Andrei Cronje, co-founder and architect of Sonic (formerly Fantom), has warned developers against using appchains — customized Layer 2 (L2) networks designed specifically for certain decentralized applications (dApps).

Why L2s as appchains are not logical for builders:

– Barely any infra when deploying (stable coins, oracles, institutional custody, etc)
– No foundation/labs to help support
– Centralised and open to attack
– Fragmenting liquidity and forcing it onto bridges
– No community of…
— Andre Cronje (@AndreCronjeTech) October 13, 2024

The founder of the DeFi project yEarn Finance argued that such protocols are “illogical” and listed several problems that make them less attractive for developers. According to Cronje, these networks lack the necessary infrastructure to launch stablecoins, oracles, and institutional solutions. The costs of these services are often underestimated.

Cronje emphasized that the Sonic team has already spent $14 million in 2024 on services related to L2 appchains, such as explorers, exchange access, tool stacks, cross-chain bridges, and compliance solutions.

Support from Other Developers

Cronje’s viewpoint is backed by Gabriel Garrett Fu of Mantle.

Agreed, many fail to realize that infra is the single most expensive recurring cost for any L2, which is oftentimes taken for granted.
— Gabe (@0xGabe_) October 13, 2024

“Many don’t understand that infrastructure is the most expensive recurring cost for any L2 protocol,” stated Fu, the team lead for DeFi development.

Cronje also noted that many providers refuse to work with L2 appchains or deprioritize them, leading to wasted time.

He also pointed out other drawbacks of L2 appchains:

Lack of technical support and community.
Liquidity fragmentation through bridges.
Centralization and vulnerability to attacks.
The necessity to build a project alone without network effects.

Response from Other Experts

Mark Buaron, CEO of Polygon Labs, disagreed with Cronje’s arguments, stating that most of these issues can be solved with Polygon’s AggLayer for liquidity management and community building.

Most of these things can be solved:
– Create an interop solution that includes native infra for all connecting chains (as will be the case with the AggLayer).
– Create a culture around an interop solution of helping others so the tide lifts all boats. Polygon Labs is the first…
— Marc Boiron (@0xMarcB) October 13, 2024

Hilmar Orta, founder of Gelato Network, also disagreed with Cronje, mentioning that most challenges can be solved, except the problem of building a project alone, as applications compete with each other.

Most of these things can be solved:
– Create an interop solution that includes native infra for all connecting chains (as will be the case with the AggLayer).
– Create a culture around an interop solution of helping others so the tide lifts all boats. Polygon Labs is the first…
— Marc Boiron (@0xMarcB) October 13, 2024

The Future of L2 Solutions

In October 2024, Uniswap, the largest decentralized exchange (DEX) by trading volume, announced the launch of its own L2 solution. Analysts estimate that this could bring an additional $500 million in yearly revenue to the platform and UNI token holders.