Ethereum L2 scene heats up with Boba network taking second place in TVL – Defi Bitcoin News

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Boba Network, a recently released L2 layer for Ethereum, quickly reached second place in TVL (Total Locked Value) among all extension layers. Boba, which is a fork of Optimism, another stack-based L2 layer, reached over $ 1 billion in TVL, surpassing Optimism. This is probably due to the profitable percentages offered by its first decentralized exchange, Oolongswap, which offers returns above 1000%.

Boba Network L2 is growing in popularity

The Boba network, a recently released L2 layer for Ethereum, reached second in Total Locked Value (TVL) among L2 solutions, gaining more than 50% in value over the past week. The platform, which is a fork of Optimism, another optimistic rollup, has overtaken its sister to be just behind Arbitrum, the leading L2 solution for Ethereum scaling today.

Scaling issues facing Ethereum have led to the rise of this type of solution, which offers users the option of paying less gas fees but enjoying the security of transactions processed by the blockchain. Ethereum.

However, Boba claims to present a unique upgrade over what other solutions offer for cash withdrawals. While other L2 diapers feature seven-day withdrawal times, Boba allows users to withdraw funds on L2 within minutes.

Oolongswap deployed

The rise of the network’s TVL is most likely due to the launch of the first native decentralized exchange (dex) on its platform, Oolongswap. The exchange, less than a month old, offers high percentages of farm yield, some exceeding 1000%. This likely led the profit seekers to link their assets to the Boba network, depositing them in Oolongswap to reap the benefits.

The same phenomenon occurred with the launch of the now leading L2 Ethereum solution, Arbitrum. Yield seekers were encouraged to top up their funds and deposit them on a yield platform called Arbinyan, which, in the same way Oolongswap does now, offered very high yield percentages to depositors. Additionally, rumors of a native token drop from Arbitrum contributed to this move.

According to data pulled from Defillama, a challenge tracking platform, Oolongswap’s TVL is now around $ 463 million, just over a third of the assets currently managed on the Boba network at the time of writing. .

What do you think of the Boba Network and its rise in TVL? Tell us in the comments section below.

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