Orbs, a pioneer in Layer-3 liquidity protocols, has introduced Perpetual Hub, a new solution for on-chain perpetual futures trading, as per the latest info shared with Finbold on May 30.
Unlike previous solutions that relied on order books and virtual liquidity mechanisms, Perpetual Hub aims to maximize capital efficiency and trading value through an intent-based model.
Centralized finance execution in DeFi
Developed in collaboration with SYMMIO and IntentX, Perpetual Hub leverages Orbs’ advanced L3 technology to bring centralized finance-level (CeFi) execution to the decentralized finance (DeFi) space, providing a comprehensive suite of tools to help traders optimize their on-chain perpetual futures trading.
Ran Hammer, Orbs Business Development VP, highlighted the significance of this launch, stating:
Quote: “This launch opens a door that has previously served as a blocker for people in blockchain. Perpetual futures are significantly more popular than spot trading, and we now offer the best solution for perpetual traders on-chain. We’re eager to continue fostering our reputation as lead experts in DeFi and web3, helping bring the world on-chain!”
— Ran Hammer, Orbs Business Development VP
The current total value locked (TVL) in on-chain derivatives is $3.4 billion, a small portion of the overall DeFi market TVL, which sits around $100 billion.
Perpetual Hub’s core components
Perpetual Hub caters to a wide range of market participants, including traders and market makers, through its three core components:
- Hedger: Utilizing a SYMM-powered front end, this market maker provides liquidity by fulfilling user orders. It can also tap into external liquidity sources, such as centralized exchanges (DEXs) like Binance, ensuring further liquidity;
- Liquidator: This component allows users to liquidate positions when collateral values fall below maintenance margins. Liquidators earn fees for their services, incentivizing the maintenance of market stability;
- Price Oracle: The Price Oracle delivers dependable on- and off-chain data to ensure accurate pricing. It is crucial for calculating unrealized profit and loss (uPnL), identifying liquidation points, and executing orders.
All three elements harness the decentralized power of the Orbs Network, supported by its Guardians and proof-of-stake (PoS) ecosystem.
This enables other platforms, market participants, and third parties to offer a robust suite of decentralized services for perpetual futures trading.