A Catalyst for L2 SznSep 16, 2021
Hop Protocol is a cross-chain liquidity product that enables seamless interaction between L1s and their rollups. The protocol has grown its liquidity by a fair amount in the last month without any token incentives. Assets supported are currently restricted to USDC, USDT, and MATIC. Hop currently offers users the ability to move assets between Ethereum, xDAI, Optimism, and Polygon.
The team announced that support for Arbitrum, and for ETH and DAI, is coming to Hop soon. Given Arbitrum’s strong initial traction and concentration of bridged assets in ETH/WETH, this could serve as a catalyst for Hop’s growth.
Further, with Hop enabling easy exchanges between Ethereum and its rollups/sidechains, the experience of bridging in and out of these networks will become better and potentially serve as a catalyst for L2s.