Defi Consensus Forming on ZK Rollups For Ethereum Scaling

ethereum devs abstract oct 2020

Decentralized Finance (DeFi) projects appear to be reaching a consensus of sorts on what second layer scaling technology to employ. Mike McDonald of Balancer, a defi dapp that holds more than $300 million worth of assets, says: “I believe the layer 2 solution that ultimately wins in Defi will be the one that can scale slowly in parallel with L1 without breaking fungibility in liquidity. Optimistic style roll ups require an ‘all at once’ style migration to be successful, otherwise projects and liquidity all gets fractured between L1 and L2 due to withdrawal periods. Any L2 tech is too experimental to support billions in the short term. In my opinion the biggest mistake any protocol with pooled liquidity can make is launching two separate apps on L1 and L2 without a near synchronous connection between the liquidity. Another potential mistake is being the first to move entirely onto a L2…

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