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Orbiter Finance Review 2024: Fees, Features & WARNINGS
Swen Keller
- URL: https://www.orbiter.finance
- Year Founded: 2021
- Native Token: Yes, but not yet released
- Supported Assets: Ethereum, USDC, USDT, and DAI
- Supported Networks: Ethereum, zkSync Era, zkSync Lite, Linea, Mantle, Base, StarkNet, opBNB, Scroll, Arbitrum, Arbitrum Nova, Loopring, Optimism, Polygon, Polygon zkevm, BNB Chain, Zora, Taiko, and ImmutableX
- Fees: Up to 0.3%
Orbiter Finance Review: Our Take
Orbiter Finance stands out when compared to other bridge protocols for its speed and low-cost transactions.
However, it has suffered several security challenges in the past including missing transactions and currently has no liquidity provider yield system in place for the general public.
What is Orbiter Finance and How Does it Work?
Orbiter Finance is a decentralized cross-rollup bridge solution offering low-cost and nearly instant transfers for Ethereum native assets.
The bridge solution supports cross-rollup transactions between one blockchain to any of these blockchain networks: Ethereum, StarkNet, zkSync, Loopring, Arbitrum, Arbitrum Nova, Optimism, Polygon, BNB Chain, ZKSpace, Immutable X, dYdX, Metis and Boba.
The cross-rollup bridge solution also allows users to provide liquidity by becoming a Maker on the platform (not available to all users).
Concerning its working, a sender on Orbiter Finance will directly initiate a transaction to the Maker’s externally owned address (EOA) instead of a smart contract address.
This is where the Orbiter System differs from other bridge solutions. Makers can choose to develop and use a client that automates the service or they can use the open-source client offered by the bridge.
With the initiation of the transaction from the Sender to the Maker on the origin network, the Maker takes on the responsibility of sending the assets to the Sender on the destination network.
The Maker will need to confirm 3 parameters to complete the transaction which include: Token Standards, Amount Sender Receive, and Destination Network.
Modifications made by the Sender after initiating the transaction can cause it to fail.
Pros
- High transfer speeds
- Low trading fees
Cons
- A very limited selection of supported assets
- History of security challenges
Unique Features
Orbiter Pilot NFT
Orbiter pilot NFTs is a service of NFTs designed for users also known as Orbiter Pilots.
The NFTs contain 5 classes of Orbiter Pilot roles. Available classes include
- The Orbiter Trainee-Pilot NFT: These are users who have carried out 3 to 9 transactions on the platform.
- Orbiter Pilot NFT: These NFTs are for users who have completed between 10 to 49 transactions on the platform.
- Orbiter Elite-Pilot NFT: These NFTs are for users that have transferred a minimum of 50 and a maximum of 99 transactions on the bridge.
- Orbiter Expert-Pilot NFT: These NFTs are for users who have transferred 100 to 499 transactions on the bridge
- Orbiter Ace-Pilot NFT: These NFTs are for users who have completed over 500 transactions on the platform.
Cryptocurrencies Available on Orbiter Finance
Orbiter Finance supports 4 cryptocurrencies. Supported cryptocurrencies are ETH, USDC, USDT, and DAI.
Networks Available on Orbiter Finance
Orbiter Finance supports about 19 networks.
Supported networks include Ethereum, zkSync Era, zkSync Lite, Linea, BNB Chain, Zora, Taiko, Immutable, Arbitrum, Arbitrum Nova, Loopring, Mantle, Base, StarkNet, Optimism, Polygon, Polygon zkevm, opBNB, Scroll, etc.
Orbiter Finance Review: Fees
There’s a one-time withholding fee charged to cover the cost of gas fees for transactions to the destination network. The gas fees vary based on the destination network.
For trading fees, makers get to choose the percentage of the total trading value they want to get from the per-transaction amount but fees can get up to 0.30%.
Is Orbiter Finance Safe?
Orbiter Finance is a decentralized crypto bridge that benefits from the security of rollups and is secured by a series of smart contracts. Orbiter Finance’s security from the rollups minimizes the risk associated with data synchronization between networks and prevents malicious parties from accessing the data in transit.
It is also secured by a series of smart contracts that involve two roles: Sender and Maker. The Maker provides liquidity for cross-rollup transfers initiated by the Sender. When a Sender or the Maker initiates a transaction that contravenes the protocol and conducts malicious behavior, the individual triggering the conduct is labeled the Challenger while the other party is referred to as the Challenged.
In this case, both parties are entitled to prove the validity of the transaction.
If the transfer fails, the Sender can initiate an arbitration request to the smart contract with the Maker’s margin and then get the excess compensation.
The bridge prevents such malicious behavior using an Arbitration mechanism which empowers senders to track and address issues with their transactions if the assets do not arrive in their wallet within a reasonable timeframe. When Senders initiate the Arbitration request, they must provide transaction proof to prove that the transaction is valid.
Makers, on the other hand, are required to submit evidence to show that the transfer has taken place or is in progress.
If the Maker provides the required proof, they will not incur any loss but if they do not, the sender will receive a complete refund along with a share of the excess margin from the Maker associated with the transaction.
Aside from the proof provided by the Sender and Maker, Orbiter Finance deploys 3 contracts in the network to validate the transaction in Arbitration.
This includes MDC Contract, EBC Contract, and ZK-SPV.
The MDC contract (Maker Deposit Contract) holds the Maker’s margin and takes care of the compensation for Senders.
The Event Binding Contract (EBC) verifies the correspondence between the source and the target transaction while the ZK-SPV( Zero-Knowledge Simple Payment Verification) demonstrates the existence and validity of the cross-rollup transactions using Zero-Knowledge proof technology.
Staking Rewards/ Liquidity Provider Yields
At the moment, liquidity is provided by the Orbiter Finance team.
However, in the future, the Maker will be permitted to provide liquidity and can decide the trading fee, withholding fee, token type, and amount limit themselves.
This will provide adequate incentive to Makers.
Our in-depth analysis of this bridge protocol revealed that the Maker system is under development and will soon be launched to the general public. It is currently only available to clients on their Whitelist on the testnet.
Orbiter Finance Native Token
Orbiter Finance hasn’t yet launched its token but the team has stated that it will soon launch it. This could benefit early users.
The Finance team is currently prioritizing product development and enhancing user experience.
It is not clear how far the plans to release a token have gone. However, as with most bridges early users may benefit from any planned airdrop.
Things We Do Not Like About Orbiter Finance
The liquidity system isn’t yet available to the general public, which reduces the decentralized objective of the protocol as a decentralized cross-rollup bridge.
Also, our first-hand investigation into this bridge protocol revealed users complaining about missing transactions and we noticed security challenges like hacks that require the use of caution when using the platform.
Final Thoughts
Orbiter Finance is a fast and low-cost bridge protocol for cross-rollup transfers of Ethereum native assets. But that’s about it, as the protocol has had several security system problems which resulted in the loss of funds.
Orbiter Finance does a good job, but there are more out there. Dive into our Stargate Finance Analysis to compare it with another top bridge.
FAQ
Most frequent questions and answers
Yes, Orbiter Finance is a legit bridge solution however it has had security challenges in the past.
If you’re bridging, for example, 0.5 Ethereum from Optimism to Arbitrium, the solution charges a fee of $4.85.
Currently, the bridge isn’t as secure as it can be. The bridge protocol has had users complain about missing transactions and hacks associated with the solution.
Orbiter Crypto is a decentralized cross-rollup bridge that enables you to transfer Ethereum native assets.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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