The Orbitium network's vault is a crucial component that enables the scalability of the network and supports DeFi products. There are two types of vaults in the Orbitium network - the Safeguard vault and the Collateral vault.
The Orbitium safeguard vault is an on-chain reserve created to be liquidated in case of prolonged uncertainties. It is initially funded by the funds raised through the token sale and is continuously augmented with a portion of the protocol earnings from the treasury, diverted to the safeguard vault.
When needed, the reserves from the safeguard vault will be released for auction against payment in USDX. The goal is to remove any unbacked USDX from the market and increase the price point of the stablecoin.
The release of the safeguard vault reserves will be governed by the Orbitium community.
The Collateral vault is an essential component that will support the functioning of the Orbitium DeFi products and services. It will be filled as users begin utilizing the Orbitium protocol.
The Collateral vault will be responsible for holding the assets used as collateral for minting USDX stablecoins, as well as the lending and borrowing protocol.
The fees generated by the funds in the vaults will be redirected to the Orbitium treasury. The treasury funds will be used to support the ecosystem and further develop the Orbitium network, as well as to reward users who participate in the network through staking and governance activities.