LBank AMA Recap with Celer Network
Date: 30/04/2021
Time: 19:00 UTC+8
Venue: LBank Telegram Chat Room https://t.me/LBank_en
Guest: Michael Zhou(Core developer at Celer Network)
Host: Dily| LBank
Part 1
1. Some people think the State Channel has been “out of date”, as the “State Channel standard setter”, will CELER still develop this scaling solution?
Well, we don’t think that state channels are out of date and in fact, they will have much more usage in the L2 world. I want to provide two use cases where state channels will shine:
Firstly, state channels are best for applications that require high frequency of user interaction, such as gaming. For example, CelerX, a esport gaming platform built using Celer’s state channel technology, is now having close to 1M users.
Secondly, as we go into a future where there will be multiple “L2 rollups” currently running on top of L1. It will be very helpful to have a State Channel network to bridge together all these chains so that liquidity can be migrated from one L2 to another quickly without going through L1. For this particular use case, we have announced cBridge and will launch it soon as well.
While Celer’s state channel solution is very mature and can already support both use cases, we strive to provide a more comprehensive solution to the scaling challenges of Ethereum. Therefore, recently we are more focused on applying the rollup technology to scale up DeFi.
2. What exact Layer2.Finance is ? How can it get DeFi mass adoption scaling Layer-1 DeFi “In-place” with ZERO migration?
One way to think about the entire DeFi ecosystem is to think of it as a city. In this city, your home is basically your cryptocurrency wallet. This DeFi city is pretty cool because it has all sorts of “money-making shops” that you can visit and “park” your money at to start earning 100X — 10,000X higher annualized yields compared to the traditional saving methods used by centralized banks. These “shops” are the DeFi protocols that we hear about all the time: like yEarn, Curve, Compound, Cream, Sushi Swap, Uniswap, AAVE, and Alchemix.
But to get around in this city, the only way of transportation is taking very expensive taxi. And this taxi is Layer1 transactions.
Because of this, it makes DeFi very hard to use for users who are not millionaires. Simple example: if you want to to “park” the $2,000 at the Compound protocol, you will have to pay the $250 L1 gas . Now, with only $1750 left, you will only make $175 at 10% APY AFTER ONE FULL YEAR! That is a net loss of $75 for the whole year!
Layer2.Finance is to solve this as the world’s first DeFi Public Transportation Service. You can think of layer2.finance is basically a subway network under DeFi City (the layer2 rollup scaling platform). Now, instead of being forced to hail the expensive taxi service to get to these DeFi shops individually, multiple people can take our public transportation solution and drastically reduce their costs. You pay much cheaper DeFi costs because instead of paying one full transaction cost (the limo fee) for every single fund allocation demand, layer2.finance essentially splits the cost of one single layer1 fund allocation transaction across all the users on board the same layer2 subway train. If there are 100 people on the train, you can easily lower the cost by 100X.
3. What do you think of the rapid development of layer2, what’s the difference of L2F from other layer2 projects？
The key difference here is that layer2.finance can help users to access DeFi at low cost without asking all the DeFi protocols to move to different blockchain, sidechain or rollup chain. There will also be no liquidity fragmentation so users can use DeFi in a single entry point.
Basically we embrace DeFi protocols on L1 from L2, without requiring protocols to make any move at all. This is our unconventional way of doing things?
4.What do you think about the future of layer2 if ETH2.0 launches？
I think multiple layer2 rollup is essentially a way of doing sharding. ETH 2.0 is going to be complementary to layer2 in many ways. One of the most important things is that ETH 2.0 is going to enable state and storage sharding. This is actually to serve layer2 even better. So layer2 will always be needed and can always help layer1 scaling.
We are very much looking forward to the launch of ETH 2.0 and are confident that our technology will help even more with scalability by then.
5. Can you introduce the campaign for Layer2.finance Mainnet Launch in detail? After L2F mainnet launches, is there any other plan in the future?
To celebrate the Grand Opening of layer2.finance v0.1 and showcase just how much we lower these costs, for the next 60 days, layer2.finance will be covering all of the fees associated with using DeFi protocols through L2!
In addition, for the first 500 eligible users, we are offering a limited number of people the opportunity to have their Ethereum L1 gas fees incurred when moving funds from layer1 blockchain to layer2.finance (i.e. “Deposit to L2” step in the tutorial) completely reimbursed . For someone to be eligible, they will need to stay in the layer2.finance system for a minimum of 45 days and the total value of the deposited assets should not be more than $100,000 (sorry whales!). This reimbursement is limited to the first 500 eligible users (addresses) for only one transaction each. The reimbursement ETH amount is calculated based on the moving median of gas price during the 30-day period and will be disbursed every 30 days until the number of eligible users reaches 500.
Mainnet launch is by no means the end of the road for L2F. We will continuously iterate on L2F to support more kinds of DeFi protocols, including protocols that provide higher risk and higher return. We will also integrate with other layer1 and layer2s, and will leverage liquidity mining to bootstrap mass adoption.
The v0.1 mainnet release of layer2.finance also marks the beginning of a community-driven development. We want to work with the community to create proposals for future iterations of layer2.finance. We hope you enjoy the ride as we democratize DeFi together!
Part 2
- We can see uncountable amount of Hacking & Leaking News today in this Cryptocurrency Space. How you ensure that the assets of CELER Users are Safe and Secure?
Very good question. In the context of L2, rollup ensures that all your assets are as secure as if they were on L1. Even if the rollup operator goes rogue, they cannot steal your funds! So please rest assured that all funds are SAFU on layer2.finance.
2. What is the main roadmap for 2021?
You can check out our blog post
In summary, more DeFi protocols, more scalability, and more chains!
3. What have been celer’s achievements during its launch until now?
https://twitter.com/CelerNetwork/status/1387915568909488131
4. Will CELER produce new projects? If so, would you mention them?
Our current focus is layer2.finance. We will have an upcoming release for cBridge, a cross chain liquidity solution. Please stay tuned for more!
5. Why you chose Layer2 Finance name? Any special reason?
It’s a perfect combination and synergy of Layer 2 and DeFi, which is precisely what we are trying to achieve with the product.
6. How does CELER Network fight corona virus?
We are all doing our parts to not just staying safe, but also making donations of funds and equipment to help those in need. Let’s fight this pandemic together!
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