Ecosystem Overview Optimism – Layer 2 is extremely potential on Ethereum
Does DeFi on Optimism really have potential? What stage is DeFi on Optimism at? Learn about the Optimism ecosystem right here!!!
In recent times, ecosystems have continuously taken turns to achieve strong growth, especially in the context that transaction fees on the Ethereum network are already too high.
Therefore, Layer 2 solutions that are compatible with Ethereum and can easily scale up Dapps are one of the extremely preferred options on both the project side and the user side.
In this ecosystem overview, I will join you to an ecosystem that has received a lot of attention from the Ethereum community recently, which is Optimism.
To help you keep up with what is happening in the Optimism ecosystem, I will go with you in turn through the arrays in this ecosystem, to have the most overview of the system, thereby looking for opportunities. investment association.
Does DeFi on Optimism really have potential? And what stage is DeFi on Optimism at? We will find out through the next article!
Overview of Optimism
What is Optimism?
Optimism is a layer 2 project for Ethereum consisting of 3 main components:
- Ethereum mainnet: Optimism’s Layer 1 native security platform.
- Optimistic Rollup: The core of Optimism’s scalability.
- Optimistic Virtual Machine (OVM): A virtual machine compatible with Ethereum, making projects work like they are on L1 Ethereum.
Highlights of Optimism
The outstanding features of Optimism’s Blockchain include:
- Transactional experience: With fast processing speed, gas fees will be reduced by 10-100 times compared to current gas.
- Convenient for Dapp Scaling, Scaling, and Deployment: With full EVM support, Ethereum dapps or other EVM-compatible Dapps in other EVM-compatible ecosystems can be run on layer 2 with just a few lines of code.
- Security: L2 retains the strict level of security of Layer 1 Ethereum.
Outstanding parameters of Optimism (October 23, 2021):
- Total number of separate wallet addresses: 211,000;
- Highest number of wallet addresses created in a day: 16,128 on 12/9/2021;
- The largest number of platform transactions of the day: 89.593 on September 12, 2021;
- Number of projects running on Optimism: 31 projects;
- Uniswap swap fee: $2.65;
- Network token transfer fee: $0.75;
- Deploy Dapps without permission: No.
You can see more parameters of the platform here.
Ecosystem Overview Optimism
Currently, the Optimism ecosystem is not open to all Dapps that can be deployed on Optimism without permission.
Therefore, only a few Dapps currently authorized to deploy can operate their Dapps on Optimism. Next, I will give you an overview of the Dapps that are already working on this Layer 2.
Overview of the Optimism ecosystem
Currently, on the Optimism ecosystem, there are DEXs including:
- Uniswap V3: Uniswap V3 was one of the first applications posted to Optimism, with the community extremely supportive of developing Dapps on this L2.
- Rubicon: A DEX that uses an orderbook mechanism. The app’s TVL is at just $4.5 million, the app has very little liquidity.
- 1Inch: 1Inch has many protocols, including Aggregator, Liquidity Pool and Governance, but only protocol Aggregator works on Optimism. However, because on Optimism, the only liquidity DEX floor is Uniswap, so 1Inch also only has a single swap source, Uniswap.
Currently, Uniswap V3 is the only DEX on Optimism with significant liquidity, and it is unclear in the future when Optimism will open the possibility of self-deploying Dapps without permission on top of Optimism.
I think then, other DEXs will also put their products on Optimism, because this is a very popular L2 solution.
Regarding TVL, there is currently $39 million in TVL on Uniswap – a relatively modest number for the top DEX.
The Uniswap community is also very excited and supportive of Uniswap’s expansion to Optimism, so it is possible that Uniswap V3 will soon have incentives for users on the platform.
As you can see, currently the only DEX on Optimism is Uniswap, and the Uniswap community also wants to promote Uniswap on Optimism.
So it is entirely possible that Uniswap has a next airdrop for Uniswap users on Optimism, to promote and attract users on this L2.
You can test it out if you want to get a chance to receive the 2nd Uniswap airdrop.
The Optimism ecosystem has the following Derivatives & Options puzzle pieces:
- Synthetix: Synthetix was one of the first apps that worked on Optimism. Synthetix’s operation on Optimism brings the operation of a major stablecoin in the market on Optimism – sUSD.
- Lyra: An options app built natively on Optimism. The TVL of this protocol on Optimism is $18 million, with $10 million in the sUSD-DAI pool to stimulate liquidity of this stablecoin pair and create incentives for users on L1 to move their Liquidity from Ethereum to Optimism to create liquidity for sUSD – a very important asset to the protocol.
- Kwenta: An application for trading real world assets and on-chain derivatives, built on Synthetix. Currently, the supported derivatives are sUSD, sETH, sBTC, sLINK.
Currently, the application with the largest TVL in this segment is Synthetix with $23 million.
However, Synthetix’s dominance in this area is extremely clear, as all other protocols in the current system depend on the sToken assets that the project issues: sUSD, sETH, sBTC, sLINK.
As you can see, Synthetix is having the leading edge of this sector not only in their early upgrade to Optimism, but also in the fact that they have an ecosystem of protocols that depend on and develop on their product.
If other derivatives applications develop later, they certainly won’t be able to have an advantage like Synthetix, because having products on their own and having a product ecosystem like Synthetix is not fast.
The Optimism ecosystem has the following bridging solutions to the system:
- Optimism Gateway: You can only transfer ETH from L1 to Optimism using Optimism Gateway. Therefore, this is the main bridge to transfer native ETH.
- Hop Exchange: This is an option for you to put ETH and 3 stablecoins USDT, USDC, DAI from Ethereum, Arbitrum, xDAI, Polygon to Optimism and also withdraw funds.
- Celer Bridge: The bridge connects Optimism with systems including Ethereum, BSC, Polygon, xDAI, Avalanche, Fantom,… You can use this bridge to put stablecoins, ETH or some tokens on topLayerSwap: Bridge allows to withdraw assets from CEX exchanges to chains, including from Coinbase, Binance, FTX, Huobi to Optimism. Optimism.
- Poly Network: An intermediate chain bridge solution with over $600 million in TVL.
- Connext: A multi-chain bridge solution including Polygon, xDai, BSC, Arbitrum, Fantom, Moonriver, Avalanche and Optimism, with major assets in ETH, DAI, USDT, USDC.
- Teleportr: A bridge solution that allows to bridge from Layer 1 Ethereum to Optimism.
As you can see, the bridge infrastructure on the system is relatively complete. My own experience with these bridges is good and there are no difficulties during use.
Therefore, the cash flow was able to go in and out of this ecosystem easily, creating conditions for the development of the Optimism ecosystem.
The Optimism ecosystem already has the following infrastructure pieces:
- Chainlink: The largest Oracle is on Optimism, to start providing data to Dapps on the ecosystem.
- OG Gnosis Multisig: An infrastructure piece that allows creating multisig on the Optimism system.
- Other infrastructure pieces include: QuickNode, Tenderly, Get Block, Alchemy, Infura, Dune Analytics and Rari Capital Nova… with many features such as providing APIs and developer tools on Optimism.
- Etherscan: Optimism’s Blockchain Explorer.
- The Graph: Index protocol on Optimism.
As far as I can see, on Optimism, there are relatively enough pieces of infrastructure to help these Dapps on L2 develop.
Projection on the Optimism ecosystem
Currently, you can see that the Optimism ecosystem is in the early stages of completion. In the coming time, the milestones I look forward to in this Layer 2 include:
- Allows deployment of smart contracts on the layer without permission. At that time, the ecosystem will begin to grow strongly, not only by Dapps on Layer 1 but also by native Dapps developing on the platform.
- Moreover, as gas costs on Layer 1 are increasing day by day, protocols also tend to develop and test new product features on less expensive solutions like Arbitrum, Optimism or Polygon, etc.
Currently, there are no significant investment opportunities on the Optimism ecosystem. In addition, the competition of Layer 2 is relatively significant at the moment.
Arbitrum has led in Layer2 Optimistic Rollups solutions, Boba Network has mainnet and surpassed Optimism in terms of TVL, Metis has launched a 100 million investment fund to stimulate the ecosystem.
Optimism has a lot of competitors at the moment.
Hopefully, through the above article, you have had a better overview of the Optimism ecosystem, understand the situation of the arrays on Optimism, and know which areas to invest time in looking for opportunities.
Do you think the next time will be the explosion of the Optimism ecosystem, when Ethereum Layer 1 is too expensive?