L2 Support
DeFcor Prioritizes Low-Cost Re-staking with Layer 2 Integration
DeFcor understands the high gas fees associated with Layer 1 transactions on the Ethereum blockchain. To address this concern, DeFcor is committed to launching with Layer 2 (L2) support from the very beginning. This allows users to interact with the protocol at a significantly lower cost.
The recent "proto-danksharding" upgrade further enhances this advantage. It has dramatically reduced gas costs on L2 networks by up to 90%. This translates to users being able to participate in complex DeFi strategies without being burdened by high gas fees.
In simpler terms, re-stakers using DeFcor on L2 networks can re-stake their LSTs, ETH, or other approved assets for mere cents in transaction fees. This is a significant improvement compared to Layer 1, where such transactions can cost several dollars.
By prioritizing L2 integration, DeFcor removes a major barrier to entry for users and paves the way for a more accessible and cost-effective staking experience.
L2 support on Defcor aligns with our ethos - Defi done correctly.
DeFcor leverages a network of smart contracts deployed on various Layer 2 (L2) solutions to facilitate re-staking. Here's how the process unfolds:
Depositing L2 ETH: Stakers deposit their L2 ETH into DeFcor's deposit contract.
Receiving wdETH: In exchange, they receive wrapped dETH (wdETH) on the same L2 network. wdETH represents their stake in the re-staking process.
Triggered Bridge Movement: Based on a predetermined schedule (cadence) or upon reaching a specific L2 ETH deposit threshold, a designated keeper network initiates a bridge transfer.
Bridging to L1: The L2 ETH is bridged to the Ethereum mainnet (L1) and converted into native ETH.
L1 Deposit and dETH Minting: The bridged ETH is deposited into the L1 deposit contract. Simultaneously, a corresponding amount of dETH is minted on L1 by the BridgeAdapter contract.
Withdrawing L2 ETH: To withdraw L2 ETH, a similar process occurs in reverse. dETH is burned on both L1 and L2, facilitated by keepers and bridges.
Benefits of wdETH for L2 Users:
While their assets are being re-staked, L2 users retain access to various DeFi products within the L2 ecosystem. They can utilize wdETH within these DeFi protocols to potentially earn additional, attractive yields.
Key Points:
DeFcor's multi-L2 approach allows users to enjoy low gas fees associated with L2 transactions.
wdETH provides a liquid representation of staked assets on L2, enabling DeFi participation.
The bridge movement ensures seamless interaction between L2 and L1 for re-staking purposes.
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