Editor's Note: This article comes fromMengyan Finance (ID: Meng-eyes), reprinted by Odaily with authorization.
Mengyan Finance (ID: Meng-eyes)
Mengyan Finance (ID: Meng-eyes)
, reprinted by Odaily with authorization.If 2020 was the year Ethereum (ETH) surpassed everything, 2021 could be the year of Ethereum’s Layer 2 solutions. So, which layer 2 solutions offer the best yield farming and which ones are likely to be airdropped?Why does Ethereum need a Layer 2 solution?
Let's face it, Ethereum is facing gas issues right now, with extremely high network fees. While plans for Ethereum 2.0 have been around for years and the Beacon Chain has been rolled out, the protocol has not grown as fast as it has gained popularity. At best, Ethereum is still only able to handle 30 or so transactions per second, so competition for space has also driven the average fee on the network to over $15.
More importantly, an important driving force for the development of ETH is decentralized finance (DeFi). Whether lending, borrowing or decentralized exchanges, users will pay a high premium to use the world's largest smart contract system. Not only is it technically feasible, but it also has a huge core of developers, and its security has passed the test of time.But one of the things about blockchain is to let people around the world pay a few pennies quickly, right? So, while Ethereum 2.0 won't happen until at least December 2021, some clever developers have come up with some clever solutions, the Layer 2 network.How does the 2 layer solution work?
Layer 2 solutions vary in function and purpose, but the basic premise is the same, which is to be a faster copy of the Ethereum network, where users can upload funds, transact transactions and withdraw cash quickly, and the price is less than a penny.
A number of Layer-2 solutions have emerged recently, especially those connected to Uniswap-style automated market makers (AMMs). So can Layer-2 save Ethereum in the short term?
Which layer 2 solutions might airdrop tokens?Perhaps the more important or pertinent question is "how to make money with layer 2 solutions?" Will these new AMMs do Uniswap-style airdrops? Here are three layer 2 solutions to look at and perhaps interact with.Loopring (LRC) and Loopring ExchangeMaybe the Uniswap craze is gradually fading, because the fees for using Uniswap to trade or unlock tokens are astronomical, and people are gradually getting tired of the high fees, but AMMs will always exist.But what if you could trade without paying these fees? What if there was a more traditional exchange?The Loopring Protocol (LRC) has been around for over 2 years and now, with the release of the third version of the protocol, its token has also risen a lot. The Loopring protocol essentially allows users to upload ETH to exchanges. They can then exchange or trade their ERC-20 crypto assets on the layer 2 network with a fraction of the transaction fees on Uniswap and almost instantly.According to data from DeFi Pulse, the total locked value of the Loopring Protocol will skyrocket in 2021 (as shown in the figure below).
Currently, the Loopring protocol also provides some good yield mining benefits. However, because these gains were so substantial, the deposited funds skyrocketed and eventually led to the shutdown of the site.
So, Loopring launched a token and is still doing yield farming. The purpose of the LRC token is to charge a portion of transaction fees when staking.But LRC is not a governance token. And what are 1inch and Uniswap airdropping? That’s right, governance tokens. Therefore, the Loopring protocol still has the opportunity to airdrop to users.Have you ever wondered if your favorite crypto influencers really make the money they say they do? dHedge (DHT) allows users to pool their assets with traders.dHedge uses the Synthetix Layer 2 protocol to mint synthetic assets and track pools of funds from different traders in a decentralized manner. Users can deposit sUSD through synthetix and trade at will in the pool.dHedge’s tokens are rewarded to liquidity providers and even those investing in blue-chip assets. It is also a governance token, so what are the chances of its airdrop?
Using Synthetix to tokenize the pool is smart, and if Synthetix can decently transition to the new layer 2 solution, the total locked value of the protocol could be much more than the current $1.82 billion.
Directing traffic and encryption to syntix and dHedge would be a great way to make users aware of layer 2 implementations. Then someone might consider giving away free tokens to spread the word.However, dHedge made it clear that DHT is not for speculation, but for governance, so you absolutely cannot hope to make money by holding dHedge. Do you know?Optimistic Rollups and SynthetixFounded in January 2020, Optimism is an organization dedicated to scaling Ethereum, formerly known as the Plasma Group. Optimism also uses Synthetix to achieve its goals.Optimism is also doing Rollups like the Loopring protocol (called Optimistic Rollups), and revealed some hints about tokens. According to its documentation, anyone can be an aggregator, but it doesn't mention a method.What would be the method? Perhaps through a governance token that has not yet been announced to the public. At that time, the Optimism airdrop plan will be mature.Evidence: Optimism has stated in the past that they have no plans for a token yet.Optimism will also offer stakers the opportunity to make deposits or margins through smart contracts. Essentially, aggregators with a good history of integrity, stakers are rewarded with one token. And this bonded tokens and rewards are considered Ethereum.
This "bonding" drastically reduces the amount of hashing required to confirm transactions, as historically honest nodes are more trusted. So, Optimism tokens may already be on the way.
let us wait and see. However, since Optimistic Rollups are not yet in full swing and are not used by any exchanges, it is not clear how to interact with them to get free tokens.However, the Synthetix Mintr layer 2 testnet does allow users to stake or mint tokens.
