Ethereum Interop Layer Unifies Rollups via ERC-4337 & XLP

Published: 2025-11-21 06:24:03 |

Ethereum Interop Layer extends the ERC-4337 account abstraction standard across major Layer 2 rollups. It enables wallet-centric multichain UX, letting users sign one transaction to transfer assets, mint NFTs or swap tokens on networks like Arbitrum, Optimism and Base. Behind the scenes, it automates gas, liquidity and path selection. A new auction-based cross-chain liquidity mechanism, powered by Cross-Chain Liquidity Providers (XLP), stakes assets on Ethereum mainnet and competes to finance transfers and gas fees under on-chain arbitration. Fully on smart contracts, Ethereum Interop Layer requires no consensus changes. By unifying cross-L2 flows, it reduces fragmentation, lowers cognitive overhead and speeds new rollup adoption. Crypto traders could see improved DeFi interoperability and higher network activity as Ethereum Interop Layer simplifies multichain operations.

Bullish

This upgrade streamlines cross-chain operations by unifying Layer 2 rollups under ERC-4337 and introducing an auction-based liquidity mechanism. In the short term, traders can expect improved liquidity and reduced bridge risks, boosting Ethereum network activity and DeFi usage. Over the long term, standardized multichain UX and on-chain arbitration may drive broader rollup adoption, reinforce network effects and heighten demand for ETH and L2 tokens, underpinning a bullish outlook.