Not waiting for Ethereum 2.0, DeFi protocols have migrated to Layer 2 to solve the problem of high handling fees
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
, Author: MARTIN YOUNG, Compiler: Kyle, published with permission.
With ethereum gas fees skyrocketing and the network struggling as demand rises, numerous decentralized finance (DeFi) protocols are racing to implement layer 2 scaling solutions.
Popular DeFi platforms including Uniswap, Aave and Synthetix are getting closer to launching their own scaling solutions.
Synthetix, an on-chain synthetic asset protocol that tracks the value of real-world assets, will upgrade to an original version that implements L2 scaling on Sept. 24.
According to a blog post by Synthetix founder Kain Warwick, the “Fomalhaut” upgrade is the first phase of an L2 migration to Optimistic Ethereum. This is an incentivized testnet designed to ease gas costs for small SNX stakers, who currently pay hundreds of dollars in weekly fees to collect their rewards.
On September 29th, Synthetix will have a second upgrade called “Deneb,” which also includes measures to reduce gas fees. Warwick added:
“Both of these upgrade releases were in direct response to rising gas costs due to congestion on the Ethereum network. Some of these changes were evident as we transitioned to Optimistic Ethereum, and the changes included in these two releases are a step toward L2 First steps in Synthetix.
He concluded that L2's hybrid approach will likely carry Synthetix through the end of the year. Optimistic rollups are L2 solutions that scale Ethereum smart contracts and dApps up to 2000 transactions per second.
As the world's leading DeFi DEX, Uniswap is also developing Uniswap V3 and is looking forward to a major upgrade. When asked about V3 earlier this year, Uniswap founder Hayden Adams said that V3 would “fix everything,” implying that L2 could be an important part of its upgrade.
There is already a basic demo of the L2 version of the token exchange protocol on unipig.exchange. Unipig with Optimistic rollups was launched in October 2019.
London-based lending protocol Aave, the second most popular DeFi protocol in terms of total value locked, is preparing to launch a second version of the platform that will simplify operations to lower transaction fees.
