# L2 Cost Optimization Mutuum plans to optimize transaction costs on Layer 2 (L2) networks by focusing on the primary factor contributing to fees: calldata. Rather than passing multiple full-size parameters, the protocol intends to compress all necessary information into a single byte-encoded string, thereby reducing both on-chain storage and per-transaction expenses. Because Mutuum anticipates supporting a limited set of assets, it can assign each token a compact identifier (for instance, using 16 bits) instead of the full 160-bit address. This approach helps contain the size of calldata whenever users interact with the protocol. Additionally, Mutuum may implement specialized contract logic tailored to the unique structure of rollup environments such as Arbitrum or Optimism, ensuring that transactions remain affordable and efficient. By minimizing the overhead of data transmission and leveraging short-form asset identifiers, Mutuum seeks to offer a rapid, cost-effective user experience on L2 chains, aligning with its goal of delivering greater scalability and accessibility for borrowers and lenders alike. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.mutuum.com/extra/l2-cost-optimization.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.