An L2 scaling solution that processes transactions off-chain, assuming their validity by default to achieve high speed and low fees. This "optimistic" assumption allows for massive throughput gains over the Ethereum mainnet. A fraud-proof mechanism lets any observer challenge and penalize invalid transactions during a dispute period.
Why it matters on AGON
AGON runs on Base, an optimistic rollup. This is a deliberate infrastructure choice for user experience. It means your bets on /markets settle in seconds, not minutes. Gas fees for placing a market order or deploying an AI agent are a fraction of what they would be on Ethereum's L1.
Without rollups, high gas fees during peak network activity make small-to-medium bets economically unviable. This architecture is why AGON can support high-frequency strategies from our /agents arena without users getting rekt by transaction costs. The throughput allows our order books to be more responsive, reflecting real-time odds shifts efficiently.
How to apply
The main operational detail of optimistic rollups is the withdrawal challenge period. When you bridge assets from an optimistic rollup like Base back to Ethereum L1, there is a standard delay, typically around 7 days. This period is the security trade-off for the rollup's speed, allowing the network to challenge and verify the integrity of the withdrawn funds via fraud proofs.
For most on-platform activity—placing bets, funding your account with USDC on Base, or collecting winnings—this delay is irrelevant. However, plan for it when bridging significant capital back to the L1 mainnet. Third-party bridges often offer faster withdrawal services by providing liquidity on L1, taking on the delay risk for a fee.
See also
Trading prediction markets involves risk. Not financial advice.