As we work towards our goal of redefining the standard for control and transparency in undercollateralized lending, we are excited to announce that GoldLink will be launching on Arbitrum, a Layer 2 scaling solution for Ethereum. With a focus on transparency, ease of use, cost efficiency, and security, building on Arbitrum will allow us to create the optimal experience for our users. Integrating with Arbitrum’s ecosystem of novel and compelling protocols, we will be able to create a range of attractive investment strategies for our users.
This decision was made with a great deal of consideration from the team, and in the spirit of transparency, we would like to highlight the determining factors in this decision and explain why we’re so excited about the Arbitrum ecosystem.
What is Arbitrum
Arbitrum is a layer 2 solution designed to improve the capabilities of Ethereum smart contracts, improving their speed, scalability, and privacy. Layer 2 solutions can scale the base Layer 1 blockchain by delegating complex computational tasks, such as transaction processing and data storage, to the second chain. On Arbitrum, this is achieved through the use of Optimistic Rollups, executing transactions off-chain, batching them, and submitting them to Ethereum mainnet. This allows for transactions to be validated and executed rapidly, enabling quick confirmation times and low gas fees while using Ethereum’s mainnet to review proofs and confirm the validity of the transactions.
Arbitrum significantly increases Ethereum’s transaction throughput, with the ability to process around 40,000 transactions per second at a fraction of the cost of what we would see on mainnet. This additional efficiency will allow us to provide our borrowers with a range of sophisticated strategies that can be executed quickly and in a cost-efficient manner.
With a focus on transparency, GoldLink will allow users to clearly articulate their nuanced and fine-grained risk profile. This level of control requires a greater reliance on writing to and accessing storage than is seen in traditional lending protocols. Arbitrum’s rapid progress in scalability and, more critically, gas will allow us to deliver on this promise without prohibitive cost to users.
The strength of Arbitrum’s robust DeFi community was one of the deciding factors for GoldLink when delineating across the Ethereum layer 2 ecosystem. This community provides an ideal setting for GoldLink to introduce essential undercollateralized lending capabilities and innovative strategies that provide our borrowers exposure across the ecosystem. Integrations with native Arbitrum protocols, such as GMX, Dolomite, and Sentiment, will enable us to provide new ways to track and allocate funds on-chain, allowing GoldLink to offer unique investment opportunities without sacrificing the safety of our users.
Arbitrum continues to innovate and remains a leader among scaling solutions for the Ethereum ecosystem. With the recent announcements of Arbitrum Stylus and Xai, among other innovations, we’re excited about the chain’s potential to continue onboarding new developers and maintain a thriving DeFi ecosystem, which will allow GoldLink to continually expand its offerings and bring new value to our users.
We look forward to working with the Arbitrum team and integrating with protocols in the ecosystem to deliver maximum value to our users. As we navigate this exciting journey, GoldLink remains focused on redefining the undercollateralized lending landscape. Stay tuned for many more updates and announcements to come.
GoldLink is an on-chain undercollateralized lending protocol. The protocol utilizes a novel and modular lending architecture to offer borrowers powerful strategies that are sophisticated and beyond anything offered in the space today.