DeFi, staking are live on OMG Network via an Ethereum scaling solution 🚨 This article is 4 years old...
DeFi, staking are live on OMG Network via an Ethereum scaling solution
The high-speed layer-2 technology allows users to interact with Ethereum dApps minus the skyhigh fees.
2 min read
Updated: Jul. 24, 2022 at 11:47 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The public testnet of OMGX protocol, a layer-2 platform that supports Ethereum smart contracts and token staking, is now live. The protocol is a joint project between computational lab Enya and the OMG Network.
“We’re thrilled about the vision of OMGX, which brings us back to OMG’s core mission of scaling Ethereum,” ended Clement Ip, Partner at Genesis Block Ventures (GBV), parent company of OMG Network, in the regard.
An example of contract changes needed to run a non-trivial system on #OMGX. https://t.co/fdReYisMci
— OMG Network (@omgnetworkhq) May 12, 2021
Expanding OMG Network
OMGX allows the OMG Network to allow more cost-effective deployment and execution of Ethereum smart contracts, and broadening their capabilities with complex computations that are not possible in decentralized applications (dApps) today.
“Developers have told us they want to stay on Ethereum, but they are hurting from high gas fees. As a layer 2 platform, OMGX gives developers the security of Ethereum at lower gas fees, and a future that lets them build more sophisticated dapps,” said Alan Chiu, CEO and co-founder of Enya, in a note to CryptoSlate.
He added, “OMGX also offers liquidity staking, an opportunity for our community members to provide liquidity for our unique fast-exit feature and receive a portion of the exit fees.”
Need for stake
Staking and other DeFi applications became all the rage in the crypto market starting last year, as individuals started using (and trusting) decentralized, on-chain apps across use cases like lending, synthetic trading, and others.
But as the niche market began to evolve and attract newcomers, a certain concern started becoming more prominent: That of the high fees of the Ethereum network (on which most DeFi apps are built) and the ensuing high barrier to entry as a result.
Layer-2 tech, however, helps solve that. The term itself is a collective for describing solutions designed to help scale blockchain applications by handling transactions off the main Ethereum chain (layer-1).
OMG Network is one such non-custodial, layer-2 scaling solution. And OMGX helps bolster that use case further. New developers and project teams with smart contracts already deployed on Ethereum can begin migrating to the OMGX public testnet as of yesterday.
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OMG Network (first developed as OmiseGO) is a non-custodial, Layer 2 scaling solution for transferring value on Ethereum.