Does Layer 2 scaling reduce transaction fees for yield farming traders?

Asked 2 years ago

I've been looking into DeFi platforms and the difference between layer 1 and layer 2 blockchains. I'm wondering if Ethereum's layer two networks not only provide higher interest rates but also less transaction fees thanks to rollup blocks.

Marco Bryan

Friday, August 12, 2022

Layer 2 solutions are accelerating Ethereum’s pursuit of mainstream DeFi adoption by making it more scalable, faster, and cost-effective. This is a significant benefit to DeFi users whose earnings were significantly reduced by huge transaction fees.

A layer 2 project like Polygon offers you low-cost transaction fees and rewards you with free coins when you bridge assets – so that you can execute multiple transactions at a low cost. Transaction speeds boost Ethereum’s low TPS (15-45) to 65,000 TPS. Polygon strives to become the go-to blockchain for daily transactions while valuing storage and high-volume transactions will still take place on Ethereum.

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