Etherlink Deploys Calypso Upgrade on Mainnet

Etherlink has launched its third protocol upgrade, Calypso, on the mainnet, significantly enhancing the performance of the Tezos layer 2 network.

The Ethereum Virtual Machine-compatible layer 2 solution, built on Tezos (XTZ), confirmed that the Calypso upgrade went live on March 12, shortly after deploying on the testnet.

To reach the mainnet, a governance vote was conducted by Tezos bakers, who are integral components alongside Tezos nodes. Following approval, Calypso was successfully launched, bringing improvements like better network speed, resilience, and efficiency for developers of decentralized applications (dApps). This upgrade also allows for faster XTZ withdrawals from Etherlink to Tezos.

According to a Messari Q4 2024 report, Etherlink experienced a 184% surge in contract deployments. The non-custodial platform, which uses Tezos smart rollup technology, facilitates seamless integration of dApps and supports Ethereum ecosystem tools such as wallets and indexers. With this upgrade, performance may increase by up to 30x, which is substantial in decentralized finance and exchanges.

Calypso also enhances smart contract storage and governance updates, paving the way for better non-custodial and trustless token bridging. Users can now bridge the native Tezos token tez from the layer 1 chain to Etherlink and vice versa. Bridging XTZ from Etherlink to Tezos L1 is termed withdrawing, while bridging from layer 1 to Etherlink is depositing. In both scenarios, XTZ is the native token on both chains.

> “Moving tez from Etherlink to Tezos L1 currently can feel like waiting in traffic. Calypso introduces a new precompiled contract entrypoint, which lays the groundwork for much faster withdrawals,” Tezos noted in February, prior to the mainnet rollout.

Etherlink launched its alpha testnet in 2023 and beta in early 2024, with future milestones including the integration of oracle price feeds, the LayerZero bridge, and a decentralized sequencer.

Meanwhile, Tezos recently activated its 17th upgrade, named Quebec, which introduced faster transactions, improved staking mechanics, and enhanced token issuance.

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