DeFi protocol OpenOcean has aggregated Layer-2 solution Arbitrum and its array of decentralised exchanges to enable users to “trade with maximum returns” across multiple L2 platforms.
The aggregation of Arbitrum – a layer-2 Ethereum scaling solution – means that users can trade using minimal fees and the best rates on established DeFi protocols operating on the solution including UniSwap v3, Balancer v2, SushiSwap and Curve.
OpenOcean uses an ‘intelligent routing algorithm’ to find the best prices and lowest slippage for traders with zero additional fees. The platform has also integrated with a selection of major DEXes across leading blockchains including Binance Smart Chain, Avalanche, Polygon, Solana and Fantom.
Cindy Wu, Co-founder of OpenOcean, noted that high demand for more cost-efficient trading played a major role in the integration of Arbitrum.
“On the one hand, we know our users are trading on Ethereum and have been requesting us to aggregate more Layer-2 solutions to access cost-efficient and fast trading while still being in the Ethereum ecosystem,” she said.
“On the other hand, we also know that some of our users have been hesitant or directly reluctant to trade on Ethereum due to the cost. With the Arbitrum aggregation, we mash two potatoes with one fork and our users can swap around the trading universe with one-stop trading on OpenOcean.”
Arbitrum and other Layer-2 solutions have seen widescale interest and a rapid increase in total value locked (TVL) in recent weeks as DeFi users begin to seek lower transactions costs and more sustainable platforms.
Ethereum Layer-2 solutions ranked by total value locked. Source: L2beat
Many Layer-2 solutions use ‘optimistic rollup‘ technology to execute transactions on a Layer-2 solution and then submit the data to the Layer-1 – saving on gas fees and reducing network congestion.
Arbitrum remains the leading Layer-2 platform by TVL, market share, market volume and total number of users.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.