Arbitrum Orbit Embraces LayerZero’s OFT Protocol and Utilizes OFT as Its Gas Token.
In Brief
LayerZero Labs has confirmed that its Omnichain Fungible Token Standard, co-created with Offchain Labs, is now part of Arbitrum’s Orbit Chains.
A developer specializing in blockchain messaging protocols LayerZero Labs has disclosed that its Omnichain Fungible Token (OFT) Standard, co-developed with Offchain Labs is now part of Arbitrum’s Orbit Chains, a blockchain structure designed for launching Layer 2 and Layer 3 networks.
This development ensures that OFTs can seamlessly operate within Arbitrum Orbit chains, allowing them to be utilized as native gas tokens. This milestone marks the first occurrence of a third-party interoperability protocol's token standard being acknowledged as a native token across any rollup framework.
LayerZero Labs LayerZero has established a bridging system that directly incorporates the OFT standard into Arbitrum's Orbit bridge contracts. This arrangement merges the OFT tokens from both bridges into a unified 'lockbox' contract functioning on the Arbitrum Layer 2 and the respective Orbit chain.
This integration aims to tackle asset splitting issues and potential race conditions by delivering consolidated liquidity and fluid bridging capabilities.
While both bridges maintain their independent operations, the shared lockboxes combine the liquidity of the OFT token, eliminating the need for two separate bridged versions of the same asset. The seamless bridging process also reduces race conditions by ensuring the locked OFT supply on Layer 2 aligns with the unlocked supply on the Orbit chain, and vice versa.
The addition of LayerZero’s OFT standard alongside an Orbit chain’s shared 'lockbox' allows users to send and receive OFTs across Arbitrum, Orbit Layer 2, and Layer 3 blockchains, as well as to over 90 other blockchains linked through LayerZero.
How Does OFT Bridging Work?
To enable OFT bridging, users are prompted to transfer a designated number of tokens from their wallet on the Arbitrum and secure them in the shared lockbox on Arbitrum Layer 2. Once the specified amount is secured, the OFT is activated to send a notification for unlocking that number on Layer 3 blockchain. The LayerZero Endpoint then forwards this message to the corresponding LayerZero Endpoint on Layer 3, where the AdapterOFT processes it and releases the stated quantity of tokens from the locked supply on Layer 3.
As a prominent player in the Layer 2 blockchain space, Arbitrum commands about 40% of the market share, gauged by total value locked (TVL) in comparison to all other Layer 2 blockchains. Furthermore, Arbitrum Orbit the expansive ecosystem of Layer 2 and Layer 3 based on Arbitrum's Nitro tech stack now comprises 50 blockchains, making it the largest collection among all blockchain structures.
Disclaimer
In line with the Trust Project guidelines It's important to emphasize that the information shared on this page isn't meant to serve as legal, tax, investment, financial, or any other form of guidance. Always invest only what you can afford to lose and consult a financial advisor if you have uncertainties. For more details, we recommend reviewing the issuer's or advertiser's terms and conditions along with their help and support resources. MetaversePost strives for accurate, impartial reporting, but please note that market dynamics can shift unexpectedly.
