The partnership will explore various applications for onchain derivatives, leveraging Orbs’ Layer 3 technology. Initial projects include developing a communication oracle linking onchain and offchain systems and a bidding mechanism for hedgers, aimed at minimizing risk and maximizing derivatives trading benefits.
Orbs has teamed up with the over-the-counter (OTC) derivatives platform SYMMIO to enhance the onchain derivatives trading sector. With this partnership, the Layer 3 blockchain network will help boost capital efficiency and access to deep liquidity in derivatives trading.
Renowned for its Liquidity Hub, a blockchain- and decentralized exchange (DEX)-agnostic platform that addresses the challenge of liquidity fragmentation in the decentralized finance (DeFi) space, Orbs plans to extend these capabilities to derivatives trading via SYMMIO.
A communication oracle linking onchain and offchain systems and a bidding mechanism for hedgers
SYMMIO is a protocol for bilateral “Symmetrical Trading” of derivatives. Reimagining bilateral OTC Derivatives, SYMMIO merges them with intent-based execution to enable permissionless leverage trading with efficient liquidity.
The partnership will explore various applications for onchain derivatives, leveraging Orbs’ Layer 3 technology. Initial projects include developing a communication oracle linking onchain and offchain systems and a bidding mechanism for hedgers, aimed at minimizing risk and maximizing derivatives trading benefits.
Despite derivatives being predominant in centralized exchange volumes, they represent a minor portion of the onchain trading scene, with only $2 billion of DeFi’s $60 billion total value locked (TVL) attributed to derivatives. Orbs and SYMMIO’s collaboration seeks to correct this disparity, enabling traders to leverage their capital more efficiently and hedge against risks.
SYMMIO addresses onchain liquidity challenges with intent-based OTC derivatives trading system
SYMMIO’s approach to addressing onchain liquidity challenges involves a unique system for intent-based OTC derivatives trading. This system allows for direct quote streaming from hedgers to users wishing to open positions, with the best quote selected based on user parameters. The intent is then transmitted onchain for execution, requiring both parties to lock collateral.
This model notably enhances liquidity by allowing hedgers to source external liquidity, including from centralized exchanges like Binance, thereby significantly improving capital efficiency. Through this partnership, Orbs and SYMMIO aim to increase the adoption of this innovative approach, offering traders a safer avenue to onchain derivatives exposure.
Orbs operates as a decentralized, public blockchain infrastructure, bridging the gap between L1/L2 solutions and the application layer without necessitating liquidity migration to a new chain. It focuses on supporting web3 projects aligned with its vision.
