TLDR: This proposal transfers 700 ETH to a new ETH relayer contract to a new DXdao Multichain MS, to be converted into specified assets, bridged over to Arbitrum One and deposited in aDXdao.
DXdao agreed to expand to Arbitrum One in June with a signal proposal that authorized deployments of Swapr and a DXdao base. After months of community discussion, REP holders passed a proposal this week that authorized the SWPR Token and Swapr guild. More recently, a proposal to anoint the DXdao base on Arbitrum One with specified addresses is set to pass.
The Arbitrum One expansion proposal committed $2.25m in DXdao capital to be deposited in aDXdao to be used for liquidity provisioning on Swapr and general operating expenses. DXdao has already provisioned close to $3m in Swapr on mainnet and xDai and has enjoyed a positive return as a liquidity provider, particularly on stablecoin pairs and the ETH/Dai pair.
Given the quickly shifting liquidity landscape that coincides with a new chain launch, this proposal empowers the dev multi-sig signers to acquire tokens that fall within the conditions laid out below.
This proposal sends 700 ETH to an ETH Relayer Contract,
0x3e99bEd13071176fE06b317b33e2dcd1E1c9f2BE, which will relay the ETH to the DXdao Multi-chain Gnosis Safe multi-sig, hereby identified as
0x9467dcFD4519287e3878C018c02f5670465a9003 whose signatories were all on the previous dev multi-sig and have been verified as REP holders, to be converted into tokens that fit the conditions laid out below, bridged over to Arbitrum and deposited into aDXdao, which is identified as
0xe086305858d49f65a5d20adaccd31c523d32694f. It is up to aDXdao to provision the funds in Swapr or use for general operating expenses
THe 700 ETH is approximately $2.25m (using a ETH price of $3215). The funds should:
- Include at least 250k Dai for operating expenses
- At least $500k and up to $1.5m in Swapr liquidity provisioning for ETH-stablecoin pairs, which may include Dai, USDC, USDT, LUSD, or HUSD
- At least $500k and up to $1.5m in Swapr liquidity provisioning for stablecoin-stablecoin (or stable asset), which may include, RAI, Dai, USDC, USDT, LUSD, or HUSD.
- Up to $500k in Swapr liquidity provisioning for WETH-WBTC, WETH-DPI or WETH-LINK
Dev multi-sig signers can use their own discretion - within these guidelines - to allocate to the most optimal liquidity provisioning.
Risks & considerations
Arbitrum One is the first permissionless Layer 2. It has gone through almost a year of a public testnet as well as numerous audits. There are some guardrails for the initial launch but there remains risk for DXdao’s funds given how new the technology is. The benefit of being a first-mover on Arbitrum One justifies the risk.
This proposal relies on the Arbitrum One bridge and uses a new Gnosis Safe multi-sig that has the same address across mainnet, xDai and Arbitrum One. While Gnosis Safe has promised support for Arbitrum One, this is not live yet.