SLURP-16 | Deploy stake.link to Arbitrum

Abstract

It is proposed that stake.link is deployed to Arbitrum as the first non-Ethereum Mainnet network, in lieu of Optimism. This would include: SDL, reSDL, wstLINK, and the ability to claim accrued stLINK rewards from reSDL held on Arbitrum. Not in scope for this initial deployment: Depositing LINK to the Priority Pool and claiming wstLINK on Arbitrum.

This SLURP would supercede SLURP-9, but not preclude the deployment of stake.link to Optimism (or other networks) in the future.

Rationale

Arbitrum has been, and remains a high activity network. They are #4 in TVL according to DeFiLlama, their Uniswap deployment recently had a >$1b trading volume day (the first ever for any L2), and they are supporting protocols deploying to Arbitrum with a robust grant program.

Why Contradict SLURP-9?

One of the major motivations for the deployment of stake.link to Optimism was the timing and opportunity. Had we been able to deploy the Priority Pool, etc. to Optimism in advance of the launch of staking (which at the time was believed to be a possibility) it may well have marked a "scoreboard" moment for stake.link as a protocol. In particular, the low LINK liquidity on Optimism relative to Arbitrum presented an opportunity to massively ramp up the LINK on Optimism.

Now, with the major fireworks of Staking General Access out of the way and given the relatively stable and more matured status of stake.link, especially with respect to the Priority Pool and its regular LINK stakes, going to where the volume and liquidity already are seems most reasonable. To this end, given Arbitrum's leading position - and continued acceleration away from the rest of the pack - Arbitrum as the first non-Ethereum Mainnet home for stake.link seems a reasonable choice.

Specification

The deployment of stake.link to Arbitrum will leverage CCIP's arbitrary messaging and lock and mint token bridging functionality to initially enable:

1. Bridging stLINK (converted to wstLINK), SDL, and reSDL NFTs back and forth from Ethereum Mainnet to Arbitrum
2. Purchasing wstLINK, SDL, and reSDL on Arbitrum
3. Staking SDL, generating reSDL NFTs, and claiming accrued wstLINK rewards on Arbitrum

Audits for this functionality have been completed by Cyfrin and CodeHawks, and results and reports will be made publicly available in the stake.link audits repo on GitHub upon completion and resolution of any possible issues discovered in the course of the CodeHawks audit.

To be explored and developed:

1. Depositing LINK to the Priority Pool and claiming wstLINK on Arbitrum

Liquidity Mining & DEX Listings

It is intended that the asset pairs (excepting ETH/LINK given Arbitrum's comparatively robust LINK liquidity compared to Optimism, ETH/LINK will not be incentivized by stake.link), target liquidity , and target SDL APRs described by SLURP-10b be preserved, which means different absolute amounts of SDL will be directed to these pools than was described and ratified by SLURP-10b.

Internal research and discussions are ongoing regarding the DEX of choice for the initial liquidity pools on Arbitrum, with Uniswap (v2) and Camelot representing the leading initial candidates. Your feedback is desired in the replies below!

Copyright

Copyright and related rights waived via CC0.