Additional Information:
You can discuss here: https://discord.gg/vECzp2kc
After speaking with our senior blockchain engineer I have determined that the best course of action for the AquaFi protocol in regards to layer 2 support is as follows.
In order to support sidechains/L2, we need a L1-L2 token bridge. Due to the nature of the Aqua token (has mining ability), the token bridge must be able to mint and burn tokens at will.
For example, if you transfer 1000 Aqua to the L1 side of the bridge from L2, 1000 Aqua must be minted on L1/mainnet. This means tokens can be exchanged 1:1 between the Ethereum mainnet and the sidechain/L2 thus keeping the price of the Aqua token consistent over all chains where AquaFi is deployed. Unfortunately due to the permissionless nature of AquaFi (as it currently stands) it would be impossible to update the minters for the Aqua token.
I propose:
If we decide not to add this functionality, there is a very high chance that we will require a token migration each time we want to add or remove a new sidechain/L2 network. The alternatives are: