If you're familiar with AMM DEXs, what we've implemented to enable L1 to L2 movement is similar to that model. Optimism will have their own way of dealing with the exit window, the challenge period. They've spoken about that. We believe our model is more community-driven and market-driven, and it enables broad-based participation. You're able to participate as a liquidity provider and earn part of the fees. We think that's beneficial to the community. I'll let Jan speak to the off-chain compute question.
In terms of the swap, as Alan said, the underlying principle is 100% equivalent to what, for example, Uniswap does or Sushi does where you’re able to swap from one token to another.
The only difference here is that the swap pair is something like ETH and oETH. So instead of swapping tokens on L1, what you’re doing is swapping across a chain boundary. But the underlying equations are the same. The general ideas are the same. It’s just that you’re swapping across that boundary. In terms of the off-chain compute. That’s probably a longer conversation, but the central idea is that right now there’s a very significant gap between the types of computations you can do on L1 versus the types of computations that people are used to doing these days. Insurance companies, banks, normal businesses, they’re all used to being able to do very sophisticated computations at specific endpoints. They don’t even think about that. It’s only when they get exposed to the blockchain world that some have to get used to extremely limited, extremely slow, and extremely costly compute. Typically that surprises them because they take it for granted that they should be able to do very sophisticated things at very, very low cost and very quickly.
From a strategic perspective, if that gap continues to exist, that poses a very significant barrier to entry. If I’m a normal bank, if I’m a normal insurance company or if I’m a normal business and I say, “Oh, I’m interested in using a distributed approach.” And then I tell you, you know, here are all the things you can’t do. That’s a really big barrier to future growth of normal companies operating on blockchains. That’s why we think it’s very important to make it as easy as possible for traditional businesses to take advantage of existing compute infrastructure from smart contracts that they deploy. It’s not necessarily about supporting new types of compute, it’s to make it as easy as possible for smart contracts to trigger off-chain compute at established endpoints that are quoted and deployed on many many different platforms. For practical purposes, we’re focusing on AWS Lambda. So the zero-order goal is to make it possible for daemons that are watching smart contract interactions to trigger AWS Lambda events. Then to have the compute results from those events be pushed back into smart contracts at a later time.