The DAO to fund a small BOND loan to DeversiFi to test the BOND/ETH Layer 2 AMM

The DAO to fund a small BOND loan to DeversiFi to test the BOND/ETH Layer 2 AMM

DeversiFi, the Layer 2 exchange built on the StarkWare Validium technology, has recently launched V1 of it’s Layer 2 AMMs. DVF token holders voted BOND to be one of the first projects to launch on DeversiFi using an AMM pool, enabling BOND to be traded gas-free and in complete privacy on a high speed DEX.

The DeversiFi AMMs launched last week in ‘testing mode’, with a single LP (DeversiFi Labs), to enable the developers to monitor and optimize for a period of time. Upon successful completion of the testing period, the pools will be opened up to external LPs and a substantial liquidity mining program will start. This ‘phased rollout’ approach has been followed out of an abundance of caution to ensure that user’s funds are safe when the pools open up to external LPs in a few weeks time.

In order for a BOND pool to be opened on DeversiFi as quickly as possible, the DeversiFi developers (DeversiFi Labs) would like to request a small token loan of approximately $100k BOND so that they can open a BOND/ETH pool. If the DAO grants the loan, the pool can be opened immediately, instead of having to wait for the DeversiFi AMM pools to be opened up to external (all) LPs in a few weeks time after the period of testing is completed.

When the DeversiFi AMMs open up to external LPs, the BOND loan will either be returned or converted into a fast-withdrawal-pool - enabling traders to quickly move BOND between the DeversiFi Layer 2 and mainnet Ethereum without having to wait for a rollup proof/batch to be submitted on-chain (every 24 hours).

Background:
DVF token holder vote to list BOND as one of the first launch pools:

https://vote.deversifi.com/#/proposal/QmZANuNnrJo9FvtxmMRjT5Vp6TPK1L36PZXm2i7uH6iiV9

DeversiFi AMM pools
https://app.deversifi.com/pools

DeversiFi AMM launch announcement:

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Apologies if I missed something but what’s the benefit to getting a pool started now versus a few weeks when the pools are live?

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Same question I have.

You question is completely fair and I appreciate the interest. Launching the AMM pool early means that we can enable gas-free trading of BOND on DeversiFi sooner rather than later. Then, once the liquidity mining program starts, the pool TVL will grow and make it a much more central component of BOND liquidity

Putting the BOND/ETH AMM pool to one side for a moment, being able to launch a fast-withdrawal pool for BOND in the immediate future is very desirable and has some immediate benefits. Regardless of if there is a BOND/ETH AMM pool, the fast withdrawal pool will enable the following:

  1. Users can instantly withdraw BOND from DeversiFI back to L1 Ethereum to a different address than which they deposited. As DeversiFi is built using StarkWare Validium, activity on DeversiFi is private, enabling traders to achieve privacy when moving their BOND

  2. Internal Transfers on DeversiFi only cost $1 and can be used as an in-expensive way to make gas-free BOND payments

  3. If there is community interest, we could also add BOND to the DeversiFi<>Polygon bridge, allowing instant and low cost transfers from DeversiFi to the Polygon Network

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Would be nice to see someone who is more into technicalls from Barn Bridge to give their opinion on this :slight_smile:

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