Let’s deploy Sushiswap on an Arbitrum Rollup.
First of all, what is an Arbitrum Rollup?
Arbitrum Rollup can scale any Ethereum contract. It’s the ideal scaling solution for many DeFi apps and any application which is open to public participation. Arbitrum Rollup contracts enjoy the fully trustless security of the underlying blockchain, all while simultaneously increasing the dapp’s capacity and greatly reducing costs.
By simply taking the Uniswap contracts and frontend, the Arbitrum team has already deployed a version of Uniswap (called Arbiswap) on their testnet which has proven a 55x reduction in gas usage with opportunity to reduce it even further.
The testnet is live, with another on the way, however, in terms of mainnet deployment, on Feb 3 2021 their CTO wrote:
We don’t want to confirm a target until we’re confident, but we’re currently working on heavily security auditing the project, and once we get a clean bill of health there, we’ll be ready to go. That said, there’s a lot of complexity so it’s a bit hard to know when that will happen
Despite the uncertainty around the mainnet release date, I would like to see the Sushiswap team experiment with the Arbitrum testnet now so that it could be deployed live when the Arbitrum mainnet launches.
I expect votes or arguments against this proposal will likely focus on why other L2 solutions for Sushiswap may be superior to an Arbitrum Rollup. To address that briefly, when compared to Optimism, another popular L2 solution, Arbitrum Rollup evidently reduces gas usage on equivalent swap transactions by an additional ~92%.
It is clear that L2 solutions are a necessary upgrade, and as this should not require much effort from our dev team, I believe the benefits far outweigh any effort spent bringing this to life, even if only on the testnet for now.
As gas fees continue to grow and discourage swaps from large and small participants alike, deploying Sushiswap on an Arbitrum rollup would encourage more swaps from all market participants which benefits everyone in the Sushi ecosystem.
Additionally, Arbitrum is powered by Chainlink nodes, therefore I expect we would see a wave of additional support and lasting loyalty for Sushiswap from the LINK marines if this proposal moves forward.
More detailed specs about the development process of porting to the Arbitrum Rollup testnet are available here, however, the porting process is described to be extremely simple:
It’s not complicated at all! It’s as easy as changing your RPC endpoint to https://kovan2.arbitrum.io/rpc .
Our devs should deploy the Sushiswap contracts and frontend on an Arbitrum Rollup as a potential L2 solution.
Our devs should not spend time testing Sushiswap on an Arbitrum Rollup.