Layer 3 protocol Orbs has recently unveiled Liquidity Hub V2, an upgraded version of its infrastructure solution that seamlessly integrates with decentralized exchanges (DEXs) to provide optimal pricing without the need for manual liquidity sourcing. The original Liquidity Hub was launched last year in partnership with Polygon-based DEX QuickSwap and has since been integrated into nine protocols and blockchains. The latest iteration, Liquidity Hub V2, builds upon the success of its predecessor by introducing a range of enhancements and setting new standards for onchain trading execution quality to rival centralized exchanges (CEXs).
One of the key features of Liquidity Hub V2 is dynamic fees, which are calculated in real-time as a percentage of achieved savings, independent of Dutch auction decay. This innovative approach ensures optimal cost efficiency for traders, even under negative slippage conditions. Another significant advancement is the enhanced AMM Router Price Simulation, which continuously monitors AMM prices throughout the Dutch auction process, ensuring that Liquidity Hub consistently outperforms rival Automated Market Makers like Uniswap and Raydium, especially during volatile market conditions.
In addition, Liquidity Hub 2.0 introduces the LH Explorer tool, providing traders with comprehensive information about transaction details, including AMM simulated prices, Liquidity Hub prices, fees, gas costs, and savings. This unprecedented level of visibility instills greater confidence in the overall trading process, making onchain trading more efficient and reliable for all users. Overall, Liquidity Hub 2.0 is a robust upgrade designed to enhance the trading experience and improve liquidity prices and performance for traders using DEXs.
While traders are the primary beneficiaries of the enhancements brought by Liquidity Hub V2, DEX operators also stand to benefit from increased competitiveness, potentially attracting more traders to their platforms. The upgrade is being implemented across all existing protocols where Liquidity Hub is integrated, offering improved liquidity prices and performance. Current projects leveraging Liquidity Hub include Lumia, a hyper-liquid zkEVM solution, and DEX aggregators Odos, OpenOcean, ParaSwap, and KyberSwap. The L3 infrastructure developed by Orbs also supports advanced order types and deep liquidity to provide a seamless trading experience.
In conclusion, Orbs’ Liquidity Hub V2 represents a significant advancement in the multichain ecosystem, addressing long-standing challenges and setting new standards for onchain trading execution quality. By empowering DEXs with enhanced competitiveness and providing traders with improved liquidity prices and performance, Orbs aims to revolutionize the DeFi industry by creating a more efficient and reliable trading environment for all users. With a range of innovative features and enhancements, Liquidity Hub 2.0 is poised to make a significant impact on the DeFi landscape and propel Orbs to the forefront of the industry.
