Overview
The Unified Collateral Engine (UCE) is the core liquidity and asset management layer of the ORBT protocol. It functions as a sophisticated Peg Stability Module (PSM) that enables seamless, low-slippage swaps between underlying collateral assets (e.g., WBTC, cbBTC) and their corresponding synthetic 0xAssets (e.g., 0xBTC). It serves as the primary liquidity hub through which all participants - users, allocators, and integrators - interact with the ORBT ecosystem.
Unlike traditional systems that only focus on holding collateral, the UCE introduces a dynamic credit and liquidity framework. Whitelisted allocators can access credit lines, mint 0xAssets, and channel liquidity into strategies or money markets - creating a continuous, self-balancing flow of capital across the protocol.
Purpose & Role in the Ecosystem
The UCE is designed to be the heartbeat of ORBT’s liquidity network. It ensures that every 0xAsset in circulation is:
Fully backed by verified collateral,
Instantly redeemable through deep on-chain liquidity, and
Efficiently utilized through yield-bearing integrations.
By combining stable asset management, yield generation, and credit provisioning, the UCE bridges traditional PSM mechanics with next-generation DeFi liquidity design - offering instant settlement and capital productivity in a single framework.
How it works
Collateral Inflow
Users or allocators deposit supported collateral (e.g., USDC, WBTC) into the UCE.
Minting Synthetic Assets:
Based on collateral ratios or credit limits, the UCE issues 0xAssets (like 0xUSD or 0xBTC) directly to PSM allowing users to swap the assets directly
Active Liquidity Management
All the underlying assets are deployed into money markets or vaults to earn yield while maintaining instant redemption ratios.
Redemptions & Peg Stability
When users redeem, the UCE settles instantly from its on-hand reserves. If reserves dip, it dynamically pulls liquidity from connected pockets - ensuring peg consistency without delays.
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