About Orbiter Fee

Orbiter_Finance
2 min readJan 17, 2022

There are two parts in the fee, withholding fee and trading fee.
Total fee = withholding fee + trading fee

① A withholding fee is to pay Maker’s gas fee when transferring funds to the destination network.

This value needs to be written into the Orbiter’s contract, and when it needs to be changed, it will take a long time to take effect, so the value of the fee cannot be equal to the gas fee on the destination network real-time. Therefore, a withholding fee can only be a preset fixed value.

Makers should avoid losing their funds when the transfer gas fee has erratic fluctuations on the destination network. So Makers take the mid-high one as a value of withholding fee. (For example, the cost of transferring to the unactivated zkSync’s address is about $2, and the recent fluctuation range of the mainnet is 100GWEI-600GWEI. )The extra part is the Makers’ basic income.

In general, when Arbitrum and zkSync are the destination networks, the Makers’ basic revenues are -$0.5 ~ $1.5. When the mainnet is the destination network, Makers’ basic revenues are -$1.5 ~ $6.

If withholding fee > dest gas fee, the excess part will be earned by market maker.

If withholding fee < dest gas fee, the market maker bears the losses.

② Trading fee, is 0.2% to 0.3% of the transaction amount.
At present, ETH trading fee is 0.2%, USDC trading fee is 0.3%.

Market maker will be allowed to provide liquidity decentralized in 2 or 3 months. Then, Market maker can decide the withholding fee, trading fee, amount limits and token types by themselves. In a fully competitive environment, senders will enjoy reasonable transfer costs and market makers will earn enough to be activated to add sufficient liquidity.

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Orbiter_Finance

Orbiter Finance is a decentralized cross-rollup Layer 2 bridge with a contract only on the destination side.