UCE
Unified Collateral Engine
The Unified Collateral Engine (UCE) is the backbone of 0xAsset issuance and solvency. It aggregates and manages collateral deposits that back the protocol’s stablecoin (0xUSD) and synthetic assets (0xBTC, 0xETH). Unlike legacy systems that siloed collateral by asset type or vault, the UCE operates through a unified collateral pool governed by a consistent risk framework.
The UCE maintains a hard peg of 1:1 using PSM and on-chain oracles reassuring the peg for all minted 0xAssets.
This unified design increases capital efficiency by allowing diverse collateral assets to secure the same stablecoin / synthetic assets and enabling surplus value in one area to offset shortfalls in another - all within governance-defined risk limits.
Conceptually, the UCE smart contract design philosophy is heavily inspired from Sky & Spark's Dss-LitePSM and PSM3, respectively. However, ORBT's implementation scales this model by supporting more than one correlated collateral assets enhancing the peg management of the synths even better, along with managing cross-chain collateralization and integration with unified liquidity and modular yield layer.
Cross-Chain Collateral Risk: Cross-chain collateral introduces latency and bridge dependencies. Governance may apply additional risk premiums or constraints to assets sourced from external chains to mitigate exposure to bridge or oracle failures.
All state changes within the UCE are fully transparent and auditable on-chain. Risk parameters - including collateral types, ratios, and liquidation thresholds - are configured and maintained through ORBT governance, ensuring system solvency and long-term stability.
The Unified Collateral Engine underpins ORBT’s solvency model, enabling efficient, secure, and auditable collateral management across multiple chains and asset types - forming the foundation for 0xUSD and all synthetic 0xAssets.
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