Unlocking Potential: How Diffuse Enables Locked Assets on Ethereum’s L2s to Contribute to the Network’s Growth

Ethereum’s Layer 2 (L2) ecosystems have facilitated significant improvements in transaction speed and cost. Yet, these advancements come with a side effect: assets remain confined within their specific chains, unable to contribute to wider network security or generate additional yields due to interoperability challenges, trust concerns, and connectivity issues. As of April 2025, over $25 billion worth of assets are locked on Ethereum’s L2 platforms. 🤯 This presents a missed opportunity. These assets, initially deployed for liquidity or governance, could be utilized more effectively. However, current infrastructure prevents them from contributing to broader network security or maximizing yields.