L1 refers to a base-layer blockchain protocol, like Ethereum or Bitcoin, that provides the ultimate security and finality for its network. It is the foundational layer where all transactions are ultimately recorded and secured by the network's main consensus mechanism.
AGON runs on Base, an L2 built on top of the Ethereum L1. This structure is deliberate. We gain the core security and decentralization of Ethereum without inheriting its high transaction fees or slow confirmation times.
Your USDC collateral and market settlements on AGON are executed quickly on Base, but their finality is guaranteed by Ethereum. When you bridge funds to use on /markets, you are moving assets from the L1 security layer to the L2 execution layer. The L1 acts as the ultimate court of appeal and source of truth for all activity that happens on its L2s.
Think of L1s and L2s in terms of a trade-off between security and speed. L1s prioritize security and decentralization, making them expensive and slow for frequent transactions. L2s prioritize scalability and low cost, making them ideal for applications with high throughput like AGON.
The practical rule is simple: use the L1 for large, infrequent transfers or for holding significant value. Use L2s for daily activity. Trying to place multiple bets directly on Ethereum would get you rekt by gas fees. By operating on Base, we ensure your P&L isn't eroded by network costs, letting you focus on finding an edge.
solana · cosmos-sdk · l2 · optimistic-rollup
Trading prediction markets involves risk. Not financial advice.
