Disclaimer: this proposal is only the initial draft for community discussion. The assets suggested are more of a guide to get discussion going rather than a final index.
Ethereum gas fees are incredibly high lately and this has recently seen a boom in transactions on other chains such as BSC. An analogy doing the rounds currently is that Eth mainnet is like Manhatten, expensive and where everyone wants to be if they can afford it. L2’s are like suburbs of New York or new settlements in neighbouring states, with more and more people going to spend some of their time in these other settlements.
Put short, Eth is gentrifying, and people are flocking to alternatives. Given that gas prices are unlikely to be drastically reduced on the Eth mainnet any time soon, it seems probable that the ecosystems will grow on these L2’s and thus also the usership. BSC has proven that when there is things to do and high APY opportunities available with low fees, people flock.
State of play:
Currently, there are no clear winners and there is more exciting prospects rolling out in the coming months with exciting zk rollups and optimistic rollups coming off the production line, as there is so many contenders and the need is absolutely critical to scale off main chain, a diversified allocation to get broad exposure to the scaling options would be extremely compelling.
The draft composition for SCALE includes some of the most relevant projects in the segment, that have tokens available. Below you can find an initial list of options I have found, this is not a final list, I am not an expert on L2 and this is what I was able to come up with so far. I hope with discussion this list could be refined or added to considerably.
2 - $ZKS from @ZkSwaps : ZKSwap is a token Swap protocol based on Automated Market Maker (AMM) similar to Uniswap. Using ZK-Rollup technology, ZKSwap supports all the features you would expect with super high throughput and no gas fees.
3 - $CTSI from @cartesiproject : Cartesi rollups are smart contracts run off-chain on Cartesi Machines. Since these support Linux, developers have the option to dispense with Solidity and the limitations of the EVM to create smart contracts with myriad mainstream software stacks, toolchains, standard libraries, file systems, and other OS resources.
5 - $OMG from @omgnetworkhq : The OMG Network leverages Layer-2 Plasma architecture to provide high throughput and strong safety guarantees for third parties who wish to build scalable, decentralized payment apps on Ethereum.
6 - $SKL from @nearprotocol : SKALE Network eliminates unnecessary complexity so that you can speed up your dApps and smart contracts in no time with essentially no additional coding. Use your existing deployment script (for example — truffle, as in this code sample) and just change 2 lines of code to deploy your solidity smart contracts to a configurable decentralized elastic sidechain.
7 - $STAKE from @xdaichain : The xDai blockchain is a sidechain of the Ethereum blockchain. This means it has the same properties as Ethereum, but uses a different method to make sure transactions are valid and consistent across all nodes in the distributed network (consensus). The STAKE token is separate from xDai and is used to protect chain consensus.
8 - $RDN from @raiden_network : The Raiden Network is an off-chain scaling solution, enabling near-instant, low-fee and scalable payments. It’s complementary to the Ethereum blockchain and works with any ERC20 compatible token. The Raiden project is work in progress. Its goal is to research state channel technology, define protocols and develop reference implementations.
9 - $NEAR from @nearprotocol : NEAR is a decentralized application platform that is secure enough to manage high value assets like money or identity and performant enough to make them useful for everyday people, putting the power of the Open Web in their hands.
It would be premature to propose an allocation, the above are an unordered list of interesting L2 topic related projects. I would prefer to gather more options before considering what a sensible allocation looks like.
Strategies: I’m aware that some tokens ($STAKE) can be delegated to earn rewards, I imagine this would be too complicated for a first iteration, however if the index proved popular that could potentially be an avenue to investigate.