Orange Dollar

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How It Works ​

The Orange Dollar protocol has three components:

  1. The Reserve — A smart contract (ODReserve) holding WBTC collateral
  2. OD — The stablecoin token, minted and burned against the reserve
  3. ORC — The equity token, representing ownership of reserve surplus

The Flow ​

Minting OD: You deposit WBTC → the reserve calculates how much OD you get at the current TWAP price → deducts 1.5% fee → sends you OD.

Burning OD: You return OD → the reserve calculates how much WBTC to give you at the current TWAP price → deducts 1.5% fee → sends you WBTC.

Minting ORC: You deposit WBTC → the reserve calculates how much ORC you get based on the current equity per ORC → deducts 1.5% fee → sends you ORC.

Burning ORC: You return ORC → the reserve calculates your proportional share of equity → deducts 1.5% fee → sends you WBTC.

Reserve Ratio ​

The protocol enforces a reserve ratio between 400% and 800%:

  • If the ratio is near 400%, minting OD is blocked (reserve is too thin)
  • If the ratio is near 800%, minting ORC is blocked (reserve is already oversaturated)
  • Burning OD is never blocked — you can always redeem

This range ensures the reserve is always overcollateralised while keeping capital somewhat efficient.

Price Oracle ​

OD uses a 6-block TWAP (Time-Weighted Average Price) from the MotoSwap WBTC/OD pool. This is a rolling average that resists manipulation — an attacker would need to sustain a fake price for a full hour to move it.

Fee Yield ​

Every operation charges 1.5%. This fee stays in the reserve, growing the total WBTC held. Since ORC represents a claim on the equity (reserve minus OD liabilities), fees make ORC more valuable over time.