New Marketplace for Coinbase’s Layer 2 System Integrates Gas Revenue Betting

Key Insights:

Alkimiya's smart contracts enable users to speculate on the costs associated with transactions included in blocks on the Layer 2 network, Base.
The costs are tracked according to the cumulative gas fees paid to the Base network, which can show significant variations, from a low of 10 ETH to a high of 200 ETH within a single day.

Overview

The rapid ascendance of Base, a Layer 2 blockchain owned by Coinbase designed for quicker and more cost-effective transactions, has led to the introduction of a marketplace connected to the varying gas costs that are essential for its operation. This platform allows traders to place bets on the routine spikes in gas utility on the system.

Taking inspiration from conventional energy markets, Alkimiya, supported by investments from Coinbase Ventures and firms like Dragonfly and Castle Island Ventures, allows users to either go long or short on transaction inclusion in blocks, otherwise known as "blockspace"—representing the storage and processing capabilities of a blockchain.

"Paying for blockspace resembles paying for other energy sources, such as cars refueling or airplanes using jet fuel," said Leo Zhang, founder of Alkimiya. Translation: Paying for blockspace is akin to financing other energy sources, like cars requiring gasoline or airplanes needing kerosene.

Launched in August 2023, Base has surged past its Layer 2 competitors, accumulating over $14 million in fees within a month. The increased activity translates into fluctuating cumulative gas fees, ranging from 10 ETH to as much as 200 ETH within one day.

Unlike other blockchain implementations, Base lacks a designated token and currently has no intentions of releasing one. Alkimiya's smart contracts provide users the ability to predict fluctuations in blockspace cost due to various factors, such as the introduction of AI agents or the launch of popular memecoins, NFTs, or airdrops on the network.

Behind the scenes, Alkimiya adopts a widely recognized decentralized finance structure wherein an oracle monitors user gas consumption on Base, with smart contracts managing both the accounting and logical processes involved.

"A user can acquire a contract that monitors the total gas expenditure for the Base roll-up itself," Zhang added. "This is possible due to its absolute transparency. There is no centralized exchange obscuring the data."