The Layer2 space is heating up, if it isn’t hot enough already. During the periods of high Gas fees as ETH approached all time high there was a mass migration to Layer2s, such as Polygon (formerly known as Matic), by defi users to reduce their Gas costs while obtaining the highest yield on their precious crypto assets. Here at Float Protocol we aren’t adverse to Layer2s.
We are here to build the decentralised monetary of the future and for that to occur $FLOAT needs to be an asset which is used in as many different places as possible for it to be viewed as true crypto money. We note the word decentralised however; by moving to Layer2s such as Polygon there is a slight pragmatic tradeoff of decentralisation for the sake of excellent usability.
To use $FLOAT on L2s comes with a number of questions such as:
- Do we just transfer $FLOAT and $BANK tokens over via existing bridges e.g. Polygon’s PoS bridge?
- What if we built a decentralised bridge Float Protocol controlled bridge? This would allow us the ability to have “canoncial” FLOAT on a different Layer 2.
- Do we want a copy of the full Protocol on L2 (incl. Basket and Auctions)?
- What will be in the Basket initially, MATIC or WETH, potentially both?
- If we start with a bridge then bring the Protocol, how do we deal with duplicate tokens as the FLOAT and BANK will then be mintable on L2?
- What sort of integrations would we like to see on L2?
These are all questions to be discussed plus many more not listed here. It will be interesting to hear the community’s thoughts, suggestions and contributions to this discussion.