Dencun hardfork and EIP-4844 have made L2s cheaper and onchain markets more accessible.Uniswap is the largest application on Ethereum by both gas and blockspace used, which makes it a great proxy for understanding the impact of scaling solutions on users.
Our new research paper finds that even before Dencun, users leveraging Uniswap on L2s saw significant improvements compared to swapping or LPing on Ethereum: 97.5% of swappers – those with trades under $125,000 – did better on other chains when looking at USDC/ETH pools
Because of gas costs, L2s have at least 75% more concentration than Ethereum, making it more capital efficient
LPing is significantly cheaper on L2s, and we see that Arbitrum has almost three times more liquidity positions created this year than Ethereum – a similar trend in Polygon as well
LPing is profitable on faster chains, with full-range LPs on L2s making an average of 20% more returns from arbitrage compared Ethereum mainnet
We plan to release additional research in the coming weeks as the effects of this update are fully felt, but we expect there to be a minimal impact on the results provided now. We expect that users will continue their migration to L2s as perceived and realized security of rollups continue to increase. This is in the best interest of both Ethereum and L2s, as this will dramatically decrease the cost and increase throughput of the entire Ethereum network.
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