The company announced Monday that the Popular Stablecoin Tether is the first token to go live on the Hermez layer-two network.
As part of the collaboration, once the Hermez network officially launches in early 2021, batched USDT transactions will be possible. Project leader David Schwartz at Hermez told Cointelegraph: “Hermez network is run by permissionless coordinators who will decide the transactions included in each batch, based on incentives (fees).”
Delphi Digital published a report back in December 2020 showing that layer-two rollups accounted for less than 1 percent of the total trading volume of the daily decentralized exchange, or DEX. For Hermez, the small proportion of outside-layer-one DEX transfers is something that will change in 2021.
According to cointelegraph.com, in recent times, the clamor for layer-two adoption has grown, particularly in the midst of periods of activity spikes on the Ethereum network, resulting in significant gas charges. Indeed, the last such occurrence caused project teams looking to launch their platforms to be disrupted.
Commenting on the issue of fee predictability for batched transactions via zk-rollups, a Hermez spokesperson explained:
“Fees are expected to be predictable after the bootstrapping transitory period, since a batch it’s the same scarce resource as an [layer-one] block today, fees need to be enough to incentivise a coordinator to include your transaction in the batch. The main difference is that now batches can have 2,000 tx each.”Hermez has partnered with Tether to offer cheaper Tether transactions via zero-knowledge roll-ups