Why Did We Invest in Orbiter Finance?-A&T Capital

01. Financing Information

The Layer2 rollup bridge Orbiter Finance announced on 29 November that it has closed its first round of funding for an undisclosed amount with participation from A&T Capital, Tiger Global, Matrixport, Starkware, Cobo Ventures, GGV, Mask Network, Zonff Partners, etc.

Orbiter Maker is going to release the testnet soon, and the project will enter the second phase and put more effort into the design of the algorithm application and cross-chain scaling scheme, aiming to create a ZK Aggregated Middle-layer. Orbiter also expressed thanks to Vitalik Buterin who previously donated 16 ETH to the project.

02. Why Should We Invest in Orbiter Finance?

1 ►The Logic of Investment

1. Under the Current Technical Framework, the Assets on the Rollup Chain Cannot Directly Be Transferred, and There Are Obvious Demands for Cross-Chain Bridges

Demand for Layer 2 Asset Transfer: At present, if users transfer assets from rollup A to rollup B, they have to first transfer assets from A to the main network, wait for a long withdrawal time, and then transfer from the main network to rollup B with a high gas fee. As the demand for Layer 2 asset cross-chain increases, cross-rollup for cross-chain bridge solution will also become Layer 2’s technical infrastructure.

2. Program Unique& Fast Progress, and Supported By L2

Advantage of Uniqueness: From the perspective of program design, Orbiter is the only framework that can support cross-chain assets of non-contract chains. This obvious uniqueness makes Orbiter the only bridge supported by the zkSync main network and is adopted by its official wallet; at the same time, it is also the first cross-chain bridge to land on the StarkNet test network, and has received official financial support from Starkware.

Excellent User Experience: Compared with other mainstream cross-chain bridges such as Anyswap and Hop, Orbiter is a little faster in cross-chain (the transaction can be completed in a few seconds), and the slip-free transaction experience brought by 1:1 exchange is also better than the mainstream swap.

3. The Team Has Excellent Insight into Market Opportunities and Great Execution

High-Performance Team: The team is highly sensitive to market opportunities, especially the development trend of Ethereum that Vitalik intends to guide; at the same time, once the opportunity is identified, the team have top tier execution in the industry, and can quickly establish themselves through excellent product strength in the core of the Ethereum ecosystem.

2. ►Industry Trends and Status

1. The Cross-Chain Bridge Technology Is Becoming More and More Mature. It Has Big Role and the Demand Is Obvious:

As the other chains beyond Ethereum becomes more and more mature and there are increasing applications on it, people increasingly transfer assets between chains to use these practical applications.

Recently, as the cross-chain technology is in full bloom, users constantly conduct cross-chain operations in the chain environment (rather than through centralized exchanges), and the cross-chain bridge has achieved good results.

2. The Rollup Cross-Chain Bridge Between L2 Just Emerging

Under the previous Layer 2 framework, assets could not be transferred directly between rollups. If a user wants to transfer assets from Rollup A to Rollup B, he has to wait for a long withdrawal time, and first transfer assets from Rollup A to the main network, and then transfer from the main network to Rollup B with a high gas fee. With the increasing demand for Layer 2 cross-chain of user assets, there are obvious opportunities for Rollup cross-chain bridges.

3 ►Business Brief

1. Operation Mechanism:

The market maker deposits an excess margin into Orbiter, and sets the service fee rules in the agreement. The Sender sends the tokens to the market maker address on the source Domain, and then the market maker sends them back to the Sender on the target Domain, complying with the charging rules promised by the agreement.

The staking agreement between Maker and Orbiter guarantees the security of assets. If Maker defaults, Sender can use the 4-digit identification code to ask Orbiter to compensate with Maker’s deposit.

Orbiter plays the role of bookkeeping and settlement, dispute resolution, and custody deposit.

2. Currently Supported Cross-Chain Networks and Asset Types:

Domain support: Ethereum Mainnet, zkSync, Starknet(Goerli), Arbitrum, Polygon, Optimism, Arbitrum Nova, Loopring, Metis, Boba, ImmutableX, BNB Chain

Token support: ETH, ERC20

About A&T Capital:

A&T Capital is an early-to-growth stage venture fund for emerging disruptive technologies. Led by three founding partners based out of Berlin, Singapore and Shanghai, we are supported by a global dynamic team of researchers and analysts. Our varied backgrounds in high tech, TradFi and venture capital help us understand what is essential for a startup to succeed. In 2021, we raised 100M pool of funds. Our portfolios include Amber Group, Cobo, Gnosis Safe, Nestcoin, Infstones, Consensys, and Commonwealth.

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