Although the encryption market is in a downtrend, the Layer 2 expansion network built with the Rollup expansion technology has been frequently deployed, and information on plans to issue governance tokens has been announced one after another.
First, on April 27, Optimism, which was developed based on the “Optimistic Rollup” expansion technology, announced that it would issue a governance token OP and airdrop part of it to the community; then on May 9, the expansion solution based on “ZK Rollup” was launched. zkSync said that it will issue governance tokens, but the exact time has not been disclosed.
Optimism has become the first Layer2 network to implement governance tokens. According to public information, the initial supply of its governance tokens OP is 4.294 billion, the total supply will expand at a rate of 2% per year, and 19% of the initial supply of OP will be Used for airdrops, of which 5% was airdropped to the community in the first round, and the other 14% will be distributed in the future.
Despite the issuance of governance tokens, the current total value locked (TVL) on-chain on the Optimism network is not high.
At present, among the four Layer 2 networks represented by Rollup technology, Optimism, Arbitrum, zkSync, and StarNet, Arbitrum has the highest TVL at US$3.168 billion, and Optimism’s TVL is US$580 million, ranking second. zkSync and StarNet on-chain ecosystem Still in beta stage.
Similar to Arbitrum, it adopts Optimistic Rollup expansion technology, but the on-chain TVL of Optimism is very different. This is mainly because the Optimism network has set a whitelist requirement for the migrated applications in the early stage, which restricts the entry of developers and also restricts the ecosystem on the chain. prosperity.
At present, the whitelist restriction has been lifted, and the Optimism network has allowed developers to freely build and deploy applications. It has also issued OP, and plans to offer irregular airdrop rewards to users who use applications on the chain. In addition, the network has also set up a special governance fund organization through which rewards will be distributed to on-chain applications to stimulate ecological development.
In fact, before the issuance of OP tokens, some developers have already deployed on the Optimism network, but since its on-chain ecological applications are mainly based on the derivatives of the synthetic asset protocol Synthetix platform, and these derivatives are mostly options and contract applications, etc. The mechanism is not friendly enough for ordinary users, so there is no popular product for the audience.
Now, OP’s incentives have started, and the developer restrictions have disappeared. It is not ruled out that more users will enter the Optimism network. This issue of DeFi Cellular will show you the current representative applications on the Optimism chain.
Official cross-chain bridge Optimism Bridge
Optimism Bridge is an encrypted asset cross-chain bridge officially launched by Optimism. It supports Layer 1 public chains such as Ethereum, Polygon, and Binance Smart Chain BSC, as well as assets on the Layer 2 network Arbitrum to cross-chain to Optimism.
In addition to supporting asset cross-chain, Optimism Bridge also provides users with access to other capital portals, including the two paths of “purchasing encrypted assets with credit cards” and “direct recharge of assets on a centralized exchange platform (CEX)”. The latter path accommodates Platforms include Binance, Coinbase, FTX, etc.
It should be noted that when users use the Optimism Bridge to add assets to the Optimism network, it only takes a few minutes to arrive at the account, but when using this cross-chain bridge to withdraw assets from the Optimism network or withdraw assets to other Layer1 networks, a waiting period of at least 7 days is required.
CEX direct charging tool Layerswap
Layerswap is a tool for the direct extraction of encrypted assets from the centralized exchange (CEX) to the Layer2 network. It was developed by Bransfer, a basic service provider of encrypted payment.
At present, mainstream CEX does not support users to directly recharge encrypted assets to Layer 2 networks such as Optimism, Arbitrum, zkSync, etc. If user assets want to enter it, they often need to first extract encrypted assets from CEX to the Ethereum wallet, and then pass the cross-border transfer to the Ethereum wallet. The chain bridge transfers assets from Layer1 to the Layer2 network. Such a process increases the operation steps, and also increases the transfer cost, including the transfer fee from CEX to the Ethereum network, the cross-chain bridge fee required for cross-chain, and the gas fee when transferring from Layer 1 to Layer 2.
In order to solve the above problems, Layerswap was developed to allow users to directly transfer encrypted assets from CEX to the Layer2 network. Currently, the CEXs supported by Layerswap include Binance, Coinbase, FTX, OKX, etc. The supported Layer2 networks include Optimism, Arbitrum, and zkSync.
In addition, when using Layerswap to directly charge Layer 2 from CEX, there is no need to pay gas fees, and only a very low handling fee is required. The handling fee is automatically deducted from the deposited assets according to the type and quantity of assets transferred by the user.
It should be noted that Layerswap currently only supports extracting assets from CEX to the Layer2 network, and does not support reverse operations. The development team stated that the function of extracting encrypted assets from Layer 2 to CEX will be released in the second quarter of 2022. For details, please pay attention to the official news.
Additionally, Layerswap does not issue any tokens.
Synthetix, a synthetic asset issuance protocol
Synthetix (SNX) was originally a synthetic asset issuance and trading application built on Ethereum. Users can generate various synthetic assets (Synths) by over-collateralizing Synthetix’s governance token SNX. In September 2021, Synthetix announced that it would migrate this application from the Ethereum main network to the Optimism network, becoming the first Ethereum head DeFi application to support the Layer 2 solution.
As of May 11, Synthetix had a TVL of $140 million on the Optimism network, the highest TVL app on the network.
At present, the synthetic asset products supported on the Synthetix platform mainly include:
- Synthetic assets that track the price of fiat currencies – such as sUSD that tracks the price of US dollars, sEUR that tracks the price of euros, etc.;
- Synthetic assets anchored to encrypted assets – such as sBTC anchored to BTC, sETH anchored to ETH, and sLINK anchored to LINK;
- Synthetic assets that track the price of a stock or a stock market index – such as sTSLA, which tracks the price of Tesla, or sFTSE, which tracks the price of the FTSE;
- Synthetic assets that track the price of commodities – such as sGOLD which tracks the price of gold.
Among them, synthetic assets such as sUSD, sETH, sBTC, and sLINK have become mainstream assets on the Ethereum and Optimism networks. Based on these synthetic assets, Synthetix has built multiple application scenarios on the Optimism network, including synthetic asset comprehensive trading platform Kwenta, options trading Platform Lyra, one-stop option investment platform Polynomial, asset management platform dHEDGE, derivatives trading platform Thales, etc.
- Kwenta, a comprehensive trading platform for synthetic assets – it is the main place for mutual exchange of “sToken” such as sUSD, sETH, sBTC, sLINK; its v2 version has launched the contract leverage trading function, which supports sUSD as margin, long/short ETH , LINK, AVAX, SOL and other mainstream assets.
- Option trading platform Lyra – Users can use sUSD as margin and handling fee to buy or sell options on mainstream crypto assets such as ETH and LINK.
- One-stop option investment income platform Polynomial——It is built on the option platform Lyra and synthetic asset protocol Synthetix. Users can deposit sUSD and sETH assets into the option pool on the platform according to their own judgment, and obtain automatic income, and the income will also be Re-roll automatically.
- Asset management protocol dHEDGE – supports anyone to establish their own investment funds on Ethereum and Optimism chains, or invest in funds managed by others. Users can choose investment pools to invest according to their own wishes.
- The derivatives trading platform Thales – developed by the Synthetix team, tokenizes the underlying assets of the options, that is, 1 sLONG and 1 sSHORT token will be minted for each sToken. When users are bullish on the future trend of the asset, they can hold sLONG and sell sSHORT; after expiration, the asset trend is as expected, and sLONG will be automatically converted into a denominated asset. On Thales, all options transaction fees are paid in sUSD.
Comprehensive trading application ZipSwap
ZipSwap (ZIP) is a decentralized exchange application (DEX) native to the Optimism network. It is built on the Uniswap v2 version of the code and hopes to provide Optimism users with a low-cost asset exchange place.
ZipSwap is not only a DEX, but also an LP asset income farming platform, and supports the Optimism ecological application to issue its own Token for the first time. It is reported that in the future, it will also build a stable currency exchange pool with low slippage. From this point of view, ZipSwap is more like a comprehensive DEX.
Currently, ZipSwap supports users to provide liquidity for USDC-ETH, DAI-ETH, DAI-WBTC and other fund pools, and can obtain the application’s governance token ZIP. However, since the Optimism on-chain application is in the initial stage of launch, ZipSwap’s TVL is not high, as of May 11, it is only $9 million.
Perpetual Contract Platform Pika Protocol
PikaProtocol is a decentralized perpetual contract platform on the Optimism network, which supports up to 50 times leverage for traders to trade perpetual contracts for encrypted assets such as BTC, ETH, LINK, SOL, AVAX, and SNX.
Traders use PikaProtocol on the premise that they need to have both USDC and ETH on the Optimism network, where USDC is used as a margin and ETH is used to pay the GAS fee on the Optimism chain.
The reason why PikaProtocol is concerned is that the platform has not yet issued governance tokens, and officials have stated in the early stage that PIKA tokens will be launched, and users who actively use the product may have the opportunity to receive airdrops.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/can-the-governance-token-op-open-up-the-on-chain-ecology-for-optimism/
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