Blockzero Labs

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You can discuss here: https://discord.gg/vECzp2kc

After speaking with our senior blockchain engineer I have determined that the best course of action for the AquaFi protocol in regards to layer 2 support is as follows.

In order to support sidechains/L2, we need a L1-L2 token bridge. Due to the nature of the Aqua token (has mining ability), the token bridge must be able to mint and burn tokens at will.

For example, if you transfer 1000 Aqua to the L1 side of the bridge from L2, 1000 Aqua must be minted on L1/mainnet. This means tokens can be exchanged 1:1 between the Ethereum mainnet and the sidechain/L2 thus keeping the price of the Aqua token consistent over all chains where AquaFi is deployed. Unfortunately due to the permissionless nature of AquaFi (as it currently stands) it would be impossible to update the minters for the Aqua token.

I propose:

1. we allow the Blockzero council to update (add or remove) the minters for the Aqua token via the council controlled multi-sig wallet.
2. we implement a time-lock (duration to be determined) which means anytime the council wants to update the minter addresses, the council will need to submit a transaction to the ethereum network which will be publicly viewable. The council must then wait a period of time (duration to be determined) before the change is live and the minter addresses are then updated.
3. we implement functionality that allows the council to permanently revoke this permission when executed

If we decide not to add this functionality, there is a very high chance that we will require a token migration each time we want to add or remove a new sidechain/L2 network. The alternatives are:

1. Do not launch with sidechain/L2 support and require a rather large migration down the line if we want to support in the future
2. Launch with support for predetermined sidechains/L2 networks - eg Arbitrum - this can never be updated (permissionless)
3. Launch AquaFi independently onto sidechains/L2 - this effectively means Aqua on the other networks are completely independent from Aqua on the ethereum mainnet - so different prices, different tokens