Orbit
An introduction to Orbit.
Last updated
An introduction to Orbit.
Last updated
DeFi is a growing ecosystem of protocols, each with its logic and processes. Orbit may be thought of as a wallet extension, allowing users to replicate strategies or automate liquidity allocation.
Uniswap v3 was released just over a year ago and has rapidly established itself as the most capital-effective DEX in DeFi, introducing the concentrated liquidity revolution to the masses.
Instead of a single 0 to infinity curve, with v3, users can now concentrate liquidity inside a specific price range.
As a result, the profits gained by providing liquidity in Uni v3 are significantly bigger than those earned by providing liquidity in v1 and v2, due to much higher fees generated since the range is much more concentrated.
So v3 increased capital efficiency, and more and more capital is flowing into the protocol, but what are the consequences?
Due to its complexity and sophistication, Uni v3 requires Liquidity Providers to perform some critical tasks to finally enjoy the aforementioned higher yields, such as:
Deciding the most convenient price range
Rebalancing it frequently
Reinvesting the generated fees
Paying gas fees several times (they have to actively manage their positions!)
These increased complications made liquidity providing a time-consuming and complex activity, preventing many ordinary DeFi users from effectively using it.
Our goal is to make concentrated liquidity simple, cheap, and widely available to anybody.
We started Orbit based on two convictions. One is the emergence of low fees environments that allows for faster and better automation. The other is the presence of protocols such as Uniswap v3, which brings capital efficiency and operation complexity to another level. As protocols get more efficient, most of the time, they also become complicated for end-users.
Orbit first version allows users to automate operations and strategies on Uniswap v3 positions. Without paying any fee, it is possible to gain an additional yield from concentrated liquidity and replicate existing practices in place in so-called “vaults.”
The following versions will build more trustless automated strategies based on Uniswap and other protocols and chains.
It’s here that tools like come to solve the problem.
