> For the complete documentation index, see [llms.txt](https://paperdao.gitbook.io/paperdao-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paperdao.gitbook.io/paperdao-documentation/fundamentals/rationale.md).

# Rationale

We believe L2 (Optimistic rollup) + POW is the way forward for Crypto scalability in an anti-fragile manner.

ETH PoW (as of late September 2022) does not have a meaningful DEFI ecosystem. Most tokens and projects have migrated to PoS and there is a lack of most key infrastructure. We do not have Oracles, Lending Markets, or even swaps (not enough widely used tokens).<br>