The L2 Paradox

A little bit of weekend economics.

Hello,

TL:DR : Roll-ups are like lanes which require resources to maintain. If there aren’t enough vehicles passing through the lanes, the cost incurred by each vehicle rises substantially. The lack of traction on rollups ironically adds to the per-transaction cost on them. We explore how this affects liquidity and users in today’s issue.

In 2017, during …