Liquidity Hub by Orbs has been integrated by THENA, a renowned DEX on BNB Chain. Because of this, traders at THENA will now have access to more liquidity on the BNB Chain network, which was not previously available via the conventional AMM. With the help of Orbs’ L3 technology, Liquidity Hub offers reduced costs, MEV protection, gasless transactions, improved capital efficiency, an easier-to-use user interface, and more. As one of the few integrations in all of DeFi that aggregates liquidity from both on-chain and off-chain sources to a DEX, this one is the second of its type for Liquidity Hub by Orbs.
The Orbs project created Liquidity Hub, a completely decentralized, permissionless, and composable DeFi system driven by the Orbs Network. All of the liquidity that BNB Chain provides is now available to THENA’s traders at no extra cost.
Staked with tens of millions of dollars in TVL, Orbs is a decentralized protocol run by a public network of permissionless validators via proof of stake. Opening up a whole new range of possibilities for Web 3.0, DeFi, NFTs, and GameFi, Orbs pioneers the notion of L3 infrastructure by employing the Orbs decentralized network to expand the capabilities of current EVM smart contracts.
Liquidity Hub’s Operation
Above the AMM, Liquidity Hub is an optimization layer provided by layer 3 (L3) infrastructure software. For more accurate price quotations and less price influence, this technique uses external liquidity.
Unlike the standard swap, which looks for the optimal path inside the DEX’s constrained liquidity pools, Liquidity Hub improves this procedure by using extra sources of liquidity:
- On-chain solver auction: Third-party solvers competing to fill swaps with on-chain liquidity, such as AMM pools or their own private inventory.
- Decentralized orders via API: Professional and institutional traders, including market makers, may place bids and compete to fill swaps via the use of decentralized orders, which are available via API.
DEXs may try to make transactions via Liquidity Hub without going through the AMM and affecting prices. The transaction will revert to the AMM contract and proceed normally if the layer is unable to complete the transaction at a lower cost than the AMM.
Hence, a trader’s experience can only be enhanced by Liquidity Hub. The swap will proceed as normal via the AMM contract if Liquidity Hub isn’t viable, which means it would only process at a worse price for the user or can’t execute at all.
Liquidity Hub & Architecture Product Specification
An on-chain contract that is deployed next to the AMM contract and backend functionality that is still operating on-chain via Orbs’ decentralized L3 nodes jointly managed Liquidity Hub. Regardless, the Liquidity Hub on-chain contract guarantees end users’ safety and protection of their funds while prohibiting major pricing manipulations.
It’s not necessary for ordinary users trying to swap to be aware of Liquidity Hub’s existence. The execution price of the swap will be superior than the execution price on the AMM contract, according to the Liquidity Hub contract’s guarantee. Stated otherwise, if Liquidity Hub lacks competitiveness, it will be avoided. Since this guarantee is applied at the contract level, there is no need for trust.
A portion of the Liquidity Hub functionality is implemented off-chain on the DEX (off-chain risks may be reduced by utilizing Orbs L3, which is covered in more detail below). It will only take a few moments to add and remove orders from the Liquidity Hub (without having to wait for a fresh block to be closed) and won’t cost gas since the data structure is kept off-chain. Because these qualities are comparable to CEXs, market makers find them appealing.
All funds are kept in a non-custodial manner on-chain. When a user places an order via Liquidity Hub, their funds stays in their wallet. The transaction transferring the funds from the account on match will be started by the approval of the Liquidity Hub contract. Order verification will always occur on-chain via the Liquidity Hub contract. The contract will confirm that the execution meets the needs of both parties and that the execution cost is less than the AMM. The money will be directly sent on-chain between the parties upon match.
Here are Liquidity Hub’s primary product specifications:
- User Interface of DEX Has Not Changed: The DEX’s recognizable user interface is preserved with the integration of Liquidity Hub, guaranteeing a smooth and simple trading experience.
- Decentralized Order Interface for Market Makers (MMs) + API for Solvers: The hub streamlines trading and liquidity supply by providing a decentralized interface for Market Makers and an effective API for solvers.
- Nominal to Zero Latency Execution for MMs: Users may profit from real-time market fluctuations as trades are performed with minimal to zero latency.
- Users on MetaMask Approve Token Expenditure: By using MetaMask, users may approve token expenditure while still keeping control and security over their transactions.
- Funds Remain in the User Wallet Until Trades Execute: By keeping users’ funds in their wallets until trades are executed, the trading process is made more secure and trustworthy.
- Gasless Trades: By providing customers with gasless trades, the Liquidity Hub dramatically lowers transaction costs.
Maintaining the Standard
Powered by Orbs L3 technology, the Liquidity Hub protocol has emerged as the industry standard for finding the best price without having to leave the DEX.
Over $12 million worth of trade activity has been made possible by the protocol, which has been deployed so far by QuickSwap on Polygon and now Thena on BNB Chain.
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