VSP#7: Deployment of VirtuSwap on Arbitrum
Summary:
Currently, VirtuSwap is deployed on Polygon PoS – one of the leading layer-2 blockchains. Polygon boasts DeFi TVL of roughly $900M as of January 16, 2024. VirtuSwap is currently a DEX with the 15th highest TVL on Polygon.
While the overall TVL on Polygon is impressive, it has been declining for 2.5 years, from the high of $8B in June, 2021. Thus, VirtuSwap’s growth potential on Polyson, while significant, may be capped.
This proposal aims to deploy VirtuSwap DEX on additional chains – starting from Arbitrum. Arbitrum’s current DeFi TVL is at $2.6B and, unlike Polygon, it is at all-time-high. Deploying on Arbitrum will significantly expand VirtuSwap’s growth opportunities.
Motivation:
Deploying on Arbitrum will allow VirtuSwap to unleash its true potential by increasing its TVL and trading volume substantially as well as expand our community and ecosystem by facilitating integrations with leading DEX aggregators.
Specifications:
If the proposal is approved, the deployment to Arbitrum should be completed within several weeks of proposal approval.
Following deployment on Arbitrum, VirtuSwap token will be bridged to Arbitrum. Part of rewards to liquidity provision will be given on Arbitrum, whereas part will remain on Polygon, in accordance with the Minerva recommendation engine. The total algorithmic weekly rewards will remain unaffected.
Staking rewards on the two chains will be computed separately. (I.e. staking VRSW on Arbitrum (Polygon) will only impact LP rewards on Arbitrum (Polygon) in the same way it currently does).
Voting on DAO proposals will initially continue via veVRSW on Polygon only. We expect to move to voting via a combination of veVRSW on Polygon and Arbitrum in the future.