Layer 3 protocol Orbs has announced the launch of Liquidity Hub V2, described as a significant upgrade to the infrastructure solution it introduced last year.
The latest iteration builds upon the success of its predecessor, operating as an L3-powered meta aggregator that lets DEXs pull liquidity from anywhere, delivering optimal pricing without manual liquidity sourcing. To date, Liquidity Hub has been integrated into nine protocols and blockchains since being launched in partnership with Polygon-based decentralized exchange (DEX) QuickSwap.
What’s New with Liquidity Hub 2.0?
Designed to address long-standing challenges in the multichain ecosystem, the original Liquidity Hub unified fragmented liquidity and optimized pricing mechanisms, establishing the DeFi industry’s first truly integrated liquidity framework. According to Orbs, V2 introduces a slew of further enhancements and sets new standards for onchain trading execution quality to rival centralized exchanges (CEXs).
Among other features, Liquidity Hub V2 enhances the trading experience through the implementation of dynamic fees, which are calculated in real-time as a percentage of achieved savings, independent of Dutch auction decay. This approach is said to ensure optimal cost efficiency for traders, even under negative slippage conditions.
Another notable advancement touted by Orbs is V2’s enhanced AMM Router Price Simulation, which continuously monitors AMM prices throughout the Dutch auction process. In effect, this feature guarantees that the Liquidity Hub consistently outperforms the prices of rival Automated Market Makers like Uniswap and Raydium, particularly during volatile market conditions, resulting in more efficient and reliable trading outcomes.
And then there’s V2’s LH Explorer tool, which provides an unprecedented level of visibility into transaction details. For the first time, traders can access comprehensive information about AMM simulated prices, Liquidity Hub prices, fees, gas costs, and savings, instilling greater confidence in the overall trading process.
In short, Liquidity Hub 2.0 is a beefed-up version of Orbs’ flagship offering, one designed to make onchain trading more efficient for everyone.
Empowering DEXs to Do More
Although traders are the primary beneficiaries of the raft of improvements brought about by Liquidity Hub V2, DEX operators will also benefit from enhanced competitiveness, potentially putting them in a better position to attract more traders.
Orbs’ Liquidity Hub upgrade is being implemented across all existing protocols where it’s integrated without service interruption, furnishing traders with improved liquidity prices and performance. Projects currently leveraging Liquidity Hub include hyper-liquid zkEVM solution Lumia and DEX aggregators Odos, OpenOcean, ParaSwap, and KyberSwap.
Of course, the infrastructure constitutes only one part of Orbs’ stack. The L3, which supports onchain trading characterized by advanced order types (futures, decentralized derivatives) and deep liquidity, has also developed sophisticated DeFi protocols like dTWAP, which allows DEX swaps to be broken down into multiple buys for better pricing.
