Perpetual Hub

What is Perpetual Hub?

Perpetual Hub is a full suite of tools for on-chain perpetual futures trading.

On-chain Perpetual Futures - The Next Big Thing In DeFi?

Looking at the top spot and derivatives centralized exchanges like Binance, OKX, Bitfinex, etc., we can see that perpetual futures trading volumes can be an order of magnitude greater than spot trading volumes.

The main reason for these high volumes is that derivatives trading can be accomplished using leverage, often as much as x100, which enables users to increase their trading position beyond what would be available from their cash balance alone amplified by deeper liquidity that perpetual markets offer.

However, on-chain perps currently amount to a small fraction of the DeFi market's overall TVL and trading volumes.

Perpetual Hub is set to change this by developing the tools required for realizing the full potential of on-chain futures trading.

Intent-based Execution for Perpetual Futures

The Orbs project has recently joined forces with SYMMIO and IntentX to address the challenge of capital efficiency in on-chain derivatives trading using intent-based execution.

These projects are each pioneering different aspects of revolutionary architecture for intent-based perpetual futures trading. Their innovative technologies promises significantly enhanced liquidity compared to existing derivatives platforms, resulting in a substantial increase in capital efficiency and offering the deepest liquidity available on-chain.

Product Description

Orbs’ contribution, Perpetual Hub, provides platforms with services including:

Hedger

Technology for a market maker operating on a SYMM-powered frontend like IntentX, the Hedger provides liquidity by filling user orders. Acting as the counter-party to trades, Hedgers can leverage external liquidity sources, including centralized exchanges like Binance, for unparalleled liquidity.

Liquidator

In line with standard practices in perpetual futures trading platforms, SYMMIO and other similar platforms support leverage trading. Users are required to lock collateral on-chain when initiating leveraged positions. By integrating Perpetual Hub technology powered by Orbs, platforms can ensure that if the collateral value dips below the maintenance margin threshold, third-party Liquidators will liquidate the user's position, earning a liquidation fee as compensation.

Price Oracle

In the blockchain realm, oracles bridge off-chain and on-chain data. Price oracles are an important component of the system which are needed to provide uPnL (unrealized profit and loss) of accounts, flagging liquidations, and more.Therefore, having a reliable and robust price oracle, while maintaining proper decentralization, is essential for the platform to run smoothly. Orbs’ Perpetual Hub solution also provides this service to perpetuals platforms.

All three software solutions leverage the power of the decentralized Orbs Network, with its Guardians and proof-of-stake ecosystem, to allow platforms, market participants, and other third parties to provide and operate this suite of decentralized services. Orbs will not be engaging in trading, hedging or serving as a liquidator.