Magpie & Arbitrum
Arbiters of DeFi
The growth that DeFi has seen in the past few years has been incredible, but it’s not without a downside or two. When the market is popping off, Ethereum currently can’t handle everything. It’s so popular that it makes for a pretty bad experience: canceled transactions, $100+ gas fees, and possibly waiting a few minutes just to see if you got that swap for the price you wanted. We’ve got too many birds in the nest so to speak, and the nest can only handle so much weight.
That’s where scaling comes in, and if you’d like to catch up on what “scaling Ethereum” means or how it’s done, we’ve recently gone over the different ways new projects and protocols are conquering this, so you may want to take a few minutes to read our blog post “Scaling Ethereum.” In essence, to scale Ethereum means to increase both the speed of transactions and their throughput, or how many can be done each second, without sacrificing decentralization or security. Why talk about scaling again?
Arbitrum
Today we’re announcing our integration with Arbitrum, one of the best Ethereum scaling solutions and a top five DeFi protocol in volume & TVL, but one of the lowest for fees, making it an incredible platform to trade on. So let’s talk a bit about what Arbitrum is and what they offer.
Arbitrum is an “optimistic rollup,” meaning that they take individual transactions (like a bird egg, with all that info stored inside it), and then batch them together (like an egg carton) to be computed off-chain and sent back to L1 Ethereum to be executed (but not like that, the eggs are safe), making for faster computations and cheaper transaction fees.
This serves as a way to scale Ethereum, as these batches amortize the cost of transactions with hundreds of other transactions at a time, making for a much cheaper, and faster way to transact on Ethereum. Additionally, as Arbitrum was created with Ethereum compatibility as a top priority, this means that the code running in Arbitrum is identical to the code running in Ethereum, so your transactions are just as secure!
How is it cheaper if the transactions are processed on Ethereum? Remember that egg you have (your transaction). Well, it’s a lot cheaper to batch them all together by the hundreds and send them all at once compared to handling just a few every second (like on Ethereum mainnet). By computing off-chain, the typical batch from Arbitrum contains several hundred transactions, meaning that you get to split the bill with everyone else.
Magpie & Arbitrum: Soaring Together
We’re incredibly excited to be integrating Arbitrum into the Magpie app, so get those eggs ready, because you’ll be able to take them wherever you want, and it’ll be cheep cheep (sorry, cheap!).
Magpie will be aggregating their bridge and DEX liquidity so that our flock of birds out there can easily swap on or to Arbitrum as they wish. Swap on Ethereum, 10x cheaper & faster, but with the same security. We’ll be ready for that next bull run, no scaling issues here, as we all know birds love chilling on top of them, and you’ll be able to use Magpie to swap on-chain or cross-chain on Arbitrum.
Excited? We are! So go sign up for the waitlist so you’ll be the first to try it out! Register on our Alpha app waitlist — Magpie (magpiefi.xyz) Let’s flap those wings in excitement and be sure to check out Arbitrum on their website or follow them on Twitter here, and be sure to let them know Magpie sent you!
