DXdao expands to Arbitrum
Plans to launch Swapr, Omen and a DXdao base on Arbitrum, a Layer 2 scaling solution that uses an optimistic rollup
As gas prices rise on Ethereum mainnet, DXdao has researched several scalability solutions to reduce costs for its products and own governance system. It has already deployed Mesa and a DXdao base to xDai, where it will soon be joined by Omen and later Swapr. Additionally, DXdao launched Rails, a gasless payment app that uses Loopring’s v1 ZKrollup, in October.
DXdao is excited to continue its expansion into a multi-chain world by participating in the Arbitrum test net. Arbitrum is an innovative scaling solution built by the world-class team at Offchain Labs. It uses an optimistic rollup to batch transactions off-chain and then publishes a condensed version on-chain.
Arbitrum is a Layer 2, meaning that it maintains the security properties of Ethereum. If the off-chain operators act maliciously, users are still able to withdraw their funds from the smart contract on Ethereum. Arbitrum is also EVM compatible, which makes it easier to deploy existing smart contracts with few changes to the code. This also means no new security audit.
For DXdao, this means the entire DXdao ecosystem can expand to Abritrum with the same composability that users have come to know and love on Ethereum. Joining the Arbitrum test net will showcase how Layer 2’s can increase transaction speeds and drastically lower gas prices without sacrificing security or functionality.
DXdao will first deploy a DXdao base on the Arbitrum testnet, as DAOstack deploys the underlying DAO infrastructure. This DXdao base features the same set of REP holders and holographic consensus structure as Mainnet. In addition to the DXdao base, Swapr will also be deployed to the testnet. Swapr’s ability to adjust fees with the lower gas costs of Layer 2 means that it could offer LP’s higher fees, while the overall costs are lower to traders thanks to the gas savings. After Swapr, Omen and Mesa will be deployed to the Arbitrum testnet and later the mainnet.
DXdao’s expansion to Arbitrum’s testnet marks an important step in DXdao’s multi-chain journey. This supplements DXdao’s existing efforts with xDai and Loopring. Ethereum remains DXdao’s home, but as it attracts more users, more and more liquidity will be fragmented across different scaling solutions. As a sovereign DAO, DXdao is poised to be a leader in coordinating the migration to Layer 2’s and is excited to have Arbitrum as a partner.
About DXdao: DXdao is a decentralized collective that builds and governs DeFi products. DXdao was spawned in May 2019 through a collaboration between Gnosis and DAOstack. Reputation (REP) is voting power in DXdao, and DXD is the financial token with a claim on profit from DXdao products.