Hassan Maishera
Layer 3 blockchain Orbs announced on Thursday, February 15th, that it has partnered with OTC derivatives platform SYMMIO. In a press release shared with Cryptowisser, Orbs said the partnership will support the growth of onchain derivatives trading that makes use of better capital efficiency and taps into deep liquidity.
This latest development comes as Orbs has recorded significant demand for its blockchain- and DEX-agnostic Liquidity Hub, which operates as a layer atop AMMs, solving the problem of liquidity fragmentation in DeFi.
The partnership with SYMMIO will enable Orbs to roll out similar capabilities for derivatives traders to drive more efficient capital deployment. The two entities will focus on a range of use cases centered around onchain derivatives, making use of Orbs’ existing layer 3 technology.
Initial concepts being explored by the two companies include developing an on/offchain communication oracle. Orbs and SYMMIO also intend to work together to create a bidding system for hedgers, providing a way to reduce risk while capitalizing on the upside of derivatives trading.
Orbs explained that at the moment, derivatives dominate trading volumes on centralized exchanges by a ratio of 4:1. However, the reverse is true onchain, where just $2B of DeFi’s $60B TVL can be attributed to derivatives.
The partnership between the two entities will address this imbalance, allowing onchain traders to open leveraged positions while efficiently utilizing their capital and hedging against downside risk.
SYMMIO’s solution involves supporting intent-based OTC derivatives trading. When a user wishes to open a position on a SYMM-powered frontend, quotes are directly streamed by a variety of hedgers.
Furthermore, SYMMIO’s implementation requires the frontend to select the best quote based on the user’s parameters and creates an intent that is transmitted onchain. This intent is accepted by the solver provided the parameters match their quote and the trade is executed onchain, by which point both parties have locked collateral.
A key advantage of using SYMMIO’s solution is that it enables hedgers to harness external liquidity from any available source including CEXs such as Binance. This feature makes it possible to enjoy greater liquidity compared to other derivatives platforms and thus significantly increases capital efficiency.
By partnership with SYMMIO, Orbs intend to broaden adoption of this innovative technology while providing a safer way for traders to gain exposure to onchain derivatives.
Orbs is an open, decentralized and public blockchain infrastructure executed by a secure network of permissionless validators. Orbs’ decentralized execution layer operates between existing L1/L2 solutions and the application layer, forming a tiered blockchain stack that avoids the need to move liquidity onto a new chain.
Meanwhile, SYMMIO is a protocol for symmetrical futures. It reimagines bilateral OTC derivatives by combining them with intent-based execution. This supports permissionless leverage trading of any asset with hyper-efficient just-in-time liquidity.
