Author: @Gaarp
I am posting on behalf of TreasureDAO, a leading, community led gaming ecosystem on Arbitrum. Treasure and Hop Protocol have a good history of alignment, with Hop one of the primary bridging services we recommend our community members to use when bridging MAGIC to Abitrum One. We now look to extend this relationship through a pilot for fast bridging MAGIC between Arbitrum One and Arbitrum Nova.
Summary:
This is a proposal for Hop Protocol to offer fast bridging support for MAGIC to/from Arbitrum Nova and ETH L1.
The Treasure Council has been ratified via to commit seeding liquidity for bonders on ETH L1, Arbitrum One and Arbitrum Nova to facilitate the process via TIP-27 (Snapshot)
Rationale:
Treasure is the largest NFT and gaming protocol by transactions and volume on Arbitrum One, and has been one of the most used dApps on Arbitrum since the rollup first launched.
Treasure originally launched on ETH L1 in September 2021 and migrated all products / services to Arbitrum One from late 2021. Prior to the launch of Arbitrum Nova in mid 2022, there has been no meaningful reason to bridge MAGIC - Treasure’s native token - to another chain. Nova is Arbitrum’s social and gaming centric chain, which is distinct and entirely separate from Arbitrum One. We anticipate growing adoption of Nova - and games using MAGIC on Nova - as our ecosystem scales and infrastructure and tooling matures.
Currently, there exists no direct bridge from Arbitrum One to Arbitrum Nova. Users must bridge MAGIC from Abitrum One via ETH L1 to migrate. Due to the 7 day finality, users bridging from Arbitrum One would be subject to considerable delay and significant user friction. This is in conflict with our core design principles and current Arbitrum One onboarding experience where we are listed on all major CEX, have significant depth on SushiSwap and have direct fiat onramp via Moonpay.
Using Hop to quickly bridge MAGIC between Abitrum One and Arbitrum Nova via ETH L1 would greatly improve UX, and would be the only meaningful bridging solution between these chains. As such, Hop would acquire the majority of bridging volume once MAGIC enabled games go live on Arbitrum Nova. Treasure’s DAO and community is in full support of this initiative, ratifying use of MAGIC and ETH to be used in Hop’s fast bridging bonder.
Specification:
- Roll out bridging support for MAGIC on Hop to/from Arbitrum Nova, L1 and Arbitrum One
- Seed bonders on L1, Arbitrum One and Arbitrum Nova with 1M initial MAGIC and ETH from the Treasure Treasury and Liquidity Pools.
- MAGIC to be split indicatively 500k / 250k / 250k across ETH L1 / One / Nova (final split will be made closer to the point of launch based on current demand)
- Seed MAGIC / hMAGIC LP on Hop Protocol’s StableSwap AMM on Nova and One
- Hop Protocol provide ~12k HOP per month across the two pools as incentives to the community to seed hMAGIC<>MAGIC liquidity to bolster the 500k MAGIC injected directly from TreasureDAO
- The HOP incentives are designed to drive roughly $270k of additional MAGIC liquidity to the AMMs if rates normalize around 8%
Notes:
*The primary ecosystem for Treasure and the MAGIC token is Arbitrum One - having been initially launched and migrated from ETH L1. Arbitrum Nova - a chain designed for social and gaming use cases - is being explored as we anticipate increasing demand for MAGIC on Nova over time. No other chain support will be requested at this time. The timing of the GTM will be aligned with relevant game / product launches
*The amount of MAGIC that will be used for incentives is to be tested and increased incrementally to achieve optimal results in light of bonder liquidity utilization.
