DWF Ventures: Based rollups can alleviate L2 fragmentation issues, and major protocols have made positive progress

DWF Ventures recently published an article on X stating that the current L2 is largely centralized, and the problem of liquidity fragmentation is becoming increasingly serious. Currently, more than 74 L2s have been launched, and there will be more in the future. However, with the growth of Based rollups, these problems may be alleviated, as analyzed below: Ethereum Roadmap: A key goal of Ethereum is to reduce centralized concerns about MEV. Based rollups help achieve this goal by reducing reliance on centralized sorters in L2, while introducing distributed block construction and pre-confirmation for a better user experience. Based rollups: The sorting is driven by the underlying L1, where L1 proposers replace L2 sorters and can include rollup blocks in L1 blocks without permission. As more proposers join, this enhances decentralization/activity and reduces the risk of chain interruption/censorship. L2 generates significant revenue through transaction fees and MEV, and since L2 sorters are largely centralized, most of the revenue goes back to the team. Through Based rollups, L1 will get more value redirected back to them. By sharing sorting, rollups can gain additional value. Infrastructure - Shared Sorting: Espresso Systems is building a market that allows rollups to sell sorting rights. This allows multiple proposers to participate in a single block, and rollups can earn more sorting revenue because proposers must bid higher than the reserve price to be selected as sorters. Other protocols focusing on this area include: Astria, Rádius, NodeKit. Infrastructure - Application Chain Framework: Spire is building a framework for developers to create their own based application chains. Application chains can leverage L1 liquidity and can be combined with other application chains. As a result, users can enjoy a seamless bridge-free connection experience in the ecosystem. Use Case - Cross-Chain Composability: Coinbase is building its own based rollup "KeySpace" to enable smart wallets to cross chains through a single address. Taiko Gwyneth is a based rollup designed to achieve synchronous composability between L1 ＜＞ L2/L2 ＜＞ L2. This enables more arbitrage and MEV opportunities, driving more value back to the base layer. Use case for better user experience and benefits: Puffer Finance is building a based rollup called UniFi. Users can experience faster transactions (through pre-confirmation) and earn additional benefits from rollup fees. They can also access the liquidity of other based application chains without decentralization. Overall, although the infrastructure of Based rollups may take some time to mature, some major protocols have made positive progress. As more and more application chains are deployed as based rollups, the ecosystem will develop rapidly with strong network effects.