Decentral Games

Background

Decentral Games currently holds $1.1m Ethereum mainchain DG/ETH liquidity and $670k Polygon DG/Matic liquidity. The team’s roadmap involves plans to expand their offering via deposits and withdrawals on multiple EVM compatible chains in the near future including but not limited to Arbitrum and Optimism.

Proposal

Bridge DG and xDG ERC20 tokens to Arbitrum and Optimism. Convert existing $335k worth of MATIC currently paired with DG on Polygon to ETH. Create three v3 liquidity pools on Uniswap. The currently allocated liquidity will be distributed as follows:

• ⅓ will be used for DG/ETH liquidity on Arbitrum
• ⅓ will be used for DG/ETH liquidity on Optimism
• ⅓ will remain on Polygon as DG/ETH liquidity rather than DG/Matic liquidity

Additionally, add DG-xDG pools on OP and ARB to allow cross chain governance participation. The team has plenty of DG in the Treasury to seed this.

Rationale

• As DG moves to add support for more chains it’s important to establish DG liquidity across these chains. This step creates a smoother process for purchasing, staking, and participating in governance across multiple chains.

• Pairing exclusively with ETH across chains contributes to a broader narrative shift. By not being tied to Polygon as a “Polygon Project,” DG positions itself as an “Omnichain Project” more completely. This choice enhances the project’s long-term narrative. Embracing a chain-agnostic approach and leaning into an omnichain narrative holds significant value for both marketing and partnership opportunities. By demonstrating a commitment to chain agnosticism, DG positions itself as inclusive to users regardless of their chain preference which will bolster the user base and increase volume.

• Opting for exclusive DG liquidity pairing with ETH mitigates price volatility. DG price currently moves with both ETH and Matic fluctuations and although the two are fairly correlated, this is not known to be true in the future. Pairing DG exclusively with ETH safeguards against price oscillations and lowers the teams risk with regard to choosing Polygon as the winning L2.

• It’s unknown which L2s will be winners and losers in the coming bull market. Rather than navigating the unpredictable landscape of Layer 2 solutions, reducing Matic exposure and moving liquidity to multiple chains (all paired in ETH) ensures DG hedges against potential winners and losers among L2 networks. By minimizing this exposure, DG gains a competitive advantage, irrespective of which L2 solution rises to prominence.