Boba Network, a recently released L2 layer for Ethereum, quickly reached second place in TVL (Total Locked Value) among all extension layers. Boba, which is a fork of Optimism, another stack-based L2 layer, reached over $ 1 billion in TVL, surpassing Optimism. This is probably due to the profitable percentages offered by its first decentralized exchange, Oolongswap, which offers returns above 1000%.
Boba Network L2 Gains Popularity
The Boba Network, a recently released L2 layer for Ethereum, has reached second place regarding total value locked (TVL) among L2 solutions, gaining more than 50% in value during the last week. The platform, which is a fork of Optimism, another Optimistic rollup, surpassed its sibling to fall just behind Arbitrum, the leading L2 solution for Ethereum scaling currently.
However, Boba claims to present a unique upgrade over what other solutions offer for cash withdrawals. While other L2 diapers feature seven-day withdrawal times, Boba allows users to withdraw funds on L2 within minutes.
Oolongswap Deployed
The rise in TVL of the network is most likely due to the launch of the first native decentralized exchange (dex) on its platform, Oolongswap. The exchange, less than a month old, offers high percentages in yield farming, some going over 1,000%. This has likely led profit-seekers to bridge their assets to the Boba Network, depositing these in Oolongswap to enjoy the benefits.
The same phenomenon occurred with the launch of the now leading L2 Ethereum solution, Arbitrum. Yield seekers were encouraged to top up their funds and deposit them on a yield platform called Arbinyan, which, in the same way Oolongswap does now, offered very high yield percentages to depositors. Additionally, rumors of a native token drop from Arbitrum contributed to this move.
According to data taken from Defillama, a defi tracking platform, Oolongswap’s TVL is now around $463 million, a little more than a third of the assets currently managed on the Boba Network at the time of writing.
