# L2Beat Outlines Fraud Proof Trilemma

> Optimistic rollups balance trade-offs between safety, decentralization, and promptness in their fraud proof system.

**Published by:** [ETH Daily](https://ethdaily.io/)
**Published on:** 2024-08-22
**Categories:** news, 2024, august2024
**URL:** https://ethdaily.io/535

## Content

Quick TakeL2Beat outlines the Fraud Proof Trilemma.Polynomial introduces Trade 2.0. Upgrading an OP Stack chain into ZK.34 million ETH is now staked on Ethereum.LISTEN NOW! Collect NFT L2Beat On Fraud Proof TrilemmaL2Beat, an L2 analytics platform, published an article detailing the current state of fraud proof systems in optimistic rollups. The article introduces the "fraud proof trilemma," which highlights the trade-offs between safety, decentralization, and promptness in fraud proof systems. L2Beat points out that optimistic rollups are vulnerable to resource exhaustion attacks, where attackers might economically outlast honest challengers. The article also discusses the importance of the challenge period length, emphasizing the need to provide sufficient time for challengers to contest invalid state roots. Despite the economic incentive challenges faced by fraud-proof systems, they remain relevant because they currently offer greater scalability and lower costs compared to existing ZK rollups.Polynomial Introduces Trade 2.0Polynomial Protocol launched Trade 2.0, its advanced leverage trading platform built on Polynomial Chain. Initial markets for ETH, BTC, and SOL are now live. Trade 2.0 features support for limit orders, cross-margin trading, and gasless transactions. The platform's liquidity is backed by early stakers on Polynomial Chain. The first version of Polynomial’s perpetual swaps exchange, Trade 1.0 has processed over $4.7 billion in trading volume on OP Mainnet since its launch in March 2023. To incentivize activity, Polynomial is distributing one million protocol points per day to Trade 2.0 users. Polynomial Chain is an OP Stack L2 that features a native liquidity layer designed for derivatives applications.Upgrading An OP Stack Chain Into ZKSecurity auditor Zach Obront introduced OP Succinct, a new design for upgrading an OP Stack chain to a full ZK rollup with minimal changes. OP Stack chains currently post compressed transaction data to Layer 1 as blobs, and the system uses a dispute game to verify the state. The upgrade to a ZK rollup replaces the dispute game with a Zero-Knowledge (ZK) proof system, allowing anyone to post the rollup state by providing a validity proof. The transition process involves modifying contracts to verify ZK proofs, upgrading the op-proposer to manage and submit proofs, and implementing a zk-proposer that generates and verifies witness data using the Kona prover. The implementation is a collaborative effort between Succinct Labs and the OP Labs team.Other News34m ETH is now staked on EthereumPrivy supports webhooksEtherscan token standard checkerVitalik: Ethereum has gotten strongerXatu CL P2P tables Impact of EIP-4844OP Retro Funding rounds

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