Crypto

Layer 2

Definition

Scaling solutions built on top of a base blockchain (Layer 1) to increase transaction speed and reduce fees while inheriting security.

Example
Arbitrum and Optimism are popular Ethereum Layer 2 networks. Yield Farming Category: Crypto / DeFi Definition: Providing liquidity to DeFi protocols in exchange for rewards, often in the form of additional tokens. Related Ter
Frequently Asked Question
What is Layer 2 in trading?
Scaling solutions built on top of a base blockchain (Layer 1) to increase transaction speed and reduce fees while inheriting security.
APA Citation
Clark, R. (2025). Layer 2. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/layer-2
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.