The Key Points

According to data from the chain, Optimism has seen its assets steadily increase.

The OP stack is a standardised collection of open-source modules that is used to create Ethereum rollup chains that are more precise and expressive.

The OP stack streamlines the process for building modular blockchains by separating different functional levels and combining them into one API software stack.

Due to the sharp rise of token prices and the increase in quest activities, optimism, which is one of the twin stars that make up Ethereum’s second-layer Op-Rollup, has become a hot topic.

Optimism on-chain status

The data on the chain shows that OP’s assets have grown steadily with a total of almost $2.7 billion. The daily transaction volume has decreased after the Quest event, but remains stable at around 400,000 per day. The number of unique users is more than 1.7 million. The gas fee is 150x lower than the Ethereum mainnet.

How can the OP ecosystem attract and accommodate a wide range of on-chain activities as well as the influx funds?

Handbook for OP Players

Although OP is Layer 2 in Ethereum, it is a general-purpose public blockchain. This section uses Chaineye’s OP section as a guide for crypto players who are interested in exploring the OP ecosystem.

DeFi

DeFi will be the mainstay of the public chain. DeFi projects’ success and innovation will attract and accommodate large amounts of liquidity. This is like injecting fuel into an engine and revitalizing the public chain ecosystem. The OP DeFi ecosystem has a lot of features, including lending, decentralized exchanges and lending.

There are native projects as well as the migration of Ethereum’s top projects. These ecosystem projects are supported and supported by OP. They can also receive additional staking rewards in OP tokens for adding liquidity.

DEX

Chaineye states that Velodrome is the largest DEX on OP. TVL is also the most advanced DEX project, surpassing Curve by an order of magnitude.

Velodrome is one the featured projects on OP. It is designed to be a dex modelled on Solidly. It aims to create a major trading and liquidity marketplace on Optimism. It integrates Solidly and Curve, Olympus DAO and Votium, such as veToken and games. To encourage incentives to flow to the most valuable ecosystem liquidity pool, the rules for token distribution, release and incentives have been optimized.

Velodrome has two types of tokens. VELO, an ERC20 token, can be obtained by staking. veVELO, an NFT governance token that performs similar functions to veCRV, is called veVELO.

The (3,3) mechanism is very effective. In the last half year, almost all the newly added VELO was used to lock-up. Numerous smart pool projects are actively accumulating veVELO, with veVELO holders being the most active. The project is more efficient at attracting liquidity because the income is generated by bribery.

Velodrome’s core function is to enable users to exchange digital assets at low fees and with minimal slippage. Transaction fees are only 0.02%0.05%. Even without the liquidity aggregation feature of Uniswap V3, users will benefit from the lower transaction fees.

Since Velodrome introduced op token incentives last August, TVL has risen, surpassing Uniswap and Curve and has remained at the top of the OP TVL list for the past few days. According to DefiLlama data, Velodrome’s TVL is currently $293 million and accounts for 32.4% in the entire OP chain. It is undoubtedly one the most notable projects on OP.

OP is an EVM compatible chain. This means that some of the most important projects on Ethereum can easily migrate over to OP. Large projects like Uniswap V3, Curve and KyperSwap can also be deployed on OP. Friends who are familiar with these can also keep their original preferences.

Other OP DEXs, such as Beethoven X or Rubicon, are also worth your attention. Beethoven X aims at being a one-stop, decentralized investment platform. It will offer investment portfolio recommendations based upon hot sectors and one-click portfolio investing.

Rubicon is an order-book-based DEX that allows you to create and introduce digital asset and equity markets on the Ethereum blockchain. You can also earn OP token rewards by staking a single token.

Lending

AAVE, the leading Ethereum lending platform, has launched the V3 version of OP. It features functions such as asset cross–chain flow, high efficiency mode, and isolation mode to support long-tail assets lending.

Sonne Finance is OP’s native lending platform. It is also the second largest TVL among lending projects. The platform offers currency markets in USDC, USDT and DAI. Sonne uses Velodrome to implement their token strategy. They don’t just reward liquidity providers with SONNE tokens.

Instead, they bribed VELO owners with SONNE tokens to cast their votes for the SONNE/USDC pairing. Users who staked SONNE tokens were rewarded with VELO. The OP can build his own DeFi Lego based upon Velodrome. Sonne is the lending part.

Other lending platforms like Hundred Finance, dForce, and Hundred Finance are multi-chain deployment lending protocols. However, the overall TVL or LTV are not very strong.

Derivative

Financial derivatives are also part of the complete DeFi ecosystem. Composability allows for more innovation and fosters more projects. You can see the power of the flywheel driven GMX by Arbitrum.

Pika Protocol is available for financial derivatives on OP. It includes the migration of the Ethereum headproduct Perpetual. Pika is a stablecoin that is backed by decentralized derivatives. It consists of Pika Exchange and PIKA Steadycoin.

The Pika Exchange is a perpetual trading platform that supports leveraged trading. It supports token-based, reverse perpetual swaps. The Virtual Automated Market Maker is the foundation of the exchange. The PIKA stablecoin, backed by Pika Exchange, has the following characteristics: Stable. It uses perpetual swap position to maintain its price stability at the $1 target.

PIKA can be minted by opening a 1x inverse permanency swap short position. Capital Efficiency: Minting PIKA requires that you deposit a dollar worth (e.g., ETH or WBTC) of supported tokens. This will achieve a higher capital efficiency than using over-collateralized stablecoins.

There are also OP token rewards that will be available at the launch of Pika. The greater the transaction volume, you get more rewards.

Farming

Chaineye’s yield section has more information about stablecoin liquidity mining. We won’t go into detail. At a glance, you can see the composition, income, TVL, and TVL for each pool.

NFT Marketplace

Quix is Optimism’s first native NFT marketplace platform. Users can search, collect and buy NFTs, as well as sell them. Launchpad allows users to create their own NFT projects, allowing for the deployment of code-agnostic NFT smart contract and minting pages.

Users were able to save almost $300,000 due to the low handling fees offered by Layer 2. Quix was shut down and Quix Launchpad was also shut down due to funding problems. Quix launchedpad was also stopped on January 16th.

This vacancy is currently focused on NFTEarth which has multiple rounds and airdrop plans. OG cards can also purchased in secondary markets.

Game

Lattice, an on-chain game developer, launched OPCraft on OP Stack. It is a voxel world on-chain that is almost identical with Minecraft.

Every component of this virtual world, from rivers to diamonds to the chains, is there. Every player’s action, from digging to construction, is a real transaction on that chain. It can support such a high throughput by using the custom chain of Optimism’s modular Rollup architecture OP Stack.

Although the game’s rollup testing chain is currently frozen due to OP stack issues, this is a great OP stack experiment. Keep an eye out for Lattice’s games based upon the OP stack in the future. There should be better chain games, and more participation opportunities.

Summary: It is important to pay more attention when exploring the OP ecosystem. These projects will usually receive early support from OP, which is OP token rewards.

Introduction to OP stack technology

Most chains today are following their own modular strategies. Starknet, Arbitrum, Optimism and Arbitrum have different execution layers. However, they all share the same settlement and consensus layers.

Each chain has its own strategy with different design elements for settlement, execution, and data availability. What if these chains were able to share a standard open-source code base instead of the siled chain/rollup systems of today?

This is where Optimism’s OP Stack comes into play: a standard set of open-source modules that allow you to build more expressive and precise rollup chain on Ethereum.

Modular technology

What is modularity’s role?

Modularization is simply dressing up. Ethereum is now a one-piece suit. You can’t alter the clothes, even if they aren’t suitable or the color isn’t good-looking. If we break the dress into three main modules: tops and pants, as well as shoes and shoes, we can create different images using different materials and colors.

Modularization of the blockchain allows for the separation of execution, bookkeeping, synchronization of ledgers, and bookkeeping. It doesn’t have to be done by just one person, which can be tiring and slow.

OP Stack is a key step in OP’s modular blockchain. It is also a crucial step in exploring modularization theory to practice. The OP divides the Blockchain into three layers according to function: the consensus layer (execution layer), and the settlement layer (settlement layer).

Executive layer

As the name implies, the execution layer is responsible for executing transactions. If A transfers 2 Ethereum to B, then add -2ETH to A’s account and 2ETH to B. Optimism, also known as Ethereum’s Rollup, aims instead to execute transactions and only return results. Ethereum believes in the OP’s result in a positive way, while leaving a difficult period to prevent evil.

Settlement layer

The settlement layer’s role is to verify the transaction. If the verification is valid, it will stamp you as well as generate a state root.

Consensus layer

Blockchain is an open ledger. The consensus layer is to synchronize all ledgers to ensure consistency. Data availability is also known as the DA Layer. This refers to the fact the ledger records a result (state roots). I need the calculated data to trace and verify the calculation process.

These data are stored in the DA layer. Having a DA layer ensures you can find them.

What are the benefits to modularity?

The advantage of blockchain is that different parts can be changed according to project needs, increasing the flexibility of the system.

The vision of the OP stack

The OP stack unites different functional levels and combines them into an API software stack. This simplifies the process for building modular blockchains.

Each layer of the OP Stack can be described using a defined API that is populated with modules. The API of OP Stack allows for the creation of any modular blockchain.

Developers don’t need to create a blockchain from zero to one. The OP Stack code base can be used to quickly deploy modular blockchains. Developers can modify existing modules or create new modules to suit their needs.

Each component of the OP stack implements a specific level of the stack that powers. Optimism’s next generation architecture is as follows:

Certain applications, such as a chain, can replace the DA layers from Ethereum to Celestia in order to realize the separation and switch the fraud-proof modules of the execution layer to a valid proof, and realize conversion from OP Rollup to zk rollup.

Developers have greater autonomy with modular stacks, as they can switch, replace, or modify different module levels just like switching APIs.

OP Stack-based chains will be able to communicate with each other using the same messaging format in the future. This will allow them to achieve interoperability and realize the vision of a “superchain”.

A sequencer that simultaneously produces blocks on multiple chains can guarantee atomic interactions among these chains. Op-chains that opt into the Optimism Collective’s shared Sequencer Set are automatically part of the system. Chain boundaries disappear. It is made up of multiple chains but the atomic cross-chain interactions make it feel like one logical chain to the end-user.

The OP suggested that the final result of the blockchain would not be a multi-chain or a single-chain structure, but a “super-chain” structure made up of a group highly integrated OP Stack chain.

How the OP stack will impact the OP ecosystem

OP is currently improving the first version OP stack, the Bedrock upgrade. The ecosystem built on the OP stack must be expanded using the best tools.

What changes will OP Stack make to the OP ecosystem?

First, we are moving beyond the idea of “projects on OP chains” and exploring the concept “OP universe.” Optimism is very close to the realization the Cosmos with OP as its core to build the OP Universe.

“One-click release chain”, will be a feature of OP. L2 and L3 will explode based on the standardization of OP. Appchain can play “Blockchain Lego”. There are endless possibilities when you combine different technologies and VMs. Innovation is the key to unlocking possibilities.

Moreover, modular blockchains based on the OP stack are interoperable in the OP universe. Furthermore, the shared messaging format between chains allows them to easily communicate with one another.

How can you participate in the OP modular reform?

Developers can be attentive to the OP stack’s release and update and issue application chains accordingly. Crypto users can participate in every application chain as soon and as possible. Incentives for users are crucial if the OP official wishes to promote the development and enhancement of the OPStack.

The OP ecosystem incentives and retroactive airdrops for users show that the OP’s view is clear: influence creates wealth. You can either create influence – develop a new dapp based upon the OP stack or be an influence – get involved in new dapps as soon and as possible.

DISCLAIMER: This website provides general market commentary but does not constitute investment advice. We encourage you do your research before you invest.

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