CoinClear

X Layer

5.6/10

X Layer leverages Polygon CDK and OKX's massive user base to create a zkEVM L2, benefiting from exchange-driven adoption but raising centralization concerns due to deep OKX dependency.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

X Layer is a Layer 2 blockchain launched by OKX, one of the world's largest cryptocurrency exchanges, built using Polygon's Chain Development Kit (CDK). It operates as a zero-knowledge Ethereum Virtual Machine (zkEVM) rollup, posting proofs and data to Ethereum for security while providing low-cost, high-throughput transaction execution. X Layer is integrated into the Polygon AggLayer, enabling unified cross-chain liquidity access across all AggLayer-connected chains.

The network uses OKB (OKX's exchange token) as the gas token, creating a direct economic link between the exchange ecosystem and the L2. X Layer launched on mainnet in April 2024, targeting DeFi, gaming, and social applications with a built-in advantage of OKX's 50M+ user base. The project benefits from OKX's engineering resources, which are among the deepest of any crypto exchange, enabling rapid iteration and infrastructure scaling.

OKX has positioned X Layer as a strategic infrastructure investment, integrating it deeply with the OKX Wallet, Web3 marketplace, and exchange on-ramp flows to minimize friction for user migration.

Technology

X Layer leverages Polygon CDK's type-1 zkEVM prover for Ethereum equivalence, meaning Ethereum smart contracts can be deployed without modification. The zkEVM generates validity proofs for transaction batches, which are verified on Ethereum L1, providing cryptographic security guarantees superior to optimistic rollups. Transactions on X Layer achieve near-instant soft confirmations with full finality once proofs are verified on Ethereum (typically within minutes). The integration with Polygon AggLayer provides a shared bridge and cross-chain messaging layer. Gas fees are denominated in OKB and are significantly lower than Ethereum mainnet. While the technology is robust, it is largely inherited from Polygon CDK rather than proprietary innovation.

Security

X Layer inherits Ethereum's security through its zkEVM rollup design—all state transitions are cryptographically proven and verified by Ethereum L1 smart contracts. This provides strong security guarantees against invalid state transitions. However, the sequencer and prover infrastructure are currently centralized under OKX's control, creating a single point of failure for transaction ordering and liveness. The bridge contract connecting X Layer to Ethereum is a critical security component; Polygon CDK's bridge has been extensively audited. The AggLayer adds a shared security model, but also introduces systemic risk if the aggregation layer has vulnerabilities.

Decentralization

Decentralization is X Layer's most significant weakness. The sequencer is operated by OKX, meaning transaction ordering, censorship resistance, and network liveness depend entirely on OKX's infrastructure and goodwill. There is no current mechanism for decentralized sequencer selection or forced transaction inclusion. This is common among new L2s but remains a fundamental trust assumption. OKX, as a centralized exchange, also faces regulatory risks that could directly impact X Layer's availability. The roadmap includes plans for sequencer decentralization, but timelines are vague.

Ecosystem

X Layer benefits from OKX's distribution advantage. Direct integration with the OKX wallet and exchange provides a user onboarding funnel that most L2s lack. Early ecosystem development includes DEXs, lending protocols, and NFT platforms, with several receiving grants from the OKX ecosystem fund. TVL has grown moderately, driven partly by incentive programs. The AggLayer integration provides access to liquidity from Polygon PoS, zkEVM, and other CDK chains. However, the ecosystem is still nascent compared to established L2s like Arbitrum and Optimism, and long-term retention beyond incentive periods is unproven.

Tokenomics

X Layer uses OKB as its gas token rather than a native L2 token. This creates a direct demand driver for OKB from L2 activity, benefiting existing OKB holders. However, it also means X Layer's economic model is entirely dependent on OKB's tokenomics, which are controlled by OKX as a centralized entity. OKB has a deflationary mechanism through periodic burns by OKX. The lack of a separate governance token for X Layer means protocol governance is effectively centralized within OKX. For investors, exposure to X Layer is achieved through OKB, which also carries exchange-specific risk factors.

Market Position

X Layer competes in the crowded zkEVM L2 market alongside Polygon zkEVM, zkSync Era, Linea, and Scroll. Its primary competitive advantage is OKX's user base—over 50 million registered users represent a distribution funnel that independent L2s cannot match. The AggLayer integration positions X Layer within Polygon's cross-chain ecosystem, providing access to shared liquidity. However, TVL and unique user counts remain modest compared to Arbitrum and Base, which benefit from longer operational track records. The exchange-L2 model (similar to opBNB for Binance and Base for Coinbase) is a proven distribution strategy, but differentiation beyond the exchange's existing user base has been limited.

Risk Factors

  • OKX Centralization: Single-entity control of sequencer, prover, and gas token creates existential dependency.
  • Regulatory Risk: OKX faces global regulatory scrutiny; adverse actions could directly impact X Layer.
  • Centralized Sequencer: No censorship resistance or forced inclusion mechanism exists currently.
  • L2 Competition: Extremely crowded L2 landscape with better-decentralized alternatives (Arbitrum, Optimism, Base).
  • Incentive Dependency: Ecosystem growth driven by incentives may not sustain after programs end.
  • AggLayer Systemic Risk: Shared security model introduces correlated failure risk.

Conclusion

X Layer is a technically competent zkEVM L2 that benefits from Polygon CDK's proven infrastructure and OKX's massive distribution advantage. The exchange-L2 integration model provides a clear user acquisition funnel that most independent L2s cannot match. However, the deep centralization around OKX—controlling the sequencer, gas token, and ecosystem direction—creates significant trust and regulatory risks. X Layer is best viewed as an extension of the OKX ecosystem rather than an independent, decentralized L2. For investors aligned with OKX's growth thesis, X Layer adds utility to OKB; for those prioritizing decentralization, it falls short of the L2 ideal. The key metric to watch is whether X Layer can develop an ecosystem identity beyond being "OKX's L2"—chains that exist purely as exchange extensions tend to have limited long-term resilience.

The success of the AggLayer strategy and the development of native X Layer applications will determine whether this becomes a thriving independent ecosystem or remains a dependent appendage of the OKX exchange.

Sources

  • X Layer Official Documentation (https://www.okx.com/xlayer/docs)
  • Polygon CDK Technical Documentation
  • OKX X Layer Launch Announcements and Blog Posts
  • DeFiLlama TVL Data for X Layer
  • L2Beat X Layer Risk Assessment
  • AggLayer Architecture and Security Documentation
  • OKX Web3 Ecosystem Growth Reports