Layer three blockchain Orbs has announced a partnership with OTC derivatives platform SYMMIO.
The agreement will support the growth of on-chain derivatives trading that makes use of better capital efficiency and taps into deep liquidity.
Orbs has seen significant demand for its blockchain- and DEX-agnostic liquidity hub, which operates as a layer atop AMMs, solving the problem of liquidity fragmentation in DeFi.
Through its partnership with SYMMIO, Orbs aims to roll out similar capabilities for derivatives traders to drive more efficient capital deployment.
Orbs and SYMMIO will focus on a range of use cases centered around on-chain derivatives, making use of Orbs’ existing layer three technology.
Initial concepts being explored by the pair include developing an on-/off-chain communication oracle.
They also intend to collaborate to create a bidding system for hedgers, providing a way to reduce risk while capitalizing on the upside to derivatives trading.
Whereas derivatives dominate trading volumes on centralized exchanges by a ratio of four to one, the reverse is true on-chain, where just $2 billion of DeFi’s $60 billion TVL (total value locked) can be attributed to derivatives.
The partnership between Orbs and SYMMIO will address this imbalance, allowing on-chain traders to open leveraged positions while efficiently utilizing their capital and hedging against downside risk.
SYMMIO’s solution to the problem of limited on-chain liquidity entails an ingenious means of supporting intent-based OTC derivatives trading.
When a user wishes to open a position on a SYMM-powered frontend, quotes are directly streamed by a variety of hedgers.
SYMMIO’s implementation requires the front end to select the best quote based on the user’s parameters and creates an intent that is transmitted on-chain.
This intent is accepted by the solver, provided the parameters match their quote, and the trade is executed on-chain, by which point both parties have locked collateral.
One of the strengths of SYMMIO’s solution is that it allows hedgers to harness external liquidity from any available source including CEXs such as Binance.
This enables much greater liquidity compared to other derivatives platforms and thus significantly increases capital efficiency.
Through collaborating with SYMMIO, Orbs aims to broaden adoption of this innovative technology while providing a safer way for traders to gain exposure to on-chain derivatives.
Orbs is an open, decentralized and public blockchain infrastructure executed by a secure network of permissionless validators.
Orbs’ decentralized execution layer operates between existing layer one / layer two solutions and the application layer, forming a tiered blockchain stack that avoids the need to move liquidity onto a new chain.
In addition to developing best-in-class blockchain solutions, Orbs supports projects whose goals and values align with its vision for Web 3.0.
Learn more at the website.
SYMMIO is a protocol for symmetrical futures. It reimagines bilateral OTC derivatives by combining them with intent-based execution.
This supports permissionless leverage trading of any asset with hyper-efficient just-in-time liquidity.
SYMMIO’s novel architecture facilitates the issuing and trading of trustless and permissionless derivatives among two or more parties.
Learn more at the website.
Ran Hammer, Orbs
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