Bridges in crypto allow users to exchange tokens between different blockchains or layer-2 scaling solutions so that users can use their tokens to join the system of other blockchains. Orbiter Finance is a decentralized cross-rollup bridge for transferring the Ethereum native assets, which is the infrastructure of Layer 2, it offers low cost and almost instant transfers.
Orbiter Finance supports cross-rollup transfers between Ethereum, StarkNet, zkSync, Loopring, Arbitrum, Arbitrum Nova, Optimism, Polygon, BNB Chain, ZKSpace, Immutable X, dYdX, Metis and Boba.
Outstanding features
Safe: Orbiter Finance has no risk like other cross-chain bridges based on the safety rollup technique.
Cheap and instant: Transfer between “Sender” and “Maker”’s EOA (externally owned address) on both “Source” and “Destination” networks. “Sender” does not interact with the contract address.
Ethereum-native assets: For Ethereum-native assets, there is no need to mint assets, so liquidity can be fully supported in a decentralized way. Liquidity is fully supported in a decentralized way and minting assets is no longer required.
How does Orbiter Finance work
Orbiter Finance has two roles: Sender and Maker. Sender sends assets from the original network or Source Network, and Maker sends back to the Sender on the Destination Network. The Maker must deposit excess margin to Orbiter’s contract before they can qualify to be a cross-rollup service provider to the Sender. This margin is used as compensation if Sender does not receive their funds promptly from Maker. Makers can get considerable income (with no impermanent loss risk) from every transaction.
Orbiter makes sure that the ones who have assumed the role of a Sender don’t get involved in engaging with the contact address which significantly reduces the time taken for the transaction to be completed.
When it comes to the fee structure, the platform primarily charges on only two fronts, the trading fee and the withholding fee. With its decentralized principles, Orbiter Finance manages to eradicate the requirement for minting assets. This helps provide liquidity whilst also supporting decentralization. Another thing Orbiter ensures is the safety of the protocol. It has three kinds of smart contracts that constitute its security model. These are: MDC or the ‘Maker’ Deposit Contract, EBC or the Event Binding Contract, and SPV or Simple Payment Verification.
Roadmap
Orbiter Finance is now one of the most efficient Bridges in the ecosystem of Layer 2 EVM. Its token has not been released yet, but as the way large decentralized exchanges work, the project may perform airdrop to give a large amount of tokens to users in order to gain market share. Orbiter Finance will help save most of the time for users to move assets from Ethereum to any of its layer 2 with acceptable transaction fees. Therefore, users are likely to gradually tend to transfer assets with Orbiter Finance more.