DXdao and Swapr deploy to Arbitrum one
DXdao, with its new governance product DXvote and AMM Swapr, expand to Arbitrum
DXdao endorsed plans to launch a new base on Arbitrum One, a Layer 2 scaling solution, as well as deploy and launch Swapr, a governance-enabled AMM with a DIY farming platform that is already live on mainnet and xDai. The signal proposal also approved a $2.25m commitment of DXdao funds to be used to seed liquidity in Swapr pools and serve as working capital for the DXdao base on Arbitrum One.
The proposal authorizes deployments for Swapr and a new base on Arbitrum One. Several community members have done just this, enabling the community to begin work on what will become the third official DXdao base and the Arbitrum One deployment of Swapr.
Building on a history of on-chain governance
DXdao recently passed its two-year anniversary since its deployment in May 2019, which was followed by the Reputation (REP) distribution period where REP — voting power in DXdao — was issued to 399 addresses. Since then, DXdao has launched a bonding curve fundraiser, paid dozens of contributors, and managed three products — Omen, Swapr, and Mesa — all through on-chain governance.
As gas prices on Ethereum mainnet rose, DXdao expanded to xDai and authorized its first base off of Ethereum in February 2021. This base has been processing contributor payouts, facilitating Swapr liquidity deposits on xDai, and managing the accepted collateral list for Omen.
DXdao’s expansion to Arbitrum One continues this legacy of on-chain governance. While DAOs have been part of the ecosystem from the beginning, the scaling limitations of Ethereum make on-chain governance expensive and ultimately unworkable, and unlike some consumer-facing dApps, governance requires the highest level of security.
Luckily, Arbitrum is a solution that solves both of these problems. It is a Layer 2 scaling solution built by the team at Offchain Labs. It uses an optimistic rollup to batch transactions off-chain and then publishes a condensed version on-chain. Processing transactions off-chain lowers gas costs, but the cryptoeconomic design ensures that all transactions on Arbitrum One have the underlying security properties of Ethereum.
The new DXdao base on Arbitrum will also be the first to use DXdao’s new decentralized governance product, DXvote. DXvote features a whole new set of underlying smart contracts based on the Arc contracts from DAOstack with slight modifications, such as the introduction of DXD staking in holographic consensus.
DXvote also has the most decentralized governance interface ever. The dApp does not rely on any subgraphs, pulling information directly from the blockchain or displaying proposal content from IPFS. DXdao strives to build governance tools and processes that are just as resilient as Ethereum.
DXvote is still in alpha phase and is just the start in DXdao’s journey to decentralize its governance infrastructure and customize the product for DXdao’s governance needs, ultimately building towards the approved Governance 2.0 system.
Swapr on Arbitrum
While governance is the first thing DXdao will do on Arbitrum, the community is also excited about the deployment of Swapr on Arbitrum and the promise of lower transaction costs. The Swapr squad has been working closely with the Offchain Labs for months to ensure a smooth launch.
Arbitrum One is aiming to launch with an ecosystem of dApps and protocols, creating a prime opportunity for Swapr to attract liquidity in the initial launch period. The community is also excited about the opportunity to use governance to raise or lower fees on Swapr, which could be used to attract specific assets. Swapr’s do-it-yourself farming platform should also be appealing to projects looking to bring liquidity onto Arbitrum.
And while there is nothing official yet, the community is feverishly discussing the launch of a SWPR governance token, in particular because many see it as a way to attract liquidity in conjunction with the launch of Arbitrum One. Discussions are still ongoing — hop in the forum or the Discord and make your voice be heard!
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.