Etherlink has launched its third protocol upgrade, Calypso, on mainnet, delivering a significant performance enhancement to the Tezos layer 2 network.
This Ethereum Virtual Machine-compatible layer 2 solution on Tezos (XTZ) announced that the Calypso upgrade went live on the mainnet on March 12, just weeks after it was deployed on the testnet.
The journey to mainnet involved a governance vote from Tezos bakers, who are essential components working alongside Tezos nodes in the ecosystem.
With the mainnet launch approved, Calypso has now been deployed to provide enhancements such as increased network speed, robustness, and efficiency for decentralized application developers. This deployment also allows for quicker XTZ withdrawals from Etherlink to Tezos.
Etherlink’s non-custodial platform, leveraging Tezos smart rollup technology, facilitates seamless dApp integration and is compatible with Ethereum ecosystem tools, including wallets and indexers. With this latest upgrade now operational on the mainnet, performance improvements could reach up to 30 times — a noteworthy advancement in decentralized finance and exchanges.
The Calypso upgrade also enhances smart contract storage and introduces governance updates, paving the way for improved non-custodial and trustless token bridging.
Currently, users can bridge the native Tezos token, tez, from the layer 1 chain to Etherlink and vice versa. Moving XTZ from Etherlink to Tezos L1 refers to withdrawing, while depositing is the act of transferring XTZ from the layer 1 chain to the Etherlink network. In both scenarios, XTZ serves as the native token across both chains.
“Transferring tez from Etherlink to Tezos L1 can feel slow, like being stuck in traffic. Calypso introduces a new precompiled contract entry point that sets the stage for much swifter withdrawals,” a spokesperson shared in February ahead of this mainnet launch.
Etherlink kicked off its alpha testnet in 2023 and transitioned to beta in early 2024, with key roadmap milestones including the integration of oracle price feeds, the LayerZero bridge, and a decentralized sequencer.
In the meantime, Tezos launched its 17th upgrade with the activation of Quebec, which ushered in faster transactions, enhanced staking mechanics, and improved token issuance.