The team behind Orion Protocol is building a solution to many of the problems cryptocurrency traders face today. Led by Alexey Koloskov, former Blockchain Developer and Chief Architect for WAVES, they offer the opportunity to simultaneously and seamlessly trade on multiple cryptocurrency exchanges. They are currently connected with multiple centralized and decentralized exchanges, including Binance, Huobi, and IDEX. Orion is on the Holochain platform and is currently conducting their private round. The project has a hardcap of $4 million and is planning to IEO soon.
The foreign exchange market (“forex”) is the most actively traded market in the world with daily volume exceeding $5 trillion. It is highly regulated with a large amount of volume derived from banks, institutional traders, and retail traders. By comparison, the cryptocurrency market (“crypto”) has daily volume of $50 billion, of which 95% is reportedly fake per a study conducted by Bitwise. Though the size of forex dwarfs that of the crypto, there are many similarities between the two.
Like crypto, forex trading is highly speculative, volatile, and dependent on liquidity. Due to the high intensity nature of the forex market, traders need to quickly identify counterparties with both favorable pricing and the liquidity available to support their position. To address this need, most retail traders utilize liquidity aggregator solutions.
For the crypto market to mature, it will need to adapt and follow the trends set by traditional markets. Before Orion Protocol, there were two decentralized liquidity aggregator solutions in the crypto space, Changelly and 0x Protocol. Changelly allows users to convert BTC or a variety of ERC20 based tokens into most other cryptocurrencies at a small fee, 1.5%. However, it has two major downsides. The first is that while it is decentralized, they can, at any time, place a hold on any transaction and force the user to complete a strict AML/KYC verification. This policy requires users to provide proof of the origin of their funds. The second is that for assets with lesser liquidity, the fee can sometimes be as high as 20%. At the time of this writing, there is a 17% fee when exchanging BTC for Nexo. 0x Protocol offers the ability to exchange a limited number of ERC20 based tokens.
Recently, there has been a large wave of regulation sweeping across the cryptocurrency space. Most notably, Binance will be banning United States’ users from using Binance.com beginning September 12, 2019. Along with this, one of the most known DEX’s, IDEX has introduced full KYC/AML procedures. Shapeshift.io, another popular exchange, implemented full KYC as well. These recent changes are leaving users, particularly those in the United States, wondering how they can efficiently trade without access to the liquidity granted by these exchanges. Orion Protocol offers a much-needed answer to this question.
As an aggregator, Orion Protocol will enable users to access multiple major centralized and decentralized exchanges, including Binance and IDEX, without having to register or provide KYC. Once users link their cold wallet to the Orion Trading Platform, they will be able to leverage Orion’s orderbook to trade across multiple exchanges. This will make Orion especially attractive to United States’ investors who will be searching for any way to access Binance after September 12th.
How It Works:
Orion Protocol is a liquidity aggregator that enables traders to access multiple major centralized and decentralized exchanges with a single trading interface. Simply put, they leverage their accounts across multiple exchanges to trade on the user’s behalf and maximize returns. Liquidity strain is most commonly an issue when dealing with large orders or illiquid assets. A user encountering these issues would likely need to execute trades on multiple exchanges or fill orders at less desirable prices.
See the below example illustrating a user filling a 9 BTC position of XRP on Orion’s Trading Platform:
1. User links their pre-existing cold wallet to the Orion Protocol Trading Platform
2. User deposits 9 BTC into their cold wallet.
3. User converts the 9 BTC into proxy protocol tokens on the BTC blockchain. This is accomplished by using atomic swap on Wanchain.
4. The user views Orion’s order book which displays the best available price of XRP accounting for trading and withdrawal fees. Each price is shown alongside its respective exchange.
5. The user places a limit order to fill 9 BTC worth of XRP.
6. The order enters Orion Protocol’s matching engine which looks to fill the order on its internal orderbook. If it cannot be filled, the engine will access Orion’s Price Discovery Module which will identify the best price for XRP/BTC by accessing the lowest ask prices across all available exchanges.
7. After the successful execution of the trade through the Price Discovery Module, the user is notified of the results and providing with TX IDs for all transactions.
With Orion, the user can easily fill their order while ensuring the best available price is achieved. All this is accomplished without the need to register or provide KYC to any third parties and with minimal fees. Contrary to other centralized and decentralized exchanges, the user will have complete access to their funds through their cold wallet during this entire process. The use of a proxy token and atomic swap through Wanchain allows the user to immediately trade newly received funds without having to wait for the liquidity providers withdrawal to process.
Other Notable Features:
IEO Trading: In addition to trading on the platform, Orion’s users will also have access to projects conducting IEOs on other exchanges. To purchase tokens from a new IEO, a user will only need to create a limit order on Orion’s platform. The order will be executed like any other order.
IEO Founder: Projects will be able to launch IEOs on the Orion platform on multiple blockchains including ETH, HOLO, XLM, and WAVES.
ETFs/Index Funds: Orion will offer users the ability to distribute their funds across multiple cryptocurrencies thereby creating index funds on the platform. This will enable traders to create their own index portfolios and ETFs.
Cryptocurrency Analytics: Analogous to Bloomberg in traditional markets, Orion will provide detailed information on a large amount of cryptocurrency tokens. This information will include interactive charts (Tradingview), trading history, indicators/analytics, and news feeds from various platforms.
Arbitrage: Orion’s orderbook will grant traders concurrent access to multiple exchanges enabling them to access available arbitrage opportunities.
Team Highlights & Notable Advisors:
CEO: Alexey Koloskov – Blockchain developer and Chief Architect of WAVES ($134 million marketcap and a top 50 coin on coinmarketcap). https://www.linkedin.com/in/alexey-koloskov
COO: Kal Ali – Formerly at Bounty0x and a behind the scenes advisor to a number of blockchain projects. https://www.linkedin.com/in/kal-ali
Head of Development: Eduardo Moreira – Founder of EYESS, responsible for being the leaders of the Holochain movement in Latin America. https://www.linkedin.com/in/itdirectoreduardomoreira
Advisor: David Atkinson – Executive Team at Holochain
Advisor: Jingyuan Ye – Chairman of Point95 Global ($30 million assets under management), VP at BAML
Orion currently has a working product and will be entering a market that if it already isn’t, will soon be desiring a solution to trading without needing to register or perform KYC on multiple platforms. While Binance is launching a US platform, there is no telling when it will be released, and it is unlikely to provide access to most altcoins. Orion could be the solution for those users forced to otherwise trade on Binance’s US platform or other lackluster alternatives.
The team has a background in cryptocurrency with Alexey’s involvement at WAVES and Kal’s (COO) experience as an advisor for multiple blockchain projects. They understand hype and the marketing required to ensure the success of a blockchain project. This is exemplified through their decision to build on Holochain which has a strong supporting base as well as their partnership with WANCHAIN.
Orion Protocol represents a unique opportunity to access a low hardcap ($4 million) project that is positioned extremely well for success.