Elements

Orbit protocol consists of 3 main elements

Orbital

Orbital is an Omni liquidity pool that allows users to deposit a single token and earn fees from every trading pair of their deposited token. Trading fees are separate to liquidity providers and the protocol. The users will receive impermanent loss protection from the protocol accruing a treasury and arbitrage mechanism. Only tokens that do not have severely volatile markets will be listed on the Orbital first to prevent attack vectors. The fee rewards will be automatically compounded into the LP positions.

Orbital has no restrictions on the proportions of tokens in the liquidity pool, therefore it's a more flexible pool than other pools when it comes to the proportions of tokens in each pool. For example, a token in Orbit could have 50%, 22%, 15%, and 13% of four different tokens with different values and proportions without limitation, while a pool on Balancer or Curve 3Pool would need to have each token proportional equal, for example, exactly 33.33% of three different tokens in the pool.

Orbiter

In the Orbit protocol liquidity is provided through a pool by minting Nukleus for token pairing. Compared to a traditional single-sided liquidity pool, for example, Curve will automatically swap half of the deposited tokens into their pool pair token and pair the remaining half of the deposited tokens for liquidity. Unlike Orbit, users can deposit any token and receive the same token back with yield when they withdraw. There is no need to swap any token and the price discovery happens through the ratio of Nukleus between each token with no force exposure between pair tokens to earn yield.

Nukleus

The Nukleus is a virtual token within a smart contract that is used to determine the ratio of every trading pair on the Orbit platform. Nukleus is not transferable and tradable. The ratio between Nukleus and Token will be adjusted when users make a trade, deposit, or withdraw. This allows users to trade token A for token B without the need for tokens A and B to be paired together. Price discovery for each token pair is determined by the ratio of Nukleus tokens. Nukleus tokens are pegged 1:1 to native chain currency by arbitrage mechanism. There will be no price fluctuation because the token is not tradable. They are always minted and burned within the smart contract. Each token will have a different corresponding amount compared with Nukleus.