DeFi & Layer-2 Scaling

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Q: How do Layer-2 solutions impact DeFi liquidity and transaction efficiency?
A: Layer-2 protocols like Optimism, Arbitrum, and zkSync roll up multiple transactions off-chain, reducing gas fees while maintaining Ethereum-level security. For DeFi, this means deeper liquidity, faster settlement times, and better capital efficiency. Advanced users can also leverage cross-L2 arbitrage and composability to optimize yield strategies.

[Nahid10]

Layer-2 = cheaper, faster, safer Perfect combo for scaling DeFi liquidity

[jacson4]

Layer-2s are game changers—cheap tx + fast settlement = healthier DeFi markets.