You missed a pretty big announcement about layer 2 yesterday, didn’t you? You were too busy staring at the price charts – don’t try to hide it! Admittedly, I spent most of the day staring at the charts too – how couldn’t I with the sentiment pendulum swinging back so fast?
Okay enough about the markets – today’s piece will focus on Arbiswap – a live port of Uniswap to the Arbitrum rollup testnet on layer 2.
We couldn’t wait to try out Uniswap on Layer 2. So we went ahead and built it on Arbitrum Rollup. Introducing 🦄Arbiswap🦄swap.arbitrum.io/#/swap medium.com/offchainlabs/a…Arbiswap: our port of Uniswap V2 on Arbitrum RollupEarlier this month, we announced the new Arbitrum Rollup testnet, a full-featured Optimistic Rollup that allows anyone to instantly deploy L2 contracts. Today, we’re showcasing just how awesome…medium.com
November 5th 2020
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This isn’t just an announcement – this is a fully fledged Uniswap protocol system running on top of layer 2 that leads to a 55x cost reduction (and that’s just the beginning). How does this look in practice? Well, it’s explained succinctly by the team:
Swapping tokens on Layer 1 Uniswap costs about 109,500 gas; at 10 million gas per block and roughly 1 block per 13 seconds. This means Ethereum layer 1 can handle, at absolute most, 7 Uniswap-swaps per second.
Enter Arbiswap: with the Arbiswap Rollup chain at full-capacity, the Layer 1 gas cost reduces to 1965 gas per swap; this means L1 can handle up to 390 swaps per second, a 55x gain in gas efficiency for the base layer!
In addition to this, the team released a ‘token bridge’ which allows users to transfer tokens from Ethereum into the rollup and back out again in a user-friendly way. This is obviously critical for onboarding and I’m glad that the team prioritized this feature – we’re not going to get anyone onto layer 2 if there’s friction to do so! Of course, other teams building layer 2 solutions also have this nice UI/UX experience and honestly I’m surprised that it’s this good already – kudos to the layer 2 builders!
This release from Offchain Labs just continues the strong and steady march of layer 2 on Ethereum that we’ve been over the last few months. I know I beat the drum a lot on this topic, but I’m just so excited to see this stuff come to mainnet so quickly. I remember when I first got into Ethereum in 2017 layer 2 solutions were being talked about but they were extremely primitive – seeing them live on mainnet is as exciting to me as seeing eth2 go live.
The next year in Ethereum development is going to be more exciting than the previous 6 years. Eth2 phase 0 and (hopefully) phase 1 going live, EIP-1559 going live on eth1, layer 2 solutions being delivered and seeing adoption, DeFi continuing to grow, the crypto bull market coming back – this is just a taste of what you have to look forward to!
Have a great weekend everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.