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🚀Layer 2 TVL Soars Amid Optimism Ecosystem Growth
The Defiant Daily
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The total value locked in Ethereum's Layer 2 ecosystem is posting record highs following impressive growth within the broader Optimism ecosystem. Five of the eight-largest L2s by TVL are currently built on top of Optimism's tech.
In other news, Lido's staked Ether dominance is falling despite Blast's TVL crossing $1B, and PancakeSwap is set to drop its maximum token supply by 40%.
✍️ In today’s newsletter:
- Layer 2 TVL tags new record highs
- Lido dominance recedes throughout December
- PancakeSwap's quest for deflationary tokenomics
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📈 Markets in last 24 hrs:
| Ticker | Value | 24h |
|---|---|---|
| BTC | $42,601 | ↙ -1.88% |
| ETH | $2,345 | ↙ -1.33% |
| S&P 500 | $4,770 | ↙ -0.28% |
| GOLD | $2,062 | ↙ -0.55% |
| Arch WEB3 | 1.24pts | ↗ +2.91% |
| ↳ FINANCE | 1.27pts | ↙ -2.19% |
| ↳ INFRA | 1.45pts | ↙ -2.91% |
| ↳ CONSUMER | 1.51pts | ↙ -2.07% |
Learn more about Arch Indices here.
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Layer 2
Surging Optimism Ecosystem Drives Layer 2 TVL To New Heights
TLDR The combined value of assets held on Ethereum Layer 2 networks is tagging new highs following a more than 80% gain in ten weeks. Layer 2s now host more than $20B worth of crypto assets.
SO WHAT T Optimism's broader ecosystem, The milestone was driven by impressive growth within the broader Optimism ecosystem, with five of the eight-largest Layer 2s leveraging Optimism's technology. The five chains now represent 39.5% of combined L2 TVL, pushing Arbitrum's dominance below 50% for the first time in more than two years.
READ MORE: Surging Optimism Ecosystem Drives Layer 2 TVL To New Heights
DeFi
Lido Dominance Recedes Despite Blast TVL Climbing To New Highs
TLDR The dominance of Lido, the leading liquid staking provider, over the supply of supply of staked Ether fell throughout most of December. Lido currently controls less than 31.8% of staked Ether, down from a high of 32.3% in October.
SO WHAT Lido's falling dominance comes as welcome news to many Ethereans, with researchers warning that a single entity controlling more than one-third of staked Ether could undermine the decentralization of the Ethereum network. The trend comes in spite of continued growth for Blast, a Layer 2 network offering yield on ETH deposits via Lido, with the network ammassing more than $1.1B worth of assets.
READ MORE: Lido Dominance Recedes Despite Blast TVL Climbing To New Highs
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DeFi
PancakeSwap To Reduce Maximum Token Supply by 40%
TLDR PancakeSwap's community has passed a proposal to reduce the maximum supply of its CAKE token by 40% with more than 97% support. CAKE's supply will now be limited at 450M tokens, with 388M CAKE currently in circulation.
SO WHAT PancakeSwap hopes to achieve deflationary tokenomics, targeting more CAKE to be destroyed through token burns than is issued as newly minted rewards. Earlier this year, PancakeSwap also reduced the rate of new CAKE emissions and introduced a Vote Escrow staking mechanism.
READ MORE: PancakeSwap To Reduce Maximum Token Supply by 40%
Op-Ed
Linea's Journey Towards Progressive Decentralization: The Key to Minimizing Trust with Zero-Knowledge Technology
TLDR Declan Fox, the senior product manager for Linea at Consensys, delivers a call to action for rollup providers to outline plans for progressive decentralization and trust minimization. Fox also argues that zero-knowledge solutions are best poised to facilitate decentralized security.
SO WHAT Competition to scale Ethereum is heating up, with a new generation of zero-knowledge rollups seeking to dethrone the incumbent optimistic rollups from Arbitrum and Optimism.
