Summary:
This Temperature Check is seeking our community’s opinion for the opportunity to deploy dForce protocols on Scroll, a EVM-compatible zk-Rollup on Ethereum.
Background:
Scroll is an EVM equivalent zk-Rollup, a native zkEVM scaling solution for Ethereum built in collaboration with the Ethereum Foundation.
Layer 2s are likely to form the bulk of Ethereum scaling solutions, at least in the short and medium term. As compared to optimistic rollups, which currently constitute the most widely used Layer 2, the team behind Scroll believe that zk-Rollups are the superior Ethereum scaling technology, which can help Ethereum become more scalable without sacrificing security.
Scroll works by processing transactions off-chain and then porting them back to Ethereum, thus increasing transaction speed and reducing costs. Scroll launched its zero-knowledge Ethereum virtual machine (zkEVM) on the Goerli testnet, marking a move out of the pre-alpha testing phase. According to co-founder Sandy Peng in an interview, traction on the pre-alpha testnet was strong, with one million unique addresses and 16 million transactions. The mainnet launch is estimated to be in August 2023.
Motivation:
There are many benefits for dForce’s deployment on Scroll:
- Developer friendly environment
Scroll is EVM compatible, reusing Geth to enable seamless migration of infrastructure. dForce protocols can be migrated to Scroll without code changes and additional audits. In addition, Scroll will support all existing development tools, including debuggers. Developers can work with a familiar development environment. No bytecode re-audits will be required minimizing the risk surface tremendously.
- Consolidate dForce’s position as an early mover and capture a rapidly growing market
Scroll is aiming to launch in August 2023. Based on the excitement around Scroll and zkRollups broadly, many protocols (yield optimizer, AMM, etc) have committed to deploy on Scroll. It is a good opportunity for dForce to become a strong consideration for projects who want to integrate with a lending protocol. As an early mover, we expect dForce will further improve brand recognition, increase consumer loyalty, and capture a large market share through all sorts of collaborations and integrations.
- Greater flexibility and efficiency
With a multi-chain strategy, it allows users to access dForce and transfer assets across different blockchain networks seamlessly. dForce can leverage the unique features and capabilities of different blockchain networks to enable a wider range of functionalities and benefits for users.
- Cross promotion to build a stronger community and improved brand recognition.
dForce can partner with Scroll and other eco-partners to expand our reach through different marketing campaigns. A number of leading Web3 community-building platforms, inclulding Galxe and QuestN have already announced their support to Scroll.
Specification
This temperature check presents an opportunity to deploy a complete set of dForce protocols on Scroll, with USX and Lending as a start:
- USX will be enabled on LSR (for minting & redeeming), lending, and trading.
- dForce Lending will start with a limited deployment of initial assets: USX, USDC, ETH, etc, subject to governance voting result.
- dForce Trade will include aggregator and AMM.
- dForce Bridge will support the bridging of USX and DF across all supported L1/L2s, powered by Celer’s IM framework.