If you plan to go for DeFi lending and borrowing platform development, then one thing you need to consider is Layer 2. It's a major upgrade that can really help as DeFi grows and remains easy to use in the long run.Ethereum is strong, but it's also very busy. Gas fees can still change a lot, and transactions can take a while. Here, Layer 2 solutions help by taking some of the load off the main chain, making transactions faster and cheaper.
Arbitrum and Optimism help founders create DeFi systems with lower costs and improved speed. For example, Uniswap on Optimism has reduced gas fees by over 90% compared to the Ethereum main network. This significant change makes DeFi available to more people.
For a lending and borrowing platform, users don't need to spend a lot to deposit, borrow, or pay back money. It opens up room to build smoother UX, offer micro-loans, and even onboard users who’ve never touched crypto before.
Essentially, Layer 2 is now a must-have. It's becoming the foundation for stable DeFi lending and borrowing platform development.
If your blockchain is too slow, it will have trouble handling more users. Using a Layer 2 solution isn't just a better idea; it's essential if you want to achieve growth.
So, ask your DeFi lending and borrowing platform development company to equip layer 2 solutions on your protocol. This will be a game-changer to achieve more heights in your DeFi business.