Orion Protocol (ORN) Liquidity Aggregator

A blockchain-agnostic decentralized DEX, CEX and swap pool liquidity aggregator.

DWR Score:
9/10

Analysis by Dani B. | #001 | January 19, 2022

Table of Contents

Research Summary

Development

Created by Alexey Koloskov from Russia, Orion Protocol aims to be the decentralized gateway to the broader cryptocurrency and NFT market. The protocol will accomplish this goal by eventually aggregating all major DEXs, CEXs and swap pools in one place. The aggregator is currently operational and includes a swap feature, order book, liquidity pools and governance staking.

Outlined in the official roadmap, Orion Protocol aims to increase platform trading volume, improve infrastructure, and roll out innovative features.

Tokenomics

The ORN token was made available through a Dynamic Coin Offering in 2020. The DYCO was a new token sale framework in which utility tokens are USD-backed for up to 16 months after the token generation event and participants are entitled to an 80% refund.

At this point, less than 50% of the total coin supply is in public circulation. The remainder of the coins are currently vested and owned by early investors in the platform. A specific rate of inflation could not be determined, but the total supply of coins should be unlocked by 2023.

Community

The Orion Protocol ecosystem consists of over 100k followers across its official social media accounts.

1inch (1INCH) appears to be the leading exchange aggregator in the space, with a market capitalization 7 times larger than Orion Protocol on January 24, 2022.

Based on the research conducted, Orion Protocol (ORN) appears to be a fundamentally strong project.

Development

Documentation

What is the URL of the official cryptocurrency project website?

https://www.orionprotocol.io/

Are there any obvious errors on the website (broken links, misspelling, grammar, etc.)? 

No obvious spelling, grammar, etc. mistakes were found on the official website pages.

Is comprehensive documentation available for the project?

The official cryptocurrency project website has direct links to resources, including guides with FAQs, relevant blog posts and news articles. Additionally, the project has its own whitepaper.

Project Use-Case and MVP

What problem is the project trying to solve?

Orion seeks to solve the fragmentation of crypto markets, NFTs marketplaces, and assets from traditional finance by eventually aggregating them into one place: Orion Terminal.

What is the project’s solution to the problem the project aims to solve (aka use-case)? 

Orion Protocol aims to be a online brokerage platform for cryptocurrencies and other digital assets; with low trading fees. 

Orion Protocol is building the decentralized gateway to the digital asset market. The layer 2 solution enables users access to deep, cross-chain liquidity in one place – across DEXs, CEXs, and swap pools – providing access to the best price in the market without the need to ever give up their assets.

Is there a working product (MVP)?

Orion Terminal currently allows for cryptocurrency swaps, order book trading, voting with the ORN token, LP rewards, governance staking and other features. 

The Team

Is there a known development team for the project?

The Orion Protocol team appears to be transparent, with the leadership team and development company being active on LinkedIn. Members of the team have also made AMA appearances on video. 

Where is the development team headquartered?

A specific location could not be determined for the headquarters. It appears the CEO, Alexey Koloskov, is in Russia and the CSO (Yanush Ali) and COO (Kal Ali) are in the Miami-Fort Lauderdale Area. The head of development, Eduardo Moreira, is in London.

Are there known sustainable incentives to grow/retain developers?

The Ambassador Program helps to promote awareness and educate the broader community about Orion Protocol through various roles including Content Creators, Community Moderators, Translators and Social Media Influencers.

The team behind the Orion Protocol project is actively hiring for full-time job roles as well.

Audits and Recent Issues

Has the codebase undergone a 3rd party audit by a reputable company/extensive public testing?

In October 2020, Orion Terminal experienced a full-scale audit conducted by the CertiK Professional Services team.

CertiK is a technology-led blockchain security company built to prove the security and correctness of smart contracts and blockchain protocols, applying different approaches and detection methods, ranging from manual, static, and dynamic analyses to ensure that the project is checked against known attacks and potential vulnerabilities.

Does the project have any known, recent (within the last 6 months) technical issues?

There were no recent technical issues identified for the protocol.

Roadmap

Is there a clear roadmap for development?

Orion has been in development with core functionality such as the liquidity aggregator already completed. The platform will remain under constant and active development, starting with the improvement of current features, support for additional cryptocurrencies, asset and portfolio management, the crypto index funds marketplace, and ultimately a fully decentralized platform.

Orion’s Roadmap consists of three components:

  1. Increasing Volume: 3rd Party Pool listings, White Label DEX, Liquidity Boost Plugin, Enterprise Trade Widget, Wallet Swap SDK, Launchpad Liquidity
  2. Improving Infrastructure: USDo Stablecoin, Integrating Exchanges, Chain Integrations, Main Net Staking
  3. Industry-First Features: NFT Marketplace, Margin Trading, Lending, Partner Integrations

Have any significant milestones within the roadmap been reached?

Currently, the roadmap has progressed to a state where users are able to conduct trades across platforms in a decentralized way. 

Tokenomics

Coin Use-Case

What is/are the intended use(s) of the project coin within the project?

Holding ORN will bring a range of benefits, plus additional functionality that will add further value to users including:

  • Discounted trading
  • Advanced features
  • Protocol access
  • Staking returns

Orion Protocol has built eighteen revenue streams and counting, with the ORN token at its core, generating revenue from day one.

Transaction Validation

How is consensus determined?

Governing the protocol is the proprietary staking mechanism, Delegated Proof of Broker. This system fulfills every function on the protocol including order execution, order clearing, choosing a broker and everything in between via a decentralized brokerage.

Designed using advantages from proof-of-stake, DPoB consists of two core components: Brokers and Non-Broker Stakers.

  1. Brokers and Non-Broker Stakers are able to earn additional transaction fees by staking ORN – with chances increasing along with the size of their stake.
  2. Brokers with exchange accounts run Orion Broker Software, automatically executing trades routed from the liquidity aggregator.
  3. Brokers are chosen to execute trades based on how much ORN they stake.
  4. The more ORN staked, the higher the chances of being chosen.

Brokers can grow their stake through Non-Broker Stakers. These are community members that stake ORN to ‘vote’ for brokers to execute trades, incentivized by the dynamic revenue share offered by Brokers. Each vote increases the Broker’s chance of being chosen. 

Rather than minting new tokens for rewards, staking payments are generated via Orion’s revenue streams – preserving the integrity of the underlying ORN token over time.

Coin Origination

When was the project’s coin launched?

The ORN token was made available in 2020. 

Initial Coin Offering (ICO)

Was there an Initial Coin Offering (ICO)?

A traditional ICO was not conducted.

Orion Protocol is the first project to implement a Dynamic Coin Offering (DYCO), a new token sale framework in which utility tokens are USD-backed for up to 16 months after the TGE and participants are entitled to an 80% refund, offering protection and safety previously unseen in crypto.

What was the initial coin distribution?

The total 100,000,000 coins were distributed during the DYCO.

  • 45% Token sales
  • 24% Orion Foundation
  • 13% Marketing
  • 12% Team
  • 6% Advisors/Partners

Coin Supply

How do coins come into public circulation?

ORN is supply-capped, meaning new tokens are never minted beyond the Token Generation Event, while efforts are in place to strategically and frequently remove tokens from circulating supply.

New ORN is introduced to the public market through the sale of vested coin unlocks and staking-based rewards.

What is the yearly inflation rate of the coin?

Private sale participants, foundation, advisors, etc. have ORN tokens that are currently vested and not yet available in the circulating supply. The total vested supply of ORN will be made available by the conclusion of 2023.

Furthermore, staking rewards fluctuate depending on trading volume on the platform and other revenue streams.

Are most of the coins in circulation (>50%)?

The total supply is 100 million ORN. There are over 34 million ORN in circulation (34%), with an additional 7.3 million (7.3%) removed from the supply permanently.

Community

Social

Which industry or community does the cryptocurrency project aim to serve?

In the first year, Orion is expected to generate most of its revenue from brokerage activities, focusing on three target groups: crypto funds, retail traders and professional traders.

Once the platform gains popularity, revenue streams are expected to diversify with projects who seek to increase their liquidity or want to create their own DEX, companies who want to offer their token to clients and developers of trading applications.

What is the size of the official project social media pages (Reddit, Telegram, Twitter, YouTube)?

As of January 17, 2022, Orion Protocol’s community is active on YouTube, Telegram, Twitter, LinkedIn, and Reddit.

  • The Orion Protocol’s YouTube channel has 2.46K subscribers.
  • The LinkedIn page is followed by 22 employees.
  • The official Telegram group has ~16k members.
  • The Reddit page has 3.8k members since June 2019.

Also, the project’s twitter page has 94.5K followers and has been active since March 2018.

Are the social media posts and reactions related to the project recent and do they appear organic? 

The posts related to the project are recent and the community appears to be organic.

Are community members generating their own independent content to promote the project (YouTube, TikTok, Etc.)?

There appears to be independent YouTube creators generating content for the project as well as various podcast series.

Partnerships and Investors

Does the project have any notable partnerships?

Metric not included in the current Dark Paper for the project. Check back for an updated version.

Does the project have any notable investors?

Metric not included in the current Dark Paper for the project. Check back for an updated version.

Governance

What is the project’s governance process (if any)?

ORN holders can now govern the number of rewards that each ORN pool receives. The more votes a pool obtains, the more rewards that pool will distribute to its LPs from the overall farming reward allocation. Voters will also earn ORN from Governance Rewards.

Orion Protocol announced the beginning of its gradual transition towards becoming a DAO, a decentralized autonomous organization. ORN holders will increasingly govern Orion Protocol, deciding on and creating new governance proposals that determine the next steps and future of Orion via real-time voting by stakers.

Competitors

What are the most prominent directly competing projects?

1inch (1INCH) appears to be the largest directly competing project, with a market capitalization of ~$721M on January 24, 2022. In comparison, Orion Protocol (ORN) had a market capitalization of ~$116M.

The 1inch Network unites decentralized protocols whose synergy enables the most lucrative, fastest and protected operations in the DeFi space.

1inch Aggregation Protocol – A protocol that facilitates cost-efficient and secure atomic transactions by utilizing a wide range of protocols and performing argument validation and execution verification.

experience, feedback, survey-3239623.jpg

DWR Score

Based on the research conducted, the project appears to be fundamentally strong. 

View the full Orion Protocol (ORN) fundamental analysis package for the scoring criteria.

Fundamental Analysis Package

Get the full Orion Protocol (ORN) Fundamental Analysis Package #001

The package contains the following original documents in high definition:

  • The Dark Paper (.pdf) – project fundamental analysis and research
  • Scoring Rubric (.xlsx) – project scoring and criteria
  • QC checklist (.xlsx) – peer-review criteria and scoring

Below are sample images of the Orion Protocol (ORN) Dark Paper.

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