Simple Summary
The proposal entails discontinuing the BTC vault on Arbitrum, redirecting liquidity and volume towards Optimistic Ethereum (OP), given the higher fees on GMX and fragmented liquidity between OP and Arbitrum, detrimental to LPs.
Abstract
This LEAP aims to discontinue the BTC vault operating on the Arbitrum layer. Given the higher costs associated with GMX fees and the fragmented liquidity due to split volume between OP and Arbitrum, it is proposed to focus our resources and liquidity on the Optimistic Ethereum deployment.
Motivation
Currently, the BTC vault is operating on both OP and Arbitrum. However, this fragmented liquidity leads to less efficient markets and potentially higher slippage for traders. Moreover, GMX fees are relatively high, and by focusing liquidity on OP, we can leverage the cheaper costs associated with Synthetix Perps, making it more profitable for LPs. The feedback from traders regarding their preferred chain is highly encouraged and appreciated.
Specification
Overview
The process of discontinuing the BTC vault on Arbitrum will entail directing future liquidity and trading activity to the existing BTC vault on Optimistic Ethereum.
Rationale
This LEAP proposes discontinuing the BTC vault on Arbitrum due to the higher costs and inefficiencies it creates. Given the better cost structure and liquidity concentration benefits associated with the Optimistic Ethereum deployment, this proposal aims to benefit both traders and LPs.
Technical Specification
This transition does not involve launching a new vault; instead, it refers to halting the operations of the existing BTC vault on Arbitrum. The focus will be redirected to the Optimistic Ethereum deployment. However, more trader feedback is needed to ensure this move aligns with the community’s needs and preferences.
Configurable Values
Given that this is a discontinuation of the BTC vault on Arbitrum, there will be no initialization of new configurable values. Existing settings and values for the BTC vault on Optimistic Ethereum will remain.
Impact and Risks
Discontinuing the BTC vault on Arbitrum could potentially impact those traders who prefer this chain. However, this proposal is directed towards streamlining operations, reducing costs, and improving the trading experience by consolidating liquidity in one place. Feedback from traders is crucial in this decision-making process.
Next Steps
Community discussion and voting on this proposal will be crucial. Following community approval, operations on the BTC vault on Arbitrum will be discontinued, and all resources will be redirected towards Optimistic Ethereum.