Orion Money Litepaper Release

Building the Cross-Chain Stablecoin Bank

Table of Contents

  1. Introduction to Orion Money
  2. Orion Saver
  3. Product and Development Roadmap
  4. ORION Tokenomics
  5. ORION Token Distribution
  6. Private Farming, IDOs, and Airdrops
  7. Team and Partners

1. Executive Summary

Orion Money’s vision is to become a cross-chain stablecoin bank providing seamless and frictionless stablecoin saving, lending, and spending. Within the Orion Money stablecoin bank, we have three main products planned — Orion Saver, Orion Yield and Insurance, and Orion Pay.

Orion Money is capitalizing on a significant untapped opportunity in the stablecoin savings market. The majority of stablecoin savings solutions currently offer unappealing and unpredictable yields. Additionally, they are often siloed within their individual blockchains. Interoperability will be at the heart of Orion Money, and it will bridge these gaps by providing solutions that other stablecoin savings protocols have yet to offer.

We are extremely excited to introduce our first product, Orion Saver. Orion Saver is a cross-chain savings dApp that will provide one of the highest and most stable yields for your stablecoins, regardless of which blockchain you are on.

Our next product, Orion Yield and Insurance, will provide additional high-yield and insured products, bringing even more value to Orion stakers and the Orion Money depositors.

As a cross-chain stablecoin bank, Orion Money will also create avenues and gateways for users to freely spend their stablecoins. This would be made possible through Orion Pay, a cross-chain payments dApp that will integrate with fiat on-off ramp solutions and allow several avenues for users to spend their stablecoins.

With its suite of dApps, Orion Money will offer users a convenient and frictionless way to earn high yields on their stablecoin deposits and spend them with ease — all without the hassle of moving assets across chains.

2. Introduction to Orion Money

Compound and Aave pioneering decentralized money markets within Ethereum

Anchor enabling attractive and stable yields on savings

Anchor has essentially enabled the “yield transfer” from borrowers to depositors through passing on the yields generated from borrowers’ overcollateralized bAssets. The yields that a stablecoin depositor can expect are hence a function of borrowers’ on-chain income.

Anchor has created a sophisticated yield generating mechanism yet straightforward enough to understand for the main street investor. Anchor’s ultimate vision is to become the gold standard for passive income on the blockchain.

Orion Money enabling cross-chain access to Anchor’s attractive and stable yields

  1. There is a huge stablecoin market that lacks direct access to Anchor’s money market protocol. As of May 2021, the stablecoin market cap reached a key milestone of $100 Billion. However, >85% of the stablecoin market cap is dominated by the top 3 Ethereum-based stablecoins (USDT, USDC, DAI). The Terra stablecoin (UST), while fast-growing, currently makes up ~2% of the entire stablecoin market. In addition, the complexity of understanding Terra’s ecosystem and the costs of swapping, such as gas fees, swap spreads, and slippages have deterred many people from switching their stablecoins to Terra and Anchor. Thus, a gateway that bridges these stablecoins into Anchor immediately opens the protocol up to a much wider user base with a greater volume of liquidity.
Cumulative stablecoin market capitalization | Source: Blockchaincenter.net

2. Stablecoin deposit yields on the Ethereum blockchain are highly volatile, and on average, not as attractive as the Anchor Rate. The 30 days average crypto lending rates across decentralized money market protocols and crypto exchanges have been sitting at a range of 8–12% APY. As mentioned above, we have further observed the average crypto lending rates dipping way below this range during periods of massive market drawdowns. The Anchor savings protocol overcomes these limitations and offers a very clear value proposition over its competitors.

Orion Saver, which we soft-launched last month, is the first product of Orion Money’s cross-chain stablecoin bank. Orion Saver will directly address the issues raised above by providing frictionless access to Anchor’s attractive and stable deposit yields across multiple blockchains.

3. Orion Saver

Overview and key value proposition

Orion Saver will initially focus on the Ethereum network. Users can deposit their Ethereum stablecoins such as USDT, USDC, BUSD, and DAI and receive 15–25% APY depending on the amount of ORION tokens staked.

Target APY levels for Orion Saver

  • Users can increase the APY on their stablecoin deposits up to 20% depending on how much they have staked ORION tokens in the Orion Saver dApp.
  • Users who choose to receive their interest in the ORION tokens will also be able to increase their stablecoin deposit APY up to a maximum of 25%.

Target APY levels on Orion Saver can be found in the table below:

* APY will be lower at the initial Orion Saver launch — the APY numbers here are the target APY that we aim to achieve some time after the launch

Target APY for Orion Saver across different tiers

How Orion Saver works

Orion Saver users deposit their Ethereum stablecoins (USDT, USDC, BUSD, DAI) in the Orion Saver Web App to immediately start earning high yields on their deposits.

Behind the scenes, Orion Saver’s smart contract will place their deposit into EthAnchor. EthAnchor will exchange the Ethereum stablecoins into Wrapped UST and bridge the deposits from the Ethereum blockchain into the Terra blockchain before depositing the UST into the Anchor Protocol.

As illustrated in the image below, the Alpha version of Orion Saver will be leveraging on the EthAnchor gateway and exchange Ethereum stablecoins to Wrapped UST using Curve. Users should be mindful of the risks of Ethereum gas fees and potential exchange rate slippages on Curve. Moving forward, Orion Money aims to improve the exchange infrastructure and optimize for higher efficiency to reduce fees for users of Orion Saver.

We plan to reduce swap fees in the near future as part of our roadmap through batching small deposits. Down the road, we will also be setting up our own liquidity pools (potentially on the Terra side) for Wrapped USDT, USDC, BUSD, and DAI to UST. We are currently in the process of exploring the implementation of liquidity pools and are considering establishing Curve-style liquidity pools for stablecoins on Terra in partnership with the Terraswap team.

The process of an Orion Saver user depositing stablecoins into Orion Saver dApp — via EthAnchor in V1 or via cross-chain bridge/wormhole and exchange pools in V2

2. Managing Ethereum stablecoin withdrawals

Orion Saver users can send a withdrawal request from the Orion Saver WebApp to withdraw their deposited stablecoins. The withdrawal and exchange of UST into the user’s preferred stablecoin will be done via EthAnchor. There will be swap fees associated with the withdrawal process, which will be covered jointly by Orion Money and the user.

Similar to deposits, the Orion Money team aims to optimize the withdrawal process through exchange pools to minimize fees and increase APY on deposits.

The process of an Orion saver user withdrawing his/her deposited stablecoins and interest earned — via EthAnchor in V1 or via cross-chain bridge/wormhole and exchange pools in V2

The relationship between Orion Money and EthAnchor

Considering the importance of EthAnchor to Orion Money and the overall Terra ecosystem, Orion Money will take over the development and maintenance of EthAnchor from the Anchor team. One of the core objectives of Orion Money is to leverage EthAnchor for Orion Saver and integrate it across major Ethereum-based money markets and platforms.

We believe that developing interoperability at our core while building out the products in our ecosystem roadmap will provide us with an extremely strong competitive advantage that will benefit both the Terra and Orion Money communities. To compensate Orion Money for the resources invested into developing, maintaining, and promoting EthAnchor, a minor portion of EthAnchor’s yield will be routed to ORION token Stakers in the form of staking rewards. This is part of the ORION token value accrual, which will be covered in greater depth within the Tokenomics section.

4. Product Development Roadmap

As part of Orion Money’s ecosystem plans, we plan to build out additional capabilities outside of savings. You may find our focused priorities and projected timeline below:

Core product development objectives and projected timelines

  1. Orion Saver Terra and Orion Saver BSC: Launch Orion Saver on Polygon, Terra, and BSC. Additionally, we aim to establish Curve-style liquidity pools for stablecoins on Terra in partnership with the Terraswap team.
    [Projected Date: Q4, 2021]*
  2. Orion Yield & Insurance: Orion Money will provide high-yield savings to its users, and use the liquidity to invest in diversified strategies. Orion Money Stakers will receive a share of extra yield generated in exchange for underwriting the insurance for depositors.
    [Projected Date: Q1-Q2, 2022]*
  3. Orion Pay: Orion Money aims to create an ecosystem where stablecoin depositors can easily spend their earned interest. We are exploring implementation options such as fiat on-off ramp solutions, crypto-to-fiat direct payments, crypto-to-fiat subscription-based services, and crypto debit cards. These may be developed organically or in collaboration with other protocols, depending on our go-to-market strategy.
    [Projected Date: Q2-Q3, 2022]*

*Note: Dates are subject to change depending on future changes in development priorities.

Additional development objectives

  • Tokenized Derivatives: Orion Money aims to develop tokenized versions of stablecoin deposits (i.e. oUSDT, oUSDC, oBUSD, etc.) on Orion Saver, and further develop liquidity options for them to be traded on and off Orion Money.
  • Orion Loans: Orion Money aims to implement loans to complement the suite of dApps within the ecosystem, with a potential roadmap for self-paying loans and no-liquidation loans.
  • Protocol-specific Optimizers: Orion Money aims to develop optimizers for specific protocols within Terra, where applicable and feasible (E.g. Anchor Borrow + Earn optimizers, Luna staking optimizers, Liquidation protection mechanisms, etc.).

5. ORION Tokenomics

The ORION token will be minted on Ethereum and a portion of it will be bridged to Terra, Polygon, BSC (and other protocols as needed) to enable Orion Money dApps to operate across these networks.

Orion Money Stakeholders

  1. Orion Money dApps Users: Users across the multitude of dApps built across Orion Money (E.g., stablecoin depositors on Orion Saver dApp).
  2. Investors & Speculators: Users who purchased ORION tokens through buying on the open market, or accumulated through token farming or airdrops.
  3. ORION Stakers: Users who stake ORION tokens to receive staking rewards and participate in the Orion Money governance. Further explanations regarding the benefits of ORION staking can be found in the ORION token staking section below.

The Orion Money ecosystem has been uniquely designed in a way to incentivize Orion Money’s users and investors to stake their ORION tokens so as to maximize their benefits. Stablecoin depositors will get boosted yields depending on the amount of ORION tokens staked, while investors or speculators will be incentivized to stake their ORION tokens to maximize the value of their tokens.

This methodology will kick-start the Orion Money ecosystem and its underlying protocols while also serving as a growth lever for user retention and adoption. The staking incentivization mechanism will further ensure that a sizable proportion of the ORION token supply is being staked. As the Orion Money ecosystem grows, it increases the value that users will receive from the ecosystem itself.

ORION token value accrual

  1. Orion Saver’s revenue and buyback: The majority of Orion Saver’s initial revenue will come from the yield differential between what Orion Money receives from Anchor Protocol and what Orion Money pays to its users. The full net revenue, after accounting for operating expenses, will be used to buy ORION tokens on the open market which would subsequently be added into the Staking Fund (see ORION token distribution chart below on Staking Fund).
  2. Orion Saver Tiered APY Staking Incentive: Orion Saver users will have to buy ORION tokens in order to increase the APY on their stablecoin deposits. The more users come to Orion Saver and deposit their stablecoins, the more ORION tokens will be bought to achieve higher APY. Consequently, the ORION token value will grow proportionally to Orion Saver’s TVL growth.
  3. Conversion of stablecoin yields to ORION: When an Orion Saver user chooses to receive his/her stablecoin deposit yields in ORION tokens — Orion Money will apply the user’s yield to purchase ORION tokens on the open market which would subsequently be added into the Staking Fund and paid as yield to the user.
  4. Orion Yield and Insurance Revenue: Revenue generated from the upcoming Orion Yield and Insurance product will be used to buy Orion tokens on the open market which would subsequently be added into the Staking Fund and paid to ORION Stakers.
  5. Revenue from future Orion Money dApps: As the Orion Money ecosystem grows, the revenue streams coming from future dApps in our roadmap will serve as an additional value accrual mechanism for the ORION token. Revenue earned across dApps will be used to buy ORION tokens on the open market which would be added into the Staking Fund and distributed to ORION Stakers. This aligns the incentives of token holders and the Orion Money team with the success of the Orion Money ecosystem and dApps.
  6. Orion Validator revenue and buyback: Once the Orion Validator on Terra starts charging a 5% validator commission, the net commission earned after accounting for the associated costs of running the validator, will be used to buy ORION tokens on the open market which would subsequently be added into the Staking Fund and paid to ORION Stakers.

ORION token staking

ORION Stakers will receive the following benefits:

  1. Governance: ORION Stakers can participate in governance activities such as the creation of proposals and voting. Proposals may include topics such as changing APY interest and tiers, community fund spending, marketing fund spending, and funding for new Orion Money dApps.
  2. Incremental Staking Yields: Staking APY for the ORION token will be calculated based on the staking duration. The longer the staking duration, the higher the staking APY would be for the ORION Staker. However, upon an un-staking event (regardless of amount), the cumulative staking APY will reset to the base rate.
  3. Preferential benefits on Orion Money dApps: ORION Stakers will get preferential terms within all Orion dApps — such as Orion Saver, Orion Yield and Insurance, Orion Pay, and future dApps.
  4. Revenue share from Orion Money dApps: ORION token Stakers will be receiving a share of Orion Money dApps’ revenue. The revenue earned on dApps will be used to purchase ORION tokens from the open market which are then distributed as staking rewards to ORION Stakers in the form of xORION tokens.
  5. Revenue share from Orion Validator Commission: As mentioned in the value accrual mechanism above, the net commission earned after accounting for associated costs of running the validator, will be used to buy ORION tokens on the open market which would subsequently be added into the Staking Fund.

Orion Money Community and Governance

6. ORION Token Distribution

$ORION token distribution allocations
ORION Token Distribution — The exact percentages may be slightly updated in the process of implementation
$ORION token distribution schedule

7. Private Farming, IDOs, and Airdrops

The main goals for these events are:

  1. Awareness: To raise awareness about the Orion Money project on the Ethereum blockchain;
  2. Conversion: To convert farming participants into Orion Saver long-term users;
  3. Liquidity: To jumpstart Orion Saver's initial TVL

1. Private Farming Event

  • Timeline: ETA August 2021
  • Audience: Selected community investors from the Terra/Ethereum community.
  • Price: $0.035 per ORION token
  • Stablecoin deposit amount: Deposit amount between $50,000 and $1,000,000; farming duration— 3 to 6 months
  • Stablecoin yield — 15% APY will be used to farm ORION tokens. After completion stablecoins owners will continue to receive 15%-20% APY in their stablecoin
  • Stablecoins included: wUST, USDT, USDC, DAI, BUSD
  • Vesting: 15% vested monthly from the 3rd month of TGE (10 months total vesting period)

Drop a line to contact@orion.money if you are interested in participating in Orion Money Private Farming.

2. IDO

  • Timeline: ETA September 2021

3. Airdrops

  • Timeline: ETA September 2021

Ethereum Airdrop

Airdrops on Ethereum will be used for an aggressive marketing campaign to bring CeFi and DeFi users in and convert them into Orion Saver long-term happy users. Airdrops will be distributed via a farming approach similar to Private farming but for a much larger audience with a focus on CeFi and DeFi Ethereum users. (Details TBD)

Terra Airdrops

Airdrops on Terra will be distributed as airdrops for:

  1. Luna Stakers: A portion of genesis airdrop will be distributed to all Luna Stakers proportionally to their Luna staked.
  2. Orion Validator Delegators: A separate portion of genesis airdrop will be allocated to all delegators who staked their luna with the Orion validator. Additionally, delegators who continue to stake their Luna with the Orion validator after the 5% commission is switched on, will be receiving monthly airdrops for a period of 12 months. Orion validator commission will be routed back to ORION Stakers in the staking rewards, as explained in the ORION value accrual section.

To help decentralize ORION tokens ownership and Orion validator stake — there will be a cap on Terra airdrops for delegations over 500,000 Lunas per wallet. The ETA for the initial snapshot for Terra airdrops will be between the Private Farming event start and ORION TGE.

We will publish more detailed information closer to the Airdrop date.

Seed, Private Farming, and IDOs proceeds distribution

The exact percentages may be slightly updated in the process of implementation

7. Team and Partners

Orion Money Core Contributor Team

  • Vol is a former developer who turned to the “dark” commercial side and has held commercial roles at Microsoft and Google. Vol has extensive startup experience, particularly in the areas of business development, sales, marketing, and operations.

Kos Chernysh (Linkedin) — Technology and DevOps

  • Kos is a developer and DevOps manager and has extensive startup experience in product management, software development, and scaling engineering teams.
  • Vol and Kos previously founded together an eCommerce analytics startup Profitero and grew it into a 300-employees company, with >$20M ARR, and over 150 large customers with brand names such as Amazon, Google, Coca-Cola, General Mills, Unilever, and P&G. They sold Profitero to a private equity firm in April 2020.

Sam I Am — Ecosystem and Community Development

  • Sam co-founded and ran a branding and design company within the hospitality industry. He is an investor in crypto since 2014 and was a very early investor in Terra. Sam has helped to establish the official Terra Telegram channel and has received strong support from the Terra community.

Developers and designer

  • Four developers with Solidity, Rust, backend, and frontend experience
  • One core designer in charge of graphics design and illustrations
  • The Orion Money team has a large network of software developers to scale the dev team as fast as required

Orion Money Partners:

Orion Money Advisors:

  • Matt Cantieri — GM of Anchor
  • Luke Saunders — CTO of Delphi Labs
  • José Maria Macedo — Partner at Delphi Digital

For more alpha and updates, join us at:
Twitter | Telegram | Orion Saver WebApp

Orion Money's vision is to become a cross-chain stablecoins bank - the best place in DeFi for stablecoin saving, lending, and spending. Check www.orion.money