What is Orbital? Orbital is a native AMM built and developed on the Arbitrum ecosystem with many innovations in design and operating mechanism. The project itself is also directly supported with Dopex and Plutus DAO.
So why does the project have such strong support from DeFi OGs on Arbitrum and what is Orbital? Let’s find out together in this article.
What is Orbital?
Background of Orbital’s birth
It can be said that native AMMs operating on the Arbitrum ecosystem are either ineffective or an unsustainable model. If we mention AMM on the Arbitrum ecosystem, we can classify projects as follows:
- AMM Multichain like Uniswap V3, Sushiswap, Curve Finance do not operate effectively and do not create strong motivation for the ecosystem to grow strongly.
- Native AMM Currently, SolidLizard, SharkySwap, SwapFish,… only focus on Liquidity Mining activities, causing these models to “bloom early and fade” not only ineffectively but also giving users a bad perspective on the platform. boulder.
- Native AMM somewhat more effective like Camelot With Launchpad activities “going underground”, I firmly believe that in the long run, if they continue, Camelot will fail similar to other AMMs. Not only that, some indicators show that the trading volume on Camelot is only concentrated in the GRAIL/ETH pair.
Overview of Orbital
Orbital is a native AMM built and developed on the Arbitrum ecosystem backed by Dopex and Plutus DAO. There are two factors that Orbital will focus on developing and improving on existing models: mechanism of action and tokenomics.
Orbital’s mechanism of action
Orbital’s operating mechanism will revolve around two different types of pools: Variable Pool and Stable Pool, which are equivalent to different operating mechanisms and target markets.
Variable Pool
Variable Pool is a liquidity pool for common tokens with some of the following characteristics:
- Built based on Balancer’s Weighted Pool with x * y = k algorithm for common, popular tokens/altcoins on the market.
- This model allows having more than 2 tokens in 1 pool, up to a maximum of 8 tokens in the same pool with different ratios such as wBTC – ETH – USDT – USDC with a ratio of 50 – 20 – 15 -15, not required. It requires 2 tokens with a ratio of 50 – 50 like UniSwap V2.
- LPs can choose liquidity pools that suit their desired profits. If you have wBTC, you should provide liquidity to pools where wBTC has a high proportion because profits in that pool will be concentrated to those who provide wBTC liquidity, similar to other tokens/altcoins.
- Based on the above liquidity provision mechanism, IL is maximally limited.
Stable Pool
Stable Pool is a liquidity pool for peer-to-peer assets such as stablecoins, synthetix assets, etc. Stable Pool is built based on the formula x3*y + xy3 = k of Solidly – an AMM platform designed by Andre Cronje.
From the two operating mechanisms of Stable Pool and Variable Pool, Orbital also creates two different types of Pools based on reward mechanism, LP lock time,…
Base Pool
Base Pools are regular liquidity pools, everyone can participate in providing liquidity or withdrawing liquidity at any time without protocol permission and the reward will be inflationary ORB, dORB and bribes.
This is a liquidity pool model commonly seen on popular AMMs such as Uniswap, SushiSwap, PancakeSwap, Raydium,…
Reward Pool
Reward Pools are also open to everyone and protocols in the DeFi market can freely provide liquidity but the liquidity will be locked for a period of 6 months. Of course, with Reward Pool, profits and benefits for LPs will often be higher than with Base Pool.
This is one of the aspects of PoL (Protocol Own Liquidity).
Option Layer
Orbital allows Options Contracts to interact directly with the DEX in what Orbital calls the Options Market-Making (OPS – MM) product.
With this product, Orbital allows LPs to provide collateral (can be LP Tokens) to buy options that can be call – put to increase the capital efficiency of LPs or most simply, to take Impermanent Loss out of the concern when providing liquidity.
This is a product created between the cooperation of Dopex and Orbital.
Orbital Difference
Dynamic Swap Fees
With conventional AMM platforms, transaction fees are often assumed to be default and cannot be changed, and for transactions where fees can be determined in advance, AMMs still maintain the same rules as above. However, with Orbital, transaction fees can be changed.
This is a boon for protocols integrating with Orbital in the future such as Plutus DAO and Dopex. In addition, Orbital is currently researching how to apply this model more into its protocol.
Incentive program to attract liquidity
Unlike native AMMs that often use the Liquidity Mining program thoughtlessly, leading to the collapse of the protocol, Orbital also applies the same program but with other criteria such as:
- Helps the protocol maintain sustainability.
- Practical, useful and suitable for most people.
- Merging the interests of liquidity providers and protocols.
veORB & ORB Wars
Orbital will implement its tokenomics model under a veToken mechanism similar to veCRV but with more differences. Because of this model combined with the fact that Plutus DAO is the first platform to accumulate value for ORB, it is understandable that an ORB war will take place when the Orbital protocol succeeds.
Development Roadmap
Update…
Core Team
Orbital is built and supported by Dopex and Plutus DAO teams. The head of Orbital at the present time is @0xsaitama_ – this person also plays an important role in Dopex. Of course, all the teams building Dopex, Plutus DAO, Orbital,… are anonymous individuals and organizations.
Investor
Update…
Tokenomics
Information about Orbital tokens
Update…
Token Allocation
Update…
Token Release
Update…
Token Use Case
Orbital’s tokenomics & token use case model operates relatively complexly with 3 different types of tokens including: ORB, veORB and dORB.
veORB
veORB is formed by locking ORB liquidity in the ETH – ORB pool at a rate of 20 – 80 for a period of 1 year. The longer the lock time, the higher your voting power.
dORB
dORB is a portion of the token you receive when providing liquidity on Orbital, which can be understood as the platform’s inflation incentive. However, to be able to convert dORB into ORB and sell it on the market, you need to lock up an additional 20% of ETH for a period of 1 year.
It can be seen that neither veORB nor dORB simply locks tokens like other veToken platforms, but rather locks liquidity. This is much more beneficial to the protocol than simply locking the token. It can be said that this is a relatively smart implementation of Orbital.
ORB
ORB is simply the original token, also known as the project’s native token, that can be bought, sold, traded, provided liquidity,…
Project Information Channel
- Website: Update…
- Twitter: @orbitaldex
- Medium: https://medium.com/@OrbitalDEX
- Discord: discord.gg/orbitaldex
Summary
Certainly with the support of Dopex and Plutus DAO, Orbital is definitely a hidden gem in Arbitrum’s ecosystem. What we need to do is observe and look for opportunities that suit our position.
And again, what is Orbital? Orbital is a native AMM built and developed on the Arbitrum ecosystem with many innovations in design and operating mechanism.
Hopefully through this article everyone can really understand what Orbital is?