- Degen Chain’s explosive development has sparked debate on the utility of L3s.
- Polygon Chief claims that L3s may undermine Ethereum’s safety and worth.
Polygon [MATIC] CEO Marc Boiron has expressed his reservations about Ethereum [ETH] layer 3s (L3s) and highlighted their dangers.
Penning his ideas on X (previously Twitter), Boiron stated that L3s siphon worth from Ethereum to the L2s they’re primarily based on.
“I’ll say the quiet half out loud: L3s exist solely to take worth away from Ethereum and onto the L2s on which the L3s are constructed. (You don’t want L3s to scale). And because of this Polygon Labs doesn’t work on L3s.”
Boiron’s criticism comes just a few days after meme mania, by way of Degen Pepe [DEPE], engulfed the Degen Chain, an L3 on Base that leverages Arbitrum’s Orbit Chains.
In lower than per week, its native token, DEGEN, has recorded explosive user growth, with over $130K energetic addresses and over 4 million transactions.
Degen Chain: L3 execs and cons
Degen Chain’s spectacular efficiency in lower than per week has attracted debate throughout Crypto Twitter (CT).
Different crypto customers and figures explored the L3 execs and cons, extending the controversy over the Easter weekend.
As an example, Polygon developer relations engineer Jarrod Watts stated that L3s are low-cost however have worse decentralization than L2s.
“L3s are tremendous low-cost with worse decentralization than L2s. Present L2 decentralization shouldn’t be nice, possibly price ready for this to enhance earlier than constructing L3s on high. L3s nonetheless face virtually the entire identical issues that L2s have right this moment with out interoperability.”
Moreover, Watts acknowledged that L3s are nice for cheaper onboarding.
Nevertheless, he maintained that interoperability protocols like Polygon’s Aggregation Layer (AggLayer) can resolve many of the issues L3s goal to handle.
For his half, Polygon Chief Marc Boiron added that Ethereum safety may very well be in danger if it will possibly’t seize any worth as L3s choose L2s.
“If all L3s settled to 1 L2, then Ethereum would seize principally no worth and, thus, Ethereum safety can be in danger.”
Moreover, Boiron noted that such growth may stoop ETH’s worth,
“If Ethereum earns no charges and has no prospect of incomes charges aside from a tiny quantity of charges from this one L2, then the worth of ETH will drop.”
Coinshares beforehand highlighted that Ethereum liquidity fragmentation may partly be solved by way of L3s and interoperability protocols like Polygon’s AggLayer.
Nevertheless, the current debate reveals that L3 trade-offs may impression Ethereum safety and requires extra analysis.
