Is Orion Protocol the next big thing?
By: Julian Hudolin
Tags: Trading, Cryptocurrency, Cryptocurrency News, Orion Protocol, Exchange

This article will superficially discuss the problems Orion Protocol solves and show why it could be bigger than many think. I compare it to already existing companies and take a look at data.

What is Orion Protocol?

Orion Protocol is a project created by fintech experts under the lead of the CEO Aleksey Koloskov. The Project aims to solve the fragmentation of the crypto space and connect it to the real world.

What problems does the Project actually solve?

A big problem is the lack of liquidity, that’s caused by the isolated orderbooks all the current exchanges have. Therefore Orion does not create a new exchange — it aggregates orderbooks and executes trades on all the exchanges they have brokers on (exchanges themselves can also be brokers). So you can access the entire market with one UI, by just connecting your wallet to the terminal.

Another big problem that’s solved by Orion in cooperation with the Elrond-team* is the scalability problem of non-custodial exchange-systems due to high fees on Ethereum. Elrond enables Orion to charge a fee of competetive 0.1–0.3% including the network fees*² — so close to CEX fees costs. (Uniswap for example can cost several percent on bad days for small trades due to the high fees on Ethereum)

They’ll integrate most of their partners, so the most important features of the entire crypto market (and possibly traditional finance) will be accessible on one platform — without the need of creating an account or having to complete KYC. Lending, margin trading, derivates, a fiat ramp, a bond-market and dapps will be available for, with and on the Orion Terminal.

Orion Protocol Partners

*Elrond = a highly scalable blockchain

*² as soon as they run on Elrond (current version on ETH)

Okay cool, but why should it be the next big thing tho?

Well! We just have to compare it to existing projects/companies in existing sectors and look at numbers. I’ll just name a few and point out the most important similarity:

Amazon

Uber

Airbnb

So what does Orion have in common with those?

Amazon offers a marketplace for reseller

Uber offers a marketplace for taxi drivers

Airbnb offers a marketplace for tourism rentals

Orion offers a marketplace for the entire financial system

So Orion offers a marketplace, just like many others do as well but …

… why is it that big? (few facts about the financial market)

Forex and OTC derivates* — 6.6T$ Volume a day

Volume a day Stocks*² — 32T$ Volume in Q1 2020–that’s~ 266B$ a day

a day Crypto*³ — 160B$ a day

Conclusion

Capturing even a small percentage of the mentioned volumes would be big for a project that is a one-way stop to the entire market, has the deepest liquidity possible and collects fees on the volume. As stocks are already being tokenized and CBDCs emerging — we will see money of the first 2 points flowing in. Also the DEFI solutions that will be available on the terminal will generate massive revenues for Orion and it’s holders.

In conclusion Orion Protocols concept is set up for success. Delivering on Elrond and PR will be the most important things to watch.

But why should I hold the Token(ORN) you ask? (BLOGLINK)

The token will reflect the worth of the company (similar to stocks — but no real ownership of the company)

The token will reflect the need for the utility it offers — (Brokers need to hold it as collateral for example)

Get dividend-like income by staking and getting a share of Orion Protocols revenue

Pay less fees when using ORN to pay fees

Get advanced features of the terminal

Check out the Whitepaper for details: https://www.orionprotocol.io/hubfs/whitepaper.pdf

more Orion Links:

Website

Twitter

Telegram

Sources:

* https://www.bis.org/statistics/rpfx19_fx.htm

*² https://www.statista.com/statistics/242745/volume-of-global-equity-trading/#:~:text=The%20total%20value%20of%20global,in%20the%20same%20time%20period.

*³ (Dec.20.2021 0:55am CET) https://coinmarketcap.com/charts/