Orbs, which has a decentralized and Layer-3 blockchain infrastructure, announced the decentralized time-weighted average price (TWAP) protocol it has developed for decentralized exchanges and automated market makers (AAM). TWAP is a term used as an algorithmic trading strategy in CeFi, the central financial environment. This trading strategy is a strategy that aims to reduce the impact of large transactions on the market by dividing them into small transactions.
Working Model
Although this strategy works in CeFis, it can be said that this strategy does not work well in DeFis. In particular, the restrictions imposed by EVM smart contracts in the DeFi ecosystem make it very difficult to use TWAP in decentralized exchanges. Orbs is developing the TWAP protocol for DeFi to solve this problem.
Orbs claim that these problems have been greatly reduced thanks to the TWAP protocol it has created for DeFi. The team explained:
“Orbs decentralized backend ensures that all TWAP orders are executed at an optimal price and fair fees without sacrificing decentralization and security. Accordingly, participating DEXs and AMMs grant their users more ways to engage in sophisticated trading activities, especially algorithmic strategies like those commonplace in CeFi, while also experiencing increased liquidity and user volatility.”
In addition, Orbs says that in the TWAP protocol, users will also benefit from another investment strategy, DCA. It has features such as DCA automation, which is a strategy that you can take advantage of in the TWAP protocol.
Commenting on the launch of TWAP, Nadav Shemesh, CEO of Orbs said:
“We are always looking at CeFi as a template for new protocols that can enhance our stake holders’ experience, and TWAP is no exception. Until now, it has been hard to implement a TWAP strategy in blockchain-based financial primitives in a decentralized manner using EVM-based smart contracts. With our new TWAP Protocol, everyone benefits – be they traders or trading platforms. Besides managing liquidity better, support for more sophisticated trading strategies, automated DCA orders, customizable parameters, and much more can also help us attract institutional participation in kind.”
About Orbs
Orbs is a decentralized and public blockchain infrastructure that has emerged as a combination of features such as performance, security and ease of use. Orbs is operated through Proof-of-Stake consensus. There are four founders of the platform. Daniel Peled serves as the president of Orbs. Besides Daniel Peled, the other founders are Tal Kol, Netta Korin and Uriel Peled.
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