Quill Finance
  • Introduction to Quill Finance
  • FAQ
    • Quill & Liquity v2
    • Scroll: what it is and why use it?
    • $USDQ
    • Borrowing
    • Troves and Collaterization
    • Liquidations, Oracle and Redemptions
    • Price Stability and Stability Pool
    • Fee Model
    • Governance
    • Audits and Security
    • Risks and Disclosures
  • Documentation
    • Contract Addresses
    • Audits
    • Community
    • Brand
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  1. FAQ

Scroll: what it is and why use it?

What is Scroll?

Scroll is a Layer 2 (L2) scaling solution for Ethereum that aims to enhance the blockchain’s throughput and efficiency while maintaining security and decentralization. It is built using zk-rollups (zero-knowledge rollups), a cryptographic technology that bundles multiple transactions together and processes them off-chain, while only submitting a single proof of validity to Ethereum. This reduces transaction costs and increases scalability without sacrificing security.

What are the main advantages of using Scroll?

  • Low Transaction Costs: Scroll significantly reduces gas fees for users by processing transactions off-chain. This makes it more affordable to interact with decentralized applications (dApps), especially in periods of high network congestion.

  • Scalability: By leveraging zk-rollups, Scroll can handle many more transactions per second compared to Ethereum’s base layer. This is particularly useful for dApps that require high throughput like DeFi protocols, gaming and NFTs.

  • Ethereum-Level Security: Despite operating off-chain, Scroll inherits the security guarantees of Ethereum. zk-rollups ensure that any off-chain activity is valid, making it a safe option for users who value security.

  • Decentralization-Friendly: Scroll prioritizes decentralization, aligning closely with Ethereum’s philosophy. Unlike some scaling solutions that rely heavily on centralized components, Scroll uses zk-proofs to maintain decentralization without compromising on performance.

  • Developer-Friendly: Scroll is compatible with existing Ethereum tooling, meaning developers can easily port their dApps from Ethereum to Scroll without making major changes. This ease of integration makes Scroll an attractive platform for developers.

  • Eco-Friendly: By reducing the load on Ethereum’s mainnet, Scroll helps lower the overall energy consumption of the network, making it a more environmentally friendly option compared to traditional Layer 1 solutions.

Why is Quill on Scroll?

Quill allows users to borrow a stablecoin ($USDQ) against collaterals (such as wETH, weETH, wstETH and SCR) at a set interest, relying on multiple on-chain interactions (collateral deposits, redemptions, liquidations). Scroll's zk-rollups bundle many transactions into one, dramatically reducing gas fees compared to Ethereum Layer 1. This makes user interactions, especially for borrowing and liquidation operations, much more affordable.

  • Lower Transaction Costs: zk-rollups reduce gas fees, making interactions with protocols like Quill more affordable, especially for actions like collateral deposits and redemptions.

  • Improved Scalability: Quill benefits from high throughput due to Scroll’s zk-rollup scalability. Scroll handles more transactions per second, allowing these protocols to serve a growing number of users without network slowdowns. This is crucial for DeFi applications, where delays can lead to liquidation risks or missed arbitrage opportunities.

  • Ethereum-Level Security: Scroll inherits the security of Ethereum through zk-proofs. Quill relies on robust security to prevent system exploits. By being on Scroll, Quill can operate with the same level of confidence as on Ethereum while gaining scalability benefits.

  • Decentralization and Trustlessness: Quill is designed to be fully decentralized, Scroll aligns well with this philosophy by being an Ethereum Layer 2 that prioritizes decentralization and minimizes the reliance on centralized operators. This allows Quill to maintain trustless operations, which is important for protocols aiming to remove human control from the system.

  • Enhanced User Experience: With low costs and faster transactions, Quill's users can enjoy a smoother experience. Liquidations, collateral adjustments and other critical DeFi interactions become seamless on Scroll, reducing friction for both borrowers and liquidators.

How do I bridge to Scroll?

Head to https://scroll.io/bridge and follow their very intuitive UI for an easy way to bridge assets from Ethereum to Scroll.

If you need any more information on how to bridge to Scroll, please follow this official FAQ.

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Last updated 1 month ago