Proposal: Create LXDAO OP treasury

Governance
1

Due to the Gas Fee and Safe Wallet issue, I propose to create an OP treasury for the LXDAO funds operation for example: monthly income distribution.

I have created an OP Safe treasury with the same multisigs and settings as our mainnet treasury:

We might bridge tokens from mainnet to OP if we need to distribute the tokens to buidlers. For safety, the mainnet treasury is still our main treasury for saving tokens.

2

Had a try for bridging:

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Bridging between Safe wallets poses two primary challenges:

  1. Fee Management: This pertains to the various costs associated with transactions.
  2. Operational Timeliness: Transactions are constrained by an expiration time. Typically, multisigs must be rapidly signed to ensure the transaction does not lapse.

Given these challenges, I propose a simplified bridging method through a Centralized Exchange (CEX). The process would involve calculating the requisite amount and subsequently transferring it to a reputable multi-sig’s CEX account. From there, it can be relayed to the Original Poster (OP).

Advantages:

  • Economical: Only the gas fee for transfers is incurred, which is relatively low.
  • User-friendly: The entire process is straightforward and easy to handle.
  • Enhanced Security: It circumvents potential risks associated with other bridges, such as vulnerabilities to hackers.

Limitations:

  • Partial On-chain Visibility: Since the transaction would pass through a CEX, it won’t be entirely traceable on-chain.
  • Reliance on Multi-sig Trustworthiness: While the method requires trust in the multi-sig, we can mitigate potential risks by limiting the transfer amount.
3

Bungee Exchange can help you find a more suitable cross-chain route. In many cases, if you are depositing a significant amount into Optimistic Ethereum (OP), the official bridge provided by Optimism is the most cost-effective option, without any loss, though the gas fee is a bit higher.

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Strongly advise to conduct a test to ensure that the Optimism official bridge is functioning properly with Safe wallet :

  1. Connect to Bungee Exchange using ETH Mainnet : 0xB45e9F74D0a35fE1aa0B78feA03877EF96ae8dd2.

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  2. Set up a cross-chain transfer from the Ethereum mainnet to Optimism for 1 USDT.
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  3. Click on “View all routers.”

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    31051×679 99.2 KB

  4. Add the recipient address: 0x2C6360a6a376111fe004F50086b05D0d1596F24F.

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    41068×678 83.9 KB

1 Like
4

Title: Deploy LXDAO Treasury on Optimism
Authors: Bruce Xu
Date Created: 2023/09/03

TL;DR

The high gas fees on the mainnet have led to unnecessary costs in distributing rewards from the LXDAO Mainnet Treasury. To address this, I propose creating an LXDAO Treasury on Optimism to facilitate reward distribution.

Why Optimism?

While there are several options available, such as Arbitrum and Polygon, we have chosen Optimism for the following reasons:

  • Public Goods Support: Optimism supports public goods and has a mechanism for distributing sequencer fees to public goods through Retroactive Public Goods Funding.
  • Strategic Alignment: As a DAO dedicated to supporting public goods, aligning with Optimism will help us build stronger connections and a more robust network.

Relationship between Mainnet Treasury and Optimism Treasury?

The two treasuries will have identical settings, such as Safe Account Owners and Required Confirmations, and will be managed concurrently with the Mainnet Treasury.

While our main funds will remain in the Mainnet Treasury for safety reasons, we will bridge or transfer USDT to Optimism for distribution when needed.

We have already established an Optimism Treasury at 0x2C6360a6a376111fe004F50086b05D0d1596F24F with identical settings.

How to Bridge or Transfer USDT to Optimism?

Bridging USDT to Optimism directly from the Mainnet Treasury may pose challenges. While we will attempt to bridge tokens on-chain, if this proves difficult, we may resort to transferring them to a trusted individual’s CEX wallet and then withdrawing from there.

This approach carries some risk and potential for single-point failure but may save time and mitigate risks associated with bridge hacks or attacks, which have been prevalent recently.

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