Save on ETH gas fees: Deposit using L2 Arbitrum
Please note that as of January 27th, 2023, the Layer 2 transfer feature has been disabled on dYdX. If this feature becomes available again, dYdX will make an official announcement.
In addition to funding your account on the Layer 1 Ethereum network, you can also deposit to dYdX using Layer 2. Layer 2 blockchains provide for more speed and scalability. Also, the transaction fees are lower.
There are many Layer 2 networks. Arbitrum is a popular example and used in this video. To add Arbitrum to your Metamask wallet, click on your current network name and select add network. Popular networks can be added automatically, or you can enter the details yourself.
There are multiple ways that you can transfer funds to a Layer 2 wallet. One method is to use an asset bridge. An asset bridge allows users to bridge from one chain to another. The Arbitrum bridge allows you to transfer funds from Ethereum to your Arbitrum wallet. You can also transfer funds from a centralized exchange or use a fiat on-ramp.
To transfer funds from a Layer 2 wallet to dYdX, use a Layer 2 cross-chain bridge such as Orbiter Finance. Transaction fees are significantly lower than on Ethereum Mainnet.
The base infrastructure of a blockchain. Examples include Bitcoin, Ethereum, Cosmos, NEAR, Solana, and Polkadot.
A blockchain that extends a layer one blockchain such as Ethereum to provide for additional speed and scalability. Examples include Arbitrum, Polygon, StarkEx, and Optimism.
An asset bridge that allows users to transfer assets from one Layer 2 chain to another. An example of this is Orbiter Finance, which is demonstrated in the video.