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Layer 2 technologies will be key to helping networks like Ethereum prepare for growth and hit mass adoption. One of the core innovations in the Layer 2 space is ZK-Rollups, a type of solution that uses cryptographic zero-knowledge proofs to verify a piece of information without revealing what the information is. Ethereum ZK-Rollups help bundle transactions away from the network onto new chains, reducing congestion and processing transactions at a high speed and low cost. 

In the token ecosystem, capturing yield is attractive for users looking for a return on their holdings. While it can be difficult to know where the best place to deploy capital is across the ecosystem, yield optimisers like Yearn Finance solve the problem by automating the searching process for token users with smart contracts.

Yield farming is an innovation that emerged in the early days of decentralised finance. It refers to the practice of depositing tokens to a project in order to earn additional tokens. The best yield farmers use complex strategies and frequently move across different projects to maximise their returns.

In the token ecosystem, yield typically refers to the return that a token user can get from their holdings. There are many ways to earn yield through tokens, such as staking and depositing tokens in decentralised finance protocols. Yield generation is arguably one of the most promising use cases for tokens, particularly for those who are excluded from traditional banking services.