Overview
This proposal aims to deploy a Synapse Bridge onto Arbitrum Nova, a new Arbitrum-powered blockchain designed to support high transaction volumes, enabling users to seamlessly move assets between Nova and the wide variety of Synapse’s interconnected chains. Synapse can enable this connection by launching a new liquidity pool on Arbitrum Nova comprised of nUSD and the canonical USDC deployed on Arbitrum Nova.
Along with a bridge deployment on Arbitrum Nova, this proposal requests the Synapse DAO to commit 10k USDC to contribute towards the general prize pool at Arbitrum’s hackathon in Bogota during Devcon. Developers that build on Synapse will be eligible to win prizes at the hackathon.
Motivation
Arbitrum Nova is the Arbitrum team’s solution for onboarding dapps that require high throughput and low transaction costs. While the chain is still in its infancy, it has already garnered support from Reddit, one of the world’s largest social media platforms in the world. Reddit has deployed its community-based rewards system onto Arbitrum Nova, bringing with it 275,000 unique users that are now active on the chain. This number is expected to reach well into the millions as Reddit continues to scale out their crypto vision. The two primary tokens within Reddit’s ecosystem are $BRICKS and $MOONS which already trade on Sushiswap’s Nova instance.
All bridging into Nova today happens through the official Arbitrum bridge. By deploying the Synapse Bridge onto Arbitrum Nova, Synapse can become the go-to bridge for all users that want to bridge in and out of Nova. Establishing a first mover advantage is imperative for growing Synapse’s market share, and given the execution ability that the Arbitrum team has showed, Arbitrum Nova is an ecosystem the Synapse DAO should take a bet on. The Reddit deployment alone is a strong justification for a Nova deployment as Synapse would be introduced to potentially millions of new web3 users.
Implementation
To connect Arbitrum Nova with all of the other blockchains Synapse supports, this proposal calls for deploying a new liquidity pool on Arbitrum Nova comprised of nUSD and USDC. This new pool would act as a fast bridge from any blockchain directly into Nova. Similarly, this will give users another option for moving stablecoins from Nova to any one of Synapse’s supported chains.
The target TVL for the new pool will be beteween $250k - $500k. In order to achieve this, the proposal requests the Synapse DAO incentivize this new pool with 500 SYN per week. The incentives for the liquidity pool will run for 3 months, after which the community will evaluate the success of the integration.
The fee structure of the new pool will be 4bps for the bridge transaction and 1bps for the stablecoin swap transactions.
About Arbitrum Nova
Arbitrum Nova is the first blockchain built on Arbitrum’s AnyTrust, new technology optimized for ultra low-cost transactions with strong security guarantees. Within Arbitrum’s suite of blockchain solutions, Nova will be the solution of choice for gaming and social applications, whereas Arbitrum One, Arbitrum’s flagship rollup, will continue to be the choice for DeFi and NFT projects.
Arbitrum Nova is primarily different in that it makes use of a data availability committee rather than putting all transaction data on Ethereum. In doing so, Nova achieves significant cost savings by first sending the data to the committee and only falls back on putting data on-chain if the committee fails to do its job.
Nova is specifically geared for applications with cost-sensitive, high transaction volume like games that frequently mint new items or currency or social projects with many different types of on-chain interactions. Over time, Nova will become the home for all Arbitrum ecosystem projects that require high throughput and low transaction costs.
One of the most exciting aspects about Arbitrum Nova is that Reddit has chosen the blockchain to scale its crypto-based community rewards program. The Nova ecosystem is rapidly growing and Synapse would make an excellent addition to it.
