Pockets are special-purpose smart contract accounts (or designated addresses) where capital is deployed to execute predefined strategies. Each Pocket functions as an isolated strategy container with its own permissions, operational logic, and lifecycle controls.
When an allocator or user initiates a strategy - for example, a yield-farming operation on Uniswap, a lending action on Compound, or a cross-chain arbitrage - the ORBT Money Market allocates 0xAssets (such as 0xUSD or other tokens) to a Pocket. The Pocket then autonomously executes the required transactions according to its programmed rules and permissions.
Permit Layer and Isolation
Each Pocket includes a permit layer, which restricts its behavior to pre-approved operations only. For instance, a Pocket may be permitted to interact solely with specific whitelisted protocols or to return funds exclusively to the Money Market upon completion. This architecture mitigates risk by ensuring Pockets cannot be exploited to drain funds or perform unauthorized actions.
Functionally, Pockets act as temporary, bounded vaults:
They hold only the capital necessary for their strategy.
They exist only for the duration of that strategy.
They return profits or remaining capital back to the Money Market or the user’s UPM position once execution completes.
This design minimizes exposure, since funds are never idle in a strategy contract, and maximizes security and capital efficiency.
Composability and Governance
Pockets are composable building blocks. A complex intent may involve multiple Pockets operating sequentially or in parallel - for example, one Pocket performing a token swap while another provides liquidity simultaneously.
All Pocket templates and their strategy logic must be approved by ORBT governance to ensure compliance and security. Community developers can propose new Pocket strategies - such as novel yield farms or on-chain derivatives - which, once vetted and approved, can be deployed by allocators. This open-yet-governed model promotes ongoing innovation similar to Yearn’s Vault Strategy System, but with stronger oversight and access control.
Clearing and Execution Role
The term OCH (On-chain Clearing House) highlights the Pocket’s role as an execution endpoint or “mini clearing house.” Each Pocket settles user intents - such as swapping asset A for B, providing liquidity, or borrowing - by interfacing with external protocols and clearing results back to the originating user or module.
In traditional finance terms, Pockets resemble temporary settlement accounts created solely to fulfill specific orders. Conceptually, they parallel mechanisms used by CoW Protocol or UniswapX, where user intents are resolved off-chain and executed atomically on-chain. In ORBT’s architecture, the Pocket is the on-chain executor of an intent, ensuring atomic, transparent, and efficient strategy completion.
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