How Do Layer 2 Solutions Impact the Cost of Executing Options Contracts On-Chain? ▴ Learn

How Do Layer 2 Solutions Impact the Cost of Executing Options Contracts On-Chain?

Layer 2 solutions dramatically reduce the gas fees associated with executing options contracts. Options trading involves multiple steps, such as minting, exercising, and settling, which are expensive on a congested Layer 1.

By batching these transactions off-chain, Layer 2 lowers the per-transaction cost to a fraction of the Layer 1 fee. This makes high-frequency trading and complex derivatives strategies economically viable for a wider range of users.

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