What is Optimism? A detailed overview of the Optimism ecosystem
Description of What is Optimism? A detailed overview of the Optimism ecosystem
What is Optimism? A detailed overview of the Optimism . ecosystem
As we all know, the problem that still exists with transactions on Ethereum is slow processing speed coupled with high transaction fees. With ecosystems continuously growing, so Layer 2 solutions that are compatible with Ethereum and make it easy to scale Dapps is an extremely preferred method for both users and projects. judgment. Optimism is rated as one of the best options at the moment and has received a lot of attention from the Ethereum community recently. Let's learn about the Optimism ecosystem in detail as well as its true potential!
The basics of the Optimism ecosystem
What is Optimism?
Optimism aka Optimistic Ethereum (OE) is a Layer 2 scaling solution for the Ethereum network. The above solution allows users to send transactions on the Ethereum network at a faster speed, with lower gas fees than usual.
Optimism consists 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): Ethereum-compatible virtual machine, helping projects work exactly on Layer 1 – Ethereum. This is the environment for running Ethereum Smart Contracts. Therefore, OVM is considered as an EVM with better scalability, capable of handling a large number of Smart Contracts in a certain period of time.
Highlights of Optimism
- Transaction: Fast processing speed, gas fee is reduced from 10 to 100 times compared to current gas fee.
- Security: Layer 2 still retains the advantages of the strict security level of Layer 1 Ethereum.
- Convenient for Dapp Scaling, Scaling and Deployment: Fully supporting EVM, Ethereum Dapps or Dapps in other EVM-compatible ecosystems can run on Layer 2 with just a few lines of code.
Outstanding parameters of Optimism
Outstanding parameters of Optimism (March 30, 2022):
- Total number of separate wallet addresses: 311,000
- Number of projects running on Optimism: 97 projects
- Swap fee on Uniswap: $1.25
- Peak Uniswap swap fee: $30
- Token transfer fee on the network: 0.9
- Peak network token transfer fee: $20
- Deploy Dapps without permission: Yes
You can see more parameters of the platform here !
Ecosystem Overview Optimism
DEX
Currently, the Optimism ecosystem has the following decentralized exchanges:
- Uniswap V3 : One of the first applications to be posted to Optimism, with the community extremely supportive of Dapp development on this Layer 2. This is the third counter-version of the Uniswap decentralized exchange, following the first two versions (launched in November 2018 and May 2020). According to the most recent data, Uniswap V2 in less than a year was able to process a trading volume of up to 135 billion USD, putting the platform in the top of the world's largest DEX and Spot exchanges.
- Rubicon : A DEX that uses an orderbook mechanism. The app's TVL is at just $4.5 million, the app has very little liquidity. Rubicon is a decentralized exchange protocol built on Ethereum scaling solutions. Their mission is to democratize, open and accelerate financial markets.
- 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 only has a single swap source, Uniswap.
- Curve Finance : The largest stablecoin DEX in the market also develops on Optimism. Curve Finance is an AMM-based decentralized exchange on the Ethereum ecosystem, dedicated to stablecoins (USDT, USDC, DAI…) or similar assets but expressed in different forms (renBTC, WBTC, pBTC…).
Currently, Uniswap V3 is the only DEX on Optimism with significant liquidity. Regarding TVL, there is currently $39 million in TVL on Uniswap – a figure that is considered relatively modest 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. Because Uniswap is the only DEX on Optimism and the Uniswap community also wants to promote Uniswap on Optimism. So an Airdrop from Uniswap for users on Optimism is entirely possible with the goal of promoting and attracting users on this Layer 2.
As for Curve Finance, there is only $500,000 on this platform, the community expects more money to flow into the ecosystem in the near future.
Derivatives/Options
The Optimism ecosystem has the following Derivatives/Options puzzle pieces:
- Synthetix : Synthetix was one of the first applications that worked on Optimism. The operation of Synthetix on Optimism brings the operation of a major stablecoin in the market on Optimism – sUSD. The current TVL of the project is at $125 million.
- Lyra : An options app built natively on Optimism. The TVL of this protocol on Optimism is $20 million.
- Kwenta : An application that allows trading of 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 $125 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.
Synthetix is having the advantage of being at the forefront of this sector not only because they got to Optimism early, but also because they have an ecosystem of protocols that depend on and grow on their product. If other derivatives applications develop later, they certainly won't be able to have an advantage like Synthetix, because having products developed on them and having a product ecosystem like Synthetix is not fast.
Bridge
The Optimism ecosystem has bridge solutions to solve the problem of transferring assets to Optimism such as:
- Optimism Gateway: You can only transfer ETH from L1 to Optimism using Optimism Gateway. Therefore, this is the main bridge to transfer native ETH. I also use Optimism Gateway to bring funds from L1 to Optimism, bringing ETH up very quickly. However, when withdrawing funds from Optimism, it takes a lot of time, so when withdrawing funds, you should use the other two types of bridges such as Hop Exchange and Celer Bridge.
- 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. Recently, this protocol has launched an Airdrop for loyal users and announced the development plan of Hop DAO to continue the vision of giving users the responsibility of developing the future direction.
- 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 Optimism.
Other bridges have integrated ecosystems such as Across, Synapse Protocol, Teleportr, LayerSwap, Orbiter, Poly Network.
The bridge infrastructure on the system is relatively complete. The experience with these bridges itself 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.
Infrastructure
The Optimism ecosystem already has the following infrastructure pieces:
- Chainlink : The largest Oracle has on Optimism to provide data for Dapps on the Optimism ecosystem. Chainlink improves interoperability between smart contracts by granting smart contracts access to trusted data feeds, APIs, payments, and other resources.
- Etherscan : Optimism's Blockchain Explorer. Etherscan (Etherscan.io) is used for the Ethereum Blockchain and was created by CEO Mr. Matthew Tan in mid-2015. Etherscan is used for the purpose of checking the information on the Ethereum platform for the information of transactions. translate ETH or information about blocks, smart contacts… moreover, Etherscan is also used to track transactions on decentralized platforms based on Ethereum.
- OG Gnosis Multisig : An infrastructure piece that allows creating multisig on Optimism and is the most trusted platform to store digital assets on Ethereum for companies, managers, funds, developers, DAO and investors. This application is a companion application to the Gnosis Safe Multisig web interface and desktop applications.
- Infura : Provides API and development tools with fast connectivity to develop next-generation software. Infura provides the tools and infrastructure that allow developers to easily take their blockchain applications from testing to deployment at scale – with simple, reliable access to Ethereum and IPFS.
- Alchemy : can remove the difficulty of hosting nodes and provide tools for developers around the world. Quicknode will provide API connectivity with a user-friendly console. You can easily approach optimism.
- Tenderly : Eliminates transaction errors, optimizes costs, and checks resolved variables.
- Get block : Tool for developers today.
- The Graph : Index protocol on the Optimism system.
- Dune Analytics : Allows you to discover activity on the optimism network and create an aggregator page in it.
- Rarai Capital : Provides a decentralized and trusted way to send messages.
- Aelin : A fundraising platform project on the Optimism system built by the founder of Synthetix.
In general, Optimism has focused on developing a relatively complete set of suitable infrastructure pieces, helping these Layer 2 Dapps have a solid foundation for future development.
Wallet
You can refer to the following wallets to use and connect with Dapps in the Optimism Ecosystem : Metamask , Coinbase , Rainbow, TokenPocket, DeBank, Zapper, Zerion, Trust Wallet , imToken, Rabby, Encrypted Ink.
The development schedule of the Optimism ecosystem
- June 2019 : Introducing Optimistic Rollup
- October 2019 : Running Optimistic Rollup PoC
- September 2020 : Run testnet
- January 2021 : Running Soft board
- August 2021 : Running Community Mainnet
- October 2021: Running OVM 2.0
- 2022: Launch of the next generation of Fault Proof algorithm.
- 2023: Split Rollup, launch Incentivized Verification and Decentralized Sequencer mechanisms.
- 2024: Fault Proofs adjusted on Layer 1.
About Optimism's OP Token
After a long wait, the Optimism team also announced the release of a new governance token called OP in the project's blog post. At the same time, the project organizes the airdrop and announces the conditions for users to receive tokens.
The launch of the Token is the first step for the project to develop a more decentralized governance model in the future. Optimism announced a new governance model for the project in the future, named “Optimism Collective”. It can be understood as a parliamentary body for Optimism, consisting of two houses, Citizens' House and Token House.
You can learn more about Optimism's Airdrop program here !
The potential of the Optimism ecosystem
At the present time, it is easy to see that the Optimism ecosystem is taking the first step towards completion. To understand the real potential, it is necessary to monitor the moves to attract cash flow from the project. From there, it has the ability to compete with other powerful Layer 2 such as Arbitrum or other Layer 1. In an unpredictable future, the possibility of dapps moving to the Optimism ecosystem will cause the project to start allowing the deployment of Smart Contracts without permission. That will be a powerful premise for the ecosystem to thrive.
In addition, when the gas cost of Layer 1 is increasing day by day, Protocols tend to develop and test new features on cheaper solutions such as Arbitrum, Optimism or Polygon ... So, Optimism is completely has the potential to become a fertile ground for the creation of Dapps.
So, to conclude this Layer 2 ecosystem is really worth more investment, it is necessary to monitor more new moves from this project. However, with what the project has developed as well as objective factors from the market, this is absolutely a potential project, so please keep a close eye on it.
Epilogue
Above is everything you need to know about the Optimism ecosystem so far. However, the article should not be considered investment advice. You need to pay attention and consider carefully before investing. Hay Mod Game will always stand by you, providing the latest and most prestigious information for you to have the right view of the market. Stay tuned for new posts!
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