To take into account $METIS $ARB $OP

Last time, we dove into $METIS, a Layer-2 solution tackling Ethereum's limitations (slow speed, high fees, scalability). Today, we'll focus on a crucial step for all investors: risk assessment. Understanding the risks associated with any project, including METIS and other Layer-2 providers (e.g. $OP, $ARB), is essential before investing. The image below (source: l2beat.com) provides a clear framework for assessing risks associated with Layer-2 projects. It breaks down risks into five key areas:

1. Data Availability: Where is the data stored? On-chain or off-chain? This impacts transparency and accessibility.
2. State Validation: How is the state of the network verified? Trusted setup vs. trustless verification.
3. Exit Window: How long does it take to withdraw funds in case of an unwanted upgrade?
4. Sequencer Failure: What happens if the sequencer malfunctions? Are there alternative withdrawal mechanisms?
5. Proposer Failure: How can users exit if the proposer acts maliciously?

Each category has a definition and severity gauge (green = low risk, orange = high risk). This allows you to quickly grasp the risk profile of a project. Protect your investments! Before diving into your next Layer-2 project, 💻🌞💰DYOR and check out l2beat.com to assess potential risks.