Welcome to the Optimism ecosystem! Optimism, a Layer 2 scaling solution for Ethereum using Optimistic Rollups, offers faster transactions, lower gas fees, and EVM-compatibility. We’ll explore the top dApps thriving on Optimism in this article!
What is Optimism?
Optimism is a Layer 2 scaling solution for Ethereum, designed to enhance the network’s capacity by reducing fees and increasing transaction throughput. It operates on the principle of Optimistic Rollups, which allow for the execution of smart contracts and transactions off the main Ethereum chain (Layer 1), while still inheriting the robust security properties of Ethereum.
Optimism achieves this by assuming transactions are valid by default (hence “optimistic”) and only running computation through a fraud-proof mechanism in the event of a disputed transaction. This approach significantly reduces the amount of data that needs to be processed and stored on the Ethereum mainnet, leading to lower transaction fees and faster processing times compared to executing the same operations on Layer 1. However, this method also leads to a seven-day waiting period for withdrawals back to Ethereum.
As an EVM-compatible Layer 2, developers can deploy Ethereum smart contracts on Optimism with minimal changes, making it a highly accessible platform for scaling dApps. Additionally, as one of the earliest launched Layer 2 solutions, Optimism’s friendly development environment and its long-term development have cultivated a diverse and rich ecosystem. With a Total Value Locked (TVL) of $7.88 billion, Optimism ranks second among all Layer 2 solutions, only behind Arbitrum.
If you’re interested in dApps on Optimism but unsure where to start, let’s take a look at some amazing projects on Optimism!
Top DApps Within the Optimism Ecosystem
The Optimism is renowned for its extensive collection of DeFi projects but also hosts an array of other initiatives including bridges, social, tools, and NFT platforms. Here’s a snapshot of the standout projects that are shaping the future of the Optimism ecosystem:
Synthetix
Synthetix is a decentralized liquidity layer on Ethereum and Optimism that serves as a liquidity backend for some of the most exciting protocols in DeFi.
By engaging in SNX staking, users not only earn interest but also gain the ability to borrow sUSD. This synthetic USD can be utilized across an extensive variety of Real-World Asset (RWA) Dapps within the Synthetix ecosystem, allowing users to trade in crypto, Forex, commodities, and more, all represented as crypto assets.
Synthetix currently supports eight Dapps, making it the highest TVL Dapp on Optimism, with approximately $274.33 million.
Velodrome
Velodrome, modeled after Solidly, is an Automated Market Maker (AMM) Decentralized Exchange (DEX) designed to enhance liquidity depth and minimize slippage for key token pairs within the Optimism ecosystem.
Standing out in the crowded DEX landscape, Velodrome lures participants with its incentivized liquidity pools, creating an environment ripe for engagement and investment. Moreover, it empowers its users with governance capabilities through their token (VELO), allowing them to have a say in the protocol’s token distribution and decision-making processes. This strategic approach not only improves trade efficiency but also fosters a democratic ecosystem where users’ inputs shape the future direction of Velodrome.
Currently, Velodrome is the largest DEX on the Optimism network, boasting a TVL of approximately $130.08 million.
Worldcoin
Worldcoin is a crypto project co-founded by Sam Altman, the CEO of OpenAI. This project aimed at creating a global digital currency that leverages unique biometric identification technology to ensure one person holds only one account.
Just by scanning the eyeball with an Orb (iris scanner), users can obtain an exclusive human digital passport in the Worldcoin app. This app serves not only as identity verification but also allows users to manage and transfer digital assets, as well as receive Worldcoin tokens.
In a bid to expand its ecosystem and enhance scalability and transaction efficiency, Worldcoin announced its migration to the Optimism network in August 2023. This move is expected to benefit Worldcoin users with faster transactions and lower fees, further aligning with its mission to foster a more inclusive global financial system.
AAVE V3
AAVE V3 is the latest iteration of the AAVE protocol, a DeFi platform renowned for pioneering liquidity pool lending services. This version introduces several enhancements aimed at improving user experience, security, and efficiency.
Key features include gas optimization for lower transaction costs, increased scalability through cross-chain functionality, and new risk mitigation tools such as the Portal, which facilitates seamless asset transfers across supported blockchains. AAVE V3 also incorporates more sophisticated governance mechanisms and introduces “High-Efficiency Mode” for leveraged positions and “Isolation Mode” to limit exposure to new assets.
These upgrades solidify AAVE’s position as a leading platform in the DeFi space, offering users more flexibility, security, and opportunities for earning interest on their cryptocurrency holdings.
Aave stands as the premier lending protocol within the Optimism ecosystem, with its TVL reaching an impressive $161.21 million.
Beefy
Beefy is a Decentralized, Multichain Yield Optimizer that allows users to earn compound interest on their crypto holdings.
Through a set of investment strategies secured and enforced by smart contracts, Beefy automatically maximizes the user rewards from various liquidity pools, AMM projects, and other yield farming opportunities in the DeFi ecosystem.
Beefy is currently deployed on 25 blockchains and stands as the largest Yield Aggregator on Optimism, with its TVL reaching $27.75 million.
XY Finance
XY Finance is a cross-chain bridge aggregator that operates on 20 EVM chains. XY Finance’s user-centric approach allows for easy token swaps between different chains, ensuring the best route and optimal prices for users.
Through XY Finance, users can effortlessly transfer assets to Optimism and explore the diverse Dapps on the Optimism network. This article will conclude with a detailed guide on how to use XY Finance!
Interacting with Dapps on Optimism! Unlock Airdrop Rewards
Optimism has pledged to distribute 19% of its total initial token supply to its community via airdrops. Since its launch in June 2022, Optimism has already conducted four airdrops, rewarding active users on its platform.
In the future, an additional 560 million OP tokens, valued at approximately $2.16 billion, are earmarked for airdrops. To increase your chances of receiving these rewards, make sure to actively engage with the diverse Dapps available on Optimism!
How to Bridge Tokens to Optimism?
After exploring the key Dapps on Optimism, the final step is to transfer your assets to Optimism.
As mentioned earlier, XY Finance provides a seamless and efficient method for bridging assets to Optimism. Don’t waste your time! You can now bridge tokens to Optimism with this simple guide:
- Visit XY Finance and connect your Wallet.
- Select the network you want to transfer tokens from (Ethereum, Polygon, Arbitrum, Avalanche, Optimism + 15 others).
- Select the token you want to bridge from your network to Optimism and input the amount.
- Review and confirm the transaction. Your tokens will arrive in under 5 minutes.
(Encountering any problems while bridging? Check out our comprehensive tutorial.)
You’re all set! Start exploring the Optimism ecosystem now!
About XY Finance
XY Finance is a cross-chain interoperability protocol aggregating DEXs & Bridges. With the ultimate routing across multi-chains, borderless and seamless swapping is just one click away.
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