However, Boba claims to present a unique upgrade compared to what other solutions are offering for fund withdrawals. While other L2 layers present withdrawal periods of seven days, Boba allows users to withdraw funds on L2 in a matter of minutes.
The Boba Network, a recently released L2 layer for Ethereum, has reached second place regarding total value locked (TVL) among L2 solutions, gaining more than 50% in value during the last week. The platform, which is a fork of Optimism, another Optimistic rollup, surpassed its sibling to fall just behind Arbitrum, the leading L2 solution for Ethereum scaling currently. The problems Ethereum is facing regarding scaling have resulted in the rise of this kind of solution, which offers users the possibility of paying less in gas fees but enjoying the security of transactions being processed by the Ethereum blockchain.
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The rise in TVL of the network is most likely due to the launch of the first native decentralized exchange (dex) on its platform, Oolongswap. The exchange, less than a month old, offers high percentages in yield farming, some going over 1,000%. This has likely led profit-seekers to bridge their assets to the Boba Network, depositing these in Oolongswap to enjoy the benefits.
The same phenomenon happened when the now leading L2 Ethereum solution Arbitrum launched. Yield seekers were enticed to bridge their funds and deposit them to a yield platform called Arbinyan, which, in the same way that Oolongswap is doing now, offered very high yield percentages for depositors. Also, rumors of an Arbitrum-native token airdrop contributed to this movement.
According to data taken from Defillama, a defi tracking platform, Oolongswap’s TVL is now around $463 million, a little more than a third of the assets currently managed on the Boba Network at the time of writing.
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