1inch, a decentralized exchange (DEX) aggregator that sources liquidity from various exchanges, has become the latest dApp to expand to a layer 2 scaling solution, this time, on Optimistic Ethereum (OE).
Leading decentralized platform, Uniswap, exapnded to Optimism in July 2021.
The reasons behind the scaling is to:
Lower gas fees and
Increase transaction throughput
1inch is reportedly looking to benefit from the 2,000 TPS speed (transactions per second) that will be possible on Optimism once a scheduled upgrade of the network occurs.
That said, currently, the network throughput is 0.6 TPS which is much lower than Ethereum’s 15.
According to 1inch Co-founder, Anton Bukov, throughput has been limited on OE to to avoid potential risks and failures during the alpha stage of development.
Reduced gas fees will become possible due to the architecture of the Optimistic network, which only needs to transfer compressed state changes to Layer-1 (L1) and doesn’t have to pay for calculations on L1.
This is expected to lead to savings between 2x and 10x compared to Ethereum.
1inch will now available on 4 blockchains, namely:
Binance Smart Chain
Polygon (formerly Matic Network)
Optimism Ethereum (OE)
The aggregator is also looking to expand on on other blockchains, namely: