In a scalability move aimed at facilitating good DEX throughput, Perpetual Protocol V2 has decided to launch on Optimistic Ethereum – an Ethereum solution that uses ZK-rollups to simultaneously compress and bundle transaction sizes.
Perpetual Protocol is a promising decentralised derivatives trading exchange used by more than 4,000 traders that generate an impressive $480m transactional volume on the V1 testnet.
The Protocol has recently formed an integration with top DEX Uniswap, driving the potential for mass growth as traders look for a long-term decentralised derivatives platform.
But this has forced a forward-thinking need to ensure scalability, with the success of the protocol dependent upon the ability to meet market demands in an affordable capacity.
Yenwen Feng, the co-founder of Perpetual Protocol explained the moment that drove the move.
“We notice our previous scaling solution would not be able to provide the high speed and low costs required for users,” he explained.
“The integration with Optimism enables Perpetual Protocol to further secure its position as the go-to decentralised derivatives trading platform, and drive greater trading volume through a more efficient distribution of liquidity, all while offering retail and institutional additional features that centralised exchanges cannot offer”.
True layer-2 solution
Optimism is an optimal choice for the protocol as a true layer-2 solution unlike sidechains such as Polygon – it also boasts better fraud proof speed than Arbitrum (which uses multi-fraud proofs instead of singular) – this is a critical factor for a time-sensitive product like a DEX.
This comes just a week after Vitalik Buterin published his scalability roadmap, which advocates mass adoption of ZK-rollup technology by Ethereum DeFi protocols and dApps.
Ben Jones – Optimism’s co-founder and Chief Scientist – was quick to applaud the protocol for choosing to deploy on the L2 solution.
“Excited to see Perpetual Protocol choose Optimistic Ethereum to deploy their v2,” commented Jones.
“CEX-level trading experience + instant, cheap transactions equals perfection.”
The launch of Perpetual Protocol v2 (dubbed Curie) onto the Optimism mainnet will reduce the cost required to place a trade and dramatically speed up trade execution – an important move that will meet the strain of 33bn xDAI volume – a consequence of the Uniswap integration.
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