Can a Single Layer 2 Solution Adequately Support the Diverse Range of Financial Derivatives, from Simple Swaps to Complex Options?

It is challenging for a single Layer 2 solution to adequately support all types of derivatives. A solution optimized for high-frequency, low-value transactions (like a state channel) might not be suitable for large, multilateral, and complex derivatives that require more flexible smart contract capabilities.

A general-purpose rollup might support a wide range of products but may not offer the specialized performance or privacy features needed for certain markets, such as exotic derivatives. It is more likely that a multi-L2 ecosystem will emerge, with different solutions specializing in different types of financial products.