Orbit Protocol is a decentralized finance (DeFi) platform on the Stellar network that provides users with stablecoins through a secure Collateralized Debt Position (CDP) system. Users can overcollateralize their cryptocurrency (initially Stellar Lumens - XLM) to borrow stablecoins, enhancing stability and liquidity in digital transactions.

A Collateralized Debt Position (CDP) in Orbit Protocol allows users to deposit XLM as collateral into Blend lending pools to borrow stablecoins issued by the Orbit Treasury. Unlike fiat-backed stablecoins which require direct currency backing, or algorithmic stablecoins that rely on complex mechanisms, CDPs are overcollateralized positions that provide stability through cryptocurrency collateral. The borrowed stablecoins can be used for trading on AMMs or in yield-bearing applications, and can be exchanged back for collateral at any time (subject to interest).

Blend is a lending pool system integrated with Orbit Protocol that facilitates the borrowing and lending of assets through smart contracts on the Stellar Blockchain. We use Blend because it provides a secure and efficient way to manage collateralized borrowing. Each Blend lending pool includes a backstop module that protects against bad debt by auctioning off deposits if needed, ensuring the overall stability of the lending system.

The DAO (Decentralized Autonomous Organization) serves as the governing body of Orbit Protocol. Community members participate in the DAO to vote on crucial decisions affecting interest rates, new stablecoins, and other protocol parameters. This democratic approach ensures that the protocol evolves in alignment with user needs while maintaining robust security. The DAO structure allows for community-driven development and governance of the platform.

OrbitCDP leverages the Stellar network's native features to enable fast, low-cost cross-border transactions. The stablecoins created through CDPs can be sent globally within seconds, costing only fractions of a cent. This makes international remittances, trade finance, and cross-border payments accessible to everyone, eliminating traditional banking intermediaries and reducing settlement times from days to seconds.