Ecosystem Participants

The Orbit Protocol ecosystem includes a variety of participants, each contributing to the platform's functionality and stability through specific roles. Below is a straightforward explanation of these roles.

DAO (Decentralized Autonomous Organization)

The DAO acts as the governing body of the Orbit Protocol, consisting of community members who vote on crucial decisions affecting interest rates, new stablecoins and other settings to be determined. This democratic approach ensures the protocol evolves in alignment with user needs and maintains robust security.

Treasury (Smart Contract)

The Treasury is a smart contract that plays a pivotal role in the financial mechanics of the Orbit Protocol. It mints stablecoins and lends them to the Blend lending pools. Initially, these coins are unbacked and only become fully backed when borrowers deposit their cryptocurrency as collateral. This mechanism enables the continuous creation and circulation of stablecoins within the ecosystem.

Borrowers

Borrowers are essential to the protocol's operation, providing the necessary collateral that backs the minted stablecoins. By doing this borrowers facilitate liquidity, therefore allowing the stablecoins to be functional and credible.

PegKeeper (Smart Contract)

The PegKeeper is a specialized smart contract designed to maintain the stability of the stablecoins.

Liquidators

Liquidators are critical in managing the risk on the platform. They ensure loans are properly collateralized and initiate liquidation if the collateral value falls below a safe threshold, thereby safeguarding the platform's financial health. They have the option to make use of the pegkeeper

Arbitrage Traders

Arbitrage traders help ensure pricing consistency across different trading platforms by taking advantage of price discrepancies. Their actions enhance market efficiency and contribute to maintaining fair and stable pricing within the Orbit ecosystem.

Backstop providers

Each Blend lending pool has a backstop module, which protects the lending pool from bad debt. If a user incurs bad debt because their positions aren't liquidated quickly enough, their bad debt is transferred to the backstop module, which pays it off by auctioning off its deposits.

Users can backstop pools by depositing into their backstop module, thus participating in insuring the lending pool.