Here’s of how Orbiter Finance’s mechanism works in a nutshell.
I’ve been using Orbiter Finance in the past two months moving funds from L1 to L2 or vice versa. Nice thing about Orbiter is can also move funds from another L2 protocol to another and I can say the experience is good can’t complain about anything. Cheap, fast, and secured transactions.
Current cross-rollup protocols that Orbiter supports:
“Security is the most important thing besides being cheap and fast as a bridge protocol.” – Orbiter Finance
Orbiter is designed to be a decentralized optimistic cross-rollup bridge for transferring Ethereum-native assets from L1 to other Ethereum L2 protocols or vice versa. They also supports high frequency cross-rollup transactions in an optimistic way. As a result transactions are cost efficient and and fast.
Here’s an overview how the process works:
There are two important roles in the process which is the Sender and the Maker.
Maker acts as a liquidity provider for the users (Sender) who’d like to move funds from one protocol to another.
Furthermore, when using Orbiter Finance the Sender sends the assets into an EOA (Externally owned address) address which is owned by the Maker and not into a smart contract address.
On the chart below, ‘Source network’ will be the origin of the transaction and the ‘Target network’ is the endpoint with MDC(Maker Deposit Contract) and EBC(Event Binding Contract) in the middle who makes sure that the exchanged assets make it to the receiver.
Furthermore, Makers deposit a margin into the MDC (Maker Deposit Contract) for security purposes to make sure that the Sender receives the exchanged assets. It has two functions, it holds the Makers’ margin and executes the transfer of assets to the Sender.
In addition to this, Makers are penalized if they do not send the exchanged assets in time to the Sender. In this way the whole transaction will be cancelled and the funds will be returned to the Sender plus the Makers margin.
Complete information of how Orbiter Finance’s mechanism works can be seen here.
Here’s Orbiter’s fee schedule:
The team has been really working hard to get new protocols integrated to theirs, moreover, Orbiter recently announced that they’ve recently added Optimism bridge on their protocol.
Below is the fee schedule for Optimism bridge transactions.
Here’s a tutorial how to use Orbiter Finance.
Also, here’s a demo using the protocol.
— rvn⟠ L222 🦇🔊🏴 (@rvncrpto) February 1, 2022
Lastly, I tried making it brief as possible and I hope you liked it. Try Orbiter Finance and I’m sure that you’ll be satisfied how fast transactions can be with a very minimum fee. Also, feel free to reach out if there are suggestions you’d like to add on the rundown I’ve made. I really love collaboration of ideas.