Post
Topic
Board Altcoin Discussion
Re: Important questions on ETH and Layer 2 ecosystem
by
BiTCalt
on 20/03/2024, 21:01:55 UTC
To give you a clear answer you first need to understand why all these layer 2 exist. ETH is decentralized and secure but not scalable which means its not easy to create a dapps without any limitations. Thats why layer 2 ideas pop up, and we are seeing a lot of layer 2 projects on the market. DeFi is something that is bringing fuel to ETH ecosystem and ETH gas fees are making it impossible for a large community to use DeFi dapps in ETH so if you are a DeFi dapps user you should definitely move to Layer 2 but if you just want to hold ETH for long term investment purposes, there is no need to move your funds to layer 2.

Yes I know about it and if my only goal is to hold ETH there is no need to swap to a L2.

But I was asking for more specific information on the potential of bringing ETH (or its liquid tokens) to L2 for economic benefits. To put it simpler:

- if I bring ETH (or wstETH) to L2 how can I make them profitable?
- Risks vs benefits?
- How can I technically do to bring tokens to L2? Which L2? Which DEX to make them profitable?

I was explicitly asking for advice on these points so that I can understand and then choose what to do with my ETH Smiley