Saddle is Live on Arbitrum!
Coming off the announcement of the SDL governance token, we’re excited to announce Saddle is now live on L2 with Arbitrum.
The first Saddle pool on Arbitrum is a stablecoin pool composed of USDC, USDT, nUSD, and MIM.
This pool will be incentivized with 4,958,678 SDL tokens (~1.5% of total supply) over ~6 months. (Read more about pool incentives in the tokenomics article here).
Incentives distribution will start on 11/18/21 12:00AM UTC.
As the total value locked on Arbitrum continues to rise, a secure AMM to swap pegged value assets has become an important need in the emerging L2 DeFi ecosystem. Saddle will allow Arbitrum users to swap pegged-value assets with low slippage, while continuing to serve as a key building block in the broader space.
This article covers working with Saddle’s L2 stablecoin pool, and our guide on Ethereum Layer 2 solutions, rollups, and bridges.
WORKING WITH SADDLE L2 POOLS
- Head to https://saddle.exchange/#/pools.
- Change the network from Ethereum to Aribtrum, in order to LP or trade on Saddle’s L2 stablecoin pool
- After you’ve successfully switched networks, swapping and LPing are the same as on L1 (check out the deposit and withdraw guides)
INCENTIVES
Depositing assets into a pool on Saddle allows users to take part in the protocol as liquidity providers and earn reward incentives.
The Saddle stablecoin pool on Arbitrum will initially be incentivized with 4,958,678 SDL tokens over ~6 months. Additional incentives may be added alla governance / community vote.
Incentives distribution will start on 11/18/21 12:00AM UTC, in order to give users who wish to participate a fair window to move their liquidity.
Read more about pool incentives in the tokenomics article here.
A GUIDE TO ETHEREUM LAYER 2 SOLUTIONS
Ethereum mainnet is a popular destination for most decentralized apps (dApps). The popularity has led to enormous activity on Ethereum, which results in high gas fees and slow transaction speed. Layer 2 networks are a solution for Ethereum scaling challenges.
Layer 2 is a different network running atop the Ethereum Mainnet (Layer 1) and rolls up transactions and interacts with the Mainnet via a smart contract. Thus, Layer 2 solutions help scale applications by handling transactions off the Ethereum Mainnet (Layer 1) while taking advantage of the robust decentralized security model of Mainnet.
ROLLUPS
Rollups perform transaction execution outside the Ethereum Mainnet (Layer 1) and post the transaction data on Layer 1. The “rollup” is so-called because the Layer 2 solutions roll up transactions and fit them into a single block in Layer 1. As the transaction data is on Layer 1, rollups are secured by Layer 1. There are two types of rollups:
1) Optimistic rollup assumes transactions are valid by default (hence the name optimistic) and only runs computation, via a fraud proof, in the event of a challenge. Optimistic rollups are scalable because they don't do any computation by default. If someone notices a fraudulent transaction, the rollup will execute a fraud-proof and run the transaction's computation, using the available state data.
Major implementations of optimistic rollup: Optimism, Arbitrum, Boba, Fuel Network.
2) Zero-knowledge rollup runs computation off-chain and submits a validity proof to the chain. Also known as ZK rollups, these scaling solutions “roll up” many transactions off-chain and generate a cryptographic proof known as SNARK (validity proof) for the whole bundle. The validity proof is posted on Layer 1, and the proof can be quickly verified, and invalid batches are rejected straightaway.
Major implementations of ZK-rollup: Loopring, Aztek 2.0, Starkware, zkTube.
ARBITRUM & OPTIMISM
Arbitrum and Optimism are both Layer 2 solutions with a lot in common – both implement optimistic rollup and have smart contracts living in Ethereum Mainnet (Layer 1).
Note: The challenge window for fraud and dispute is one week for both Arbitrum and Optimism. Your transactions in a bundle under suspicion can be held up for one week before they’re verified, and funds are released. However, the challenge process varies across Arbitrum and Optimism.
- Arbitrum: When a challenge is submitted, Arbitrum uses an off-chain dispute resolution process to isolate a single step within a transaction. The isolated step is then sent to EVM for final verification.
- Optimism: When a challenge is submitted, the entire transaction in question is run through the Ethereum EVM.
ARBITRUM: MOVING ASSETS IN AND OUT (DEPOSIT/WITHDRAW)
You can transfer assets from Layer 1 Ethereum to Layer 2 Arbitrum through the Arbitrum Bridge. Follow this guideline to deposit and withdraw crypto assets in Arbitrum.
OPTIMISM: MOVING ASSETS IN AND OUT (DEPOSIT/WITHDRAW)
Follow these guidelines to move crypto assets in Optimism.
- Deposit Ether via The Teleporter or The Optimism Gateway. Follow this guide here.
- Deposit ERC-20 tokens via The Optimism Gateway or 3rd Party Bridges. Follow this guide here.
- Withdraw Ether via The Optimism Gateway. Follow this guide here.
- Withdraw ERC-20 tokens via The Optimism Gateway or 3rd Party Bridges. Follow this guide here.
BRIDGES
Like physical bridges which connect locations enabling movement of people and wealth, in the crypto ecosystem, a bridge is a connection between blockchain networks operating under different conditions. Bridges establish interoperability by enabling transfer of assets and information.
The communities built around individual blockchain networks need to collaborate and cooperate for the ecosystem to be truly decentralized and open. Bridges help the benefits to cross the boundaries and grow beyond the genesis ecosystem.
Therefore, bridges are not only about connecting Layer 1 Mainnet and Layer 2 solutions. For the ecosystem to mature and blossom, we require bridges across Layer 2 as well. Besides the bridges mentioned above, there are other bridges available to transfer assets across Layer 1/Layer 2. Let’s explore a few bridges now.
HOP PROTOCOL
Hop is a scalable rollup-to-rollup general token bridge. Hop allows users to transfer tokens directly and easily between Layer 2s, sidechains, and Layer 1 Ethereum. With Hop, users can send tokens from one rollup to another almost immediately without having to wait for the rollup’s challenge period. Built with Saddle, Hop is a protocol built for quick, low cost, and trustless transfer of assets.
Check out the guide here to get started.
SYNAPSE PROTOCOL
Synapse is another bridge that provides users the option for cost-efficient, user friendly, and low-slippage stablecoin trade. Synapse unifies the thriving L1/L2 ecosystem, allowing users to seamlessly bridge assets across the most popular chains. Synapse allows users to frictionlessly transfer stablecoins to/from Arbitrum, Avalanche, BSC, Ethereum, Fantom, Polygon (as well as ETH to/from Arbitrum) - with more chains and assets in the works.
Check out the guide here to get started.
CELER BRIDGE
Celer network is a layer-2 scaling platform that brings fast, secure, and low-cost blockchain applications on Ethereum, Polkadot and other blockchains to mass adoption. Celer bridge (cBridge) can be used to instantly transfer token cross-chain and cross-layer between any two of these networks: Ethereum, Arbitrum, Polygon, and Binance Smart Chain. cBridge keeps the liquidity flow between these loosely coupled networks without long delays or a trust-based custodian.
Check out the guide here to get started.
CONNEXT NETWORK
Connext is a protocol for fast, fully noncustodial transfers and contract calls between EVM-compatible systems. As a cross-chain routing network, Connext enables seamless communication between the Ethereum mainnet, L2 systems, and shards. Connext routers act as the backbone of the network, providing liquidity for user swaps and earning fees in return.
Check out the guide here to get started.
ABOUT SADDLE
Saddle is a decentralized automated market maker (AMM) on the Ethereum blockchain, optimized for trading pegged value crypto assets with minimal slippage. Saddle enables fast, low-cost, and low-slippage swaps for traders and high-yield pools for LPs.
Our values are rooted in collaboration, in building Saddle as a DeFi lego block, in helping DeFi teams bring AMMs to any blockchain.
For information about SDL, Saddle’s LP reward and governance token, check out our SDL tokenomics article.
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