We are in a time where people are gaining more interest in crypto especially with the merge coming soon. We will go over a few easy methods to onboard to Layer 2’s for some exposure. Onboarding to Layer 2’s is significant because it allows new users to get a feel for DeFi without having to worry about expensive mainnet gas fees. If you are unfamiliar with Layer 2’s please review my most recent newsletter “Rise of the L2” for more insight. Here’s some terms we will cover

Wallets

• Metamask

Key Vocabulary Terms

• FIAT
• On-Ramp
• Bridge
• Gas Fee
• Multi-chain
• Blockchain Explorer

Blockchains

• Arbitrum
• Optimism

Protocols

• Hop Protocol
• Synapse Protocol
• Celer Network
• Connext
• Uniswap
• Sushiswap
• Curve
• 1inch
• Chainlist
• DeFi Llama

Onboarding FIAT

To begin this process we will need to upload FIAT to our crypto wallet. We can do this using a desktop or a mobile device. FIAT is any form of legal tender, so we will use USD for this example. The process of loading FIAT into a crypto wallet to purchase crypto is called a On-Ramp. For our on-ramping walkthrough we will use the Metamask wallet. Metamask is one of the most popular wallets used for DeFi. This wallet simplifies the whole onboarding process by allowing us to purchase crypto, add networks, and interact with the blockchain protocols.

Once you open up your Metamask you should see something similar to the infographic above. Upon navigating to the “Buy” option in the wallet there should be an option to purchase a crypto asset using Apple Pay or a debit card. After you have successfully on-ramped we are ready for the next step.

Adding Blockchains

Before we bridge funds to a network, we first have to add the blockchain network we are intending to use. This can be simplified by using chainlist.org. This website allows you to simply search for the blockchain you want to add and it will add the network to your Metamask wallet. Since we are onboarding to Layer 2’s add either Arbitrum, Optimism, or another L2 of your choice!

Bridging

Now that we have crypto in our wallet and our designated blockchain network added, we are ready to access the bridge and move these funds over. Web3 wallets are designed to interact with the frontend of blockchain protocols which allows us to make transactions, swaps, and more! A bridge connects two different blockchains and allows users to send cryptocurrency from one chain to the other. This is also referred as cross-chain bridging. There are bridges like Synapse Protocol, Celer Network, and Connext, but we will utilize Hop Protocol.

When bridging, you always want to make sure you are connecting your wallet to the platform so your available funds will show up. The connecting process is the same for mobile and desktop. It will simply confirm that you want to connect your wallet and use the protocol. Once you do this, you are now ready to bridge your funds. The gas fees to bridge to L2’s are significantly low so this is a plus. A gas fee is simply the payment needed for the blockchain to perform and execute transactions. The best comparison for this is how gas is needed to move a vehicle. Hop Exchange shows you the fees you will incur and the estimated amount you will receive after the transaction is processed.

Once we submit this transaction and it finalizes, it is now time to check the funds on the Layer 2 network. Sometimes transactions can take up to 30 minutes due to congestion, but our bridging transaction should only take between a couple seconds to a few minutes.

To check to see if your funds are bridged we can either check the wallet on the designated network, or connect to exchange protocols to see if they appear. You can also use blockchain explorers if you are more advanced, but for the sake of this tutorial we will keep it beginner friendly. Blockchain Explorers are online tools that allow us to search for different information such as data related to transactions, addresses, and more**.** For this walkthrough, we will be using the DeFi exchange called Uniswap. Uniswap is one of the leading DeFi exchanges. There are other exchanges like Sushiswap, Curve, and 1inch. These offer different services and have their own unique benefits.

Accessing Protocols

When connecting to blockchain protocols, it’s important to make sure you’re accessing the protocol on the right network. Many protocols are multi-chain, meaning they can operate on several different networks. To verify you are on the right network, you can check the top right-hand corner where your wallet is connected. If not, simply switch to the right network using the dropdown option.

Once you successfully see your funds you can now swap them for another asset or explore the DeFi network! DeFi Llama is one of the ultimate dashboards that you can use to find different chains, airdrops, protocols, tokens, analytics, and more so definitely add this to your favorites and get familiar with it!

Congratulations! You have successfully onboarded to a Layer 2 network and can add this experience to your on-chain resume. Stay tuned for more articles concerning DeFi yield opportunities in the near future.