Boba Network is a newly released L2 layer that Ethereum has been using to accelerate its climb to the second spot in TVL (total Value Locked) of all expansion layers. Boba is a fork from Optimism which is another L2 Layer based on rollups. It has now surpassed Optimism by more than $1Billion in TVL. Oolongswap is the first decentralized market that offers profitable profits. It has yields exceeding 1,000%.
Boba Network L2 gains popularity
Boba Network is a newly released L2 layer that Ethereum has. It is now in second place for total value locked (TVL). The network gained more than half a percent during the week. This platform is a fork from Optimism and another Optimistic rollup. It has fallen just behind Arbitrum which is the most popular L2 solution to Ethereum scaling.
This solution was created in response to the scaling issues Ethereum faces. It allows users to pay less gas and still enjoy the security of transaction processing by Ethereum Blockchain.
Boba, however claims it offers a superior upgrade to other fund withdrawal solutions. Boba is faster than other L2 layers, which have withdrawal times of 7 days.
Oolongswap, the platform’s first decentralized exchange (dex), is responsible for the increase in TVL. This exchange is only a month old and offers yield farming opportunities at high levels, with some reaching over 1000%. These have led many profit-seekers deposit their Oolongswap assets in Oolongswap and bridged them to the Boba Network.
This same thing happened with Arbitrum, the leading L2 Ethereum solution. Incentives to borrow money were offered to yield seekers to transfer their funds to Arbinyan. It was a similar platform to Oolongswap and provided very high depositor yields. Rumours of an Arbitrum native token airdrop also contributed to the movement.
According to data taken from Defillama, a defi tracking platform, Oolongswap’s TVL is now around $463 million, a little more than a third of the assets currently managed on the Boba Network at the time of writing.
How do you feel about Boba Network? Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.