Summary 📑

Deploy an MVP version of Spool v1 to Arbitrum Network: deploy 5 basic strategies for USDC, USDT and DAI on Arbitrum; and deploy Create-A-Spool.

Proposal 📫

Spool is currently available only on Ethereum Mainnet, with a wide and growing range of strategies only available on Ethereum. To cater to a wider user base, including those seeking a low-cost alternative to Mainnet, we propose to deploy a basic version of the current Spool v1 protocol to Arbitrum. Arbitrum is designed to provide improvements of speed and costs (scalability) to Ethereum Mainnet, without eschewing security. Arbitrum’s flagship product, Arbitrum Nitro, is an Optimistic rollup protocol that inherits Ethereum-level security.

Motivation 🔥

Spool’s mission to be “Fuel for DeFi” is best achieved with multichain omnipresence; with every additional chain, the Spool toolbox gets larger, with more strategies and more diverse users. The increased adoption of Spool on multiple chains will bring about more TVR, more Creator Spools and more DAO revenue. During this market period, Ethereum transaction fees have been relatively low and the need for a cheaper option has been reduced. However, whilst everyone is enjoying a low GWEI autumn, any resurgence of crypto markets is likely to bring increased onchain usage and thus higher gas prices. To cater to those that seek cheaper transaction fees, both current users and any future user base, Spool must use a low-cost option.

This proposal is for Arbitrum because:

1. Arbitrum is currently the highest TVL, highest volume and highest unique wallet addresses for an L2
2. Arbitrum is yet to release their token and grant incentive programmes. This means they still have a large catalyst incoming to their ecosystem, boosting adoption.
3. Spool’s activity on Arbitrium may potentially qualify for retroactive $ARBI rewards, which can be returned to users.
4. Spool’s presence on Arbitrum, if proven valuable to the ecosystem, would justify an ongoing grant or incentive programme.

Some statistics:

www.l2beat.com - Comparison site for L2 solutions

https://defillama.com/chains - Comparative data

https://arbiscan.io/charts - Arbitrum specific data

Launch Strategies 🚀

The following strategies have been reviewed by Spool’s risk department and confirmed as viable strategies to integrate in the initial launch phase.

Curve 2Pool: https://arbitrum.curve.fi/2pool

AAVE: https://app.aave.com/?marketName=proto_arbitrum_v3

Curve MIM: https://arbitrum.curve.fi/factory/0

Yearn Curve MIM: https://yearn.finance/#/vault/0x1dBa7641dc69188D6086a73B972aC4bda29Ec35d

TimelessFi: https://timelessfi.com/boost

Balancer Stablecoin Pool: https://arbitrum.balancer.fi/#/pool/0x1533a3278f3f9141d5f820a184ea4b017fce2382000000000000000000000016

Bridge Infrastructure 🌉

Bridges are an essential piece of the multichain puzzle. With many options available to us, it is proposed to choose Arbitrum Official bridge (https://bridge.arbitrum.io/). We have weighed up options such as Hop, Stargate, and even more bespoke models such as Across Protocol. However, we have chosen the official Abritrum bridge as it receives lots of use, has many audits and eyes watching it, and has the full Arbitrum development team behind it.

This will be the first place we point users to in our UX for bridging needs.

Treasury and Governance Infrastructure 🪙

We will use the (Gnosis) Safe as we do on Ethereum, except with a separate treasury on Abritrum. This Safe multi-signature wallet will be held by six individual owners out of which four have to confirm for all transactions made. The funds for this will come from Ethereum and be bridged across.

There is currently no planned voSPOOL governance on Arbitrum at this stage.

Funds 💵

It is proposed to release 10k worth of DAI for initial technical setup and first transaction costs to bring Spool to Arbitrum.

Vote 🗳

With “Yes” you vote to deploy the first features of Spool v1 on Arbitrum, with “No” you vote against this deployment on the first layer-two chain for Spool.