Introducing Orby Network
Your decentralized stablecoin lending protocol at 0% interest rates 👀
What is Orby Network?
Orby network is a crypto lending protocol that offers interest-free borrowing of USC, Orby’s native stablecoin. USC is a decentralised, overcollateralised stablecoin soft-pegged to the US dollar and is designed to function as a store of value, a unit of exchange, and a unit of account.
Borrowing USC enables users to access liquidity via a stablecoin on their holdings — allowing users to hold on to their assets as they potentially appreciate in value, while being able to utilise USC to participate in other ecosystem activities.
With Orby, you will be able to:
- Deposit multiple types of collateral to borrow USC
- Borrow USC interest-free
- Secure Orby and earn liquidator fees by providing USC to the Stability Pool
- Arbitrage by redeeming 1 USC for USD1 worth of collateral when USC falls below USD 1
- Deposit the protocol token in our Vault and for a share of revenue and other rewards
How does Orby work?
USC is created when users deposit accepted collateral in a “shuttle” (similar to a collateral debt position) and receive a loan against said collateral. Every user needs to maintain a minimum collateral ratio within his shuttle. For example, if the minimum collateral ratio of cdcETH is 135%, that means for every USD100 of cdcETH used as collateral, a borrower can borrow a maximum 74.7 USC. A user with debt exposure more than that will be liquidated.
A key differentiating factor for Orby is that, unlike other lending protocols, users don’t incur on-going interest rates for borrowing $USC. Instead, users incur 2 types of fees upfront: a minting fee, and liquidation reserve.
The diagram above illustrates how the 2 types of fees are derived: based on the assumptions in the example, a user opens a “shuttle” by depositing 1000 cdcETH tokens to borrow out 600 USC tokens. The total debt incurred by the user will be 632 USC tokens — 600 USC to be sent to the user’s wallet, 12 USC for minting fees, and 20 USC set aside as the liquidation reserve. However, when the user chooses to fully unwind his position, the debt to be paid will equal to 612 USC ; this is because the liquidation reserve is considered a deposit and will not be included in the final debt repayment.
Backed by a robust liquidation mechanism
Orby’s Stability Pool (SP) acts as an internal and immediate source of liquidity for liquidation events, and is a relatively unique mechanism versus other lending peers. In the event of a liquidation, any outstanding debt will be offset by a corresponding amount of USC from the Stability Pool. The shuttle’s debt will be fully repaid and the collateral distributed among Stability Pool depositors.
The SP mechanism ensures that Orby can instantly cover outstanding debt in an efficient manner, while allowing community members to acquire liquidated collateral at a discount. We will explain this process in greater detail in our upcoming blog posts.
Maintaining USC’s peg
In order to influence USC’s peg stability in a more direct manner, Orby will have mechanisms in place to bring the price of USC back to peg — with one of them being our Redemption Mechanism.
Similar to fiat-back stablecoins such as USDC and USDT, USC is always redeemable 1:1 for its underlying collateral. That means, at any one time, a user can redeem 1 USC for USD 1 worth of collateral. This Redemption Mechanism works to enforce a hard peg for the value of USC when it falls below US$1.
Does Orby have a token?
Orby’s ecosystem will be driven by 2 tokens, namely $ORB and $esORB. $ORB is the protocol’s native token and will be a tradable token on DEXs and CEXs. $esORB is the time-locked version of $ORB and is a non-tradable or transferable.
Users will be able to enjoy rewards paid out in $esORB when they deposit their USC in the Stability Pool. $esORB can then be converted into $ORB, subject to a 90-day conversion period.
We will be having a $ORB TGE in the near future, along with some surprises for our early supporters. Over the next few weeks, we will be sharing more about Orby Network with you. We can’t wait to join the $CROFAM, but in the meantime, follow our social to get the latest updates!
