Crypto 101: Instructions for transferring coins to Layer 2 platforms: Optimism, Arbitrum, Metis

July 22, 2022 - Around 4 mins mins to read

The new ecosystems on Layer 2 have recently been the topic of community discussion. This article will guide the transfer of coins and tokens to layer 2 to find investment opportunities in the initial development phase of the project.

Crypto 101: Instructions for transferring coins to Layer 2 platforms: Optimism, Arbitrum, Metis

An overview of the outstanding Layer 2

Optimism, Arbitrum, and Metis are the three current market-leading Optimistic Rollup platforms with TVL. They are the leading scaling solutions for Ethereum by allowing to bundle transactions on Ethereum into a single aggregate block and post to Ethereum L1. This allows layer 2 transaction data to be available on layer 1 Ethereum any time it is needed to validate a state transition.

The strength of the Optimistic Platforms is that they are highly compatible with EVM, allowing developers to maintain the same working experience as on the Ethereum mainnet.

The platform for transferring coins to Layer 2

The Optimistic Rollup platforms can be viewed as a separate L1 ecosystem, they develop unique strengths and create their own investment opportunities. This creates the need to transfer capital back and forth between systems. This allows users to access new platforms and protocols to interact, and seek profit.

For example:

You can send DAI from Ethereum to Arbitrum and deposit into lending protocols to earn profit.
or send DAI & ETH from Ethereum to Metis to provide liquidity on AMMs for farming.
or send ETH from Ethereum to Optimsim as collateral in debt protocols to borrow stablecoins for farming.

Transfer ETH across Layer 2 platforms

Each platform supports many different ways to transfer ETH across the platform; you can refer to the details here. Depending on your individual needs, you can choose the appropriate platforms:

Platforms that support transferring ETH via Optimism: www.optimism.io/apps/bridges
Platforms that support transferring ETH via Arbitrum: portal.arbitrum.one/
Platforms that support transferring ETH via Metis: www.metis.io/ecosystem-bridges/

Among them, the Synapse protocol is the best platform; it allows transferring ETH between Ethereum, Optimism, Arbitrum, and Metis. If you like convenience, then Synapse might be the right choice for you.

Transfer Stablecoins to Layer 2

Similarly, you can search for a platform that suits your individual needs through the links above.

From personal experience, I see there are 2 great platforms to transfer Stablecoins between Ethereum, Optimism, Arbitrum, and Metis. Those are Synapse protocol and Stargate Finance.

Synapse Protocol

Step 1: Go to Synapse’s homepage. Next, click “Bridge” and connect your Metamask wallet to Synapse.

Step 2: Select the network to which you want to transfer money by customizing the “From” and “To” fields. If you want to transfer ETH from Arbitrum to Metis, please customize “From” Arbitrum, “To” Metis. Choose the asset you want to transfer from Aribtrum to Metis, in this case, ETH.

Next, enter the amount of ETH you want to transfer and click “Approve Token“. Once approval has been confirmed, click on “Bridge Token” to transfer your ETH from Arbitrum.

After completing the transaction, it will take about 2-3 minutes for you to receive ETH on Metis. You can do the same to transfer ETH between 4 platforms Ethereum, Optimism, Arbitrum, and Metis.

Stargate Finance

In this section, I will guide you to use Stargate Finance to deposit & withdraw Stablecoins to Optimism, Arbitrum, and Metis.

First, you visit the homepage of Stargate Finance. Next, click “Transfer” and connect your Metamask wallet to Stargate Finance.

Next, select the network you want to transfer money to by customizing the “From” and “To” fields. If you want to transfer USDT from Arbitrum and receive USDC in Optimism, please customize “From” Arbitrum “To” OPtimism.

Next, enter the amount of USDT you want to transfer and click “Approve Token“. Once approval has been confirmed, click on “confirm transfer” to transfer your USDT from Arbitrum.

After completing the transaction, it will take about 2-3 minutes for you to receive USDC on Optimism. You can do the same to transfer supported stablecoins between 3 platforms Ethereum, Optimism, and Arbitrum.

Verdict

I hope these contents will help you easily access great Optimistic Rollup Platforms such as Optimism, Arbitrum, and Metis, as well as find good investment opportunities in the aforementioned ecosystems.

If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Ken. N

Coincu Ventures

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