The Orbs Liquidity Hub is designed to operate as a layer that sits atop the Fenix Finance DEX.
Pioneering Layer 3 project Orbs has announced the launch of its liquidity hub on Fenix Finance. The deployment is focused on deepening available liquidity on the Blast DEX while also delivering greater capital efficiency for users of the Layer 2 protocol. This new feat comes after the completion of a $300,000 seed investment round for Fenix Finance led by Orbs.
Mutual Benefit For Orbs And Fenix Finance
Orbs strategic investment in the emerging decentralized exchange (DEX) on the Blast network marks a milestone for both parties. For Orbs, it is a reflection of its commitment to fostering innovation. It also demonstrates its interest in expanding the capabilities of its cutting-edge L3 technology within the Decentralized Finance (DeFi) ecosystem.
Ultimately, the L3 blockchain will position itself as a formidable player in the Blast ecosystem. For Fenix Finance, the investment will help provide a platform for revolutionizing the trading experience for its users on the Blast network. Orbs will support Fenix Finance’s goal of delivering the most capital-efficient trading experience on Blast.
The Orbs Liquidity Hub is designed to operate as a layer that sits atop the Fenix Finance DEX. It will draw in additional liquidity sources that can allow Fenix users to obtain the best possible pricing. Precisely, this capability will contribute significantly to reducing slippage and allowing users to get more value from every trade they place.
Additionally, the Orbs solution offers reduced transaction fees, protection against Maximal Extractable Value (MEV), and gas-free transaction executions. This Liquidity Hub integrates with the existing Fenix DEX interface. However, it will not disrupt the user experience that traders have gotten accustomed to. According to the team, it seeks to maintain it.
Orbs Liquidity Hub Sees More Deployment with Fenix Integration
This would be Orbs Liquidity Hub’s fifth deployment with DEXs operating on the Ethereum Virtual Machine (EVM) networks. However, it is a first for the Blast network, merging liquidity from both on- and off-chain sources, delivering an enhanced trading experience without introducing custodial risk.
Should Orbs’ liquidity layer fail to execute the trade at a better price than the Automated Market Maker (AMM), the transaction automatically reverts to the AMM contract and executes as usual. This brings an assurance that the execution of trades is coming at the best possible rate every time. Traders would not need to manually select their preferred liquidity route.
On a large scale, it is obvious that Orbs Liquidity Hub is expanding and gaining more use cases. It bagged a deal with software company IntentX towards the end of Q1, 2024. The company partnered with Orbs Liquidity Hub to use the protocol as its primary spot engine. The goal was to give customers access to spot orders and the perpetual contracts marketplace.
Generally, liquidity hubs are becoming more prominent by the day and this is because of the amount of tradable funds they make available to users.
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