Layer 2 Summer | Weekly Recap
Optimism, Arbitrum, and Polygon are kicking off DeFi Summer Round 2
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Dear Bankless Nation,
Ethereum’s layer 2 is going to hit crypto like a tidal wave. 🌊
Here’s the setup…
Ethereum on DeFi exploded in 2020…ding! ding! ding! product market fit! 🚨
The problem?
We don’t have enough trustless blocks for our DeFi transactions. Too much demand and not enough supply means high transaction costs. Users priced out. Apps priced out.
So along comes Binance Chain…an Ethereum computer inside a centralized casino. Not ideal, but it works out of the box with DeFi tools. Transaction demand explodes!
Then comes Polygon. Still not a layer 2 yet (remember—layer 2’s are fully secured by Ethereum) but it’s more socially aligned with DeFi and has an ambitious roadmap, including infinite sidechains! Demand explodes even more!
We have the data. People want Ethereum’s DeFi without the massive gas bill and there’s billions locked in Polygon to prove it. (Aave w/ $7B locked alone 👀).
That’s where we find ourselves now as we enter summer 2021.
But by the time you read this Arbitrum will have deployed on mainnet. (We’ve invited them on the show next Tuesday 👀). Arbitrum will be first true layer 2 with full EVM compatibility, making it easy for developers to deploy DeFi apps. I expect it will ship with DeFi apps. We’ll see how Arbitrum fairs on the market, but builders seem excited (Uniswap community begging to deploy on it!).
Then after Arbitrum comes Optimism—July? Many of our favorite DeFi protocols like Synthetix and Uniswap have already committed to deploying on it.
All the while we have Starkware Layer 2 applications like dYdX, immutable X, and DeversiFi gaining steam while Loopring keeps chugging away.
Fire up your block explorers folks.
It’s going to be a fun summer.
But let’s take it a week at a time! Here’s what lined up for next week:
William’s going to show you how to use Uniswap V3
We talk to Eric Wall the ALT SLAYER (was he wrong about ETH?)
David has a piece on the future of work.
Let’s get to the recap.
- RSA
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Recap for the week of May 24th, 2021
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Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
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This is such an exciting time for the crypto world and for us who have been around for so long just knowing that there is something there. All the while having to listen to people who do not understand what we see putting it down and not listening to the facts. That's ok, I will be the one laughing really soon