GM DOers! 😎
Nobody should pay more than $1 in gas fees when using Ethereum!
Thankfully, Layer 2 solutions like Base, Optimism, Arbitrum, and Immutable significantly reduce the gas fees on Ethereum, allowing users to transact onchain without worrying too much about costs.
That’s exactly what we need in order for this industry to go mainstream and why L2 users are at all-time highs. 🚀
To make blockchain seamless for users, we need to minimize gas fees and streamline the user experience, making the technology invisible to them.
Web3 will go mainstream only when people use it without even realizing it.
In today’s piece, I wanted to highlight a few L2 innovations that help scale Ethereum, alleviate gas fees and make it more fun for the user to be onchain.
Manta – saving users millions of $$$ in fees
Mode – sharing revenue with developers and users
Immutable – providing a gas-less experience for gamers
Let’s dive into it. ⏬
Manta’s Native Yield & Saving Users Millions 💰
On the Manta Pacific L2, when you deposit $ETH, you receive $STONE, and when you deposit $USDC, you get $wUSDM.
Both of these earn you passive yield – STONE earns rewards by staking your $ETH, and $wUSDM earns from U.S. Treasury Bills.
Furthermore, you can use STONE & wUSDM right away in various apps (such as DeFi) that are part of the Manta Pacific network to generate even more yield.
This essentially means that by simply depositing your funds on this new L2, you can earn money, without really doing anything.
A total game-changer.
But why would people deposit money to the Manta Pacific L2?
👉 Low fees.
Manta has integrated with Celestia to handle increased demand and transactions efficiently, enabling extremely low fees.
Since December 16th, Manta Pacific users have saved almost $1.6 million by using the L2 instead of Ethereum’s mainnet.
This is possible thanks to Celestia, which essentially is a network that stores data for other blockchains cheaply and efficiently, helping them to work faster and cost less.
By operating this way, Manta Pacific users can use the chain for negligible fees while also earning passive income on their deposited funds.
A pretty cool setup.
Mode – Sharing Fees w/ Devs & Users 😳
Mode is a new L2 that’s launching its $MODE token in April. We shared how you can become eligible for that drop last week.
Mode is introducing the so-called Sequencer Fee Sharing (SFS) model – a mechanism where developers who build apps on Mode can earn a portion of the transaction fees generated through their app.
Let me give you an example of how this will work in practice.
GMX, a perpetual trading platform operating on Avalanche and Arbitrum, has generated over $2 million in revenue for Arbitrum (by December 1st 2023).
GMX got 0% from it. Mode wants to change that through the SFS model that aims to incentivize and reward developers for contributing to the network's growth.
Now, I’ve got no idea how this will actually play out in reality. Generally, it’s a bad idea for early-stage networks (and startups in general) to share revenues, as their focus should be profitability.
However, by implementing this mechanism, Mode could quickly attract many developers and applications to rapidly grow its ecosystem.
It’s an interesting approach that we’ll keep our eyes on. 👀
Immutable’s Gas-less Experience ⛽
Immutable, in collaboration with Polygon, has recently rolled out its zkEVM Mainnet for early-access users.
Here are 5 reasons why this matters:
No Fees for Gamers: Players don't have to pay to play, making web3 games easier to get into, even for non-web3 natives.
Better Games: Supports bigger, more complex and enjoyable games thanks to increased scalability, without causing the network to slow down.
Interoperability: Makes it simple for different games to integrate with each other and make in-game items compatible.
Cheaper and Quicker: By using zero-knowledge tech, Immutable is able to reduce costs and speed up games for everyone.
Developer Friendly: Immutable has spent the bear market building tools and support systems for developers, making it really quick for them to make and grow their games.
In summary, Immutable simplifies the experience by eliminating the need for signing transactions or wallet connections, while still offering web3's key advantages like item ownership and interoperability.
Remember, web3 will go mainstream only when people use it without even realizing it – this is what Immutable offers.
I’m extremely bullish on Immutable & $IMX. Learn more about its tokenomics in our report:
Wrapping Up – Don’t Be Bearish on Ethereum ‼
What I covered today is only scratching the surface of the innovation happening around Ethereum.
I haven’t even talked about EigenLayer and how it just integrated with Arbitrum – reply with ‘EigenLayer’ if you think we should drop ‘a beginner guide to restaking’.
Or about Ethereum's next update, EIP-4844, aka Proto-Danksharding, which will lower costs by 10x for L2s, by making data storage cheaper on Ethereum.
Or about the fact that a Spot Ethereum ETF could be coming as early as May.
All of these things are helping Ethereum expand and scale to a point where it’s ready to support mass adoption.
The last thing you want to be right now is bearish on Ethereum.
Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤
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Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.
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