Researchers at crypto investment firm Paradigm believe they’ve found a breakthrough for more efficient stablecoin trading with their new proposal, “Orbital.” The innovative automated market maker (AMM) is specifically engineered to handle pools of numerous stablecoins, potentially ranging from a handful to “10,000 stablecoins,” according to the researchers.
Dubbed a solution that “unlocks capital efficiency by bringing concentrated liquidity to higher dimensions,” Orbital aims to overcome the limitations of current decentralized trading platforms. This new design would enable liquidity providers to customize their exposure within multi-asset pools, a significant departure from existing solutions like Uniswap V3, which is confined to two-asset pools, and Curve, which offers multi-asset support but restricts liquidity provider participation.
“Today, Orbital is just a design, but we’re excited to see how it might change the stablecoin liquidity landscape,” shared Paradigm researcher Dave White on X. White, along with fellow researchers Dan Robinson and Ciamac Moallemi, outlined the proposal in a blog post on Monday.
The Orbital proposal emerges at a time of heightened interest in stablecoins across both traditional finance and decentralized sectors. Tech giants like Meta are reportedly exploring stablecoin integration to reduce international money transfer costs, while major banks are actively vying for influence in shaping stablecoin regulations. The stablecoin sector is also attracting significant venture capital, with predictions that the first crypto startup to achieve unicorn status in 2025 could be a stablecoin firm, Atticus.
Adding to the momentum, the stablecoin market capitalization recently surpassed $250 billion for the first time on June 2, a milestone partly attributed to renewed interest in decentralized finance (DeFi), as previously reported by The Block.
While Orbital proposes designs for thousands of stablecoins, the market remains heavily dominated by Tether’s USDT and Circle’s USDC, which together account for nearly 90% of the total stablecoin supply.
