funds are transferred when the order is created. Only if the order is fulfilled by a selected broker, the transfer of assets will occur atomically within the smart contract: the dealer gives the asset sold in exchange for the purchased asset. The exact values of the exchanged assets are strongly imposed by the conditions specified in the order and cannot be changed by the broker.
Traders’ assets are also protected from malicious broker activity. If such activity occurs, the brokers lose the guarantees they use to participate in the brokerage and are subsequently banned. The guarantee is used to compensate for the losses that traders have incurred in the occurrence of malicious activities.
Orion Terminal was recently audited before its mainnet. The audit was carried out by the renowned security company CertiK.
Orion Terminal Phase 1 was launched on December 15 at 2:00 pm (UTC), however, access is still controlled and restricted to some early users. The official launch for the entire community is scheduled for Q1 2021.
Phase 1 provides trade, deposit and withdraw functions and more features, brokers, and trading pairs will be added continually over the following months, including ORN staking in early Q1. Other features will be added to the Orion Terminal next year include lending, margin trading, leveraged ETFs, derivatives, contract trading, NFTs and staking of any digital asset type.
If you wish you can apply below to generate your referral link and try to get access to the Orion Terminal. Every new sign-up via your link will increase your ranking, with priority access awarded to those with the highest ranking. New users will gain access each week.
In fact Orion has a very aggressive roadmap and if delivered, it will make its ecosystem robust, innovative and suitable for investors, traders and partners.
Conclusion
This is a short post focusing on one of Orion’s products, which is Orion Terminal, yet there are several other features and characteristics of this product that have not been addressed. Without a shadow of a doubt, Orion comes to fill the gap between centralized and decentralized trading platforms, delivering a solution that brings the advantages of a friendly, easy to use platform with all the trading features of a CEX associated with security and additional advantages of decentralized platforms.
