Decentralized Liquidity Network

How brokerage and the DPoB work on Orion

In the vast world of cryptocurrency, there's a need to bridge the divide between centralized exchanges (CEXs) and decentralized platforms (DeFi). Orion's Decentralized Liquidity Network does just that, ensuring a seamless trading experience across various platforms.

The Essence of Orion's Decentralized Liquidity Network

To facilitate trading across different platforms like Binance, KuCoin, and Uniswap, intermediaries, known as liquidity nodes, are essential. These liquidity nodes execute transactions and extend their liquidity to Orion, making the trading process smooth and efficient. Think of these nodes as middlemen who help you shop from different stores without visiting each one. To truly decentralize this system, Orion introduced the Liquidity Node Network.

The Liquidity Node Network is a pivotal component of Orion's services. It allows individual liquidity nodes to connect with other protocol services, enabling them to receive orders, execute trades, and relay vital information, such as available reserves. Notably, these liquidity nodes don't have direct access to the order books. Instead, the order books on the Orion Terminal are sourced from the Aggregator, another integral service of Orion. Imagine a big shopping list that combines items from different stores, and the Aggregator is the one making that list.


Orion employs its virtual order book to dispatch orders to specific liquidity nodes. The selection of which liquidity node gets to process a transaction is governed by the Delegated Proof-of-Liquidity (DPoL) mechanism. In essence, liquidity nodes need to stake ORN tokens to be part of this network. Much like traditional Proof-of-Stake systems, a liquidity node with a higher ORN stake has a better chance of being chosen to handle a user's order. However, the final selection isn't solely based on the stake. The liquidity node must also offer the right tokens on the correct blockchain network and possess the necessary reserves to process the order. This multifaceted approach ensures that no single liquidity node dominates the network, preserving decentralization. It's like choosing the best store to buy from based on their stock, location, and reputation.

Delegated Proof-of-Liquidity (DPoL)

DPoL is more than just a staking mechanism. It's a system that balances the interests of liquidity nodes and users. While liquidity nodes stake ORN to participate, they can also set their own fees for the liquidity they provide. Orion's platform, in turn, allows these liquidity nodes to share a portion of their earnings with their users. This is where the "delegated" aspect comes into play. Users can delegate their stake to specific liquidity nodes, thereby influencing which liquidity node has a higher stake and a better chance of processing orders. This delegation not only decentralizes the decision-making process but also creates a win-win situation where everyone benefits from Orion's trading activities.

Note: The full public version of the DPoL and liquidity node mechanisms is still in the works. While the foundational architecture has been built to accommodate this full public version, including the use of ORN as collateral, we're taking the necessary time to refine and enhance the system. Our primary goal is to ensure the utmost safety and efficiency for the general public. We appreciate the community's patience and understanding as we work towards perfecting this groundbreaking initiative.

Decentralization Perfected: Orion's Path Forward

Orion's Decentralized Liquidity Network is a groundbreaking initiative that merges the worlds of DeFi and CeFi. By leveraging the Liquidity Node Network and the DPoL mechanism, Orion ensures that users get the best of both worlds: the vast liquidity of CEXs like Binance and the decentralized benefits of platforms like Uniswap. It's a step towards a more unified and efficient crypto trading ecosystem. As we continue to refine our systems, we remain committed to delivering a platform that is both innovative and secure for all users.

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