Important Disclaimer: This article is meant for providing information and knowledge purposes only, none of this article is meant to be financial advice.
Stablecoin is a unique class of cryptocurrency and had gained quite a lot of traction, mainly due to an interesting ‘offering’ in the cryptocurrency world: price stability.
With the rapid growth and potential of the stablecoin world, Orion Money plans to provide a platform for a rather untapped opportunity, which is in the stablecoins savings market.
In this article, a few things will be discussed:
- What is Orion Money?
- ORION Tokenomics
- How does Orion Money work?
- How to Use Orion Money (In Browser)
In short, Orion Money is a cryptocurrency (stablecoins, to be exact) savings platform to provide users with a high yield on their stablecoins. Users can earn up to 20% APY (Annual Percentage Yield) on their favorite stablecoins.
Orion Money’s vision is to build a cross-chain stablecoins bank that provides users with three essential services, which include: saving, lending, and spending. Their overall product roadmap coincides with their vision, which includes three different products in the future — Orion Saver, Orion Yield and Insurance, and Orion Pay.
Orion Saver is the first product of Orion Money. This will be the main focus of this article as currently (as of 7 October 2021), it is the only available product in Orion Money.
Orion Saver is Orion Money’s native savings protocol, which allows users on other blockchains to access Anchor Protocol (built on Terra blockchain) without leaving their blockchain to utilize the attractive deposit yields.
Users can deposit their Ethereum stablecoins such as USDT, USDC, BUSD, and DAI and receive 13.5–20% APY depending on the amount of ORION tokens staked (details of the ORION token will be discussed later).
In their proposed product development roadmap, Orion Saver will be expanding to the Terra blockchain and Binance Smart Chain (BSC) in Q4 of 2021.
Orion Yield and Insurance (Not Yet Released)
Orion Yield and Insurance will be their next product in line(current projected date: First Half of 2022). High-yield savings will be provided to the users, and the liquidity will be invested in diversified strategies. Orion Money stakers will receive a share of extra yield generated in exchange for underwriting the insurance for depositors, bringing even more value to Orion stakers and the Orion Money depositors.
Orion Pay (Not Yet Released)
To become a real cross-chain stablecoin bank, a gateway for users to spend their stablecoins is essential. That is why Orion Money will be offering Orion Pay, which is a cross-chain payment dApp (Decentralized Application). This would allow a lot of flexibility to users as more avenues are available for users to use their stablecoins. The current projected date (as of 7 October 2021) of release is Q2 — Q3 of 2022.
Orion Money features a native platform token, which is ORION. ORION provides multiple functions for the Orion Money community and is designed for incentivizing Orion Money users to stake their ORION.
There are several benefits for ORION stakers. Firstly, the ORION token can be staked in Orion Money to boost the yields generated from Orion Saver. Besides, ORION stakers can participate in the governance of the platform. Activities such as token buyback programs and revenue share for stakers are also created to encourage and reward long-term ORION stakers.
There is a total supply of 1 billion ORION, with the planned distribution as shown in the picture below. At the time of writing (7 October 2021), Orion Money had already launched a private farming event and several IDOs (Initial Dex Offering) on Gate.io, Uniswap, and PancakeSwap.
Note: There are more exchanges that will be listing ORION soon.
The 20% APY: Anchor on Terra blockchain
You may ask: How does Orion Money even provide such a high 20% APY?
The answer is simple, we just need to look behind the scenes on what is happening, which is revolving around the Anchor Protocol on the Terra blockchain.
Anchor Protocol is a decentralized money market and savings protocol on the Terra blockchain, which provides a stable 20% APY for depositors that deposit their Terra stablecoin, UST. Anchor Protocol can sustain the stable 20% APY by stabilizing the deposit interest rate with block rewards accruing to assets used to borrow stablecoins.
Now, let’s move on to how Orion Money manages their stablecoins to transition between the Ethereum and Terra blockchain.
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Orion Saver: Deposits
Here is a great visual of the overall deposit process in Orion Money (source: Orion Money Lite Paper):
At first this diagram will look complicated, so let us go through each of the steps. As of the time of writing, the current flow is using the Orion Money V1 route shown in the diagram.
Generally, when users deposits their Ethereum-based stablecoins (USDT/USDC/DAI) into Orion Money, Orion Money will exchange these stablecoins into WrappedUST on decentralized exchanges such as Curve or Uniswap (for Orion Saver V1). Then, by utilizing EthAnchor, Orion Money can deposit their Ethereum based stablecoins into the Anchor Protocol to earn the 20% yield.
EthAnchor was developed by the Anchor team and was launched jointly with Orion Saver Alpha on June 11th, 2021. EthAnchor is a set of smart contracts designed so that Ethereum-based stablecoins can be used to be deposited in Anchor Protocol.
In plain words: This can be achieved by essentially ‘locking’ the deposited stablecoins via smart contract in the Ethereum blockchain, while minting (aka creating) UST with the same value on the Terra blockchain.
For Orion Saver V2, a cross-chain bridge or wormhole will be utilized to directly perform a cross-chain transfer to the Terra blockchain. Then, by using Terraswap (Terra’s liquidity pool exchange), UST will be swapped and deposited into Anchor Protocol.
Note: In the proposed development roadmap, Orion Saver V2 will establish a Curve-style liquidity pool for stablecoins on Terra (partnership with the Terraswap team).
Orion Saver: Withdrawals
For withdrawals, the overall process will be similar, just reversed. In Orion Saver V1, when users sends a withdrawal request to Orion Money, Orion Money will request a withdrawal from EthAnchor. EthAnchor will withdraw UST from Anchor Protocol, then via the smart contracts mentioned, the UST is burned and the stablecoins in Ethereum blockchain are ‘unlocked’. Finally, the stablecoins are sent to Orion Money. Orion Money will then return the stablecoins to the users. This is the overall process of the withdrawal.
For Orion Saver V2, the withdrawal process is much more straightforward. Orion Money can directly send a withdrawal request to Anchor Protocol (as the Orion Saver V2 proposed will be in the Terra ecosystem). Via Terraswap, the UST is swapped into the stablecoins then transferred back to Orion Money via a cross-chain bridge or wormhole.
- Visit the Orion Money dApp and if it's your first time, you will be introduced to the ‘Connect Wallet’ button.
2. Press the ‘Connect Wallet’ and choose your method to connect.
3. After you had connected your wallet to Orion Money, you will be greeted with the Orion Saver dashboard as shown below!
4. As you can see, the current supported stablecoins include Wrapped UST, DAI, Tether (USDT), USD Coin (USDC), FRAX, and Binance USD (BUSD). The ORION token is also shown in the dashboard.
5. In the top right corner of ‘My Deposits’, you can click either Deposit or Withdraw, depending on what you want to do. The UI below will be displayed and you can choose the stablecoin that you want to deposit/withdraw.
6. After choosing your stablecoin, you can now type in the amount of stablecoin that you want to deposit. Note that there is a minimum amount needed for depositing.
7. Then, you can press ‘Deposit’ and confirm your transaction. You may need to wait several minutes for the transaction to occur. A withdrawal request may require up to 20 minutes as different blockchains are involved.
Note: The amount that you’ve transferred to or receive may also be lower as there are a number of fees that reduce the total amount added to your balance. For how the fees are calculated and apply, you can refer to the link here: Orion Money — How It Works
8. Done! You can now see your Recent Transactions in the dashboard. Cheers!
9. Extra Note: There’s a ‘Get Insurance’ option on the top of the webpage. You can get your insurance coverage via InsurAce or Unslashed if you wish to. You can simply select the quantity and time frame for your own requirements, from as little as 0.22% per month to protect your assets (Quoted from AMA here).
In conclusion, Orion Money is a stablecoins savings platform that envisions to be a cross-chain stablecoins bank in the future. Currently, stablecoins are playing a huge role in the cryptocurrency world, and are the potentials are huge, and the same goes with Orion Money.
While Orion Money is essentially dependant on Anchor Protocol, it provides an accessible platform for people who are not familiar with the Terra blockchain. Overall, the growth of Orion Money is definitely interesting to watch, as there are more products that will be releasing in the future to establish an ecosystem.