Lower TheAptosBridge Block Confirmations and Add Fees

Background

Per a community vote (https://snapshot.org/#/stgdao.eth/proposal/0x73917ac1c09063a4776aea60176817f3aa3ee96b3a54f93ba9e9dddfc1add2ee) Stargate has taken ownership of TheAptosBridge. Stargate now runs the largest bridge to and from Aptos, allowing users to safely and securely bridge assets. Currently TheAptos bridge relies on LayerZero default finality to the chain as defined by LayerZero documentation (https://layerzero.gitbook.io/docs/technical-reference/mainnet/default-config) and a waiting period of approximately three days when bridging from Aptos back to another chain. TheAptosBridge is currently free to use in all directions for users and applications.

Proposal

Stargate should lower the block confirmations required to bridge from Aptos to 260 blocks (roughly 1 minute) and add a small fee of 7 basis points when returning from Aptos to other chains.

Other bridges that service Aptos have significantly faster transfer times from Aptos than Stargate. This reduces TheAptosBridge’s competitiveness in market and could lead to lower overall use. Reducing the block confirmations would allow Stargate to better align TheAptosBridge with the market. Protected by PreCrime (https://medium.com/layerzero-official/introducing-pre-crime-49bef4a581d5) this will have no security implications but create a better user experience for end users that use the bridge and applications that build on top of it.

Stargate should add a 7 basis point fee (0.07%) to TheAptosBridge only when transferring from Aptos. Transfers to Aptos should remain free. This will discourage users from abusing the bridge as a free transfer mechanism to hop between chains (for example transferring from Arbitrum to Aptos and then from Aptos to Optimism to not have to pay fees to move between the chains). If this is not implemented and the block confirmations are reduced, chain balances for underlying assets may heavily concentrate on a few chains, diminishing the utility of TheAptosBridge for applications and users alike. Stargate is also able to generate additional fees for the protocol by implementing this proposal building protocol owned liquidity.

Execution

If this proposal passes, Stargate should immediately reduce the block confirmations out of Aptos to 260 blocks (roughly 1 minute). Stargate should also immediately turn on a 7 basis point fee for all outbound transfers from Aptos, to be accrued into the owning addresses (Stargate’s multisigs). These assets should be converted monthly to POL on each chain (the asset that has the highest protocol owned liquidity per chain) and used within Stargate’s liquidity pools to help boost protocol owned liquidity on each chain.

Summary

By owning TheAptosBridge Stargate has the chance to make the bridge a better user experience and general additional fees. Stargate should reduce block confirmations from Aptos to 260 blocks (roughly 1 minute) and add a 7 basis point (0.07%) fee for these transfers. This will make TheAptosBridge more usable for applications and users while generating additional value for Stargate.