Orion Protocol - Calibur Report
What is Orion Protocol?
Orion is a comprehensive blockchain trading and investment platform that combines trading, portfolio management, and wallet functionality, and also provides access to the most beneficial features of both centralized and decentralized exchanges, brokerages, and instant trading apps. The platform is powered by a liquidity aggregator which connects to all exchanges, while the Protocol is also comprised of a central order matching engine which other features including a range of dApps, price feeds, crypto indexes, a portfolio manager, a multi currency wallet, and a shared liquidity pool all connect to.
The Protocol allows anyone to trade cryptocurrencies at the best prices from one account, and does away with the need to retain separate accounts on different cryptocurrency exchanges, as the built-in liquidity aggregator connects the user to different exchanges and automatically obtains the best spot price for trading in any supported cryptocurrencies.
In addition, the team have outlined a range of stakeholders including both small and large retail investment participants, market makers, exchanges, projects conducting IEOs, high frequency traders, and institutions. Orion Protocol helps to streamline and simplify many of the activities these stakeholders are currently engaged in, and aims to be an all in one solution for the greater crypto investment community.
The protocol also makes use of the ORN token, which is an ERC-20 token that will be converted to a native token for the Holochain platform which is hosting the project. The token will be used to pay for trading fees, advertising, and premium services such as margin trading. ORN tokens will also be needed by brokers to take part in staking in the shared liquidity pool. Orion will also create and host a dApp marketplace with some of the following applications expected to feature:
Algorithmic trading bots
Payment integration systems
Space In The Market & Competitive Advantage
As a comprehensive blockchain investment platform Orion will inevitably face competition from more established investment brokers such as EToro, Plus500, IQ Option, and AVA Trade. The team are also aiming to synchronise and merge the activities of blockchain trading projects such as 0x, Kyber Network, Loopring, Blocknet, Airswap, and Nash Exchange. Orion will also engage in the operations of portfolio projects such as Iconomi, CoinLion, CoinFi, and CoinMetro, and wallet providers such as Bread, Eidoo, Ethos, and Abra. As a result, Orion can be compared to the following projects.
0x, valued $95M
Nash Exchange, raised $75M
Loopring, valued $31M
Kyber Network, valued $30M
Iconomi, valued $21M
Eidoo, valued $15M
The team also aim to gain competitive advantage by creating an all-in-one platform that acts as a user-friendly gateway to the cryptocurrency markets, and serves the needs of both retail and institutional investors. In addition, Orion incorporates beneficial features for market makers, high-frequency traders, exchanges, and projects launching IEOs. The platform will minimize the difficulty involved in crypto investing and do away with the requirement to gain extensive experience of crypto exchanges.
In order to provide a comprehensive crypto trading platform that incorporates atomic swaps, and a shared liquidity pool. The use of blockchain technology is central to the composition of Orion Protocol.
Need for Custom Token
The ORION token (ORN) will be used to pay for trading fees and services such as premium features and advertising. Customers can ORN to secure discounts, and the tokens will also be needed by brokers to stake in the shared liquidity pool.
The team plan to embrace decentralization and see the various security benefits that decentralization brings as being central to the project. In addition to making using of Holochain’s distributed node structure, Orion will also make full use of DEXs, and also integrate third party/open sourced modules into its infrastructure.
The team have opted to make use of Holochain’s agent centric distributed computing system, and state that it provides the underlying cryptographic fabric to maintain data integrity across unlimited peers without requiring consensus. Holochain also enables scalable double-entry crypto-accounting which supports the creation of asset-backed and value-stable cryptocurrencies.
Storage & Mining
The project allows the staking of ORN tokens and when a client using the protocol does not have sufficient funds on certain exchanges, they can opt to borrow the necessary liquidity from a common pool. All final settlements are performed on the Holochain platform and guaranteed by a purpose-designed validation rule and mutual-credit a request to execute a given order; it searches the stakeholder(s) able to execute it based on various criteria including the rating of each stakeholder, its fees, and available funds. Once found, stakeholders execute requested orders from their account on the centralized or decentralized exchange, and during execution, the order is guaranteed by a Smart Contract Escrow Account, so that the parties receive the full amount of the correct currency and their ORN tokens for the commission fee.
Here, the client first needs to deposit the necessary amount of the currency to sell and ORN tokens to the Smart Contract Account with a time lock. Within that amount, they can execute trades and create a portfolio. All lenders provide their stake for overall liquidity (common pool), and when they receive requests from the Order matching engine they execute trades on their own account on the relevant exchange. Lenders receive fees in ORN, when the initial request is fully closed, and this can be done in two ways:
Firstly, the lender withdraws bought currencies to an external address, and provides proof with the transaction hash to the Holochain application validating broker Smart contract addresses to unlock sell currencies and ORN tokens for commission fees. Alternatively, the counter order is received that closes the initial open trade and the lender then receives a commission fee in ORN.
The whitepaper explains that Orion uses a modular architecture of decentralized and distributed services with all settlements being carried out on the Holochain platform. Funds are secured using smart contracts, and platform features include an order matching engine, shared liquidity pool, price monitor, a crypto index fund, a multi currency wallet, and a portfolio manager. The Orion Protocol will also standardize the API for the different elements of its liquidity aggregator, thus providing a common “language” for connecting to any exchange.
The roadmap runs until Q2 2022, with the majority of core features being launched this year. The shared liquidity pool alongside the ability to stake ORN tokens is scheduled to launch in Q1 of 2020 and will coincide with the launch of on-chain settlement via escrow smart contracts, and the dApp marketplace. Additional developments such as main currency support (BTC, ETH, LTC), trading from wallets, and i0S and Android mobile apps are set to be completed by the end of Q2 2020.
Orion Protocol appears to be based in the USA; however, the team is quite international with various team members being located in different countries.
Alexey Koloskov (CEO) holds a Master of Science Degree from Lomonosov Moscow State University (MSU) and is a highly experienced blockchain developer. Alexey is the chief architect and creator of the Waves decentralised exchange (Waves’ DEX), and also has extensive professional experience having worked as a Lead IT Project Manager for UniCredit Bank Russia, and a Chief Engineer at Sberbank Technology.
Orion calls on the expertise of a number of key advisors including David Atkinson, who is a member of the leadership team at Holochain, and has significant experience in blockchain business, and ecosystem growth and is also a co-founder at BlockLeaders. Damon Nam is the founder and CEO of Coinvest, a blockchain investment and financial services company and has over 20 years experience as an IT professional, the majority of which is taken up by a 16 year spell at Microsoft. Jingyuan Ye is chairman of the Point95 Global digital asset management firm, and has over 10 years experience in trading and portfolio management. He has also acted as the chairman of PPS International (Holdings) Ltd, and the Vice President of Global Market Division at the Bank of America Merrill Lynch.
Orion Protocol is still relatively unknown; however, the project has a solid use case and addresses some significant issues that still affect the crypto trading industry. Orion synchronises a variety of trading and investing activities and simplifies the process for the majority of participants. The project is also operating in a lucrative sector and core features including the trading terminal, liquidity aggregator, and open exchange API, have already been completed. As a result, the terminal allows users to connect their cold wallets using popular browser extensions such as MetaMask and Waves Keeper, and the Universal Trading API allows Orion to currently connect to Binance, Bittrex, and Poloniex, as well as Waves DEX, Switcheo, and IDEX.
The team have also moved to publicize their token vesting schedules, and have also introduced a toll bridge mechanism which sees any token sales by seed round participants subject to at least a 50% fee within the first couple of months of the TGE. However, the full details of their seed and private sale rounds are still unclear, and this information helps potential tokensale participants to gauge the attractiveness of the public sales. The team can also produce a projected burn rate to improve transparency; however, the project is made up of a strong team with blockchain industry specific experience with senior members coming from Waves, Holochain, and Bounty0x, while CEO Alexey Koloskov is the chief architect and creator of the Waves decentralised exchange.
As a result, the team looks strong enough to execute successfully, and the token economy looks to be comprehensive, and aspects such as token burns, buybacks, staking, and the tool bridge should help the ORN token to retain value. Like any blockchain project Orion will eventually live or die depending on the team’s ability to ensure adoption, and the platform’s reliability and stability will be on display during the ICO as it will be possible to deposit BTC, ETH, BCH, LTC, DASH and WAVES to the platform in order to buy ORN tokens. A smooth ICO will go a long way to generating positive sentiment around the team’s ability to execute and will provide Orion with its first set of passionate users who should continue to use the platform. Orion Protocol is an intriguing project with the possibility to gain widespread usage in the crypto community and is definitely worth keeping an eye on.
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