Orion Protocol — making the trader’s life easier

Rick N
3 min readJan 30, 2021

Price Discovery

The price discovery in order to sell or buy a token is often an arduous task. It is not enough to use a price aggregator or a a digital currency price and information data platform as Coingecko to do it.

It is also necessary to have accounts on several exchanges, It is also necessary to have accounts on several exchanges, be they centralized (CEX), such as Kucoin, Okex, Huobi or Binance or decentralized (DEX), such as IDEX, Binance DEX and the Kyber Network. Another option, is to use the services of an automated market maker (AMM), such as Uniswap, which is a type of decentralized exchange protocol (DEX) that is based on a mathematical formula for pricing assets and that instead of using an order book like a traditional exchange, assets are priced according to a pricing algorithm.

The problem with AMMs is that you cannot use an order book to check Bids and Asks, nor use a limit market order or even place a market order.
Either way, buying or selling cryptography requires research to find out where the transaction is most beneficial.

In addition, if you realize that there is an arbitrage opportunity between two exchanges, you will need to buy the crypto at one exchange where the price is cheaper and sell the crypto at another exchange where the price is more expensive. These operations, in addition to requiring network fees due to the transfer of tokens, can also make arbitration unfeasible, since in networks such as Ethereum, congestion and slowness are common and can lead to
loss of opportunity to arbitrate.

Orion Protocol

Orion Terminal, the front-end app that uses Orion Protocol, was launched on December 15, 2020, but access to the platform is still restricted for some of the first users. Orion already makes some pairs available for trading, as can be seen in the screen below.

All of these problems are solved with the Orion protocol. Through a single and decentralized platform, you access all the liquidity in the market without having to have an account on each exchange. Orion aggregates the liquidity of the exchanges on a single platform.

See on the screen below how Orion aggregates Bids and Asks orders from Kucoin and Binance exchanges.

Orion offers order books from different exchanges in one place, making life much easier for the trader. With Orion, the trader can buy crypto for the lowest price available on an exchange, as well as sell a crypto for the highest price available in another exchange. Thus, it is common to see arbritage opportunities on different exchanges using Orion. Below is an arbitrage opportunity on the ORN/USDT pair using the Binance and Kucoin exchanges.

It is clear that the trader could buy up to 135 ORN for $2.55 per token in Kucoin and at same time sell instantly 61 ORN at Binance for $2.58 each ORN. Doing this trading, he could earn around 1.10%, without taking into account the fees charged in these operations.

Conclusion

Although still in restricted use, we can note that the Orion Terminal has all the requirements to be adopted en masse by traders.

Kucoin and Binance were the first to be added to Orion Terminal, but several other exchanges will be integrated soon, making Orion a platform indispensable for any trader who wants to maximize profits in their trades, quickly and successfully.

Orion useful Links

Website | Twitter | Telegram

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