What are the application scenarios of Layer2?

Ethereum is the primary infrastructure for open applications worldwide. But due to its unique design, using the network during periods of high demand can be expensive and slow- after all, there is only so much block space available. 

In other words, Ethereum will eventually expand on the base layer through Eth2, which will greatly increase its transaction throughput. But Eth2 expansion has to wait for a long time, is there any way to not wait that long?

The answer is the Layer 2 solution 

The 2-layer network solution is built on Ethereum (off- chain, reducing the congestion of the main chain ), but directly relies on the security and finality of Ethereum to provide near-instant and affordable Ethereum transactions, such as transfers, Transaction or staking. 

These L2 systems are not just theoretical, there are currently multiple L2 solutions in use, and new L2 projects and integrations are being born every day . As of this writing, there are 300 million dollars encryption money is through two major L2 model ( ZK Rollups and Optimistic Rollups) protection .



Now is the era of L2 solutions, this article provides you with 7 ways to participate in L2, and let you get started ?

1. UseAaveIn Pol ygon borrowing on

Earlier this year,Matic(An extended project that revolves around Matic Plasma Chain and Matic PoSThe side chain carried out extensive work) and was renamed Polygon as part of the move towards “Ethereum’s Blockchain Internet”.

As part of the name change, the team will now adopt Optimistic Rollups, ZK Rollups, and other content. 

After shortly, DeFi loan agreement leading Aave release New Frontiers, the event will allow the project using a series of scalable solutions, so that the user can choose. In the same announcement, Aave revealed that the expansion of activities of the first integrated with the side chain of the Polygon PoS integration 

It is important to emphasize that this side chain will not directly inherit the security guarantees of Ethereum like most L2s, but it does provide throughput similar to L2. In New Frontier, Aave and Polygon are likely to further coordinate the summary. 

At the same time, users can process Aave loans on the Polygon sidechain at a low price. First, make sure to add the Polygon network to the MetaMask wallet , then go to Aave and click on the “Polygon” market tab to see the available market opportunities. 



2. Decentralized transactions

dYdX is a decentralized exchange or DEX , which is known for providing decentralized margin, spot and perpetual trading on Ethereum. 

Traders want to trade as quickly and economically as possible. Fortunately, dYdX has just announced the launch of L2 perpetual transactions through StarkWare’s StarkEx scalability engine . 

StarkEx is both powerful and flexible. It can support on-chain data availability through ZK aggregation, or support off-chain data through Validium. No matter how much you want to divide, the engine will elevate the UX around dYdX perpetual trading to a new level. The permanent products that already exist in DEX’s L2 integration include:

  • BTC– USD
  • UNI- USD

3. Stake SNX, earn rewards 

Synthetix is DeFi’s leading derivative product project. If the asset exists, whether it is on any blockchain or in the real world, it can be traded as an on-chain synthetic asset through Synthetix. 

The core of this powerful protocol is betting, where users provide Synthetix’s native token (SNX) to the protocol for use in consolidating collateral. In exchange for this service, SNX can earn inflationary SNX rewards and transaction fees.

In early 2021, SNX mortgage inOptimismProgressive (OΞ) L2 of the same name team Optimistic Ethereum, As its name implies, it Optimistic Rollups technology.

Users can use the official Synthetix stakeout dashboard, deposit in SNX, and migrate the pledge deposit from L1 to L2.

In addition, the Optimistic entity currently has a 7-day withdrawal period. If you are anxious to spend money, you need to pay attention to this in advance.

4.LRC rewards 

When participating in DeFi, network congestion will increase the cost of “collecting vegetables”, and all operating costs such as authorization, transfer, and transactions will increase.

But if you useLoopringThe L2 is different.

Loopring is an exchange and payment protocol supported by ZK-Rollup technology. The builder of this project created Loopring Exchange to provide users with an automated market maker (AMM) experience with L2 advantages.



Since AMM relies on liquidity to thrive, Loopring currently holds liquidity mining to attract liquidity providers. Anyone who conducts Loopring’s LP can correspondingly get rewards denominated in the project’s native token LRC. 

5. Use DeversiFi to trade

Supported by StarkWare’s StarkEx scalability engine, DeversiFi is an efficient one-stop decentralized exchange that provides a series of services, including decentralized orders, OTC transactions, and free transfers.

This naturally makes dapp very suitable for trading popular DeFi series of tokens, such as UNI, MKR and AAVE. 

Of course, the Loopring AMM mentioned in the previous article can also be used to trade DeFi tokens, so this is not the domain of DeversiFi.

Advanced traders may like DeversiFi because it provides more trading functions than standard AMM, so if you are looking for a trading-centric L2 application, you can explore this. 

6. Donate to the Gitcoin project 

With the support of open source software (OSS), Gitcoin has become popular recently as a tool for obtaining remuneration for developers of open source software such as Ethereum and DeFi .

Gitcoin is known for its Gitcoin grants, project crowdfunding, and benefit from secondary funding (QF) and matching donations. It is worth noting that the project can receive donations through Gitcoin at any time, and what is amazing is that the platform has recently integrated support for zkSync, so users can save through L2 donations when needed. 

The process is very simple. Add one or more items, go to the checkout, and then select the “checkout with zkSync” option. At this point, you will be taken to the dashboard where you can deposit funds into L2. Can save a lot of gas fees .



This feature is very popular now. For example, in the 9th round of the latest Gitcoin grants, zkSync facilitated more than 80% of donations.


7. Pay on Superfluid

Superfluid is a money flow protocol that allows anyone to open a real-time payment flow to send money to it. The protocol utilizes two different scaling solutions, xDAI and Polygon, so users can choose according to their favorite tastes.

Users can passDAOProcess multiple incoming value streams and use these streams orNFTTo reward its contributors, these streams or NFTs represent music rights, and annual royalties are paid to NFT holders, then Superfluid is an application that can achieve this purpose.

One advantage of Superfluid is that the stream is not locked and you can still move freely between accounts. Moreover, users can also fragment the stream as needed, and forward it to another recipient according to any number of their choice, effectively establishing an interconnected wallet network that can exchange value in real time.

92wcbt3rz309oeubThe golden age of L2 activities has just begun, and now we are continuing to innovate and iterate. In the future, there will be more and more powerful functions and feasible solutions to further expand the ecosystem.

This article is supported by the Roasted Creators Alliance.

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