Optimistic Ethereum Finally Soft Launches Mainnet; Synthetix (SNX) Staking Goes Live Too
To “alleviate the gas crisis,” the Layer 2 solution has taken its first big step so that small users don’t get priced out by extremely high fees.
Just at the beginning of this week, average fees on Ethereum skyrocketed to a new high. This was just one of many such huge spikes in the fees the network has been seeing since last year, especially after decentralized finance (DeFi) gained momentum in the second half of 2020.
Amidst “undeniably insane” demand for Ethereum, the layer 2 solution, Optimistic Ethereum, took “first material steps towards alleviating the gas crisis by deploying to mainnet.”
The soft launch is just a peek with a full flash, public testament coming in late February or early March so that anyone can deploy and interact with it.
As for the public mainnet, which will implement fixes from public testament and be audited will come “as soon as humanly possible,” says the team.
Synthetix staking now live on L2 mainnet!
The same day, DeFi blue chip Synthetix announced the launch of staking on the L2 mainnet of Optimistic Ethereum.
This is the first layer 2 scaling solution with full cross-layer porting capability for smart contracts without rewriting them as such, making it a huge step for Synthetix and the entire Ethereum ecosystem.
This first phase of migration is designed for smaller SNX holders who get priced out due to high gas costs, reads the official announcement.
To migrate to L2, those participating in SNX trading on L1 must pay back any staking debt in sUSD first to unstake their SNX. For now, Metamask is the only supported wallet on L2, with support for more wallets coming next week. As for migrating escrowed SNX to L2, it is optional and may cost up to 0.5 ETH.
Once migrated, SNX holders can stake their DeFi token to mint sUSD, an option to be launched next week.
Synthetic’s staking activity has been growing steadily throughout last year, with daily active stakers increasing 187% over this period.
Now that Synthetix staking is live on Optimistic Ethereum's L2 mainnet, SNX is having a wild time, hitting new ATHs one after another. The token price went above $17 today, following a surge of 126% in 2021 so far. Meanwhile, only 2.6% of SNX’s total supply is available on exchanges.
In contrast to this growth, the total value locked (TVL) in the project has fallen to $1.8 billion from Jan. 14 of $2.48 bln.