Public blockchain infrastructure provider Orbs is delivering a next-generation liquidity solution designed to encourage greater defi participation by separating stablecoin pooling from cryptocurrency pooling.
Liquidity Nexus Protocol Aims to Forge Better Connections Between Defi and Cefi
As decentralized finance (defi) aggressively expands its footprint in the cryptocurrency arena, one of the most significant pain points that have arisen involves liquidity pooling.
Liquidity pools, which effectively lock coins and tokens in smart contracts, provide the basis for dex (decentralized exchange) and defi operation. Most liquidity pools require users to lock an equal amount of two tokens in a pool. Rewards earned from the pool’s activities are distributed proportionally to an individual’s stake. However, this model produces numerous inefficiencies.
To maintain equivalent amounts of two tokens (cryptos and stablecoins), pools must constantly readjust holdings, exposing users who lock their cryptos to slippage, price risks, and volatility. Moreover, this makes it difficult for users to capitalize on their entire portfolios without having