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53 - Building DeFi on Layer 2 | Synthetix, Loopring, Immutable

Bankless

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Layer 2 Solutions in DeFi

This chapter explores the evolving landscape of Layer 2 solutions for decentralized finance, focusing on the promise of optimistic rollups and their integration with major DeFi projects like Synthetix and Uniswap. It discusses the valuation dynamics between Ethereum and alternative blockchains, emphasizing the impact of market narratives on investment opportunities. The chapter highlights the challenges posed by high gas fees on Ethereum and the role of Layer 2 solutions in facilitating transactions, particularly for microtransactions, while addressing the risks and potential innovations within this space.

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