[Disclaimer - This proposal is powered by Metal DAO. karpatkey is not affiliated with Metal DAO and did not receive compensation for posting this proposal.]
Overview
Metal L2 is a banking-focused Layer 2 blockchain built on the Optimism Superchain, designed to enable direct on-chain fiat deposits through its connection to The Digital Banking Network—an open-source blockchain banking protocol developed by Metallicus. As one of the first chains to initiate the transfer of keys to the Optimism Foundation as part of its journey to Stage 1, Metal L2 demonstrates a strong commitment to decentralization while acting as a critical bridge between regulated TradFi institutions and DeFi.
This unique positioning offers Uniswap the opportunity to connect to The Digital Banking Network by deploying on Metal L2, creating a seamless gateway for TradFi fiat to flow into DeFi.
Metallicus
San Francisco based Metallicus, founded by Marshall Hayner (CEO) and Glenn Marien (CTO), who have been involved in blockchain technology since 2009. Marshall built the first Bitcoin wallet for Facebook, while Glenn created the first Dogecoin wallet, experiences that have shaped their approach to innovation in the space. Marshall also continues to contribute to Dogecoin in his role on the Dogecoin Foundation.
In 2018, under their leadership, Metallicus launched Metal Pay, one of the first regulated crypto payment applications in the United States, often referred to as “The Venmo of Crypto.” alongside their unique Proof-of-processed-Payment mechanism powered by MTL. Their focus on compliance and institutional adoption has been central to Metallicus’ success, leading to Federal Reserve FedNow Certification and the development of blockchain banking solutions that meet key requirements like Anti-Money Laundering (AML), Know Your Customer (KYC), and compliance with ISO 20022 and Bank Secrecy Act (BSA) standards.
This dedication to compliance and innovation has been a key factor in Metallicus’ success in bringing traditional financial institutions on-chain.
Through The Digital Banking Network, Metallicus has onboarded a rapidly growing network of on-chain credit unions and financial institutions across the United States and internationally. At the heart of this network are Metal Pay and Metal Pay Connect, fiat onramp solutions that make it easy for any DApp or business to offer their customers a seamless way to move fiat on-chain. These products enable users to onramp funds quickly and securely using traditional payment methods like debit and credit cards. Metal Pay and Metal Pay Connect currently serve more than 800,000 user accounts, with expectations for a 10x growth by 2027, underscoring the rapid adoption of this interconnected ecosystem.
The Digital Banking Network itself is built on three interoperable chains: Metal Blockchain (Layer 0), XPR Network (Layer 1), and Metal L2 (Layer 2). These chains form the foundation of a universal banking protocol that bridges traditional finance and blockchain technology, ensuring seamless integration while maintaining full regulatory compliance.
Also part of The Digital Banking Network are WebAuth Wallet, an advanced non-custodial crypto wallet that gives users secure access and control over their digital assets, and Metal X, a fully featured DeFi trading and lending platform.
This network represents the culmination of Metallicus’ founders’ vision: to create a universal banking protocol that allows traditional financial institutions to seamlessly integrate with blockchain technology while maintaining their regulatory compliance. By enabling fiat-to-crypto capabilities at scale, The Digital Banking Network is transforming how institutions and individuals interact with decentralized finance.
MTL Token
The native MTL token, established in 2017, stands as one of the earliest and most actively traded tokens in the cryptocurrency space. As one of the first tokens to be listed on major centralized exchanges like Binance, Bittrex, and Coinbase, MTL has maintained consistent market presence and liquidity. The token currently generates over $66 million in daily trading volume across centralized exchanges alone, demonstrating remarkable market depth and trader interest. This substantial trading activity positions MTL among the most liquid tokens in the space, providing a strong foundation for DeFi integrations and institutional adoption.
Metal L2
Metal L2’s journey began with the MIP-001 proposal, which outlined the vision for joining the Optimism Superchain and connecting Metal’s TradFi network into Ethereum’s DeFi ecosystem. Following unanimous community approval, Metal L2 achieved one of the fastest mainnet deployments in the space, launching on March 29, 2024. Demonstrating strong commitment to decentralization, Metal L2 has already initiated the process of transferring keys to the Optimism Foundation, marking significant progress on its path to Stage 1 of the Superchain vision.
The ecosystem’s rapid growth is evidenced by two major protocol deployments already secured through successful DAO proposals. Velodrome, the largest native DApp on Optimism with over $9.2 billion in historical trading volume, has committed to deploying their MetaDEX on Metal L2 and the Metal DAO has committed to 1,020,000 MTL for voting incentives. Their proven track record of bootstrapping liquidity across the Superchain, including successful deployments on Mode with $4.5M TVL pre-incentives, positions them as a crucial piece of Metal L2’s DeFi infrastructure.
Following Velodrome, Ionic Protocol – the largest native money market for yield-bearing assets on Mode Network with over $300M in TVL and 100,000+ users – secured approval for deployment on Metal L2 along with 275,000 MTL for voting incentives. Ionic’s expertise in managing deep lending pools with advanced capital efficiency mechanisms will provide essential DeFi infrastructure for institutional participants. Their unique cross-chain lending capabilities, allowing users to supply on one chain and borrow on another, align perfectly with Metal L2’s vision of bridging TradFi and DeFi.
These rapid developments and successful proposals from major DeFi protocols demonstrate strong ecosystem confidence in Metal L2’s vision. The sequential deployment of Velodrome’s MetaDEX followed by Ionic’s lending protocol creates a foundation for sophisticated DeFi activities, particularly appealing to institutional users seeking robust, tested infrastructure.
Unanimous Approval for Uniswap V3
The Metal DAO community recently reached a significant milestone by optimistically approving the proposal to integrate Uniswap V3 on Metal L2. This vital proposal reflects the community’s commitment to establishing Metal L2 as a central hub for seamless DeFi and TradFi interactions. The proposal, facilitated by Oku—a team that has conducted nearly two dozen Uniswap V3 deployments across major networks like Base and Binance Smart Chain since their launch in July 2023—demonstrates Metal L2’s commitment to working with experienced, proven partners.
The Metal DAO has committed substantial resources to ensure the successful launch and adoption of Uniswap V3 on Metal L2:
A Liquidity Bootstrap Program allocating 250,000 MTL tokens to seed critical trading pairs:
- ETH/USDC Pool: $100,000 worth of liquidity
- MTL/ETH Pool: $150,000 worth of liquidity
These pools will be managed by Metallicus Inc. and maintained for a minimum of six months.
An additional 250,000 MTL tokens allocated for liquidity incentives, strategically distributed across key trading pairs:
- MTL/ETH (0.30% fee tier): 20% of incentives
- MTL/USDC (0.30% fee tier): 20% of incentives
- MTL/XMD (0.30% fee tier): 20% of incentives
- ETH/USDC (0.05% fee tier): 20% of incentives
- ETH/XMD (0.05% fee tier): 20% of incentives
Notably, the inclusion of XMD pairs anticipates the upcoming deployment of Metal Dollar (XMD) on Metal L2. Metal Dollar represents a significant innovation in the stablecoin space—a reserve-backed stablecoin basket that enables seamless movement between various stablecoins. This addition to the Uniswap V3 ecosystem will provide traders with enhanced stablecoin liquidity and flexibility, further strengthening the bridge between traditional finance and DeFi.
The integration includes comprehensive technical implementation through Oku, encompassing contract deployment, verification, backend integration, and the setup of critical trading infrastructure including limit order functionality. This thorough approach ensures that users will have access to the full suite of Uniswap V3’s advanced trading capabilities from launch.
The ecosystem’s growth momentum extends beyond Uniswap V3, with major protocols already committed to deployment. Velodrome, a leading DEX on Optimism, is scheduled to deploy their MetaDEX this month, while Ionic Money Protocol has confirmed their launch immediately following DEX deployment. These rapid developments showcase the strong momentum and growing ecosystem interest in Metal L2 as a bridge between institutional finance and DeFi.
PLEASE REFER TO THE FORUM POST FOR THE FULL PROPOSAL
