Arbitrum Takes on Layer 2

On May 29th, the Uniswap community passed the proposal to deploy Uniswap v3 on Arbitrum with nearly 100% support.

Arbitrum Takes on Layer 2

On May 29, the Uniswap community passed the proposal to deploy Uniswap v3 on Arbitrum with nearly 100 percent support. Uniswap v3 will be deployed on Arbitrum if the proposal is approved.

On the same day, Arbitrum development team Offchain Labs announced that it had deployed Arbitrum One, a beta version of the main Ethernet network, open to developers, and that more than 250 teams had applied for access to the developer beta network.

With Uniswap deployed and more than 250 teams applying, Arbitrum’s first-mover advantage seems to have manifested itself.

There are three questions to ponder while Arbitrum is on fire: Why is Arbitrum being chosen by the market? Who is choosing Arbitrum, and what problems might arise from this Layer 2 experiment?

01 Why has Arbitrum been chosen by the market?

First, Arbitrum, like Optimism, is a Layer 2 scaling solution based on Optimistic Rollup. So if you compare Arbitrum with a ZK Rollup-based Layer 2 scaling solution, Arbitrum can demonstrate the advantages of Optimistic Rollup.

Optimistic Rollup has an Optimistic Virtual Machine (OVM), which is compatible with the execution environment of the Ether Virtual Machine (EVM) and can support simple payments and complex smart contracts. This means that under ideal conditions dApp can port its code to Optimistic Rollup relatively easily. Although the security is not as good as ZK Rollup, the choice of Optimistic Rollup is relatively less difficult and has a higher possibility of landing in a short time.

Arbitrum has several advantages over Optimism.

Although both Arbitrum and Optimism use proof of fraud, Arbitrum uses multiple rounds of proof of fraud, while Optimism uses a single round of proof of fraud. Comparing the two different types of fraud proofs, multi-round fraud proofs bring two advantages.

First, it reduces costs by generating only one proof of state for a whole batch of transactions and publishing it to the chain.

Second, the Layer 1 blockgas cap no longer matters.

The third advantage, Arbitrum is fully EVM compatible and supports any EVM language (vyper, YUL+, etc.).

How important is it to be fully EVM compatible? dForce’s founding member, People’s Road, said bluntly in his circle of friends that Optimism’s failure to be 100% EVM compatible was a major strategic miscalculation, not to mention the delay in market launch.

The fourth advantage is obvious: the advantage of online time. As the leading Ethernet DEX, its leading role should not be underestimated.

02 Who is choosing Arbitrum?


The Uniswap community passed the “Deploy Uniswap v3 on Arbitrum” proposal with nearly 100% support, and based on Uniswap founder Hayden Adams’ previous commitment, deploying Uniswap v3 on Arbitrum is It’s a done deal.

The Uniswap founder has expressed his love for the Optimistic Rollup scaling solution and has been communicating with the Optimism team about the deployment before Uniswap v3 went live. According to recent tweets, the plan to deploy Uniswap v3 at Optimism has not changed, and deploying Uniswap v3 at Arbitrum is a move in line with the community’s wishes.


On May 31, the official SushiSwap Twitter account announced that SushiSwap has been deployed on Arbitrum.

The deployment of SushiSwap on Arbitrum is not a surprise.

Back on February 7 of this year, a community member named “cryto_navi” posted a proposal to deploy SushiSwap on Arbitrum Rollup on the SushiSwap forums, and at that time launched A poll was taken and the support rate reached 89%.

If this was just a proposal, then on May 26th SushiSwap co-founder 0xMaki tweeted “Arbitrum” as an outright endorsement.

SushiSwap has been exploring Layer 2 for a while now.

Back in early March, the SushiSwap CTO tweeted that he was considering the Layer 2 design and weighing the Rollup option.

In early May, SushiSwap completed its deployment on Polygon and turned on liquidity mining. As of now, the lockup volume of SushiSwap running on Polygon has reached $800 million, ranking third among Polygon’s on-chain DeFi projects in terms of lockup volume.


The decentralized perpetual contracts and futures exchange MCDEX, known as MonteCarlo DEX, is the first project to adopt the Arbitrum scaling solution. MCDEX has previously been running on the Arbitrum test network and is on track to deploy MCDEX v3 on the main Arbitrum network on May 28.

MCDEX explained the reasons for choosing Arbitrum in a Medium post in January of this year. In addition to the previously mentioned multiple rounds of interactive fraud to prove cost reduction and full EVM compatibility, there were two other reasons.

One is that Arbitrum offers more detailed documentation, code and a license-free test network compared to Optimism.

The second is that the sequencer model introduced by Arbitrum allows users to quickly confirm the status of transactions on Layer 2.


OKEx announced in early May that it is working with Arbitrum to bring Ether Layer 2 expansion directly to its users. OKEx will enable its functionality to allow its users to deposit directly to the Arbitrum mainnet without having to interact with Ether’s base layer. While Arbitrum determines the timing of the mainnet release, OKEx for its part is doing its best to increase the speed of integration.


DODO co-founder Diane Dai tweeted in February this year that she would deploy DODO on Arbitrum, and recently Puzzle Ventures Managing Partner Jerry Zhou revealed that DODO is one of the first projects to work with Arbitrum and will soon be available on the Arbitrum mainnet.

In addition to the aforementioned exchanges, Arbitrum launched Arbitrum Rollout on its test network in January this year to establish the DeFi Eco-Demo on Arbitrum’s test network.

The list published by Arbitrum at the end of January shows that six external projects are developing and participating in the DeFi demo on Arbitrum. they are

  1. decentralized exchange Bancor
  2. decentralized auction platform Bounce
  3. the AMM-based decentralized exchange BurgerSwap
  4. cross-Rollup transfer application HopProtocol
  5. decentralized perpetual contracts and futures exchange MCDEX
  6. multi-chain, governance-enabled AMM Swapr

In addition, the lineup of wallets, prophecy machines, tools, browsers and other infrastructure within the Arbitrum ecosystem is also very strong.

Supported wallets include MetaMask, MathWallet, Formatic, portis, WalletConnect, and Burner Wallet.

Arbitrum’s partner prophecy machine is Chainlink, and although it is currently the only one, Chainlink’s influence in the prophecy machine space somewhat influences projects to choose Arbitrum.

Tools within the Arbitrum ecosystem include Solidity, Vyper, the blockchain data indexing project The Graph, the Web3 blockchain cloud infrastructure platform Ankr, the ethereum development environment tool Hardhat, the blockchain data platform Blocknative, ethers.js, web3.js, Brownie and the blockchain development platform Alchemy.

On the browser side, Arbitrum recently entered into a partnership with Etherscan, who will develop a browser for Arbitrum, which is expected to be completed by the end of July.

03 Arbitrum is an experiment

What stage is Layer 2 at right now? The most impressive answer is Churchill’s famous quote: This is not the end, or even the beginning of the end, but only the end of the beginning.

The Layer 2 track is still early in its development, and the current scaling solutions on this track are all first movers.

With the delay in going live on the Optimism mainline, the opportunity for Arbitrum is really here. Many teams willing to deploy Layer 2 networks are choosing Arbitrum, as evidenced by the number of “over 250 teams”.

As more and more projects are deployed on the Arbitrum network, there will be problems in the future, and the problems will be part of this experiment.

In the short term, the speed of implementation is an advantage, but in the long term, Optimistic Rollup’s expansion solution still needs to be optimized to accommodate large-scale applications.

The Arbitrum One mainnet beta is currently only available to developers, which is actually good news. the Arbitrum mainnet beta has just gone live and the details are not known. The development team will need to test on Arbitrum One to get the project up and running, and as Arbitrum goes through the beta and main network beta, the network performance should gradually smooth out and become more efficient. In addition when many teams deploy applications on Arbitrum will generate some experience and new things that will drive the whole Layer 2 track.

Finally, I would like to remind development teams that only they know whether their shoes fit or not. Development teams need to carefully weigh the pros and cons of various expansion options and combine them with the project’s own characteristics before making a decision. In addition, Layer 2 is a hard requirement for high-frequency applications. For low-frequency applications, Layer 2 is not a must-have option.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.