The TrueFi insecure lending protocol is the latest project to launch on Optimism, Ethereum’s popular layer 2 scaling solution, which is expected to boost demand from non-institutional lenders.

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By launching Optimism, the TrueFi lender community will have access to a faster and cheaper user experience, as well as access to a wider range of retail lenders. “TrueFi users can now lend, borrow, and run portfolios on Optimism to significantly reduce transaction costs and network speeds,” TrustToken co-founder Rafael Kosman told Cryptooshala in a written statement. He further explained:

“With Optimism transactions averaging 77 times cheaper than Ethereum, we expect greater adoption from non-institutional lenders, which will hopefully increase global access to TrueFi financial opportunities.”

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TrueFi was created by stablecoin operator TrustToken and shipped to institutional clients in November 2020. In February, TrustToken launched a new TrueFi lending marketplace designed to enable financial institutions to develop and launch their own financial products.

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Balancer Launches on the Ethereum L2 Network Optimism

There are currently over 40 protocols deployed on Optimism, a sign that more projects have been looking to take advantage of improved features such as higher scalability and lower fees. Optimism was designed to support all dapps running on Ethereum through Optimistic Rollups, a scaling solution that works in tandem with the Ethereum main chain.

TVL on optimism seems to be countering the general downtrend in DeFi. Source: DeFi Lama

With more projects rolling out on Optimism, the total network cost locked up, or TVL, has skyrocketed over the past week. Network TVL is currently over $369 million, almost $100 million more than on May 29th. Network TVL peaked at $510 million at the end of April.