A collaboration between Layer 3 blockchain Orbs and OTC derivatives platform SYMMIO has been established. The collaboration will facilitate the expansion of onchain derivatives buying and selling, which leverages deep liquidity and improved capital effectivity.
For its blockchain- and DEX-agnostic Liquidity Hub, which operates on high of AMMs and solves the difficulty of liquidity fragmentation in DeFi, Orbs has skilled a substantial improve in demand. Orbs hopes to offer comparable instruments for derivatives merchants through its collaboration with SYMMIO as a way to promote simpler capital allocation.
Orbs and SYMMIO will use Orbs’ present layer 3 expertise to focus on quite a lot of use instances associated to onchain derivatives. The 2 are proper now wanting into the event of an oracle for on/offchain communication. Moreover, they need to work collectively to develop a bidding mechanism that will allow hedgers to reduce danger and revenue from the volatility of derivatives buying and selling.
On centralized exchanges, buying and selling volumes are dominated by derivatives at a 4:1 ratio; nevertheless, this isn’t the case on the blockchain, the place derivatives account for under $2B of DeFi’s $60B TVL. This imbalance shall be corrected by Orbs and SYMMIO’s cooperation, which can allow on-chain merchants to provoke leveraged positions, successfully use their cash, and hedge in opposition to draw back danger.
SYMMIO has developed a intelligent method to facilitate intent-based OTC derivatives buying and selling as a way to deal with the difficulty of restricted onchain liquidity. Quotes from many hedgers are despatched straight to the consumer once they need to set up a place on a frontend powered by SYMM.
With a purpose to implement SYMMIO, the frontend should decide which quote most closely fits the consumer’s parameters and generate an intent that’s despatched throughout the chain. So long as the parameters match their citation and the deal is accomplished onchain, at which period each events have locked collateral, the solver will settle for this intent.
The power of SYMMIO’s resolution to allow hedgers to entry exterior liquidity from any supply—together with CEXs like Binance—is considered one of its benefits. When in comparison with different derivatives platforms, this enables for considerably extra liquidity, which tremendously improves capital effectivity. Orbs hopes to extend using this cutting-edge expertise by working with SYMMIO and supply merchants a safer technique of being uncovered to onchain derivatives.
