Thread by @element_fi

1/ We’re excited to announce that L2 scaling is coming to Element through @aztecnetwork!

Lower gas costs have been one of the most awaited features by the Element community, and we’ve chosen Aztec as our first exploration into L2 scaling solutions.

medium.com/element-financ…

2/ Element transactions with Aztec will be batched into rollups that will be scheduled to run based on the relative demand per asset. This means that as demand grows, batches will run more frequently and become larger resulting in cheaper gas costs per transaction.

3/ After careful analysis, we’ve come to the conclusion that the integration with Aztec Network could bring gas savings ranging from 6x to 40x on average, depending on the specific term and asset.

4/ Initially, Element transactions through the Aztec Network will only be available for Dai. Users will be able to purchase fixed rates on shielded Dai through Aztec’s zk.money portal.

5/ This new integration will bring the fixed-rate market to users that were previously priced out of the market due to high gas costs. Additionally, users will benefit from the strong privacy guarantees of Aztec’s zk technology.

6/ Integrating with innovative projects like Aztec is just one of the ways in which Element is spearheading the way forward for web3, so keep an eye out for this development in the coming months and for all the other cool things we’ve got in the works!

7/ We also want to congratulate @aztecnetwork on the announcement of the closing of their Series A today.

https://twitter.com/aztecnetwork/status/1471480938680840194

8/ We will be working closely with Aztec to gather community feedback that can help us determine what new types of assets and transactions will be supported in the future.

If you want to provide feedback, join the #feedback channel on our Discord!

discord.gg/NG8kukHchQ