1. Introduction

In recent years, blockchain technology has attracted widespread attention and application globally due to its characteristics such as decentralization, tamper resistance, and distributed ledger. From the rise of digital currencies to explorations in various fields such as finance, supply chain, and healthcare, blockchain is gradually changing traditional business models and trust mechanisms. With the continuous enrichment and development of the blockchain ecosystem, the isolation issues between different blockchain networks are increasingly prominent. Each chain is like an information island, making it difficult to achieve efficient interconnection and resource sharing, hindering the further popularization and application of blockchain technology.

To address this key issue, cross-chain bridge technology emerged. As an important infrastructure connecting different blockchain networks, cross-chain bridges facilitate the transfer and interaction of assets and data between different chains, effectively breaking down barriers between blockchains and promoting the integration and development of blockchain ecosystems. Among many cross-chain bridge projects, Orbiter Finance has become a significant participant in the cross-chain field, attracting the attention of numerous researchers and practitioners with its unique technical architecture, innovative feature design, and significant market influence.

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2. Overview of Orbiter Finance

2.1 Definition and Concept

Orbiter Finance is a decentralized cross-chain Rollup bridge with significant innovation in the blockchain field. It focuses on solving the asset cross-chain issues between different blockchain networks, especially between Layer 2 networks within the Ethereum ecosystem, enabling efficient and secure asset transfer and interaction. Unlike traditional cross-chain bridges, Orbiter Finance breaks down barriers between different chains using a unique technical architecture, allowing users to freely transfer assets between different Rollup networks such as Ethereum mainnet, StarkNet, zkSync, Loopring, Arbitrum, Optimism, Polygon, Immutable X, BNB Chain, etc.

In the field of cross-chain, Orbiter Finance is positioned at the core infrastructure. With the rapid development of the blockchain ecosystem, the demand for asset circulation between different chains is increasing. With its outstanding performance and innovative mechanisms, Orbiter Finance has become a key link to achieve multi-chain interconnection and interoperability. It not only provides users with convenient cross-chain services, reducing cross-chain costs and time, but also provides strong support for the integration and development of the entire blockchain ecosystem, promoting the expansion of different application scenarios and business models in a multi-chain environment.

2.2 Development History

The development history of Orbiter Finance is a pioneering entrepreneurial history full of innovation and breakthroughs. Its exploration and practice in the field of cross-chain in the blockchain industry have set a model for industry development.

• Project Launch and Preparation (2021): In April 2021, the Orbiter Finance project was officially launched. Against the backdrop of the flourishing development of blockchain technology but the urgent need to solve cross-chain challenges, its team keenly captured the market demand and is committed to building an efficient and secure cross-chain solution. At this stage, the team focused on technical research and concept verification, delving into the underlying technology of blockchain, designing a unique cross-chain bridge architecture, laying a solid foundation for the development of subsequent products.
• Alpha version launched (2022): After careful preparation, on November 29, 2022, Orbiter Finance successfully launched the alpha version. Although there is still room for improvement in functionality and user experience, this version has the core function of cross-chain bridges, which can achieve basic asset cross-chain transfer and provide users with a new way of cross-chain transfer. The launch of the alpha version marks Orbiter Finance’s transition from theoretical research to practical application and the beginning of its initial market testing.
• Funding and Technical Optimization (2022 - 2023): By the end of 2022, Orbiter Finance completed its seed round financing, attracting participation from well-known investment institutions such as Tiger Global and Matrixport. This funding injected strong impetus into the continuous development of the project, allowing the team to further increase investment in technical research and development, optimizing product performance. During this period, Orbiter Finance continuously improved its cross-chain mechanism, enhancing cross-chain speed and security, while expanding the supported blockchain networks, gradually making a mark in the cross-chain bridges market.
• Official release and market expansion (2023 - 2024): In mid-July 2023, Orbiter Finance launched the official version, with a comprehensive upgrade to the user interface (UI) and user experience (UE), adding practical features such as viewing transaction history, greatly enhancing the convenience and interactivity of user operations. With the official release, Orbiter Finance accelerated market expansion and quickly gained a foothold in the market with its excellent cross-chain effects and user experience. By January 2024, Orbiter Finance processed over 12 million transactions, totaling $7.8 billion, with over 3 million cumulative users, continuously expanding supported blockchain networks and experiencing rapid business growth.
• Upgrade of functions and ecosystem layout (from 2024 to present): In early 2024, Orbiter Finance secured Series A financing led by OKX Ventures, with a valuation of 2 billion US dollars. This milestone event further enhanced the project’s market influence and development potential. Subsequently, Orbiter Finance continued to upgrade its functions, supporting more types of cross-chain assets and expanding its business to more blockchain networks, including Solana, TON, and various BTC Layer2 networks. As of July 18, 2024, Orbiter Finance has processed over 25 million transactions, with a total amount exceeding 20 billion US dollars, total users exceeding 4 million, and supporting cross-chain transactions on 42 chains. At the same time, Orbiter Finance actively laid out its ecosystem, launching the L2 Data dashboard and the research team Orbiter Research, providing users and developers with more valuable services and information, further consolidating its leading position in the cross-chain field.

Three, Technical Principles and Innovation

3.1 Core Technology Architecture

Orbiter Finance is built on the Ethereum Layer2 network, mainly utilizing Rollup technology to achieve efficient cross-chain communication and asset transfer. The core advantage of Rollup technology lies in its ability to compress a large amount of off-chain transaction data into a transaction batch, which is then submitted to the Ethereum main chain for verification and storage, greatly improving transaction processing efficiency and reducing transaction costs at the same time.

In the technical architecture of Orbiter Finance, there are two key roles: Sender and Maker. Sender represents users initiating cross-chain transaction requests, while Maker is responsible for providing liquidity to ensure the smooth progress of cross-chain transactions. Taking the example of a user crossing ETH from zkSync to Arbitrum, the specific process is as follows: The user (Sender) operates on the Orbiter frontend webpage, transferring ETH from Sender’s externally owned account (EOA) address in zkSync to the Maker’s EOA address on the same network; when Maker receives the ETH, it will send the tokens to the address specified by the Sender on the target network Arbitrum.

In order to ensure the security and reliability of the cross-chain process, Orbiter Finance has employed a variety of smart contracts, including:

• Maker Deposit Contract (MDC): deposit Maker’s margin. In case of disputes between Sender and Maker, MDC is used to arbitrate for Sender to ensure Sender’s rights are protected.
• Event Binding Contract (EBC): Mainly used to formulate margin rules and some fee standards, clarify the rights and obligations of Maker and Sender in cross-chain transactions, and standardize the entire cross-chain process.
• Simple Payment Verification Contract (SPV): Used to prove the number of cross-chain transactions by users on the network supported by Orbiter, enhancing the system’s management and tracking capabilities of transaction records through valid verification of transactions.

This technical architecture design enables Orbiter Finance to achieve efficient and secure asset transfers in the cross-chain process. Based on the Ethereum Layer2 network and Rollup technology, it inherits the security of the Ethereum mainnet while avoiding some risks that traditional Layer1 - Layer1 cross-chain bridges may face, such as 51% attacks. Because each rollup project uses the same Ethereum data layer, each rollup has the ability to prevent 51% attacks. Furthermore, through the asset transfer method between Sender and Maker based on EOA addresses, and the collaborative action of smart contracts such as MDC, EBC, SPV, it further ensures the security and stability of cross-chain transactions, effectively reducing transaction costs and time, and enhancing user experience.

3.2 Innovative Mechanism - Maker Mechanism

The Maker mechanism is one of the core innovations that set Orbiter Finance apart from other cross-chain bridges, playing a crucial role in the cross-chain process and providing users with efficient and secure cross-chain services.

Automated cross-chain process

The Maker mechanism realizes the efficient operation of the cross-chain process through client automation. Orbiter will provide a client for Maker, or Maker can deploy a client on its own. This client has powerful automation capabilities, which can real-time identify key information such as the amount, currency, and network status of the user’s cross-chain. Taking the example of a user (Sender) crossing from Loopring to Immutable X, after the user initiates the cross-chain request, Maker’s client can quickly capture this information and automatically complete the subsequent cross-chain operation. It will accurately receive the user’s assets on Loopring and, according to the user’s instructions, promptly send the corresponding assets to the user’s specified address on the Immutable X network. The entire process does not require manual intervention, greatly improving the speed and efficiency of cross-chain transactions, and reducing the potential errors and risks caused by human factors.

Anti-manipulation and over-collateralization mechanism

In the process of cross-chain, Maker faces the potential risk of misconduct, such as possible asset withholding from users and failure to send assets to users on the target network. To prevent this from happening, Orbiter Finance has adopted a rigorous decentralized mechanism. First, Maker needs to provide two parts of funds: one is for liquidity to ensure sufficient fund support for cross-chain transactions, and the other is excess margin.

Assuming Maker is not honest, resulting in Sender not receiving the tokens as scheduled on the target network, all of Sender’s losses will be covered by the excess margin, and Sender will also receive compensation, which also comes from Maker’s excess margin. When Sender believes there is a dispute in the transaction, arbitration can be requested on the Orbiter platform. After entering the arbitration process, all subsequent operations will be executed by smart contracts, fully demonstrating the decentralized nature of Orbiter Finance. The MDC (Maker Deposit Contract) plays a crucial role in this process, holding Maker’s margin to handle arbitration matters for Sender, ensuring that Sender’s rights are effectively protected. The EBC (Event Binding Contract) establishes the margin rules and fee standards, providing clear norms and bases for the entire anti-cheating mechanism.

Through this innovative Maker mechanism, Orbiter Finance not only improves the efficiency of cross-chain, but also fundamentally guarantees the security of cross-chain. The automated cross-chain process meets the needs of users for fast and convenient cross-chain services, while the anti-collusion and over-collateralization mechanism eliminates users’ concerns about asset security, enabling Orbiter Finance to stand out in the competitive cross-chain bridges market, winning the trust of users and market recognition.

Fourth, Functions and Services

4.1 Cross-chain functionality and supported networks

Orbiter Finance excels in cross-chain functionality, supporting over 10 Rollup networks, covering almost all Optimistic Rollups and Zk Rollup networks, enabling a rich variety of cross-chain combinations, such as Loopring to Immutable X, zkSync to Arbitrum, providing users with a high degree of cross-chain flexibility.

Taking the example of transferring coins from the BSC chain to the ETH chain in the User’s MetaMask wallet, the specific operation process is as follows: Users first visit the official website of Orbiter Finance (https://www.orbiter.finance/），select the asset you want to transfer from the BSC chain and the target address to transfer to the ETH chain on the page, enter the transfer amount, and follow the system prompts. After confirming the transaction, wait for the cross-chain transfer to complete. During this process, users do not need to withdraw assets from L2 to L1 first, and then withdraw from L1 to another L2, which greatly simplifies the operation process and saves time and costs.

This cross-chain feature brings many advantages to users. In terms of ease of operation, users almost do not need complex learning, and can complete cross-chain transactions in a few minutes, reducing the operation threshold. Even blockchain novices can easily get started. In terms of cost, the traditional cross-chain method requires multiple asset transfers between different chains, involving high Gas fees, while Orbiter Finance’s cross-chain model reduces the intermediate links and effectively reduces the cost of cross-chain transactions. In terms of speed, the traditional cross-chain process takes a long time, while Orbiter Finance utilizes its unique technical architecture and Maker mechanism to achieve fast cross-chain asset transfers, improving the efficiency of user funds utilization.

4.2 Other Services

In addition to the core cross-chain functionality, Orbiter Finance has also launched a series of other practical services, further enriching its ecosystem and meeting the diverse needs of users.

Layer2 data products

Orbiter Finance aims at the Layer2 data track and will launch a product in August 2024 that provides Layer2 network and application data. Through this product, users can have a comprehensive understanding of key data such as the daily active address count, cumulative address count, and lock-up amount of the project. For example, users can clearly see that the cumulative transaction address count of Orbiter Finance on the Arbitrum network has reached 79,000, with nearly 13,000 active addresses in the past 30 days; on the Optimism network, the cumulative transaction address count has reached 40,000, with approximately 6,000 active addresses in the past 30 days. These data not only reflect the project’s activity and user participation on different networks but also provide users with a basis for in-depth analysis of market trends and project potential.

For users, this data product is of great value. In terms of investment decisions, users can assess the popularity and development trends of projects based on this data, discover emerging high-quality projects, and make wiser investment choices. For developers, this data helps them understand market demand and user behavior, optimize product design and operational strategies, and enhance the competitiveness of projects. From a market perspective, this data product promotes market transparency and information flow, contributing to the healthy development of the entire Layer2 ecosystem.

Change Collection Tool

In 2024, Orbiter Finance launched the ‘Orbiter Small Coin Collector’, specifically providing users with convenient and efficient collection services for ultra-small funds (less than 3U). The tool can quickly identify the balances of user addresses on more than 30 networks and consolidate them to any mainstream network with just one click, achieving consolidation in as fast as 3 seconds.

In actual applications, the change consolidation tool solves two major pain points that users have long faced. On the one hand, the high cross-chain Gas fees make the cross-chain transfer cost of small funds too high to be economically feasible, resulting in a large amount of ultra-small funds being stranded in different networks for a long time. The change consolidation tool reduces costs through efficient consolidation mechanisms, enabling the effective utilization of small funds. On the other hand, users may have scattered small funds in different networks, which is extremely inconvenient to manage. This tool achieves one-click consolidation, greatly improving the convenience of user fund management.

Five, Market Performance and Competitive Landscape

5.1 Market Data and Development Status

Orbiter Finance has shown a strong development trend in the market, and its various data indicators highlight its important position and influence in the cross-chain field.

In terms of user numbers, Orbiter Finance has grown rapidly. As of July 18, 2024, its total users exceeded 4 million, compared to just over 3 million in January 2024. In just over half a year, the number of users has significantly increased, reflecting the increasing recognition of Orbiter Finance among user groups, attracting more and more users to choose its cross-chain services. This growth is not only due to its excellent cross-chain functionality but also benefits from its continuously expanding application scenarios and continuously optimized user experience, making more users willing to try and continue to use Orbiter Finance for cross-chain operations.

In terms of trading volume, Orbiter Finance has also performed well. As of July 18, 2024, it has processed over 25 million transactions, with a total amount exceeding 200 billion US dollars. By August 23, the protocol has nearly 4 million users worldwide, with a total trading volume of over 16 billion US dollars, handling over 27 million transactions. The high trading volume reflects the active presence of Orbiter Finance in the cross-chain market, and the large number of transactions indicates that its efficiency and stability in asset cross-chain transfers have been widely recognized by the market. The frequent use of Orbiter Finance for cross-chain transactions indicates that it can meet the needs of users for fast and convenient asset transfers between different blockchain networks.

In terms of revenue, Orbiter Finance is in good financial condition, with annual revenue exceeding $52 million, 35.13% higher than the $39 million generated by Base, a Layer 2 solution supported by Coinbase during the same period. Its annual revenue exceeds the total revenue of all other third-party cross-chain bridges. This achievement is due to its unique business model and continuous growth in business volume. By providing high-quality cross-chain services, Orbiter Finance has attracted a large number of users to trade, thereby achieving considerable revenue growth.

In the cross-chain market, Orbiter Finance has taken a significant position with its outstanding performance and extensive network support. In the cross-chain Layer2 bridging field, Orbiter Finance holds more than half of the market share, serving as a crucial bridge connecting different blockchain networks. It supports over 10 Rollup networks, covering almost all Optimistic Rollups and Zk Rollup networks. This extensive network coverage enables Orbiter Finance to meet the cross-chain needs of different users across multiple blockchain networks, further consolidating its advantageous position in the cross-chain market. With the continuous development of the blockchain ecosystem, Orbiter Finance is expected to maintain its leading position in the cross-chain market based on its first-mover advantage and continuous innovation, continuing to drive the application and development of cross-chain technology.

5.2 Competitive Advantages and Challenges

Competitive advantage

• Technical advantages: Orbiter Finance is built on the Ethereum Layer2 network, using Rollup technology, inheriting the security of the Ethereum mainnet, and effectively avoiding risks that traditional Layer1-Layer1 cross-chain bridges may face, such as 51% attacks. Its innovative Maker mechanism automates efficient cross-chain processes on the client side, enabling real-time identification of user cross-chain information and automatic completion of operations, greatly improving cross-chain speed and efficiency. In addition, through various smart contracts such as Maker Deposit Contract (MDC), Event Binding Contract (EBC), Simple Payment Verification Contract (SPV), etc., the security and reliability of the cross-chain process are ensured, effectively reducing user risks.
• Cost advantage: In terms of cross-chain costs, Orbiter Finance has a significant advantage. Traditional cross-chain methods require multiple asset transfers between different chains, involving high Gas fees. However, Orbiter Finance’s cross-chain model reduces intermediate steps, with funds flowing only in the form of transfers between the user-controlled Sender address and the Maker address controlled by Orbiter. The entire cross-chain process does not involve contract interactions such as minting, locking, or burning, effectively reducing cross-chain costs. Users only need to bear the transfer costs on the original chain during the cross-chain process, while the transfer costs on the target chain are covered by the Maker, making Orbiter Finance’s cross-chain costs much lower than traditional cross-chain bridges and centralized exchange cross-chain methods.
• User experience advantages: Orbiter Finance excels in user experience. Its operation process is extremely convenient, with users requiring little to no complex learning, enabling them to complete cross-chain operations in just a few minutes, greatly reducing the barrier to entry and allowing blockchain novices to easily get started. In addition, Orbiter Finance continuously optimizes its product features, such as launching Layer2 data products to provide users with key project data, helping them make wiser investment decisions; introducing a small change aggregation tool to address the pain points of high cross-chain costs and inconvenient management of small funds for users. These measures further enhance the user experience, strengthening user stickiness and recognition of Orbiter Finance.

Challenge

• Competitive Challenge: With the rapid development of the cross-chain market, an increasing number of cross-chain bridge projects are emerging, leading to intensified market competition. For example, competitors such as Owlto Finance are continuously innovating and developing, potentially introducing competitive products and services in terms of technology, functionality, and user experience, posing a threat to Orbiter Finance’s market share. Faced with fierce competition, Orbiter Finance needs to continuously enhance its core competitiveness, increase investment in technical research and development, expand application scenarios, and improve service quality to maintain its leading position in the market.
• Security Challenge: Despite Orbiter Finance implementing various security mechanisms to ensure the security of cross-chain transactions, the security risks in the cross-chain field cannot be ignored. Smart contracts may have vulnerabilities, and security incidents such as hacker attacks may still occur. Once a security issue arises, it will pose a serious threat to the security of user assets, thereby affecting the reputation and market trust of Orbiter Finance. To address security challenges, Orbiter Finance needs to continuously strengthen security protection measures, conduct regular smart contract audits, establish a sound risk warning and emergency response mechanism, and ensure the security of user assets.
• Market Volatility Challenges: The blockchain market has a high degree of volatility, and significant fluctuations in cryptocurrency prices may affect users’ cross-chain needs and investment decisions. When the market conditions are unstable, users may reduce cross-chain transactions, leading to impacts on the trading volume and revenue of Orbiter Finance. In addition, changes in market regulatory policies may also bring uncertainties to the business development of Orbiter Finance. Faced with the challenge of market volatility, Orbiter Finance needs to closely monitor market dynamics, adjust business strategies flexibly, strengthen communication and cooperation with regulatory agencies, adapt to market changes, and reduce the impact of market risks on the business.

6. Business Model and Economic Model

6.1 Business Model

Orbiter Finance’s business model is mainly based on its provision of cross-chain services, generating profits by charging transaction fees. During the cross-chain transaction process, when users transfer assets across chains using Orbiter Finance, the platform will charge a certain percentage of fees based on the transaction amount or quantity. This model, with transaction fees as the main source of revenue, is similar to payment clearing institutions in traditional financial sectors, which generate income from each transaction by providing fund transfer services.

From the current market performance, Orbiter Finance’s business model has achieved significant results. Its annual revenue has exceeded $52 million, which is 35.13% higher than the $39 million generated by Base, the Layer 2 solution supported by Coinbase during the same period, and has exceeded the total revenue of all other third-party cross-chain bridges. This achievement is due to its large user base and high-frequency trading activities. As of July 18, 2024, Orbiter Finance has a total of over 4 million users and has processed over 25 million transactions, with a total amount exceeding $20 billion. A large number of users and transactions have brought stable fee income.

However, this business model also faces some challenges. On the one hand, the market competition is fierce. With the emergence of more cross-chain bridge projects, competitors may attract users by reducing fees, which will put pressure on Orbiter Finance’s revenue. For example, in order to gain market share, some emerging cross-chain bridge projects may adopt a strategy of low or even zero fees in the short term, putting Orbiter Finance at a disadvantage in price competition. On the other hand, the volatility of the blockchain market is significant, and the significant fluctuations in cryptocurrency prices may affect the demand for cross-chain transactions. When the market is unstable, users may reduce cross-chain transactions, leading to a decrease in Orbiter Finance’s transaction volume and revenue. In addition, the uncertainty of regulatory policies may also have an impact on its business model. If more stringent regulatory policies are introduced in the future, it may limit its fee collection standards or business scope.

To address these challenges, Orbiter Finance needs to continuously enhance its core competitiveness. In terms of technology, continuously optimizing cross-chain technology, improving cross-chain speed and security to attract more users. Through technological innovation, reducing operating costs to maintain a certain competitiveness in fee prices. In terms of market expansion, actively seeking cooperation with other blockchain projects to expand user base and application scenarios. For example, collaborating with DeFi projects to provide convenient cross-chain services for their users, achieving mutual benefit. At the same time, closely monitoring changes in regulatory policies, preparing in advance to ensure the compliance and sustainable development of the business.

6.2 Economic Model (Token Plan)

Orbiter Finance plans to launch its native token OBT, which plays a core role in its economic model, bringing new vitality to the project’s development and community governance.

OBT is an ERC-20 token with a total supply of 10 billion, which will be launched on Ethereum and Layer 2 networks Arbitrum and Base. After the token generation event, the initial circulating supply of OBT will be 2.8 billion (28%). Its distribution scheme is carefully designed, fully reflecting the emphasis on the community, ecosystem development, and long-term sustainability:

• Community Allocation (40%): This part of the tokens is designed to incentivize users to participate and contribute. Initially, 22% will be airdropped to eligible Orbiter users, who must have used the Orbiter protocol for at least two months since December 2021 and have at least 40 OPoints to qualify for the airdrop. Subsequently, 3% will be airdropped monthly for six months. This allocation method can enhance user stickiness and loyalty to the project, encourage users to use Orbiter Finance services in the long term, and also help attract new users to join and expand the community.
• Ecosystem and Growth Allocation (20%): Used to support project development and partnerships. 2.5% of which will be unlocked in the Token Generation Event (TGE), these funds can be used for early ecosystem development, such as promoting cooperation with other projects, technological research and development, providing momentum for the development of the Orbiter Finance ecosystem.
• Team and Contributor Allocation (15%): Used to incentivize the core development team, ensuring that team members can continue to contribute to the project’s development. The allocation of these tokens can stimulate the team’s enthusiasm and creativity, driving continuous innovation and progress in the project.
• Investor allocation (10%): As a reward to early supporters, this portion of tokens can attract more investor attention and support Orbiter Finance, providing financial security for the project’s development.
• Orbiter Foundation allocation (15%): used for long-term development and governance support, of which 3.5% will be unlocked at TGE, and the remaining portion will be incrementally unlocked on a monthly basis over 23 months. The Orbiter Foundation can utilize this portion of tokens to drive the project’s long-term strategic planning, such as technical research and development, market expansion, community governance, etc., ensuring the stable development of the project.

The introduction of the OBT token has various impacts on the Orbiter Finance project and community. For the project, the token economic model can provide financial support for the project’s development, attract more resources and participants, and promote the prosperity of the ecosystem through the distribution and circulation of tokens. For example, ecosystem and growth allocation tokens can be used to attract more partners to collectively build rich application scenarios and enhance Orbiter Finance’s market competitiveness. For the community, tokens allocated to the community can enhance user participation and sense of belonging. Users can participate in project governance and decision-making, and share the fruits of project development by holding and using OBT tokens. Additionally, airdrops and other activities can attract more user attention and participation, promoting community activity and growth. In addition, on-chain governance is scheduled to open in February, and the token staking mechanism is planned to be launched in the second quarter, which will further enrich the application scenarios of OBT tokens, enhance the practicality and value of the tokens, and lay a solid foundation for the long-term development of Orbiter Finance.

Seven, Application Cases and User Reviews

7.1 Case Study of Practical Applications

In the blockchain ecosystem, Orbiter Finance’s cross-chain functionality has been widely used in multiple scenarios, bringing significant value and effects to users and projects.

Assets cross-chain of DeFi projects

In the field of DeFi, many projects need to transfer assets between different blockchain networks to achieve the optimal allocation of funds and the expansion of business. Taking a DeFi lending project based on the Ethereum Layer2 network as an example, the project’s users are distributed across different Rollup networks such as Arbitrum and Optimism. Users have idle ETH on the Arbitrum network and hope to transfer it to the Optimism network to participate in the lending activities of this DeFi project in order to obtain higher returns.

When using Orbiter Finance for cross-chain operations, users only need to perform simple operations on the front end of Orbiter’s website to transfer ETH on the Arbitrum network from their own Sender address to the Maker address on the same network. After Maker receives the ETH, it will quickly send the ETH to the user’s specified address on the Optimism network. The entire process is fast and convenient, without the need for complex operations and long waits.

For the DeFi project, Orbiter Finance’s cross-chain service brings various values. First, it solves the problem of transferring assets between different Layer2 networks for users, improves the convenience of user participation in the project, attracts more users to participate, and expands the project’s user base. Secondly, by reducing cross-chain costs and time, improving the efficiency of fund utilization, enhancing the project’s liquidity, it can better meet market demand, and enhance the project’s competitiveness in the DeFi market.

Cross-chain transactions of NFT projects

In the field of NFT, Orbiter Finance has also played an important role. Taking an example of an NFT trading platform that operates on both the Ethereum mainnet and the Immutable X network, users may have some NFT assets on the Ethereum mainnet and wish to transfer them to the Immutable X network for trading, as Immutable X network offers advantages in NFT trading with low gas fees and high transaction speeds.

By using Orbiter Finance for cross-chain transactions, users can follow the platform’s instructions to transfer NFT assets from the Ethereum mainnet to the Immutable X network. This process is not only fast but also secure, effectively avoiding the risks that traditional cross-chain methods may bring.

For NFT trading platforms, Orbiter Finance’s cross-chain functionality expands the platform’s business scope, allowing users to freely transfer NFT assets between different networks, increasing the liquidity and trading opportunities of NFT assets. This has attracted more NFT creators and traders to use the platform, enhancing the platform’s visibility and market share, promoting the circulation and development of NFT projects across different blockchain networks.

7.2 User Evaluation and Feedback

By collecting and organizing user evaluations of Orbiter Finance, we can fully understand the satisfaction of users with its services, analyze its strengths and weaknesses, and provide references for further improvement of the project.

In terms of advantages, users highly praised the convenience of operation of Orbiter Finance. Many users stated that compared to other cross-chain bridges, the operation process of Orbiter Finance is extremely simple, requiring almost no complex learning, and cross-chain operations can be completed within a few minutes, greatly reducing the barrier to entry. Even blockchain novices can easily get started. For example, a user mentioned in the review: “I am a newcomer to blockchain and have been struggling with cross-chain operations. However, after using Orbiter Finance, I found that cross-chain became so simple, completed in a few steps, truly convenient.”

Cross-chain speed is also an important aspect praised by users. Orbiter Finance utilizes its unique technical architecture and Maker mechanism to achieve fast cross-chain asset transfers. Users experience efficient cross-chain services in actual use, improving the efficiency of fund utilization. Some users feedback: “Previously, using other cross-chain bridges, it took a long time to transfer funds cross-chain, while Orbiter Finance’s speed surprised me, almost instant arrival, amazing.”

In addition, users are also quite satisfied with the cross-chain costs of Orbiter Finance. Its cross-chain model reduces intermediate links, effectively reducing cross-chain costs, allowing users to cross-chain without paying high fees. Users pointed out in their evaluation: “Orbiter Finance’s fees are much lower than other platforms, which saves a lot of costs for users who frequently perform cross-chain operations.”

However, user reviews also reflect some shortcomings. Some users have expressed the hope that Orbiter Finance can support more types of asset cross-chain to meet diverse needs, despite the fact that the blockchain networks supported by Orbiter Finance are already quite extensive. For example, a user mentioned, “I hope Orbiter Finance can support more niche but potentially promising cross-chain of crypto assets, so that it can better meet my investment needs.”

There have also been user feedback that cross-chain transactions occasionally experience delays during network congestion, affecting user experience. One user said, “During peak network times, cross-chain speeds noticeably slow down, hoping for further optimization to improve performance in complex network environments.”

In response to these user feedbacks, Orbiter Finance can further expand the supported types of assets to meet the diverse cross-chain needs of users. At the same time, increase technical research and development investment, optimize cross-chain mechanisms, improve stability and speed in different network environments, thereby continuously improving product and service quality, enhancing user satisfaction and market competitiveness.

VIII. Prospects and Risk Analysis

8.1 Development Prospect Outlook

With the continuous development of blockchain technology and the increasingly rich application scenarios, the cross-chain field has shown tremendous potential for development. Orbiter Finance, with its unique technological advantages and market performance, is expected to achieve more significant achievements in this field.

From the market trend, the blockchain ecosystem continues to expand, new public chains emerge one after another, and the cross-chain demand shows a spiral growth trend. According to DeFiLlama data, the cross-chain asset scale in 2024 has reached 256.9 billion US dollars, doubling from 2023, and it is conservatively estimated that by 2027, the annual cross-chain asset scale will reach 510.7 billion US dollars. In this expanding market, Orbiter Finance has the ability to quickly connect with emerging chains, supporting over 70 blockchains and continuously expanding its coverage. Its rapid adaptation to the latest Ethereum L2 solution and early support for Bitcoin Layer2 solutions enable it to keep pace with market developments and meet the growing cross-chain demand.

In the cross-chain field, Orbiter Finance’s technical advantages will help further consolidate its market position. Built on the Ethereum Layer2 network, using Rollup technology, it inherits the security of the Ethereum mainnet, effectively avoiding the risks of traditional Layer1 - Layer1 cross-chain bridges. The innovative Maker mechanism achieves efficient and secure cross-chain processes, improving cross-chain speed and user asset security through automation and anti-fraud mechanisms. In addition, Orbiter Finance is constantly innovating and plans to launch its own ZK-Rollup, which will further enhance its position in the Layer 2 ecosystem, providing users with lower transaction fees and faster confirmation speeds, and is expected to attract more users and projects to choose its cross-chain services.

In terms of the related ecosystem, Orbiter Finance actively lays out and launches services such as Layer2 data products and change collection tools, enriching its ecosystem. In the future, with the integrated development of the blockchain ecosystem, Orbiter Finance is expected to deepen cooperation with more DeFi projects, NFT projects, etc., expanding its application scenarios. For example, in the DeFi field, it provides convenient cross-chain asset transfer services for lending, trading projects, etc., promoting the liquidity and business expansion of DeFi projects; in the NFT field, it supports cross-chain transactions of NFT assets between different blockchain networks, driving the prosperous development of the NFT market. Through collaborative development with other projects within the ecosystem, Orbiter Finance will build a more complete ecosystem, enhancing its market competitiveness and influence.

8.2 Risk Warning

Despite Orbiter Finance having good development prospects, it still faces many risks in technology, market, regulation, etc., which need to be highly valued and corresponding response strategies should be taken.

Technical Risk

• Smart Contract Vulnerability Risk: Smart contracts are the core of Orbiter Finance, but the smart contract code may contain vulnerabilities. Once discovered and exploited by hackers, it may lead to serious consequences such as asset theft and abnormal transactions. For example, the 2022 Wormhole Bridge hacking incident, where attackers exploited the Wormhole Solana smart contract vulnerability to forge signatures and illegally create 120,000 wETH, resulting in significant losses.
• Technical upgrade risks: Blockchain technology is developing rapidly, in order to maintain competitiveness, Orbiter Finance needs to constantly upgrade its technology. However, compatibility issues, unstable performance, etc. may arise during the technical upgrade process, affecting the normal operation of the platform and user experience.

Response strategy: Strengthen the security audit of smart contracts, regularly invite professional security teams to conduct comprehensive testing of smart contracts, promptly discover and fix potential vulnerabilities. Before technical upgrades, carry out sufficient testing and simulations to ensure the compatibility and stability of the new technical solutions with the existing system. Establish a sound technical monitoring and emergency response mechanism to monitor the platform’s operation status in real time. Once technical failures or security incidents occur, take swift measures to reduce losses.

Market Risk

• Increased competition brings risks: The cross-chain bridge market is fiercely competitive, with more and more projects entering the field, such as competitors like Owlto Finance continuously launching new features and services, potentially seizing market share from Orbiter Finance.
• Market Volatility Risk: The blockchain market is highly volatile, and significant fluctuations in cryptocurrency prices may affect users’ cross-chain needs and investment decisions. When the market is unstable, users may reduce cross-chain transactions, leading to the impact on Orbiter Finance’s transaction volume and revenue.

Response strategy: continue to innovate and optimize products and services, increase investment in technical research and development, improve cross-chain speed, reduce costs, enhance security, and attract users with differentiated competitive advantages. Strengthen market research and analysis, timely understand market dynamics and competitors’ situations, and formulate flexible market strategies. Expand business areas and user groups, expand application scenarios through cooperation with other projects, reduce reliance on a single market, and improve risk resistance.

Regulatory risk

• Policy Uncertainty Risk: The blockchain industry is subject to incomplete regulatory policies, and different countries and regions have different attitudes and regulatory policies towards blockchain and cryptocurrencies. The uncertainty of policies may bring risks to the development of Orbiter Finance. For example, some countries may strengthen restrictions on cryptocurrency trading, affecting the operation of the platform.
• Compliance Risks: With the gradual strengthening of regulation, Orbiter Finance needs to ensure that its business operations comply with relevant laws and regulatory requirements, otherwise it may face penalties, business suspension, and other sanctions.

Response strategy: Pay close attention to changes in global regulatory policies, strengthen communication and cooperation with regulatory agencies, actively participate in the formulation of industry standards, adjust business models and operational strategies in a timely manner, and ensure the compliance of projects. Establish a sound compliance management system, enhance internal compliance training and supervision, raise employees’ compliance awareness, and ensure that all business activities strictly comply with laws and regulations.

Conclusion

When considering investing in Orbiter Finance-related projects, investors should fully understand their technical principles, market competition, and potential technical, market, and regulatory risks. For example, smart contract vulnerabilities may lead to asset loss, intensified market competition may affect the project’s market share and profitability, and changes in regulatory policies may have a significant impact on the project’s operations. Investors should make prudent investment decisions based on a comprehensive assessment of risks.

Do not concentrate all funds in Orbiter Finance or a single blockchain project. It is advisable to adopt a diversified investment strategy and allocate funds to different projects and asset categories. This can effectively reduce investment losses caused by the failure of a single project and improve the stability and risk resistance of the investment portfolio.