When you say privacy is available at level 2 what do you mean? Last time I checked LN doesn't have Monero level privacy and it's only private for the sender not the receiver. Unless you are referring to another L2 that I am unaware of and if so, please school me

My understanding, which I admit is shakey at best, is that Monero level privacy comes with trade-offs in ledger integrity. I would rather know that I have to use obfuscation protocols on Bitcoin layer 2 than not know how much Monero is in circulation.... though I do suspect that I'm about to be the one to be schooled 😉

Good question