This proposal was co-authored by the Arbitrum Foundation team and the Instadapp team.
Summary
This proposal seeks community support to deploy Fluid DEX to the Arbitrum L2 and outlines initial setups.
Proposal
We propose the deployment of Fluid DEX on Arbitrum to kick-start our DEX expansion across L2s.
Below are the configs as suggested by the team:
Configure the two DEXes on the Liquidity Layer
DEX Pool 1:
- wstETH<>ETH (smart col & smart debt)
Supply Configuration:
- Supply Mode: 1
- Supply Expand Percent: 50%
- Supply Expand Duration: 1 hour
- Base Withdrawal Limit in USD: $3M
Borrow Configuration:
- Borrow Mode: 1
- Borrow Expand Percent: 50%
- Borrow Expand Duration: 1 hour
- Borrow Base Limit in USD: $3M
- Borrow Max Limit in USD: $5M
DEX Pool 2:
- weETH<>ETH (only smart col)
Supply Configuration:
- Supply Mode: 1
- Supply Expand Percent: 50%
- Supply Expand Duration: 1 hour
- Base Withdrawal Limit in USD: $3M
List and Set Limits for the New Vaults on the Liquidity Layer
- wstETH-ETH (Smart Collateral) / wstETH-ETH (Smart Debt) Vault
Vault Type: TYPE 4
- weETH-ETH (Smart Collateral) / wstETH
Vault Type: TYPE 2
Supply Configuration:
- Supply Expand Percent: 25%
- Supply Expand Duration: 12 hours
- Base Withdrawal Limit in USD: $3M
Borrow Configuration:
- Borrow Mode: 1
- Borrow Expand Percent: 20%
- Borrow Expand Duration: 12 hours
- Borrow Base Limit in USD: $3M
- Borrow Max Limit in USD: $5M
More pools will be launched on Arbitrum over the weeks as overall liquidity grows and integrations with DEX aggregators are completed.
Rewards on Arbitrum
To further promote the launch of Fluid and to maximize exposure to the principal markets, Arbitrum and Instadapp propose to launch FLUID/ETH DEX pool and distribute $FLUID and $USDC rewards to the strategic lending and DEX pools.
Rewards Setup:
The team will be setting up the rewards on launch. The total rewards for the following 3 months are up to $750k worth of $FLUID and $750k USDC.
Motivation
Fluid DEX has proven its efficiency on Ethereum in a very short period of time. Expanding the DEX to L2s where the gas prices are lower which will lead to the higher utilization of the DEX pools thus higher profitability of the LPs.
Arbitrum was the first L2 where Fluid launched the lending market
Arbitrum is one of the leading L2s with one of the highest organic trading volumes.
As well as Arbitrum has the highest TVL among rollups
And the biggest stablecoin market capitalization
Deploying Fluid DEX on Arbitrum presents potential benefits for both ecosystems allowing Arbitrum users and protocols to access the most capital efficient DEX and Fluid to increase its userbase and overall adoption.
Conclusion
This proposal will enable Fluid DEX protocol on Arbitrum and will start a rewards program on Arbitrum to attract more users and liquidity. This proposal sets initial vaults and DEX parameters