According to Blockworks, as the competition among layer-2 chains intensifies for user attention and liquidity, developers are increasingly focusing on 'chain abstraction.' This concept aims to provide a seamless cross-chain user experience. Although fully implemented chain abstraction is still years away, early examples are emerging. In collaboration with Everclear (formerly Connext), Renzo protocol has introduced native restaking to six supported layer-2s: Arbitrum, BNB Chain, Base, Mode, Blast, and Linea. Renzo, the third-largest liquid restaking protocol, currently holds $1.2 billion in total value locked (TVL).
The initiative allows Renzo users to restake from any of these layer-2s to receive ezETH, avoiding the need to bridge onto Ethereum mainnet and its associated high gas fees. This effort aligns with the core objective of chain abstraction, which is to meet users where they are. As a result, Renzo's TVL surged from $614 million at the end of February to over $1 billion three months later, despite a significant depeg of Renzo’s LRT. Additionally, Renzo experienced a tenfold increase in unique EOAs (wallet addresses) and an estimated 90% reduction in gas fees.
From a user perspective, the complexity of bridging was eliminated, allowing ETH to be conveniently restaked from the chosen layer-2 to receive Renzo’s liquid restaking token ezETH. From Renzo’s perspective, ETH staked by users on any of the layer-2 chains was batched and bridged to Ethereum mainnet on Everclear’s 'Clearing Layer,' a settlement liquidity layer where third-party 'solvers' compete to process users’ transactions.
Other players, such as Socket Network, are also developing similar intent-based interoperability solutions to address chain abstraction. Socket’s modular order flow auctions marketplace (MOFA) uses a market-based model where execution agents (transmitters) compete to process users’ transactions. Socket co-founder Vaibhav Chellani noted that MOFA transmitters have the flexibility to choose any bridge or even fund transactions from their personal wallets. While numerous entities are working on chain abstraction interoperability solutions, Chellani emphasized that these efforts are largely synergistic with Socket’s goals. He mentioned that shared sequencers, Polygon’s AggLayer, or Optimism’s Superchain are seen as components that MOFA leverages for cross-chain settlement.
These developments offer an early glimpse into the potential future of chain abstraction, where applications' go-to-market strategies are no longer limited by the costs and engineering challenges of multiple cross-chain deployments. The target market for layer-2s is expanding beyond their own ecosystems while maintaining composability. These efforts provide insights into what chain abstraction could ultimately achieve under various incentives.