Collateralization

ORBT’s collateralization framework ensures system-wide solvency, predictable liquidity, and user confidence through a strict 1:1 hard-peg model, real-time monitoring, and immutable vault segregation. Every 0xAsset, including 0xUSD, 0xBTC, and 0xETH, is fully backed by an equivalent value of underlying collateral, guaranteeing direct redeemability and transparency across all chains.

1:1 Collateralization and Stability

The foundation of ORBT’s stability lies in diversified, fully collateralized pools governed by the Unified Collateral Engine (UCE). Each asset introduced to the system must maintain a 1:1 peg to its underlying collateral, ensuring that minted assets are always directly redeemable without exposure to leverage or overextension.

• Hard-Peg Model: Every unit of 0xAsset corresponds exactly to one unit of collateral value, ensuring complete parity between issued liabilities and reserves.

• Diversified Backing: Collateral is distributed across stablecoins and blue-chip crypto assets (BTC, ETH, SOL, BNB) to minimize dependency on a single asset class.

• Protocol Enforcement: The UCE continuously tracks collateral balances on-chain via secure oracle feeds and ensures that each minted asset maintains direct, verifiable collateral support.

This design guarantees instant redeemability, transparent reserves, and consistent liquidity, even during volatile market conditions.

Segregated and Non-Rehypothecated Vaults

All collateral is held in segregated, non-rehypothecated vaults that conform to the ERC-4626 tokenized vault standard, ensuring transparent accounting and immutable custody.

This architecture guarantees that:

• Each depositor’s assets are fully isolated and traceable.

• Collateral is never reused, pledged, or leveraged for unrelated activities.

• Vault records remain on-chain and auditable, ensuring complete transparency.

By separating user deposits from protocol liquidity management, ORBT eliminates systemic contagion risk and ensures that every 0xAsset remains directly redeemable at par value.

Collateral Integrity and Redemption Protections

Within the Unified Collateral Engine(UCE) and Modular Stablecoin Framework (MSF), all 0xAssets maintain strict redemption and collateral integrity standards.

• 1:1 Collateral Value Maintenance: The system continuously validates that total issued assets equal total collateral held across vaults.

• Automated Redemption Flows: When users redeem 0xAssets, the corresponding collateral is released instantly, maintaining peg equilibrium without liquidity delay.

• Reserve Buffer Integration: The liquidity reserve buffer supports instant redemptions and smooth settlements, ensuring that user withdrawals are honored even under high-volume activity.

These mechanisms ensure that the ORBT ecosystem remains liquid, transparent, and fully collateral-backed under all conditions.

Transparent Collateral Monitoring

Every element of ORBT’s collateral base is visible and verifiable through on-chain analytics dashboards and proof-of-reserve feeds.

• Real-Time Tracking: Users and institutions can monitor total collateral value, vault composition, and redemption flows across all chains.

• Oracle Verification: Chainlink price feeds and Oracle Security Modules (OSMs) provide continuous price integrity and protect against manipulation or short-term volatility.

• DAO Oversight: Governance participants can review collateral pool metrics, ensuring policy compliance and prompt adjustments when necessary.

This open and data-driven monitoring structure reinforces trust, enabling both retail and institutional users to independently verify the system’s solvency.