High gas fees, which are resulted by Ethereum’s success as the most popular platform for DeFi applications. But it also could make a simple transaction difficult for many users, especially as ETH rises to $2,000, a gas cost also reaches new highs amidst the bull run. For now, it costs around $5 for a simple transaction and $30 to use smart contract. ETH gas fees don’t look very attractive when the markets are busy. This problem arises every time the network gets more traffic than it can handle, and we are finally on the verge of discovering viable alternatives.
YFX adopting xDAI Stable Chain as a layer 2 solution. The xDAI chain is a stable payments blockchain designed for fast and inexpensive transactions. The chain uses a unique dual-token model; xDAI is a stable token used for transactions, payments, and fees, and STAKE is a governance token used to support the underlying POSDAO Proof-of-Stake consensus.
Why we choose xDAI?
The transactions are 100x cheaper and 5x faster than Ethereum, it’s also EVM compatible which allow us to migrate YFX smart contracts to xDAI with less security risk, it also plays nicely with the Ethereum ecosystem, including Meta Mask.
xDAI Stable Chain is also the layer 2 solution with massive adoption when compare to other layer 2 solution, like Optimistic rollup and ZK-Rollup. There’s more application runs on xDAI, for example, Sushi Swap, Perpetual Protocol, Bao Finance and, etc.
xDAI could even get better once Eth 2.0 is fully realized, xDAI will be well positioned to join Eth 2.0 either as a shard or in a rollup-type capacity. At this point, xDAI security guarantees can shift to the overarching Ethereum architecture, making xDAI more decentralized and secure.
How can Layer 2 benefit YFX user?
On xDAI, YFX can provide a place where traders can trade with almost no gas fee(0.0004 Dai in average).
With 70 tps, xDAI provide a faster transaction which allow traders get a lower slippage when open a position.
We believe that reduce gas fees and increase transaction speed would allow DEX compete advantageously with CEX. Our goal has never been surpassing Uniswap’s daily trading volume, we aim to compete directly with CEX since day one. During the Genesis mining, we got $600 Million daily trading volume which could rank on the top 20 derivatives exchanges on CoinMarketCap and these volumes are only from Binance Smart Chain, TRON and HECO. We are expected a much more trading volumes when assets on Ethereum pour into YFX.
When layer 2?
YFX team are constantly working on layer 2 scaling solution, we are expecting a layer 2 test net later this month. When the test net becomes stable, we will launch on xDAI main net.
