Important questions on ETH and Layer 2 ecosystem

[BiTCalt]

Hi
I'm new to the forum and I hope to learn a lot 🙂 In fact, I would like to ask the more experienced people here a question or advice on how to move with the entire ETH ecosystem.
The news of the ETH update which significantly lowers the fees on the various L2s has just come out so I was wondering if the time has come to take advantage of this.

I'll explain what I mean and the situation:
- let's assume that I have ETH, some other tokens and also USDC all on the ETH network (perhaps on the ledger or metamask connected to the ledger)
- let's assume that in the future I wanted to sell ETH for USDC/USDT or vice versa
Is it better to pass everything on a L2 like Optimism, Arbitrum? Better another L2? and if so, which one and how do I do it safely (considering all the various exploits on bridges and more, I wouldn't want to risk more than the usual)?
And once you get to L2, which DEX to use that takes advantage of this L2?

Another related situation:
- let's assume that I liquid stake ETH on LIDO and therefore obtain stETH as a token on the ETH network
I can also bring this new token to a L2, right? but how does it work regarding rewards? Will I continue to receive them? on which network? is it worth it?

Perhaps very basic but very important questions for everyone to have a general picture of the enormous potential of the Etherium ecosystem.
I thank everyone for their help in unraveling these doubts of mine.
  

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[1714935441]

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[BiTCalt]

I'll explain what I mean and the situation:
- let's assume that I have ETH, some other tokens and also USDC all on the ETH network (perhaps on the ledger or metamask connected to the ledger)
- let's assume that in the future I wanted to sell ETH for USDC/USDT or vice versa
Is it better to pass everything on a L2 like Optimism, Arbitrum? Better another L2? and if so, which one and how do I do it safely (considering all the various exploits on bridges and more, I wouldn't want to risk more than the usual)?
And once you get to L2, which DEX to use that takes advantage of this L2?

Another related situation:
- let's assume that I liquid stake ETH on LIDO and therefore obtain stETH as a token on the ETH network
I can also bring this new token to a L2, right? but how does it work regarding rewards? Will I continue to receive them? on which network? is it worth it?
-> I already aswered this by wrapping stETH I guess

Anyone have any suggestions?
Thanks 

[Coin_trader]

In regards on what L2 you choose for safe bridge, No one can answer you here an exact answer since all of the existing bridge has the tendency for potential exploit due to a lot of factor.

Each L2 have their own trusted bridge. I think the greater the liquidity on the bridge means the more safety you can use it because already a lot of user trusting it. The danger on bridge relies on the liquidity provider while the user is rarely become affected because you are just using it not too frequent.

L2 has their own advantages and disadvantages so it’s up to you on what kind of protocol do you preferred but the safety is always subjective because no one knows what project will be the target for exploit.

[cryptoaddictchie]

Yes you could being in those to L2 but the thing is since you transfering from L1 expect some high fees on eth network or higher gas fee. If you only transferring a little eth then dont mind cause youll be just dissapointed with the fees. If you use eth network make sure you are engaging with considerable amount of eth to make use of the fees efficiently like 0.4eth and above sending 0.01 0.02 is a waste of gas fee.

[BiTCalt]

In regards on what L2 you choose for safe bridge, No one can answer you here an exact answer since all of the existing bridge has the tendency for potential exploit due to a lot of factor.

Each L2 have their own trusted bridge. I think the greater the liquidity on the bridge means the more safety you can use it because already a lot of user trusting it. The danger on bridge relies on the liquidity provider while the user is rarely become affected because you are just using it not too frequent.

L2 has their own advantages and disadvantages so it’s up to you on what kind of protocol do you preferred but the safety is always subjective because no one knows what project will be the target for exploit.

Yes I understand. So I think my choice will fall on one of the DEXs with the most volume and most famous, such as: Arbitrum, Optimism and maybe even Polygon to minimize risks.

Yes you could being in those to L2 but the thing is since you transfering from L1 expect some high fees on eth network or higher gas fee. If you only transferring a little eth then dont mind cause youll be just dissapointed with the fees. If you use eth network make sure you are engaging with considerable amount of eth to make use of the fees efficiently like 0.4eth and above sending 0.01 0.02 is a waste of gas fee.

This is the focal point: I can think of transferring everything to L2 if I start to make the liquidity profitable in DeFi.

In the case:
- Is it worth to put at work wstETH (or rETH) tokens on an L2?
- Liquidity provider? Other solutions more profitable?
- Would I get double revenue by doing this? (from DeFi and ETH staking)

Thank you

[Sophokles]

To give you a clear answer you first need to understand why all these layer 2 exist. ETH is decentralized and secure but not scalable which means its not easy to create a dapps without any limitations. Thats why layer 2 ideas pop up, and we are seeing a lot of layer 2 projects on the market. DeFi is something that is bringing fuel to ETH ecosystem and ETH gas fees are making it impossible for a large community to use DeFi dapps in ETH so if you are a DeFi dapps user you should definitely move to Layer 2 but if you just want to hold ETH for long term investment purposes, there is no need to move your funds to layer 2.

[BiTCalt]

To give you a clear answer you first need to understand why all these layer 2 exist. ETH is decentralized and secure but not scalable which means its not easy to create a dapps without any limitations. Thats why layer 2 ideas pop up, and we are seeing a lot of layer 2 projects on the market. DeFi is something that is bringing fuel to ETH ecosystem and ETH gas fees are making it impossible for a large community to use DeFi dapps in ETH so if you are a DeFi dapps user you should definitely move to Layer 2 but if you just want to hold ETH for long term investment purposes, there is no need to move your funds to layer 2.

Yes I know about it and if my only goal is to hold ETH there is no need to swap to a L2.

But I was asking for more specific information on the potential of bringing ETH (or its liquid tokens) to L2 for economic benefits. To put it simpler:

- If I bring ETH (or wstETH) to L2, how can I make them profitable?
- Risks vs benefits?
- How can I technically do to bring tokens to L2? Which L2? Which DEX to make them profitable?

I was explicitly asking for advice on these points so that I can understand and then choose what to do with my ETH

[God bless u]

What I have understood is that there is no harm in transferring to L2 but the point here is how much fees they are taking on this transfer. Layer 2 projects have solved many problems that ETH was facing like congestion and high transfer fees. ETH can evolve with a greater impact if ETF is approved then it will blast the market in my opinion.
You can transfer them but you need to consult some profit and loss expert if you're not an expert. He'll tell you the prediction after calculating the transfer fees and liquidation amount height guess the profit you'll make on layer 2 then if feasibility of the project is positive you can surely continue.

[JeffBrad12]

you can just use the bridge provided officially by the L2 foundation team if you are so afraid using third party which usually kinda require longer time and higher gas fee but since its coming from the first party creator of the L2 its kinda high in legitimacy I guess from manyperspective of people.

usually if you want to bring tokens to L2 you can easily use omnichain protocol that provides bridging make sure that they got the route available for you for example you can use stargate that is provided by layerzero, be assured that you got the right site tho don't get scammed by some random link, then you can bridge over your money using these omnichain protocol, usually the fee is kinda high, personally I always swap my token to ETH and then just bridge them over to L2 and thats already enough for me.

about liquid token, you should honestly ask in their discord, they are the one that knows well about the ins and outs of such thing more specifically the rewards, etc.

[johnsaributua]

hello there, welcome.

Ethereum is the legend of altcoins, almost all projects under it have good and profitable prospects. For layer 2 such as OPtimism, arbitrum, base, zksinc it is very cheap than its parent erc-20 . The same eth just different rpc and usability (can choose density) my assumption is that the cheaper the gas fee the smoother it means the queue is not too long, of course this makes it easier for ethreum transactions. For me, binance class cex is also very affordable and has been supported by the web3 wallet, but I prefer transactions on the cex because I often go there, I can say that L2 is only a withdrawal and deposit method, after entering the market it can be traded as needed.

Dex directly you are responsible for this kind of activity including all the risks, it is easy without any identity but sometimes users have to understand with slipage every time the transaction, I am not allergic to dex / dapps of course occasionally I also use the bridge feature on other networks. For ethereum I chose with cex services.

[X-ray]

Hi
I'm new to the forum and I hope to learn a lot 🙂 In fact, I would like to ask the more experienced people here a question or advice on how to move with the entire ETH ecosystem.
The news of the ETH update which significantly lowers the fees on the various L2s has just come out so I was wondering if the time has come to take advantage of this.

I'll explain what I mean and the situation:
- let's assume that I have ETH, some other tokens and also USDC all on the ETH network (perhaps on the ledger or metamask connected to the ledger)
- let's assume that in the future I wanted to sell ETH for USDC/USDT or vice versa
Is it better to pass everything on a L2 like Optimism, Arbitrum? Better another L2? and if so, which one and how do I do it safely (considering all the various exploits on bridges and more, I wouldn't want to risk more than the usual)?
And once you get to L2, which DEX to use that takes advantage of this L2?

You shall put TVL as the main concern here. They are all safe caused by i have been using those L2s since last year. Talking about exploits and the possibility of exploit to happen is very small caused by it was using optimistic rollup

If you have no knowledge about optimistic rollup then try to learn about it here

Optimistic rollups are a Layer 2 scaling solution for the Ethereum blockchain. They allow transactions to be executed off-chain while still leveraging the security of the main Ethereum chain. In this system, transactions are processed and bundled off-chain, then submitted as a single batch to the Ethereum mainnet

https://blog.thirdweb.com/what-is-an-optimistic-rollup/

Any dex can that supports that L2s can take the advantages. There were many dexs cooperated with those L2s. I was always taking the risk non tokenized DEX. It means a trusted dex that has not yet released their tokens. It will give me benefit to receive some airdrops that i can sell it for money.
If you have no knowleged about it then use trusted dex. The advantage totally depends on yours.

Another related situation:
- let's assume that I liquid stake ETH on LIDO and therefore obtain stETH as a token on the ETH network
I can also bring this new token to a L2, right? but how does it work regarding rewards? Will I continue to receive them? on which network? is it worth it?

Perhaps very basic but very important questions for everyone to have a general picture of the enormous potential of the Etherium ecosystem.
I thank everyone for their help in unraveling these doubts of mine.
  

As long as you are still holding your ether and you were not converting it to the other tokens and you still qualify for up to 3% APR. Your ethereum gets stacked ethereum POS. You will still receive your reward even if you are also LPing your ethereum to the defi platform.
If you were convering it to another token and yeah your reward totally depends on the what's offered by such tokens.