What is optimism?

Optimism is a layer 2 chain, meaning it runs on top of the main Ethereum network (layer 1). Transactions occur on Optimism, but transaction data is sent to the mainnet where it is verified. It's like driving down a less crowded lane while feeling the safety of the highway.

According to Defi Llama, Optimism is the second largest Tier 2 Ethereum with a total of $313 million locked in its smart contracts at the time of writing. Arbitrum is in first place with $1.32 billion.

Synthetix, a derivatives liquidity protocol, is Optimism's largest protocol with a total locked-in value (TVL) of $125 million. Uniswap, a decentralized exchange (DEX), is the second most popular protocol on the network. As of this writing, there are 35 protocols on Optimism with at least $1,000 in smart contracts. How does optimism work?