A Hybrid Self-Repaying Lending Protocol Combining DeFi + Real-World Assets
A Hybrid Self-Repaying Lending Protocol Combining DeFi + Real-World Assets
Orbit Finance is a next-generation lending protocol that enables automatic debt repayment through yield generation. By combining traditional DeFi collateral with tokenized Real-World Assets (RWAs), Orbit creates a sustainable borrowing experience where your debt reduces over time without manual intervention.
The diagram above illustrates the complete self-repaying loan lifecycle:
User Deposits Collateral - Yield-generating assets (crypto or RWAs)
Collateral Locked - Secured in smart contracts
Borrow Token Issued - User receives orUSD stablecoin
Collateral Invested - Deployed to yield strategies or SPVs
Yield Generated - Continuous income from DeFi protocols or real-world cash flows
Yield Auto-Repays Debt - Automatic debt reduction without manual intervention
Debt Paid → Collateral Released - Full repayment unlocks collateral
Note: RWA loans work like traditional loans but with on-chain transparency. Yield generated from the collateral is automatically used to repay the loan over time, inspired by Alchemix-style self-repaying mechanics.
Deposit Collateral
Users can deposit DeFi tokens (WETH, USDC) or tokenized RWAs (rental income NFTs, invoice-backed assets, bonds)
Collateral is locked in secure smart contracts
Borrow Stablecoins
Borrow against your collateral at competitive LTV ratios
Receive orUSD (Orbit's synthetic stablecoin) or USDC
Yield Generation Begins
DeFi Collateral: Automatically deployed to yield-generating vaults and strategies
RWA Collateral: Generates real-world cash flows (rental income, invoice payments, bond coupons)
Automatic Debt Repayment
All generated yield is routed to the Auto-Repayment Engine
Yield is automatically applied to reduce your outstanding debt
No manual repayment transactions required
Debt Reduces Over Time
Your loan balance decreases continuously as yield accrues
Liquidation risk is significantly reduced
Eventually, your loan can be fully repaid by the yield alone
Deposit Collateral (DeFi or RWA) → Take a Loan →
Behind the scenes, collateral generates yield →
Yield automatically reduces your debt
Orbit Finance is inspired by Alchemix but extends the self-repaying loan concept to:
Real-World Assets (RWAs) with institutional-grade compliance
Hybrid liquidity pools combining on-chain and off-chain yield
KYC/AML-compliant flows for regulated asset classes
Orbit Finance features a three-token system designed for governance, risk-adjusted yield, and protocol sustainability.
Token | Name | Purpose | Key Features |
|---|---|---|---|
ORB | Orbit Governance Token | Protocol governance and utility | • Voting on protocol parameters |
srORB | Senior Tranche Token | Low-risk RWA investment | • Priority claim on RWA cash flows |
jrORB | Junior Tranche Token | High-risk/high-yield RWA investment | • Subordinated claim on cash flows |
Governance
Vote on protocol upgrades and parameter changes
Propose new RWA asset classes
Manage protocol treasury allocation
Staking Benefits
Reduced borrowing fees (up to 50% discount)
Boosted yield farming rewards
Access to exclusive RWA pools
Revenue sharing from protocol fees
Protocol Incentives
Liquidity mining rewards for DeFi vaults
RWA originator incentives
Referral bonuses
Early adopter rewards
Senior Tranche (srORB)
Target APY: 6-8% (stable, predictable)
Risk Profile: Low - first claim on all RWA cash flows
Ideal For: Conservative investors, institutions, treasuries
Protection: Junior tranche absorbs first 20% of losses
Junior Tranche (jrORB)
Target APY: 12-18% (variable, performance-based)
Risk Profile: Higher - subordinated to senior tranche
Ideal For: Risk-tolerant investors seeking enhanced yields
Upside: Captures excess returns after senior obligations met
Note: Final token distribution and supply details will be announced in the upcoming token generation event (TGE).
Preliminary Allocation Framework:
Community & Ecosystem: 40%
Team & Advisors: 20% (4-year vesting)
Treasury & Protocol Development: 20%
Liquidity Mining & Incentives: 15%
Early Backers: 5%
🚀 Vision
Orbit Finance aims to become the leading self-repaying lending protocol by creating a unified liquidity layer that bridges DeFi and Real-World Assets. We believe that sustainable, yield-backed borrowing is the future of decentralized finance.
✅ Launch on Mantle Sepolia Testnet
🎯 Achieve $1M+ TVL in combined DeFi + RWA collateral
🎯 Onboard 10+ institutional RWA originators
🎯 Complete security audits for mainnet deployment
🎯 Launch governance token and initial liquidity mining programs
Institutional RWA Integration
Partner with regulated asset originators (real estate, invoice financing, bonds)
Build compliant on-chain/off-chain bridge for institutional capital
Enable fractional ownership of high-value RWAs
Sustainable Yield Ecosystem
Diversified yield sources across DeFi protocols and real-world cash flows
Risk-adjusted tranching for different investor profiles
Automated portfolio rebalancing for optimal yield generation
Cross-Chain Expansion
Deploy on Ethereum, Arbitrum, Optimism, and other L2s
Enable cross-chain collateral and yield aggregation
Build interoperable RWA standards
Compliance & Regulatory Leadership
KYC/AML-compliant flows for institutional participants
Regulatory-friendly RWA tokenization framework
Transparent reporting and audit trails
Smart Contracts: Solidity ^0.8.24
Frontend: React + TypeScript + Vite
Web3 Integration: Wagmi + Viem
Blockchain: Mantle Sepolia Testnet
Styling: TailwindCSS
Deposit WETH/USDC as collateral
Borrow orUSD against your deposits
Automatic yield generation through vault strategies
Self-repaying loans with zero manual intervention
Tokenize real-world income-generating assets
KYC/AML-verified institutional access
Senior/Junior tranche investments
SPV-managed cash flow distribution
Bundle pools for diversified RWA exposure
Combine DeFi and RWA collateral in a single account
Cross-collateralization for improved capital efficiency
Unified debt management across asset classes
All smart contracts follow industry best practices
Comprehensive test coverage
Audits planned before mainnet deployment
Multi-sig governance for protocol upgrades
MIT License - See LICENSE for details
Contributions are welcome! Please read our contributing guidelines before submitting PRs.
Website: [Coming Soon]
Twitter: [Coming Soon]
Discord: [Coming Soon]
Documentation: [Coming Soon]
Built with ❤️ by the Orbit Finance Team
Revolutionizing lending through automatic debt repayment
During the hackathon, we implemented the core self-repaying lending mechanism and designed the automated flow that routes yield directly toward debt repayment. We also built the Orbit Finance frontend with a user-ready UI/UX and validated a DeFi-first architecture that is fully compatible with future RWA integrations.
During the hackathon, we finalized the problem statement, designed the UI, and set up the project structure. We successfully developed the core frontend features and implemented basic logic for key functionalities. The project is now functional at an MVP level, with further enhancements planned post-hackathon.
