Orbital: Concentrated Liquidity for Multi-Stablecoin AMMs
Summary
The paper proposes Orbital, an automated market maker designed to extend concentrated liquidity from two-asset pools to pools with three or more stablecoins. It represents liquidity ranges as nested ticks around the point where all coins have equal value. Narrow ticks can concentrate capital near that normal trading point, while broader ticks cover larger price deviations. The design uses a spherical reserve invariant and describes how tick boundaries can be combined geometrically, enabling trades to be computed across pools with varying numbers of assets.
The paper also outlines trade processing: estimate a trade under the current interior and boundary tick states, detect whether a boundary is crossed, solve for the intersection, then update the tick state and continue. It argues that a depeg in one coin need not prevent the other coins from trading at fair prices. Orbital is presented as a design rather than a deployed and evaluated system; the excerpt supplies mathematical construction and mechanism details but no empirical capital-efficiency, gas-cost, or risk results.
Key ideas
- Orbital generalizes concentrated liquidity to pools containing three or more stablecoins using nested ticks around the equal-price point.
- Liquidity providers can choose narrow ranges for capital efficiency or wider ranges for coverage during price divergence.
- The spherical reserve invariant is intended to support fair trading among remaining assets if one stablecoin depegs.
- Trade computation checks for tick-boundary crossings, solves for the intersection, updates tick states, and continues the trade.
- The paper describes a proposed design but provides no empirical performance or risk evaluation in the excerpt.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.