What is Orbit Protocol
Overview
Orbit Protocol is a decentralized finance (DeFi) platform built on the Stellar network. It issues fully‑collateralized, multi‑currency stablecoins through a secure Collateralized Debt Position (CDP) system. By locking Stellar Lumens (XLM) and Etherfuse Bonds as collateral, users mint stablecoins pegged to real‑world fiat currencies, gaining predictable purchasing power without exiting the crypto ecosystem.
Purpose
Orbit unlocks five principal use‑cases:
Borderless Payments – Stablecoins settle in seconds on Stellar, letting individuals and businesses send money internationally for a fraction of a cent while avoiding crypto‑market volatility.
Inflation Shield – In regions with volatile local currencies, users can lock crypto once and draw a USD‑, EUR‑, or MXN‑denominated stablecoin. Even if the local currency depreciates, they repay the same fiat value, preserving purchasing power.
Composable Liquidity for Builders – oUSD, oEUR, and other Orbit stablecoins act as drop‑in collateral or settlement assets for perps, lending pools, payroll rails, and other Soroban dApps. This shared liquidity layer accelerates DeFi innovation on Stellar.
FX Risk Management for Businesses – Exporters, freelancers, and Web3 treasuries can hold earnings in oEUR, oMXN, or oJPY to hedge receivables and payables without relying on costly banking rails or OTC desks.
Local Commerce & Payroll – Merchants and DAOs can price goods, services, and salaries in local‑currency stablecoins so users avoid USD conversion fees yet retain price stability.
Together, these goals advance financial inclusion by lowering remittance costs, protecting savings, mitigating currency risk, and giving developers the tools to build next‑generation financial products.
Architecture & Flow
Deposit Collateral – Users transfer XLM into a Blend lending pool; the smart contract records the collateral value and required safety margin.
Mint Stablecoins – The Orbit Treasury mints oUSD, oEUR, oMXN (or other supported tokens) up to the user’s borrowing limit.
Utilise – Stablecoins can be swapped on Stellar AMMs, deposited into yield dApps, spent via on‑chain FX paths, or off‑ramped through partners.
Repay & Redeem – Users repay principal plus accrued interest to unlock their XLM at any time.
Pegkeeper Safeguards – If collateral falls below the liquidation threshold, the Pegkeeper liquidates the vault and arbitrages price discrepancies; any surplus flows to the designated fee‑taker.
Key Features
Collateralised Borrowing – Over‑collateralisation and on‑chain price feeds guard against market swings.
Pegkeeper Automation – Smart‑contract liquidations and arbitrage maintain each stablecoin’s 1:1 peg without manual intervention.
Low‑Cost FX Routing – Stellar’s pathfinding finds best‑rate swaps, reducing friction for cross‑border transfers.
Composability – Orbit stablecoins integrate with any Soroban dApp; developers can plug into the CDP system or build layered products such as perp exchanges, savings vaults, or on‑chain payroll.
Benefits
Predictable Value – Shield holdings from crypto volatility.
Capital Efficiency – Access liquidity without selling long‑term XLM positions.
Global Inclusion – Supply a reliable medium of exchange in economies affected by inflation or capital controls.
Open & Auditable – All contracts are open‑source and verifiable on the Stellar blockchain.
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