Objective:

Improve mobility of FRM, reduce slippage, and price impact for traders

Description and Details:

Proposed Action(s):

Enable bridge for FRM across: ETH <> ARB <> BSC Consolidate Liquidity on one chain until mainnet and integration with interchain liquidity consolidation protocols when launched.

Benefits:

FRM price arbitrage will enable price balancing across chains, ETH (CEX), BSC (CEX), ARB (DEX) Instead of bad slippage on three chains with low liquidity, we will have good slippage and low price impact with greater liquidity consolidated liquidity on one chain (~3x greater than current segregated liquidity per chain). Mobility of FRM across deployed chains will become easier.

Potential Risks or Downsides:

The work will require engagement of Ferrum Labs devs, who are currently focused on integration assistance with MultiSwap contributors to integrate MultiSwap with the devnet (updated to Kusama Parachain today). The work is targetted to be completed by second week of October, if we pull the devs off that work, it could risk a few days delay in MultiSwap utilizing Ferrum Infra and getting quite a few updates including Stargate Integration, Price discovery improvements and much more that the MultiSwap contributors have worked on as it relies on the integration with the Ferrum devnet infra. If we move liquidity to Arbitrum, we make it easier for user's to access FRM and cFRM on one chain while mainnet rollout continues, but Arbitrum is not as popular as other chains. However, Arbitrum still remains higher than base and in the top 10 chains per 24 hour volume stats based on DefiLlama (https://defillama.com/chains)

The initial goal was to enable bridging through MultiSwap's new interface for a smooth experience, however, that timeline is atleast 2 months out, with increased interest in the desire to bridge, FRM bridging can be enabled on the existing bridge, however, this will add technical debt and maintainance overhead to support issues that may come up on a product that isn't a core focus for futre roadmap items. Supply issue, the token on BSC and ETH is not mintable, so there could be supply management issues that risk full mobility. This problem is solved when mainnet is launched and the upgraded token standard is integrated to manage multichain supply natively, but until then we may face a problem of not being able to bridge the entire supply across all chains.

Resources Required:

Dev - for bridge integration Work: 2 days Testing: 1 day

Admin and Finance for LP Work: 4-6 hours to balance, access secure multisigs, initiate secure movement, rebalancing and provisioning

Timeline:

We either agree to do this as soon as proposal passes, or right after MultiSwap integration with mainnet devnet infra is complete (projected to be mid October)

Voting Options:

I am suggesting the following options for vote Option 1: Enable Bridge, don't change anything with liquidity Option 2: Enable Bridge and consolidate Liquidity on Arbitrum (Uniswap) Option 3: Enable Bridge and consolidate Liquidity on BSC Option 4: Enable Bridge and consolidate Liquidity on ETH Option 5: Only consolidate Liquidity don't enable Bridge Option 6: Do nothing, keep things the same Option 7: Enable Bridge. Remove liquidity on BSC and consolidate liquidity to Arb AND Eth pools on Uniswap.

Impact Analysis:

Current segregated Liquidity: ETH: ~$127K (Uniswap) BSC: ~$149K (Pancake Swap) Arb: ~$90K (Sushiswap)

TL;DR The liquidity for Ferrum (FRM) token is currently segregated across multiple chains:

Ethereum: ~$127K (Uniswap pool FRM/ETH) BSC: ~$149K (PancakeSwap pool FRM/BNB) Arbitrum: ~$90K (SushiSwap pool FRM/ETH)

This fragmented liquidity leads to higher slippage and a suboptimal trading experience for users.

Consolidating this liquidity into a single chain, with total liquidity of $366K, improves slippage by over 3x, providing a more efficient and cost-effective trading environment.

Alignment with Ferrum Network's Mission and Values:

Ferrum DAO is designed to get FRM holders voice heard, I'm creating this proposal as this request has been brought up by holders and community members. This aligns with the Ferrum Values by making FRM more accessible to potential new community members and providing mobility of asset to existing holders.

Execution Plan:

Integrate required bridges if proposal is approved Make liquidity updates if proposal demands it