Emerging DeFi Protocols Seek to Boost L2 Rollux

by Max Nevskyi

3 years ago

The SYS Labs team, responsible for the Ethereum layer-2 solution Rollux, has unveiled a range of new offerings to enhance interoperability and overall DeFi operations within its combined Bitcoin and Ethereum consensus framework.

Presently, Rollux boasts a total value locked (TVL) of $560,381, with the bulk of this sum stemming from the decentralized exchange PegaSys v3, as per DeFiLlama's data.

The forthcoming developments for Rollux aim to stimulate increased DeFi engagements on the platform. New DeFi platforms like Chainge, a cross-chain decentralized exchange; Agave, a DeFi lending service; and the liquidity solution Gamma, are among the anticipated additions. Moreover, SYS Labs plans to collaborate with LayerSwap, a cross-chain gateway, to facilitate transactions between centralized exchanges and DeFi platforms.

An Oct. 18 press statement highlighted these new protocols, but according to DeFiLlama, only Gamma is operational as of this past Friday. Interestingly, even as an Ethereum layer-2 solution, Rollux employs Bitcoin’s proof-of-work (PoW) mechanism to ensure security and enhance scalability.

Bradley Stephenson from the Syscoin Foundation informed Blockworks that by utilizing Syscoin, Rollux can benefit from the PoW sourced from Bitcoin mining and also attain proof-of-stake (PoS) completion.

There is a large contingent of blockchain users that prefer PoW-based systems over PoS for a variety of reasons like resilience against black swan eventsStephenson said

Stephenson further mentioned that the discussion between PoW and PoS is not only technical but also philosophical in nature.

Simply put, we do not believe it was necessary for Ethereum to pursue PoS, when they could have simply shared Bitcoin’s PoW via merged mining without taxing any additional resources for mininghe said

Syscoin has also implemented a mechanism known as proof of data availability (PoDA), aimed at offering layer-1 security for the network.

With PoDA, the succinct proof of the raw data is stored on-chain, while the raw data in its entirety is archived off-chain by any and all nodes that choose to perform that service. This means Syscoin can prune raw data from the mempool relatively frequently, and succinct proofs means nodes can stay lightweight, which fosters decentralization.Stephenson said

Stephenson elaborated that the PoDA mechanism operates on Syscoin’s merge-mined layer-1 chain. While there are parallels between PoDA and Ethereum's proto-danksharding method, significant distinctions exist.

Other news

Standard Chartered Implements Strict Editorial Policy for Market Commentary

Standard Chartered has announced a strict editorial policy that emphasizes accuracy, relevance, and impartiality in its market commentary.

Rajesh Kumar3 hours ago

SpaceX Pre-IPO Tokenized Offerings Canceled Due to Allocation Issues

Several crypto platforms canceled SpaceX pre-IPO tokenized offerings due to failed share allocation, leading to refunds for customers.

Miguel Rodriguez4 hours ago

Arbitrum Governance Proposes Major Funding for Foundation

Arbitrum governance is evaluating a funding proposal for the Arbitrum Foundation, seeking 16 million in real-world assets, 1,700 ETH, and 230 million ARB tokens to support its operations for another year.