Innovative Integration: THENA and Orbs’ Liquidity Hub
In a significant development for the decentralized finance (DeFi) space, THENA, a leading decentralized exchange (DEX) on the BNB Chain, has integrated Liquidity Hub by Orbs. This integration marks a pivotal moment for THENA’s traders, granting them access to additional liquidity on the BNB Chain network that was previously untapped through the standard automated market maker (AMM).
Powered by Orbs’ Layer 3 (L3) technology, Liquidity Hub introduces a suite of benefits for THENA’s users, including lower fees, Miner Extractable Value (MEV) protection, gasless transactions, increased capital efficiency, and a simplified user interface. This collaboration stands as the second integration of its kind for Liquidity Hub by Orbs and is among the few instances in the DeFi space that aggregate liquidity from both on-chain and off-chain sources to a DEX.
Liquidity Hub: Enhancing DeFi Trading
Liquidity Hub, a fully decentralized, permissionless, and composable DeFi protocol developed by the Orbs project, leverages the Orbs Network to provide THENA’s traders access to the full spectrum of liquidity on the BNB Chain at no additional cost.
Orbs: Pioneering Layer 3 Infrastructure
Orbs, a decentralized protocol executed by a public network of permissionless validators using Proof of Stake (PoS), has been a pioneer in introducing Layer 3 infrastructure. This innovative approach utilizes the Orbs decentralized network to enhance the capabilities of existing Ethereum Virtual Machine (EVM) smart contracts, ushering in new possibilities for Web3, DeFi, NFTs, and GameFi.
Mechanisms of Liquidity Hub
Liquidity Hub operates as a Layer 3 infrastructure software that optimizes the existing AMM model. By tapping into external liquidity sources, Liquidity Hub ensures better price quotes and minimizes price impact. The technology utilizes two primary methods:
- On-chain solver auction: Third-party solvers compete to fill swaps using on-chain liquidity, including AMM pools or private inventory.
- Decentralized orders via API: Institutional and professional traders can submit bids and compete to fill swaps through decentralized orders accessible via API.
Liquidity Hub allows DEXs to attempt trades without going through the AMM and experiencing price impact. If Liquidity Hub cannot execute the trade at a better price than the AMM, the transaction will return to the AMM contract and execute as usual, ensuring that users receive the best possible execution.
Liquidity Hub Architecture Overview
The architecture of Liquidity Hub involves a mix of an on-chain contract and backend logic running on Orbs decentralized L3 nodes. The on-chain contract safeguards end-users, ensuring the security of their funds and preventing significant price manipulations.
Regular users engaging in swaps need not be aware of the existence of Liquidity Hub. The Liquidity Hub contract ensures that the swap’s execution price will surpass that of the AMM contract. Simply put, if Liquidity Hub is not competitive, the swap is bypassed. The assurance is embedded at the contract level, eliminating the need for trust in the process.