A quick look at the progress and ecology of 7 Layer 2 expansion projects in 2021

2021 is a year of rapid development of the Layer 2 ecosystem. Chaincatcher has counted the main progress and development status of seven major projects in 2021, including Arbitrum, Starkware, Optimism, zkSync, Metis, Boba Network, and Aztec.

1. Arbitrum

Arbitrum was originally an academic expansion project at Princeton University. In 2020, it was constructed by Offchain Labs, a world-class team composed of researchers, engineers and Ethereum enthusiasts, and launched a testnet in October 2020. Arbitrum solves the trilemma of blockchain: scalability, decentralization, and security. Arbitrum rollup has the ability to expand the scale of Ethereum without affecting the decentralization and security of the main network. It is also the most compatible EVM solution.

At present, mainstream projects such as Aave, Curve, MakerDAO, Chainlink, MCDEX, Uniswap V3, WePiggy, Sushi swap, and SynFutures are all deployed to Arbitrum. According to data from L2BEAT, as of January 6, the total lock-up volume on Ethereum Layer 2 has reached 6 billion U.S. dollars. Among them, Arbitrum is the expansion plan with the highest lock-up volume, which is 2.74 billion U.S. dollars, accounting for 46.8%.

At present, projects with Arbitrum as the main construction focus include GMX, Dopex, Tracer, Premia, Umami Finance, Swapr, Cap and other projects, and the lock-up amount is more than 20 million US dollars.

Main progress:

On May 28, 2021, Arbitrum will open the mainnet beta version of Arbitrum One to developers.

At the end of August 2021, Arbitrum developer Offchain Labs announced that it has completed a US$120 million Series B financing with a valuation of US$1.2 billion. Lightspeed Venture Partners led the investment. Polychain Capital, Ribbit Capital, Redpoint Ventures, Pantera Capital, Alameda Research, and Mark Cuban participated. cast.

On September 1, 2021, Offchain Labs announced the official launch of the Arbitrum mainnet. It has removed the whitelist mechanism and opened all projects to users. At the same time, it announced the asset bridging tutorial. At the same time, Arbitrum also launched a $1 million vulnerability bounty program on the Immunefi platform, which is mainly used to reward the discovery of vulnerabilities at the smart contract level.

In October 2021, Arbitrum’s permission-free token bridging function will be open to all projects. The default bridging contract type of this function is standard ERC-20, which supports basic ERC20 functions and transferability on L1 and L2; in addition, it also supports custom ERC-20, allowing project parties or individuals to deploy governance and management of ERC20 tokens. Features such as snapshots.

In October 2021, Arbitrum announced that it will launch the next version of Arbitrum One, Arbitrum Nitro, which is more compatible with EVM and is an order of magnitude faster than current technology. The team expects that after Arbitrum Nitro runs, the second layer execution speed will be increased by 20 to 50 times, and the cost will be reduced.

2. StarkWare

Founded in 2018, StarkWare is an L2 expansion solution based on STARK and ZK-rollups technology. It aims to provide secure, trustless and scalable operations for blockchain applications. Currently, StarkWare’s total TVL has reached 1.21 billion U.S. dollars, dYdX, Sorare, DeversiFi, Immutable X, Celer Network and other important protocols are all deployed on StarkWare. No tokens have been issued yet.

Main progress:

In March 2021, Starkware completed a US$75 million financing led by Paradigm, followed by Sequoia, Founders Fund, Pantera, Three Arrows and Alameda Research.

In November 2021, StarkWare raised US$50 million in Series C financing with a valuation of US$2 billion. This round of financing was led by Sequoia Capital. Other investors include Paradigm, Three Arrows Capital, Alameda Research, IOSG Ventures, and Founders Fund etc.

At the end of November 2021, StarkWare launched the StarkNet Alpha mainnet based on the ZK Rollup concept, supporting the composability with other StarkNet contracts and through L1<>L2 messages and L1 contracts.

In December 2021, StarkWare proposed the Layer 3 solution.

3. Optimism

The Optimistic Rollup solution adopted by Optimism is easier to support universal smart contracts, that is, some current popular DeFi projects can realize Layer 2 seamless migration faster. By running calculations off-chain, Optimism can reduce Ethereum gas fees by 10,000% or more and increase throughput by 200 times.

At present, the main projects of Optimism ecology include Synthetix, Lyra, Uniswap, Perpetual Protocol, etc.

Main progress:

In January 2021, a testnet based on the Ethereum mainnet will be launched, with the in-depth participation of Uniswap, Compound and Synthetix, a synthetic asset.

In February 2021, Optimism completed a US$25 million Series A financing led by a16z.

 In August 2021, Optimism supports the USD stable currency USDC, and users can choose USDC to deposit on Optimism Gateway.

In September 2021, Optimis doubled the throughput limit of the main network. Before starting to limit higher gas prices, up to 200,000 transactions can be processed per day.

In November 2021, Optimism completed the EVM (Ethereum Virtual Machine) equivalent upgrade and merged the OVM2.0 changes into its main branch.

In December 2021, Optimism abolished the whitelist and fully opened the permissions to deploy applications.

4. zkSync

zkSync is an extended solution for L2 developed by Matter Labs that uses ZK-Rollup technology to process transactions on the Ethereum blockchain while still maintaining its security. The gas fee on zkSync is equivalent to 1% of Ethereum gas, which is cheaper than using Optimistic Rollup, 2000+ transactions per second (tps), while it is 14 tps on Ethereum. In addition, assets can be moved back to L1 at any time.

Major events in 2021:

In May 2021, zkSync launched the zkSync 1.x testnet, which supports NFT and exchange functions.

In June 2021, zkSync 2.0 was launched on the Alpha version of the zkEVM testnet. Users can use the block explorer to view activities on zkSync 2.0.

In August 2021, Matter Labs announced that the zkSync 2.0 version will be postponed.

In November 2021, the zkSync development team Matter Labs completed a $50 million financing led by a16z. Placeholder, Dragonfly, 1kx, Blockchain.com, Crypto.com, Consensys, ByBit, OKEx, Alchemy, Covalent, etc. participated in the investment.

From November to December 2021, the zkSync development team Matter Labs has successively reached cooperation with OKEx, Huobi, Banxa, etc., to provide legal currency entry and exit for the project.

5. Metis

Meits is a Layer 2 + DAO basic protocol that uses the Optimistic Rollup technology route. It launched the Alpha testnet in April this year and the mainnet in November this year. The current TVL is nearly US$270 million.

The main project of Metis ecology is the decentralized trading platform Netswap, and the total TVL currently exceeds $85 million.

Main progress:

In March 2021, Metis completed the A round of financing. Investment institutions include OK Block Dream Fund, ConsensusLab, YBB Foundation, Gate.io, etc.

In November 2021, Metis announced the launch of a $100 million ecological fund with its partners, which will be allocated to projects in vertical fields including DeFi, games, and DAO.

In December 2021, Metis successively cooperated with Poly Network, cBridge and other cross-chain bridges to support users to transfer other network assets to the Metis network.

6. Boba Network BOBA )

Boba is the next-generation Ethereum Layer 2 Optimistic Rollup expansion solution that can reduce Gas fees, increase transaction throughput, and expand smart contract capabilities. It was built by the Enya team as the core team of the OMG Foundation, Enya, and renamed from OMGX Network. Boba provides fast exit backed by a community-driven liquidity pool, shortening the Optimistic Rollup exit period from 7 days to just a few minutes.

Currently, Boba’s TVL is about 420 million U.S. dollars, and the main ecological project is the decentralized exchange OolongSwap.

Main progress:

In August 2021, Enya, a developer of decentralized infrastructure solutions, launched the mainnet beta version of Boba Network.

In September 2021, the Boba mainnet was launched, and the OMG Foundation launched a new governance token BOBA for the network.

In October 2021, the OVM 2.0 version of the Boba Network mainnet will be launched. Developers can deploy contracts on the Ethereum Layer 1 on the Boba Network without modification.

In December 2021, the cross-chain network cBridge supports Boba Network.

7. Aztec

Aztec is a Layer 2 solution that pays particular attention to privacy issues in the current Ethereum ecosystem. It aims to bring scalability and privacy to Ethereum, and is committed to achieving affordable private encrypted payments through zero-knowledge proof. Currently, Aztec’s TVL is $8.66 million.

Main progress:

In March 2021, Aztec officially launched Aztec 2.0 Rollup on the mainnet, and has enabled the privacy Rollup service and Block Explorer for ETH.

In December 2021, Aztec Connect, the private bridge Aztec Connect for Ethereum DeFi, has been launched on the testnet, which can save up to 100 times of gas and completely private transaction defaults.

In December 2021, Aztec Network completed a US$17 million Series A financing led by Paradigm.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a-quick-look-at-the-progress-and-ecology-of-7-layer-2-expansion-projects-in-2021/
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