MakerDAO, one of the world’s leading decentralized autonomous organizations built on Ethereum, is set to launch the Optimism Dai Bridge that will enable fast withdrawals on its protocol.
Major Development on MakerDAO
This development was revealed on Tuesday, March 9, by the Smart Contracts Team on the MakerDAO forum. According to the report, the Optimism Dai Bridge is part of a development series that will culminate in the launch of highly anticipated Layer two (L2) solution Optimism.
Optimism is designed to resolve the problems currently facing MakerDao and is expected to provide gas fee relief on the protocol. It also offers other technical updates. The mainnet launch is expected to occur in March.
However, the current design of Optimism allows the transfer of tokens from Layer 1 to Layer 2 chain instantly, but a reversal operation requires users to wait for a week to ensure fraud-proof transactions. This waiting period is likely to hinder the adoption of Optimism due to alternative options that provide faster transaction times.
The Optimism Dai Bridge is developed to resolve this problem and will allow quicker transactions from Layer 1 DAI to mint Layer 2 DAI. It also allows DAI to be burned in exchange for quicker access to Layer 1 DAI. This means that reversed transactions can be completed faster.
MakerDAO intends to deploy the Optimism DAI Bridge in two phases. The initial phase will launch in March with an initial one-week wait period. At the same time, the platform will integrate fast withdrawals by Q4 2021.
MakerDAO Ecosystem Continues to Grow
MakerDAO is considered the leading decentralized autonomous organization and has continued to make developments to its ecosystem. There have been several technical updates initiated on its protocol in recent months as it looks to consolidate its position as the leading DeFi platform.
MakerDAO has also seen a surge in the prices of MKR in 2021. Since the beginning of the year, MKR has surged by over 100% and hit a high of $3000 on February 20, 2021. The surge has been attributed to increased demand in stablecoins, particularly decentralized ones such as Dai. The amount of Dai currently in circulation is at record levels of $2.6 billion, according to Coinmarketcap.