According to data from DefiLlama, total value locked (TVL) on Optimism, a layer-2 scaling solution for that Ethereum blockchain, has surged 284% previously month. Most TVL includes users lending and borrowing assets on Aave through Optimism’s layer-2 chain.
Investors happen to be putting in a bid up digital assets associated with the Ethereum ecosystem awaiting The Merge upgrade, that will begin to see the blockchain transition from the proof-of-work network to that particular according to proof-of-stake.
Based on a current Ethereum developer call, the tentative date for that Merge coming online continues to be scheduled for Sept. 19. Like a layer-2 Ethereum blockchain, Optimism seeks to scale the ecosystem via Rollups, or off-chain computations, to hurry up transactions. Transactions are documented on Optimism and finalized on Ethereum.
The work hosts 35 protocols, including derivatives exchange Synthetix, decentralized exchange Uniswap, and automatic market maker Velodrome. Because of the high amount of user trade orders on exchanges (including cancellations), the Ethereum blockchain’s current capacity of 30 transactions per second is ill-outfitted to deal with such demand. However, some experts predict the network may potentially scale to 100,000 transactions per second following the Merge upgrade, with layer-2 solutions further enhancing such capacity.
Optimism blocks are built and performed on layer-2 while user transactions are batched up and posted towards the Ethereum layer-1. On layer-2, transactions are immediately recognized or rejected without any mempool, enabling a quick consumer experience. Correspondingly towards the TVL development, the project’s namesake tokens also have rallied by 300% throughout the same period.
Dai on Optimism
From $ 30 million to 140 million in five days. pic.twitter.com/AQlNWvX6c9
— Maker (@MakerDAO) August 9, 2022
