Decentralized Finance Protocol TwoX to Launch on L2 Blockchain Arbitrum
The team behind the TwoX Protocol has revealed that the TwoX Protocol is scheduled to be launched on the Arbitrum platform. According to TwoX, it is a decentralized financial protocol that generates stablecoins with yields. Over the past few weeks, the team has been engaged in researching and deliberating on the most suitable infrastructure for deploying TwoX. Given that Ethereum is an inherent DeFi blockchain infrastructure, their initial plan was to “utilize its decentralized network for the implementation of their contract.”
Nonetheless, due to the discord within their group, it has been recognized that Ethereum is incapable of reaping the advantages of layer 2 scalers that offer high performance. An agreement has been reached and it has been decided that the launch will take place separately for both platforms. Arbitrum is among their favored layer 2 protocols due to its capacity to offer a developer-friendly atmosphere.
According to a blog entry, it has been stated that TwoX is scheduled to be launched on testnet in the upcoming month. At this juncture, the team will engage in the examination of smart contracts and the creation of technical documentation. It should be noted that they have not yet made available any web or community channels apart from Twitter.
Their plan is to make an announcement regarding the launch of their Discord server, which will be accessible only to early contributors and will have restricted access. This announcement is expected to be made in a week’s time. According to the description, Arbitrum’s range of blockchain scaling solutions offers accelerated transaction processing at a notably reduced expense, while upholding an equivalent level of security to that of Ethereum.
The Arbitrum Foundation recently declared the introduction of DAO governance for the Arbitrum One and Arbitrum Nova networks, which is a significant advancement towards decentralization, following years of development and almost 18 months of operation on the mainnet.”
The developers maintain that the DAO community is the rightful owner of Arbitrum’s future. They emphasize the importance of their recent achievement in decentralization and the crucial role played by the $ARB token in facilitating community-led DAO governance. As mentioned in a blog article, the primary aim of developing Arbitrum has consistently been to enable the secure expansion of Ethereum. The emphasis on security is the key motivator behind the decentralization of the network, as security and decentralization are inherently intertwined. Establishing a trustworthy and distributed L2 necessitates the elimination of any centralized points of control over the chain, thereby enabling the chain to operate in a trustless manner.