Why do you think VAVA is expected to become a phenomenal loan product?

Since the development of DeFi at the end of 2017, TVL has been growing exponentially, and its product forms have become more and more abundant, especially in the loan area.

From Maker DAO to Compound to AAVE, a variety of innovative ways to experience such as loan liquidity pools and unsecured loan have appeared on the market. However, no amount of innovation will be in eclipse by high gas fees and network congestion.

Thus, we see that numerous ecological chain of exchange have emerged, giving DeFi more space to develop vertically and horizontally.

As a new generation of loan product, VAVA integrates innovative functions such as flash loans, entrust the credit, and liquidity pools.

First of all, what is Layer 2 anyway? What is Rollup? Why does Vitalik Buterin say,“Now we really don’t need 2.0 to solve the problem of expansion in the short term, but we really need Rollup.”

In simple terms, Layer 2 is a scalable solution to alleviate the plight of Layer 1. In order to build a good blockchain ecosystem, we need to do something in the architecture to balance the needs of security, decentralization, and scalability. The Layer 2 platform and protocol process data in a way that reduces the burden on the base layer (root chain), and enhances the scalability of the entire blockchain network by transferring part of the data processing of the main chain to Layer 2.

It should be noted that many public chains can be used as Layer 2, which does not mean that only Ethereum has Layer 2. The real Layer 2 of Ethereum simply means that both computing and data storage are migrated to the sub-chain while settlement is handed over to the expansion network of the Ethereum main network for processing. The former and the latter belong to a symbiotic relationship.

There are various considerations between different Layer 2 solutions.They are different in security, performance, usability and other aspects.These differences are enough to have a profound impact on their future.
For investors, these differences are also an important basis for selecting projects.In addition, these differences also cause them to be applicable to different use cases and scenarios in the future.
The current Layer 2 mainly includes the following categories: Plasma, Sidechain, State Channels, Rollup (mainly divided into Optimistic rollup and ZK rollup), Vadium.

Among them, the Rollup series has higher safety and more sustainability, which is a promising technical direction. Vitalik also favors Rollup’s expansion plan.Rollup is the side chain or chain transactions bundle (or “Summary”) as a single transaction, the transaction is then submitted to L1 solutions.

For example, ZKSync is built on the ZK rollup architecture. All funds in the ZK Rollup solution are held by smart contracts on the main chain, while calculations and storage are performed off-chain.
ZK Rollup fully embodies the basic concept of the encryption world, replacing trusted parties through cryptography and game theory incentive mechanisms to achieve flexibility.

VAVA adopts this kind of scheme in the future,which has the following advantages:
1. Further reduce the user’s transaction threshold and improve user experience.
2. More secure, and without introducing another layer of consensus mechanism.
3. Compared with Optimistic, cash withdrawal is more convenient, funds are more smooth,and higher efficiency.

In the next three years, Layer2 will be extremely competitive. Because the need for network expansion gas reduction will never disappear. This is also the core reason why VAVA lays out Layer2.

Loan, as the infrastructure in the DeFi field, is the most basic part of the future DeFi Lego. It has many interactions with users or other agreements. While ensuring safety, lowering the threshold and improving the efficiency of use are the eternal pursuit of this type of product.

As an innovative loan product, VAVA continuously optimizes , adjusts and innovates. We believe that in the future, VAVA will surely rise rapidly in the Ethereum ecosystem at the 2.0 stage, becoming a phenomenon product in the loan field and a new generation of industry benchmarks with the help of the Layer 2 solution of ZK-Rollup and its strong comprehensive strength.