Ethereum-based lending and borrowing platforms Iron Bank, Yearn Finance and Homora joined layer 2 network Optimism on Tuesday. The firms joined the protocol to improve cross-chain interoperability, security and capital efficiency for their users

Optimism users will now be able to borrow against their crypto assets, while benefiting from competitive gas fees, attractive rewards, and yield options. Decentralised finance (DeFi) refers to financial activities carried out on a blockchain without the use of third parties, while layer 2 is the system built on top of blockchains in order to process more data.

“By launching on Optimism, we aim to make DeFi more accessible, scalable, and reliable as the protocol-to-protocol liquidity backbone,” explained Puff, lead contributor to the Iron Bank, in a statement to CoinDesk.

In recent months, Optimism has become one of the most used layer 2 platforms due to its speed and low user fees. Data shows that applications built on the network locked over $320 million worth of cryptocurrencies in January 2022, which has increased to over $1 billion as of Tuesday.

Ethereum fees become prohibitively expensive for users during times of high network demand, with network fees touching as much as $9,000 per transaction during one such period earlier this year. This is why building on networks like Optimism allows DeFi projects to be more accessible to users, explained “Dark Ghosty,” integrations lead of Yearn Finance.

“We're excited about Optimism for the users who were priced out of yVaults on Ethereum,” he said. “With the additional liquidity flexibility that Iron Bank provides as a protocol-to-protocol lending partner, people can get the best risk-adjusted yield in DeFi without having to worry about high gas costs on a super fast chain.”

Iron Bank said it would initially start to offer rewards for users that supply weighted ether (WETH), USDC, and DAI assets, with approximately 11,500 iron bank (IB) tokens allocated for rewards over the next four weeks

Additionally, Iron Bank has initiated a bug bounty and insurance campaign with ImmuneFI and Nexus Mutual. The campaign will focus on the prevention of potential exploits against user funds, assets, and data breach vulnerabilities.

The DeFi firm has also started offering a decentralized price oracle, a trusted third party that brings data from outside sources to a blockchain, with Chainlink.

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price still stands a chance to rally to $1,500 for these reasons

Ethereum price failed and was rejected at the 38.2% Fibonacci retracement level. There is a significant downtick in bearish momentum amidst the recent decline. Invalidation of an uptrend potential depends on the swing low at $1,006 remaining untagged.

More Ethereum news

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano (ADA) Price Prediction: A sweep of the summer lows in the making

Cardano price congestive nature continues during the final week of Sept. Despite the rest of the market experiencing volatile moves this week, the price has been quite stagnant. ADA currently auctions at $0.44 as the bears have prompted a 4% drop in market value.

More Cardano news

Japan to bring crypto within FATF Travel Rules by May 2023 to track illicit transfers

Japan to bring crypto within FATF Travel Rules by May 2023 to track illicit transfers

The privacy that comes with the use of cryptocurrencies has been both a bane and a boon for the community. Boon because it has made finances more of a personal affair but bane because it has also made it an effective medium of illicit financial activities. 

More Cryptocurrencies news

Top 3 Price Prediction: Why you shouldn't get overly bearish near these levels

Top 3 Price Prediction: Why you shouldn't get overly bearish near these levels

Bitcoin price has fallen penny-from-Eiffel style during the New York session on Tuesday, September 27. During the overnight session, the BTC price witnessed an 8% rally. The uptrend's move likely enticed retail traders to go long.

More Bitcoin news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP