Anyone with $5,000 or less is paying >1% of their portfolio in fees to use DeFi.

It’s getting too expensive to live in Manhattan. And I don’t expect Manhattan to suddenly get cheaper—in fact, I expect mainnet transactions to continue increasing in economic density (e.g. higher cost + higher value transactions).

But right now this situation is pricing out users and sending them to more centralized ecosystems. I don’t blame them—no one should have to pay a material amount of their portfolio to swap tokens.

DeFi needs to be accessible for everyone, not just the crypto rich.

Last week marked the launch of Arbitrum, a promising Layer 2 scaling solution built on optimistic rollups (ORU).

Like other Layer 2 rollups, Arbitrum inherits Ethereum’s security guarantees. This makes it just about as secure as the base layer.

Arbitrum is here, but the training wheels are still on. Fees are lower than Ethereum, but they’ll get with increased usage (watch this). Eventually the training wheels come off and Arbitrum will become fully decentralized—just not yet.

Arbitrum and Optimism now. Then EVM zk-rollups. And then eventually Ethereum data sharding will massively boost the throughput of all Layer 2. 🚀

I’m convinced Ethereum has the best scaling roadmap in crypto.

Why?

Cause it doesn’t sacrifice decentralization.

No shortcuts.

Here’s our first essential guide to Arbitrum.

- RSA

P.S. If you’re into sports collectibles, check out SoRare. You can collect official football (soccer) player cards as NFTs and use them in fantasy games!