Orbs, a pioneer in layer 3 blockchain technology, has partnered with SYMMIO, an OTC derivatives platform, to introduce seamless on-chain derivatives trading. This collaboration aims to promote capital efficiency and tackle the issue of liquidity fragmentation in the decentralized finance (DeFi) space.
Unlike traditional derivatives trading dominated by spot trading on-chain, the onchain derivatives market is relatively small, with only $2 billion out of $60 billion total value locked (TVL) in DeFi being contributed by derivatives. Orbs and SYMMIO recognized the need to address this imbalance and bring more liquidity to the onchain derivatives market.
Through this partnership, Orbs and SYMMIO will work together to offer a variety of solutions for onchain derivatives trading. One of the key offerings is an on/offchain communication oracle that enables seamless communication between different blockchain networks. This will help traders navigate the complexities of derivatives trading and ensure efficient capital deployment.
Another important aspect of this collaboration is the development of a bidding system that specifically targets hedgers. By leveraging the benefits of derivatives trading, hedgers will be able to lower their risk exposure while optimizing the use of their capital.
SYMMIO, with its novel architecture and intent-based execution, provides the necessary liquidity for trustless and permissionless derivatives trading. Their solution streamlines the process of executing trades on-chain by selecting the best quote from different hedgers based on user parameters. This approach not only improves liquidity for SYMMIO’s derivatives offerings but also enhances capital efficiency.
By working hand in hand, Orbs and SYMMIO are poised to revolutionize the onchain derivatives market. Their collaboration will not only increase the adoption of innovative layer 3 blockchain technology but also make it safer and more accessible for traders seeking exposure to onchain derivatives. Together, they are paving the way for a new era of efficient and seamless onchain derivatives trading.
FAQ section:
Q: What is the collaboration between Orbs and SYMMIO about?
A: Orbs and SYMMIO have partnered to introduce seamless on-chain derivatives trading in the decentralized finance (DeFi) space.
Q: What is the goal of this collaboration?
A: The collaboration aims to promote capital efficiency and tackle the issue of liquidity fragmentation in the onchain derivatives market.
Q: Why is the onchain derivatives market relatively small?
A: Currently, the onchain derivatives market only contributes $2 billion out of the $60 billion total value locked (TVL) in DeFi.
Q: What solutions will Orbs and SYMMIO offer for onchain derivatives trading?
A: One of the key offerings is an on/offchain communication oracle that enables seamless communication between different blockchain networks. They will also develop a bidding system targeting hedgers, allowing them to lower their risk exposure and optimize capital usage.
Q: What does SYMMIO provide for derivatives trading?
A: SYMMIO provides the necessary liquidity for trustless and permissionless derivatives trading through its novel architecture and intent-based execution.
Definitions:
– Layer 3 blockchain technology: This refers to the use of protocols or networks built on top of existing blockchain networks, adding additional functionality and capabilities.
– Derivatives trading: This involves trading financial contracts whose value is derived from an underlying asset. These contracts allow traders to speculate on asset prices and manage risk.
– Liquidity fragmentation: This refers to the situation where liquidity (availability of buyers and sellers) in a market is divided among different platforms or sources, making it less efficient.
– Decentralized finance (DeFi): Refers to a financial system built on blockchain networks that aims to provide traditional financial services in a decentralized and trustless manner.
– Total value locked (TVL): Refers to the total value of assets locked in a particular decentralized finance protocol or platform.
Suggested Related Links:
– Orbs: Official website of Orbs, providing more information about their layer 3 blockchain technology.
– SYMMIO: Official website of SYMMIO, offering insights into their OTC derivatives platform and solutions for derivatives trading.
The source of the article is from the blog windowsvistamagazine.es