DeFi cities have many "shops" that can earn income

DeFi is a city where your home is your wallet. The city of DeFi is awesome because it has a variety of "money-making stores". You just need to throw money in the store in the past, and you can earn a fixed income that is hundreds of times higher than that of the bank. These so-called stores are familiar DeFi protocols: such as yEarn, Curve, Compound, Cream, Sushi Swap, Uniswap, AAVE, and Alchemix. There is also a "cooperative relationship" between these stores: you can deposit money into store A, get back a "certificate of deposit" receipt, and then bring the receipt to store B, and earn more money. This kind of "certificate deposit" is usually called LP Token (liquidity provider deposit certificate). This way of relying on deposit certificates to superimpose each other is called the "combinability" of DeFi.

The current high transaction cost of Layer1 DeFi is like the cost of a private car between various stores

This is all awesome, but one annoying thing is that in this city, you don't have any other means of transportation except calling a special car. Let me give you an example 🌰: You are going to an old "Stable Dog" store called "Compound". This place can provide you with 10% annualized stable dog income, but the round trip cost will kill you $250. It is important to note that no matter how much money you bring to that store, the travel expenses will be the same.

This one-person-one-car special fare is our high Gas Fee on Ethereum today.

Xiaohua is a millionaire, carrying millions of cash around every day, renting a special car has always required Shenzhou, and she doesn't feel bad: deposit 100W, pay 250 US dollars, that's only 0.025% extra fee. For an annualized return of 10%, she can pay back the fare within one day and start the earning mode.

However, for Xiao Ming, who has the same bright future, he has only 2,000 US dollars to play with. He faced a headache: Xiao Ming couldn't afford to rent a special car. If Xiao Ming wants to do the same thing as Xiao Hua, first pay him the 250 fare, and now he only has 1,750 US dollars left in his hand. Everyone pinched their fingers and calculated, with a 10% profit, he would succeed in making a net loss of $75 a year later! what's the matter...

If this matter is more serious, it is even more important for the people of Asia, Africa and Latin America that DeFi keeps saying to save. They really need DeFi to help them get rid of the unstable financial system, but this fee is really unreasonable. rise.

Users are angry! We tm finally moved from "traditional finance" to "DeFi city". We thought that the people in Xialiba had the little luck of earning 10% annualized income, and Yangchun Baixue had the grand plan and great wish to save the poor from suffering. I never thought that it is another place where ordinary people have nowhere to go.

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Layer2.finance is like a modern subway in a DeFi city

Before we hit the table, let's calm down for the last time. Let's add up. Whose fault is it? There’s nothing wrong with any of these money-making shops: if you put your money in them, you’re really making money. The main problem is that only special cars can be used in this broken city. In real life, if we want to travel from home to Xujiahui, shouldn’t the first thing that comes to mind is to take Metro Line 1?

This is exactly what layer2.finance is: the bus company for the DeFi world. You don't need to take a special car, you can go in all directions through the subway (layer2 rollup second-floor expansion platform). The decomposition action class is as follows:

1. Buy "Bus Card": Send a layer1 transaction with a low fee to transfer your funds from layer1 to layer2.finance's layer-2 rollup chain. From the perspective of layer1, your money actually enters a fund pool bound to this layer2 rollup.

2. Enter the subway station, wait in line on the platform to go to Xujiahui: send a layer2 transaction, indicating "I want to send $200 to the Compound protocol", and there is almost no handling fee for this step.

3. After the subway arrives, get on the subway with other people who are going to Xujiahui, and go to Xujiahui together: layer2.finance aggregates all fund allocation requests, and only sends one layer1 transaction, aggregates all requests, and sends them to the public fund pool Compound allocates funds, and everyone on this subway will share the layer1 transaction fee.

4. Just repeat steps 2, 3, 4 when you want to transfer funds to some other money making shops.

In this way, the DeFi usage fee paid by the user is much cheaper, because layer2.finance does not need to pay the L1 transaction fee (car fee) separately for each individual fund allocation requirement in the aggregation transaction, but distributes this layer1 fund Transaction costs are shared equally among all users on the subway. If there are 100 people on the subway, you can easily reduce the cost by a factor of 100. In this way, many smaller capital allocation needs can be aggregated together, and they can compete with local tyrants and small flowers.

No, wait a minute. How can we ensure that the driver doesn't take all the passengers on a whim and tie up their tickets? Is layer2.finance just centralized fund custody?

Calm down! This is where the core technology of Celer and layer-2 rollup comes into play. We will not discuss too many technical details here. This layer-2 expansion technology can achieve 100% decentralized hosting. Even if the bus company is a bad guy, there is absolutely no way to get or control your money. In theory, the worst-case scenario is that the subway may stop halfway and you need to walk by yourself, but this will hardly happen, because the "bus company" is not a single entity, but the entire decentralized Celer State Guardian Network.

It's just beautifully abnormal. As the saying goes, if something goes wrong, there must be a demon. Tell me where is the demon?

The demon is: users need to wait for the bus at the platform with other people, and exchange time for cost. You can take a special car on call, and the L1 transaction of the local tyrant can immediately invest funds in the DeFi protocol. And to bring all users together and save costs for everyone on the subway, there will always be a delay, waiting for enough people to start the train or when it arrives (anywhere from a few hours to a day). Of course, this also depends on fate, maybe you can start the train as soon as you arrive at the platform; However, in view of saving 100 times the transaction cost, this is called a "trade-off", and it cannot be said to be fraudulent.

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Just like any public transportation system, there is a line at the beginning, and several stations where people travel a lot. The same is true for layer2.finance. We will quickly integrate important protocols and key strategies in the existing DeFi ecosystem, and this integration can be completed quickly without any additional changes or migrations to existing DeFi protocols. As the number of users increases, subway lines and stops will gradually increase.

Once a network effect with a large number of users and liquidity is formed in the system, emerging DeFi protocols will in turn hope to attract this precious liquidity and hope to actively build adapters to layer2.finance.

This public transport system is of course not limited to one city (chain). With the emergence of new layer2 rollups, side chains and other layer1s, layer2.finance can evolve into a cross-city or even global public transportation network, with one-time access to the entire network.

layer2.finance is the DeFi of the masses. It builds a DeFi bus system through advanced layer2 rollup technology, so that ordinary users can concentrate on big things, and sit on an equal footing with local tyrants. In the entire DeFi ecosystem, it is simple to operate, low in cost, and efficient in return. , Enjoy the real benefits brought by DeFi. Come from the crowd, go to the crowd, stay tuned for the launch of layer2.finance!