DeFi firm Iron Bank has joined Yearn Finance’s Layer-2 protocol Optimism. This new integration aims to increase L2s’ enhanced security and capital efficiency for users.
Ethereum-based lending platform Iron Bank, Yearn Finance, and Homora join Layer-2 network Optimism. The companies have joined the protocol to improve cross-chain interoperability, security and capital efficiency for their users.
Optimism users will now be able to borrow by collateralizing their crypto assets while enjoying competitive gas fees, attractive rewards and yield options. DeFi refers to financial activities performed on a blockchain without the use of third parties, while Layer-2 is systems built on top of the blockchain to solve scalability issues.
Puff, chief contributor to Iron Bank, said in a statement:
“By launching Optimism, we aim to make DeFi more accessible, scalable and reliable as the protocol-to-protocol liquidity backbone”
Increasing Use of Optimism
DeFi Layer-2 protocol Optimism has recently become one of the most used Layer-2 platforms due to its speed and low user fees. The data shows that applications built on the network locked over $320 million in cryptocurrencies in January 2022, and this figure has risen to over $ 1 billion as of today.
Puff from Iron Bank said:
“We are excited about Optimism for users priced from yVaults on Ethereum. With the added liquidity flexibility that Iron Bank provides as a protocol-to-protocol lending partner, people can get the best risk-adjusted yield in DeFi without worrying about high gas costs on a fast chain.”
Ethereum transaction fees become prohibitively expensive for users in high network traffic. Earlier this year, network fees were up to $9,000 per transaction. Therefore, Yearn Finance integration leader “Dark Ghosty” makes networking DeFi projects like Optimism more accessible to users.
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