The Launch of Orbit Farm on ETH!
Hello, Orbit Chain community!
We are happy to inform you of the launch of Orbit Farm on ETH.
Orbit Farm is a function designed to maximize utility by linking the assets tied to Layer 1 with the decentralized financial protocol that exists on the chain. All of the value created in this utility maximization phase will be used to source the buyback & burn program, leading to a rise in the value and scarcity of ORC tokens.
Our team started researching the Orbit Farm in earnest in December 2021, and as the first result, we successfully implemented and launched the Orbit Farm on the BNB chain.
At that time, the goal of BNB Orbit Farm was a pre-work for application in Ethereum Layer 1, where about $600M of assets are being bridged (converted), and it proved its stability by maintaining a utilization rate of around 50%. Orbit Farm, which has contributed to a new aspect of deflationary operation and a rise in ORC token value, is now moving beyond BNB to Ethereum, which has the largest market size. The Orbit Farm goes along with the Orbit Chain’s slogan, Connecting the Unconnected.
The Orbit Farm on ETH was implemented in the form that it works by depositing it in Compound, which is Ethereum’s representative DeFi protocol, and built a money market (Security Audit by Theori).
Layer 1 is a chain that has mega liquidity and can send assets to other chains through an Orbit Vault within that chain. Representative Layer 1 is Ethereum, BNB, Ripple, etc. Layer 1 assets moved to the Layer 2 chain are used as a source of funding for Orbit Farm, which contributes to strengthening the deflation model, one of the Orbit Chain token economies.
Layer 2 is a chain that receives liquidity that exists in other chains through Orbit Minter, such as Klaytn, Polygon, and HECO. Orbit Chain uses some of its resources in the name of ‘decentralized liquidity support’ to expand the usability of assets bridged (converted) to Layer 2. To this end, we cooperate with various DeFi protocols and ultimately aim to enlarge the Orbit Chain ecosystem. Since the continuous activation of assets bridged (converted) to Layer 2 means an increase in taxes generated by the Orbit Bridge, the scarcity of ORC is bound to increase over time.
As mentioned earlier, Orbit Farm creates rewards by linking assets tied to Layer 1 (= Vault) on the Origin Chian to decentralized finance.
Currently, TVL on Layer 1 of Orbit Bridge is about $750 million, of which the amount of assets locked up in Ethereum Layer 1 is about 80%, $600 million. Among the 43 Ethereum-based assets listed on the Orbit Bridge, DAI, ETH, USDC, USDT, and WBTC will be utilized in Compound.
Orbit Bridge is a decentralized liquidity bridge protocol that operates on the Orbit Chain and serves to graft the value generated by users’ actual use into the overall economic system of the blockchain. The tax generated from asset movement (token conversion) is the first source of deflation, and the revenue generated by Orbit Farm is the second source of deflation.
Orbit Farm will be applied on all Layer 1 supported by Orbit Bridge, not just BNB and ETH. Mounting priority varies depending on the degree of activation of the corresponding blockchain and DeFi. According to a Bank of America (BofA) research report, global DeFi deposits reached $260 billion by 2021 late last year. This figure is a 12-fold increase from $21 billion at the end of 2020. Still, the overall market capitalization of the DeFi market is less than 1% of global financial institutions. It means that the DeFi market is still in its infancy, and, among crypto experts, the dominant view is that DeFi will grow as an axis of global finance.
As a result, the DeFi market has a decisive influence on the growth of Orbit Farm. Based on the current DeFi market size, when the Orbit Farm is applied on all Layer 1, the expected TVL is at least $1B, and if the average return keeps at 5%, about $50M of deflation will be underway per year. The value and scarcity of ORC will also increase as Orbit Farm approaches completeness, so the expansion of Orbit Chain’s virtuous cycle structure following the launch of ETH Orbit Farm is expected to get more momentum. The Orbit Chain team wants to connect the unconnected more actively and efficiently to accomplish these goals.
＃ORC Burn Dashboard Release
The ORC Burn dashboard is now available on the Orbit Chain Governance & Voting page.
For more details of the update, please check the contents below.
■ Details of the update
- Tax: You can check the taxes generated on Orbit Bridge by each blockchain (total/30d/7d/1d)
- Farm: You can check the earnings generated on Orbit Farm by each blockchain/token (total/30d/7d)
- Buyback & Burn: You can check the assets used for buyback & burn (total burned, accumulated funds, previous burns)
Our voyage has only just begun. We will continue to expand our ecosystem (Orbit Chain, Governance, Bridge, etc.) and upgrade its services. We will do our best so that Orbit Chain can stand tall as a global representative blockchain and grow together with all stakeholders such as platforms, DeFi services, foundations, exchanges, and holders.
We ask for your interest and participation in Orbit Chain’s bold stride to connect the unconnected in the blockchain world.
Thank you.
[Official sites & communities]
- Orbit Chain : https://orbitchain.io
- Orbit Bridge: https://bridge.orbitchain.io
- Orbit Chain Voting & Governance : https://voting.orbitchain.io
- Orbit Chain Explorer : https://explorer.orbitchain.io
- Orbit Chain Telegram: https://t.me/Orbit_Chain
- Orbit Chain Global Telegram: https://t.me/OrbitChainGlobal
- Orbit Chain Twitter: https://twitter.com/Orbit_Chain
- KLAYswap: https://klayswap.com
- KLAYstation: https://klaystation.io
- Belt Finance: https://belt.fi
- Meshswap: https://meshswap.fi
