# Layer 2 rollups By [Madhav Goyal](https://paragraph.com/@madhavg) · 2022-01-19 --- This post won’t be a bit abstract. I will be talking about scalability and gas fee solutions to the [Ethereum blockchain](https://ethereum.org/en/) - Layer 2 Rollups as the title suggests. There is a big [trilemma](https://www.ledger.com/academy/what-is-the-blockchain-trilemma#:~:text=Key%20Takeaways%3A,to%20as%20the%20blockchain%20trilemma.) in the blockchain of Decentralization, security, and Scalability which makes it very hard to have only all 3 of these features in a blockchain. We can only have 2 of them and have to drop one every time we build a new blockchain. Decentralization and security are traded for Scalability as in Bitcoin and decentralization is swapped for Scalability and Security in Solana(no offense). Big bets are on [sidechains](https://ethereum.org/en/developers/docs/scaling/sidechains/#:~:text=A%20sidechain%20is%20a%20separate,by%20a%20two%2Dway%20bridge.) and Layer 2 rollups. Rollups are one of the most secure solutions to the scalability solution of Ethereum. In rollups, the transaction is processed off-main-chain and the data is posted on the chain after execution which takes away much of a load of the main net and clogs of transactions. Here is some research is done on Layer 2 rollups by my wonderful Fellows at [Dream DAO](http://dreamdao.xyz/). This might be long and maybe not of interest to you as whole but can be valuable skimming through this ### **Arbitrum by @madhavg.eth#4168 and @T I M#6903** Key documents: * Whitepaper and important documents: * Inside Arbitrum Offchain Labs Dev Center \[[https://developer.offchainlabs.com/docs/inside\_arbitrum](https://developer.offchainlabs.com/docs/inside_arbitrum)\] * Introducing Arbitrum \[[https://ethresear.ch/t/introducing-arbitrum-a-new-layer-2-solution/3825](https://ethresear.ch/t/introducing-arbitrum-a-new-layer-2-solution/3825)\] * Important explainers, blog posts, reports * [https://medium.com/monitalks/arbitrum-what-is-it-how-to-use-it-useful-links-9aafd2913694](https://medium.com/monitalks/arbitrum-what-is-it-how-to-use-it-useful-links-9aafd2913694) * Bankless On Arbitrum [![]({{DOMAIN}}/editor/youtube/play.png)](https://www.youtube.com/watch?v=Bv2oKuOg86g) * Arbitrum website \[[arbitrum.io](http://arbitrum.io/)\] * Ecosystem landscape maps, key ecosystem players, and projects * [https://coinmarketcap.com/alexandria/article/what-is-arbitrum](https://coinmarketcap.com/alexandria/article/what-is-arbitrum) * [https://offchain.medium.com/mainnet-for-everyone-27ce0f67c85e](https://offchain.medium.com/mainnet-for-everyone-27ce0f67c85e) Explainer: * goals of the project: * Arbitrum is a solution to the scalability and expense problem of Ethereum Blockchain. It is a Layer 2 Optimistic rollup whose mission is to make ethereum more scalable without compromising its trustless secure system. It builds on the security and decentralization of ethereum Mainchain to a better future where micro-transactions and gas fees are not an issue. * Lower gas is one of the biggest goals of every new Blockchain and Layer 2 solution and Arbitrum just does it even better. It can easily reduce the gas fee by 95% and even more on full deployment. * The Scalability just increases exponentially as it has a bigger block size, higher cap gas fee, and as most of the computation is done off-chain leaves a big space for transactions to fill. It has higher throughput than quite a lot of sidechains. * Reducing gas fee opens a big challenge as lower gas fee makes the chain vulnerable to attackers as they could just flood the network with duplicate fraud proofs but Arbitrum has a solution to that. When someone challenges a transaction, the person has to stake eth with that proof. When eth staked is locked by the smart contract which is also the referee, there is a showdown between the rpc node and the challenger. The party proven wrong gets its eth burned. * team - Off-chain Labs Co-Founders - Arbitrum is developed by people at [Off-chain Labs](https://hackmd.io/offchainlabs.com/)Ed Felten - Chief ScientistSteven Goldfeder(CEO) - PhD Princeton UniversityHarry Kalodner(CTO) - PhD Princeton University * Github * \[[https://ethresear.ch/t/introducing-arbitrum-a-new-layer-2-solution/3825](https://ethresear.ch/t/introducing-arbitrum-a-new-layer-2-solution/3825)\] * what makes this project unique * Arbitrum uses Interactive proving which leads to the settlement of dispute off-chain and leading cheap settlement of conflicts and fraud transactions. The Contract referee doens’t have to look up for hash of each transaction, it just needs to look at the disputed transactions which are unlike a lot of rollups. * The contract Sizes have no limit and can be bigger than L1 or Ethereum Mainnet Contracts leading to more flexibility for the deployment of new features. * Arbitrum just doesn’t only lead to high throughput and increase the no. of transactions handled by Ethereum many folds it also Decreases the Gas fee significantly * L1 and L2 smart contracts can interact seamlessly and L1 smart contracts can submit L2 transactions in operations which just increases the compatibility of Arbitrum even more. * The availability of all the coolest protocols and Dapps which one can use as it was the main net for a reduced fee. * roadmap and usability of project, is it ready for live Dapps? * Arbitrum is the most compatible rollup and universal compatibility is one of the biggest powers of Arbitrum. The Dev doesn’t need to even download any additional software for deployment or make changes to code to deploy on the L2. It is compatible with most of the L1 contracts and Dapps. * It had many test runs till October is now live for Developers so that they could set up the Theme park Rides for users and it’s in beta for Users. You can convert some L1 eth to L2 eth [here](https://hackmd.io/https://bridge.arbitrum.io//). * Arbitrum is in the beta stage and hopes to become fully decentralized in a staged manner so that the rollup could be tested and set up before opening to its full potential. Bug bounties are being given to bug bounty hunters and testing is done rigorously. * Key projects and live DApps on it with a focus on DAOs * **Uniswap** - It is the biggest decentralized protocol for exchanging or as the name suggests swapping crypto.It makes automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts. **Sushieswap** is also on the rollup. * **Balance**r - Balancer is a community-driven protocol, automated portfolio manager, liquidity provider, and price sensor that empowers decentralized exchange and the automated portfolio management of tokens on the Ethereum blockchain and other EVM compatible systems. (just borrowed it from the website) * **Beefy Finance** - It’s a multi-chain Yield optimizer that helps the staker earn the highest APYs. It’s decentralized and says on the website that they keep safety in my mind I think it’s kinda like an automated Hedge fund run by Smart Contracts. [here](https://docs.beefy.finance/moo//) * Direct conversion of fiat money to L2 eth which is being supported by a lot of Exchanges. This small step can reduce the friction between users getting to Arbitrum exponentially.–TEMPLATE END– ### **Loopring by @Charlotte Brudely & @Jae-Hee** Key documents * Whitepaper and important documents * [https://loopring.org/resources/en\_whitepaper.pdf](https://loopring.org/resources/en_whitepaper.pdf) * [https://github.com/Loopring/protocols/blob/master/packages/loopring\_v3/DESIGN.md](https://github.com/Loopring/protocols/blob/master/packages/loopring_v3/DESIGN.md) * Important explainers, blog posts, reports * [https://blogs.loopring.org/heres-what-you-need-to-know-about-loopring-whitepaper/](https://blogs.loopring.org/heres-what-you-need-to-know-about-loopring-whitepaper/) * [https://www.weusecoins.com/what-is-loopring/](https://www.weusecoins.com/what-is-loopring/) * [https://www.kraken.com/en-us/learn/what-is-loopring-lrc](https://www.kraken.com/en-us/learn/what-is-loopring-lrc) * Ecosystem landscape maps, key ecosystem players and projects * [https://beincrypto.com/learn/loopring-lrc/](https://beincrypto.com/learn/loopring-lrc/) Explainer * Goals of project * “**Loopring is a software** running on [**Ethereum**](https://www.kraken.com/learn/what-is-ethereum-eth) that aims to incentivize a global network of users to operate a platform that enables the creation of new types of crypto-asset exchanges. It uses multiple cryptocurrencies. Most notably, i**t allows for high-throughput (faster), cheaper trading and payment on Ethereum by utilizing ZK-Rollup.”** * Team * Founded by Daniel Wang, a software engineer based in China who worked at internet companies including Google and [JD.com](http://jd.com/) * Employees from all over the world * Loopring miners contribute to the system * Github * [https://github.com/Loopring](https://github.com/Loopring) * What makes this project unique * “Loopring combines the benefits of both centralized and decentralized cryptocurrency exchanges. Its innovative use of zkRollups allows it to achieve higher throughput and lower costs than any other decentralized exchange built on the Ethereum blockchain, while its non-custodial technology presents an improvement to the security of centralized exchanges. The high-level performance capabilities that Loopring offers mean that algorithmic traders are able to use high-frequency trading strategies on DEXs for the first time. Loopring also employs a cryptographic solution that prevents frontrunning (when someone gets their own trades executed before pending transactions in order to profit from the price change that will result from said transactions). The protocol is open-source and audited and doesn’t rely on any external validators, meaning no person, company, or government can come between a user and their cryptocurrencies. Furthermore, users automatically receive a digital receipt for all deposits and withdrawals, meaning funds can always be recovered – even if the decentralized exchange encounters issues.” [https://kriptomat.io/cryptocurrencies/loopring/what-is-loopring/](https://kriptomat.io/cryptocurrencies/loopring/what-is-loopring/) * roadmap and usability of project, is it ready for live Dapps? * Uses DApps (e.g. Uniswap, SushiSwap, DODO, Balancer, Aave, PoolTogether, DeBank, Compound) * Mentions daaps on the whitepaper - “serves as a standardized building block for decentralized applications (dApps)” * [https://messari.io/asset/loopring/profile/roadmap](https://messari.io/asset/loopring/profile/roadmap) * Key projects and live DApps on it with a focus on DAOs * [https://medium.loopring.io/12-projects-that-are-integrating-the-loopring-protocol-5522aec2dfd9](https://medium.loopring.io/12-projects-that-are-integrating-the-loopring-protocol-5522aec2dfd9) * **imToken:** imToken is a feature-rich digital asset wallet enabling multi-chain asset management, dApp browsing and secure, private exchange of value. imToken is the largest Ethereum wallet, with over 4.5 million users globally. * **MyToken:** MyToken is a leading one-stop crypto platform that provides cryptocurrency real-time charts, data analysis, ratings, industry news, as well as a wallet. * **QBao:** Qbao is a multicurrency wallet, token exchange platform, payment settlement solution, social group, and information marketplace. Qbao serves digital currency users globally, providing them with a secure, cross-chain, and easy-to-use digital asset platform. * **Tokenest:** RootAnt is accelerating the transformation of financial services by empowering global financial institutions to transform into cross-platform, user-friendly financial portals. * etc. * [https://www.makeuseof.com/loopring-what-is-lrc/](https://www.makeuseof.com/loopring-what-is-lrc/) * NFT Marketplace launch w/ Gamestop **Quick Summary of Loopring (completely open to feedback on specificity and accuracy):** As stated on its website, “Loopring is a zkRollup layer2. It allows for high-throughput, low-cost trading and payment on Ethereum.” Loopring was first created by Daniel Wang, a software engineer based in China. The team has expanded as Loopring has developed. Loopring functions with the help of miners in the system. Zero-knowledge Rollups and non-custodial technology allow security, efficiency, and affordability. The Loopring protocol is also completely open-source, and a number of projects such as QBao have started integrating it. An NFT marketplace launch with GameStop is causing a lot of excitement around Loopring. Still, DAOs do not currently seem to be an integral part of the ecosystem. ### **Starkware @Amanda Maritan#9027** **KEY DOCUMENTS:** Whitepaper and important documents:[https://starkware.co/product/starkex/](https://starkware.co/product/starkex/)[https://starkware.co/product/starknet/](https://starkware.co/product/starknet/) [Bankless’ how to use Starkware and Starknet](https://newsletter.banklesshq.com/p/how-to-use-starkware-layer-2s) Important explainers, blog posts, reports:[https://medium.com/starkware/redefining-scalability-5aa11ffc5880](https://medium.com/starkware/redefining-scalability-5aa11ffc5880)[https://medium.com/starkware/oracle-price-feed-on-starkex-2b15a3ca122](https://medium.com/starkware/oracle-price-feed-on-starkex-2b15a3ca122)[https://docs.starkware.co/starkex-playground-tutorial/](https://docs.starkware.co/starkex-playground-tutorial/) Ecosystem landscape maps, key ecosystem players and projects:[https://messari.io/asset/starkware/profile/roadmap](https://messari.io/asset/starkware/profile/roadmap) **STARKWARE GOALS:** _‘’StarkWare develops STARK-based solutions for the blockchain industry. Our products enable a secure, trustless, and scalable operating for blockchain applications.’’_ Quoting Mike Vernal: “Starkware is attacking one of the most important problems in crypto — the computational scalability of the blockchain.” Develops _StarkEx_: Validity-Rollup → move computation and state storage off-chain but keep a small amount of certain data on-chain, ([https://medium.com/starkware/redefining-scalability-5aa11ffc5880](https://medium.com/starkware/redefining-scalability-5aa11ffc5880)); reduced amount of gas required per-trade | settling a dYdX transaction on Ethereum Mainnet: 200,000 gas; settling a dYdX transaction on StarkEx: <500 gas. #### **StarkEx is a standalone system for exchanges that uses the STARK proof system in order to provide scalability for the exchanges using it.** [**https://starkware.co/product/starkex/**](https://starkware.co/product/starkex/) video explaining how StarkEx works :) people can do transactions off-chain using StarkEx. There is a prover to help control security before sending the transaction to the on-chain verifier; “all transactions are validated off-chain, the proof of their integrity is verified on-chain”. Develops _StarkNet_: permissionless decentralized ZK Rollup; ‘’It operates as an L2 network over Ethereum, enabling any dApp to achieve unlimited scale for its computation, without compromising Ethereum’s composability and security.’’ #### **StarkNet is a general-purpose system, where you can write and deploy your own contracts, interact with other contracts, and so on, just like Ethereum. See** [**https://starkware.co/product/starknet/**](https://starkware.co/product/starknet/) **STARKWARE TEAM:** Founded in 2018Founders: Eli Ben-Sasson, Alessandro Chiesa, Michael Riabzev, Uri KolodnyTeam: 60Funding: Raised $151M in equity, and a $12M grant from the Ethereum Foundation **GITHUB:** [https://github.com/Starkware](https://github.com/Starkware) (no activity) **WHAT MAKES THIS PROJECT UNIQUE:** Milestones of StarkNet: 1. Smart contracts support general computation 2. Smart contracts can interact with each other, allowing composability 3. L1<>L2 interoperability 4. Full L1 security through on-chain data (Rollup) According to their website, → StarkWare solves the two most pressing problems of permissionless blockchains: _scalability and privacy_. StarkWare’s cryptographic proofs are zero-knowledge, succinct, transparent and post-quantum secure. **ROADMAP AND USABILITY OF PROJECT, IS IT READ FOR LIVE DAPPS?** According to their discord FAQ → ‘’Are there any STARK systems in production? Yes, several projects (DeversiFi, dYdX, Immutable, Sorare) are using StarkEx and are in production for quite some time.’’ Roadmap + Key projects and live DApps on it with a focus on DAOs (note: I’m not sure if this is the answer but I couldn’t find anything else about it).[https://messari.io/asset/starkware/profile/roadmap](https://messari.io/asset/starkware/profile/roadmap) * StarkEx v1.0. Mainnet Launch; StarkEx is StarkWare’s scalability engine. It launched on Ethereum’s mainnet in June 2020. It powered DeversiFi’s decentralized exchange at launch. StarkEx was StarkWare’s first commercial release and the first mainnet deployment of STARKs. * VeeDo. Mainnet Launch; VeeDo is StarkWare’s STARK-based Verifiable Delay Function (VDF) service. It launched on the Ethereum mainnet in June 2020. The first application based on VeeDo was a proof-of-concept for a randomness beacon. * Cairo. Software Release; Cairo is a platform that can generate STARK proofs for general computation on Ethereum. It supports programs and applications written in an assembly-like programming language, which goes by the same name, Cairo. * StarkEx 2.0. Mainnet Launch; StarkEx 2.0 launched in December 2020. The new version features the Cairo proof generation and programming platform that currently powers ImmutableX and dYdX’s layer-2 implementation. It also includes ERC-721 support, faster L1-L2 Connectivity, and improved onboarding for new users. * StarkNet Step I — Planets: Single-App Rollups. Network Change; StarkNet is a STARK-powered Layer-2 ZK-Rollup that supports general computation over Ethereum. It is based on the Turing-complete Cairo language. StarkWare plans to launch StarkNet in three phases. Step I will enable developers to build and deploy their own scalable applications on StarkNet. * StarkNet Step II — Constellations: Multi-App Rollups. Network Change; StarkNet is a STARK-powered Layer-2 ZK-Rollup that supports general computation over Ethereum. It is based on the Turing-complete Cairo language. Step II will support multiple applications running on the same StarkNet instance and accessing the same global Layer-2 state. This solution will enable interoperability between different applications and reduced gas costs due to improved economies of scale. * StarkNet Step III — Universe: Decentralized Rollup. Network Change; StarkNet is a STARK-powered Layer-2 ZK-Rollup that supports general computation over Ethereum. It is based on the Turing-complete Cairo language. Step III involves decentralizing StarkNet’s operation. ### **BOBA by: Allison Su (allison#8170) and Vedanth Rohit (Vedanth#2128)** **Key Documents:** White Paper and Important Documents: [https://docs.boba.network/](https://docs.boba.network/) [https://docs.boba.network/developer-docs](https://docs.boba.network/developer-docs) Important explainers, blog posts, reports: [https://news.bitcoin.com/boba-network-introduces-wagmi-options-for-developers-and-builders/](https://news.bitcoin.com/boba-network-introduces-wagmi-options-for-developers-and-builders/), [https://www.coinbase.com/price/boba-network](https://www.coinbase.com/price/boba-network), [https://coinrivet.com/footprint-after-its-huge-surge-could-boba-network-become-the-top-layer-2-project/](https://coinrivet.com/footprint-after-its-huge-surge-could-boba-network-become-the-top-layer-2-project/), [https://learn.bybit.com/altcoins/boba-token/](https://learn.bybit.com/altcoins/boba-token/) Ecosystem landscape maps, key ecosystem players and projects: partnership with myETHWallet [MEW (MyEtherWa](https://www.enya.ai/).), (ecosystem) Oracle WitNet, platform Brand Protocol, Enya \[backed up\], The Graph, OMG Foundation (trading) ### **Boba: An Introduction** According to the site: “A Layer 2 Ethereum scaling and augmenting solution, Boba Network lowers gas fees, enhances the capabilities of smart contracts, and improves transaction throughput. Boba Network’s native token, BOBA, reached an all-time high of $7.93 on Nov. 25, 2021, and recorded its all-time low of $0.99 on Nov. 19, 2021” Boba aims to “**build a pragmatic L2 that is the first step toward opening Ethereum to the next Billion users”** Boba aims to make Ethereum and the cryptocurrency accessible as possible. **Goals of the Project:** What Boba believes: * **Cheap transaction costs:** Ethereum charges high gas fees that cost an average of $10–$50 per transaction. Boba Network solves this problem by reducing costs to levels much lower than those on the main Ethereum network. The gas price on L2 changes every 30 seconds and is typically around [10 Gwei.](https://docs.boba.network/developer-docs) (smallest unit on the Ethereum network!) * **Fast exit:** Compared to conventional Layer 2 solutions, users can transfer their money in and out of the network much faster, generally only a few minutes. Depending on the specific L2 technology and implementation, it can offer from 50x to over 1,000x more [throughput](https://coinmarketcap.com/alexandria/glossary/throughput) than Layer 1. The network offers quick exits backed by liquidity pools that are community-driven, reducing the Optimistic Rollup exit time to a few minutes, as opposed to the usual duration of around seven days. This also gives liquidity providers (LPs) incentivized yield farming opportunities. With [yield farming](https://learn.bybit.com/crypto/what-is-yield-farming/), users can earn interest on their digital assets. * **Helps in NFT bridging:** Users can mint, move and sell their NFT assets between L1 and L2, or even between different L2 solutions. This has made the development of NFTs, particularly [GameFi](https://learn.bybit.com/crypto/what-is-gamefi/), easier and more convenient. GameFi combines three massive markets: decentralized finance ([DeFi](https://learn.bybit.com/defi/what-is-defi/)), [non-fungible tokens](https://learn.bybit.com/crypto/what-is-a-non-fungible-token/), and blockchain-based games. * **Makes hybrid computation easier:** Boba Network lets Ethereum developers execute codes on web-scale infrastructure, similar to AWS Lambda (a computing platform provided by Amazon). Thus, sophisticated algorithms that are practically impossible to perform on-chain can be implemented. * **Secured by Ethereum:** As an Optimistic Rollup Layer 2 protocol, Boba Network works with Ethereum’s security. * **Offers scalability for smart contracts:** This helps Boba developers on Ethereum build DApps using algorithms without spending a lot of money. Boba allows developers to feed executed code into algorithms on web-extensive infrastructure. * Boba Bridge helps transfer assets from Ethereum to Boba, as well as between other Layer 2 blockchains. **Team:** Boba is made up of 5 members working on the team.It was founded in 2018 by Alan Chiu and is backed up by [Enya.ai](http://enya.ai/)Boba was founded by Alan Chiu in 2021 to make crypto accessible to everyone. **Alan Chiu - Founder** Alan Chiu is the founder of Boba. He graduated from the University of British Columbia with B.S in Electrical and Computing Engineering. He then attended Stanford for Masters in Science and Management. He has extensive experience in investing, product management, and eventually founded [Enya.ai](http://enya.ai/) and Boba. **Violet Abtahi - Chief Operating Officer** Violet Abtahi studied in the field of finance and economics with in-depth research in the fields of Sustainability, Blockchain technologies, and Artificial intelligence. She has over two decades of expertise in investments, blockchain, global finance, economics, and sustainability, an established track record of founding and advising startups, ventures, and large corporations on funding, growth, transformation, impact, and expansion initiatives. **Nicolas Montenegro - Liquidity Provider and DAO’s Governor** Nicolas graduated from Texas A&M University where they studied supply chain management. Entering college, they began expanding my knowledge base into real estate. First, by formed his first LLC, Texas Unlimited, and managed an investment property held under this LLC for two years. At the same time, he was working as an independent contractor, completing work in rentals across the city. Once the COVID-19 pandemic hit, their focus switched back to cryptocurrencies, and began their work at Boba Network **Max G. Developer Relations Lead:** Max G. attended Georg Simon Ohm Schule Join in Germany. After graduating with a Computer Science degree, he worked at various companies in Singapore, and Bangkok, Thailand in IT, Product Management, and as a Developer before working at Boba Network. **Dean Thomas - Strategic Advisor:** Dean went to college at Darthmouth College where they graduated summa cum laude. They are Chief Investment Officer at Stealth Capital & Rainmaker Games, Managing Partner at Lone Palm Advisors, and Strategic Advisor at Boba Network. \*\*GitHub:\*\*Boba’s GitHub is backed up by OMG Network - a Layer-2 scaling solution, built on plasma + optimistic rollups. The value transfer layer for Ethereum. [https://github.com/omgnetwork](https://github.com/omgnetwork) **What makes this project unique?:** * Ethereum Layer 2 Optimistic Rollup * Extensible Smart Contract * Ease of transferable of cryptos from Boba to Ethereum * Network has decreased the withdrawal period to few minutes —> this means that you don’t have to wait for 7 days for withdrawl like the conventional system * NFT bridge will allow the NFT’s to launch on the network easily and effectively! * [Boba.Network](http://boba.network/) is backed up by [Enya.ai](http://enya.ai/) \[According to the website: Founded by Stanford faculty and alumni, Enya pioneered decentralized privacy and became the largest provider of secure multiparty computation services, serving more than 10 million users across 91 countries. Enya creates decentralized infrastructure solutions that serve the next billion users, leading with Boba Network.\] a leading developer of decentralized infrastructure solutions. * Provides best of both worlds, Security and Decentralization deeply rooted in Ethereum! * Top quality NFT projects are all on Ethereum, but the gas makes it accessible only for the rich. **Roadmap + Usability: Is it ready for live DApps?:** The roadmap is unfortunately not available for the public to see. Boba has already had smart contracts enabled for them to connect with developers across the Etherum ecosystem to build D’Apps that invokes code on web infrastructure such as AWS Lambda - making it possible for this to happen in a huge expensive algorithm as well! **Key Projects and live DApps on it with a focus on DAO’s:** Here’s are some examples: 1. **Cyber DAO**: CYBERDAO IS BUILDING A COMMUNITY-OWNED DECENTRALIZED FINANCIAL INFRASTRUCTURE. CYBERDAO REWARDS STAKERS WITH COMPOUNDING INTEREST, INCREASING THEIR CYBER HOLDINGS OVER TIME. CYBER IS MINTED AND EVENLY DISTRIBUTED FOR STAKING REWARDS. MORE CYBER STAKED REDUCES THE APY BUT PUSHES THE CYBER PRICE HIGHER. 2. **Coin Wallet:** Coin Wallet is an all-in-one decentralized cryptocurrency wallet, exchange, and AI assistant. Coin Wallet includes a native cryptocurrency wallet and exchange for users to store and swap popular digital assets directly with each other. Unlike many other decentralized exchanges, swaps can occur across different blockchains including Bitcoin, Ethereum, ERC20 tokens, and more. 3. **Synapse:** Synapse is a trustless cross-chain AMM & bridge Bridge assets across chains, swap assets, earn yield & more ### **Polygon Hermez @ethandub#0808 @Ahyun#2826** Key documents * [Whitepaper and important documents](https://www.notion.so/1afaa4641c7c4322bf6ab78a3af82c6e?v=a7a59676510c4bada8ad8389635e2fc9) * [Important explainers, blog posts, reports](https://www.notion.so/46d4d2e136ea4f4ca45a4c64d0693e90?v=c30723a9bde848cb850d694fda6cc57d) * [Ecosystem landscape maps, key ecosystem players and proejcts](https://www.notion.so/02b194ffb6fb4419a6f2bf51f3c4fdd8?v=f4f534e9a0e94ff9b285b4ddf1b5e87b) Explainer * Goal: A Layer 2 solution that inherits its security from Ethereum Layer 1. * [Team](https://blog.hermez.io/polygon-hermez-team/) * [Github](https://github.com/hermeznetwork) * What makes it unique? * Proof of donation seems to be jumping off of DeFi best practices. By making a concrete incentive and lack of failure risk, it makes it much much simpler. * Roadmap and usability of project, is it ready for live dApps? * Yes! Personally, I think the combination of their strategic partnerships and development teams makes them a prime candidate for a partnership. A business can only grow with the right people and vision. * [Roadmap](https://blog.hermez.io/hermez-network-roadmap-update/) PS: If you have made it this far hats off to you dear reader! Happy New year as this is my first post of the year. If you find it useful or want to show a [gesture of appreciation you can buy me a book as books are the best places where I get new from](https://www.buymeacoffee.com/madhavgoyal) or send me some eth at madhavg.eth. --- *Originally published on [Madhav Goyal](https://paragraph.com/@madhavg/layer-2-rollups)*