Prominent DEX THENA integrates Orbs” liquidity hub on the BNB chain. Liquidity Hub by Orbs is now a part of THENA, a well-known BNB chain marketplace. More liquidity on the BNB Chain network is now available to traders at THENA, something that was previously unavailable via the traditional AMM. Liquidity Hub includes several benefits made possible by Orbs’ L3 technology, including lower prices, gasless transactions, better capital efficiency, an easier-to-use user interface, and protection for MEVs. This is the second integration of its kind for Liquidity Hub by Orbs, and it is one of the rare ones in all of DeFi that combines liquidity from on-chain and off-chain sources to a DEX.
Liquidity Hub is a decentralized, permissionless, and composable DeFi system built by the Orbs project and powered by the Orbs Network. Trades on THENA can now take advantage of BNB Chain’s liquidity without paying further fees.
Using proof of stake, a public network of permissionless validators runs the decentralized protocol Orbs, which has tens of millions of dollars worth of TVL staked. Orbs is at the forefront of the L3 infrastructure movement, reshaping Web 3.0, DeFi, NFTs, and GameFi. It does this by leveraging its decentralized network to enhance the capabilities of existing EVM intelligent contracts.
Liquidity Hub’s’ Operation
Layer 3 (L3) infrastructure software provides an optimization layer called Liquidity Hub, located above the AMM. This method employs external liquidity to achieve more precise price quotations with less price effect.
In contrast to the conventional swap, which searches for the best route within the limited liquidity pools of the DEX, Liquidity Hub enhances this process by drawing on additional liquidity sources:
On-chain solver auction: Third-party solvers compete to fill swaps using on-chain liquidity, like AMM pools or private inventory.
Decentralized orders via API: Market makers and other professional and institutional traders can use the decentralized orders accessible through the API to put bids and compete for swap fills.
DEXs may attempt to conduct trades via Liquidity Hub to avoid the AMM and potentially impact prices. When the layer cannot complete the transaction at a lower cost than the AMM, the work will return to the AMM contract and continue as usual.
Therefore, Liquidity Hub can only improve a trader’s experience. If Liquidity Hub isn’t viable—meaning it either processes at a worse price for the user or can’t execute—then the swap will continue as usual via the AMM contract.
Liquidity Hub & Architecture Product Specification
Additionally to the AMM contract, an on-chain agreement was also deployed, and the backend functionality is still running on-chain through the Orbs’ decentralized L3 nodes that Liquidity Hub jointly controls. In any case, the on-chain contract for Liquidity Hub prevents massive price manipulation and ensures that end users’ cash is protected.
The existence of Liquidity Hub is irrelevant to regular users attempting to trade. The guarantee in the Liquidity Hub contract states that the execution price of the swap will be higher than the execution price on the AMM contract. Otherwise, people will avoid Liquidity Hub if it isn’t competitive. Having faith in this assurance is not essential because it is implemented at the contract level.
Some Liquidity Hub features are implemented off-chain on the DEX (we’ll talk about Orbs L3 later to help mitigate off-chain issues). With the data structure off-chain, adding or removing orders from the Liquidity Hub takes only a few moments (instead of waiting for a new block to be closed) and doesn’t cost gas. Market makers are drawn to these features because they are similar to CEXs.
There is no custodial handling of any monies; they are all stored on-chain. Customers’ wallet balances are preserved when they use Liquidity Hub to make purchases. The transaction, which involves transferring funds from the account on the match, will begin once the Liquidity Hub contract is approved. The Liquidity Hub contract ensures that order verification is always done on-chain. If the execution costs less than the AMM and satisfies both parties’ needs, the agreement will confirm that. Upon matching, the parties will receive the funds immediately on the blockchain.
The main features and specs of Liquidity Hub’s products are as follows:
User Interface of DEX Has Not Changed: The integration of Liquidity Hub has maintained’s familiar user interface, ensuring a seamless and transparent trading experience.
Decentralized Order Interface for Market Makers (MMs) and API for Solvers: HubSub’s decentralized interface for market makers and effective API for solvers streamline trade and liquidity delivery.
Nominal to Zero Latency Execution for MMs: Thanks to the near-zero latency in all transactions, users can benefit from market movements as they happen.
Users on MetaMask Approve Token Expenditure: Users may approve token expenditure with MetaMask while maintaining transaction control and security.
Funds Remain in the User Wallet Until Trades Are Executed: The trading process becomes more reliable, and secusers’en users’ funds remain in their wallets until trades are executed.
Gasless Trades: Customers can make gasless trades using the Liquidity Hub, significantly reducing transaction costs.