The L2 DeFi protocols are currently unable to communicate with each other, so Vitalik proposed a fix.
In a relentless effort to combat escalating transaction fees while creating a unified ecosystem, Vitalik Buterin proposed a specific cross-rollup scaling solution.
The proposal outlines how two protocols using rollups can communicate with each other while maintaining interoperability and aggregation.
Rollups are Layer-2 solutions that are essentially a smart contract network that processes and stores transaction data off the main chain. However, there are several different types of aggregation, with each using unique smart contracts as optimistic and knowledge-free.
While some DeFi projects have implemented Layer-2 rollups, such as Loopring and Synthetix, the characteristics of the different rollups mean projects cannot communicate with each other directly on Layer-2. .
Buterin’s proposal assumes that one aggregator can process simple transactions while the other one has full smart contract support. There have been handover proposals between two smart contract-enabled protocols using rollups.
To explain how the proposal works, Buterin provided an example of a hypothetical trading intermediary he calls “Ivan” – where Ivan has an “IVAN_A” account on update A that he completely control and also some money is deposited into the smart contract “IVAN_B” on rollup B.
The smart contract will be programmed to accept “memos” including additional data from anyone who sends it to secure any future transactions. Transactions create a connection Layer that holds deposits in all these isolated contracts, allowing summary A to send to summary B through this Layer.
Buterin suggests that the behavior works like this:
“Alice sends a transaction to IVAN_A with N coins and an ALICE_B memo. Ivan sends a TRADE_VALUE * deposit transaction (1 – fee) via IVAN_B to ALICE_B ”.
He added that worst-case behavior would be if Ivan didn’t send money to ALICE_B as he expected.
Solving the “worst case” that could arise from using the proposed scenario, Buterin emphasized that, Alice can still wait until the transaction on rollup A confirms, find some alternative ways to receive coin on rollup B to pay the fee, and then simply claim your funds.
In response to the proposal, Alon Muroch pointed out that it works in a similar way to how banks delete transactions:
“It’s very interesting, similar to how banks delete transactions between themselves. Dividing assets into separate accounts can have limitations, a solution could be just large pools on either end, and scaling fees.