The booming DeFi marketplace has attracted many players into the industry, both genuine and criminal-minded players. OrionSwap wants to create a platform that will discourage fraudsters and help make DeFi a legitimate marketplace. Entrenching reliability and transparency in the decentralized finance marketplace demand certain things to be in place.
According to a report by CipherTrace, DeFi rug pulls is responsible for almost half of the thefts in the crypto space in 2021. Such happenings reduce investor confidence and won'twon't help position DeFi as a good investment vehicle. Many new projects springing up in the market seek solutions to the huge problem facing the DeFi market. However, Orionaswap has come out to say it is leveraging a new business model for its DeFi platform.
The OrionSwap DeFi Platform
OrionSwap is one of the newest Automated Money Makers (AMMs) deployed on the Binance Smart Chain (BSC). According to its official Medium account, OrionSwap acknowledges that the current DeFi market is confusing and is riddled with misinformation and little information on how the marketplace works. This makes it difficult for new community members to easily explore the market and transact seamlessly.
In its quest to provide reliable information to the DeFi community and protect investors from scammers, OrionSwap DeFi platform has launched a new DeFi model. People are often asked to do their due diligence and conduct their research before investing in any project. However, no one bothers to ask how people can access the right information. To some extent, the wrong information can be worse than no information at all.
OrionSwap DeFi model
OrionSwap is adopting a three-pronged approach to tackling the problems it believes are hindering reliability, transparency, and legitimacy in decentralized finance.
Elimination of flashloans from its protocol
This is somewhat a controversial move by OrionSwap as many projects in the DeFi market believe flashloans are necessary. Flashloans are designed to allow developers to borrow easily and instantly without the use of any collateral. However, the borrower must pay back the loan within the same transaction block. If he fails to pay back, the entire transactions on the system will be reversed to undo all actions executed until that point. Hackers leverage these flashloans in combination with other forms of gimmickry to take advantage of the system.
Some people believe that these flashloans are essential for mechanisms like liquidations and arbitrage in the DeFi market. Although these mechanisms are useful in DeFi, OrionSwap believes the negative impact of flashloans far outweighs the positives. Therefore, until they find better mechanisms for executing arbitrages and liquidations, flashloans are not allowed on OrionSwap. If flashloan attacks are not removed completely, it will be impossible for investors to see DeFi as a legitimate marketplace.
Building a self-sustaining community
OrionSwap believes that one of the missing and essential tools for an improved DeFi marketplace is a self-sustaining community. For this reason, OrionSwap is teaching its community members to have control. The project is built for the community; hence they didn'tdidn't lock any liquidity upon launch of the Starfield token. Instead, its community was busy farming Starfield and has organically grown the liquidity of Starfield-BnB and Starfield-Busd to $5500. The implication is that as more people buy the Starfield token, community members will benefit from the trades.
Educating its community about DeFi
One of the ways to protect investors from scams is to ensure that people have access to the right information. OrionSwap is creating informative articles to help educate and inform the community. Most people lose a great deal of their money in scams before they can identify genuine projects. OrionSwap tries to inform people what to look out for in a DeFi project before investing.
Conclusion
OrionSwap'sOrionSwap's new DeFi model to tackle the shortcomings of the current DeFi marketplace will create awareness for more projects to seek ways to proffer solutions. The new model might not have all the solutions, but it is certainly the right step in the right direction for DeFi projects.
