Author: Brennan Mulligan (RareDAO Foundation)
Status: Approved
Type: Protocol Development
Implementer: RareDAO Foundation
Sponsor(s): @SuperRareJohn
Created Date: June 25, 2024
Summary
This proposal aims to enhance the utility and accessibility of the $RARE token and Rare Protocol by deploying core components to the Base layer 2 blockchain. Key elements include:
- Deploying the $RARE token to Base, along with a new Rare Bridge using Chainlink’s CCIP for secure cross-chain transfers.
- Deploying the marketplace contracts to Base to enable experimentation and align with the grants program.
- Duplicating the council multisig on Base to maintain DAO governance over contract upgrades and fee accumulation.
Specification
The proposal is divided into three main parts, each addressing a critical aspect of enhancing the functionality and governance of the Rare Protocol.
Part 1: Deployment of the $RARE Token and Rare Bridge to Base
To enhance the accessibility and scalability of the $RARE token, we propose deploying it to Base along with the Rare Bridge, a secure cross-chain bridge powered by Chainlink’s CCIP. The high gas costs on Ethereum mainnet have driven users to seek lower-fee environments, making it essential for Rare Protocol to adapt and scale. By deploying the $RARE token and Rare Bridge to Base, we aim to capitalize on the lower transaction costs and growing adoption of Layer 2 solutions.
Deployment Components:
- Ethereum (L1) Bridge: The Lock and Unlock Bridge Contract on Ethereum will handle the locking of $RARE tokens on the mainnet. When a user interacts with this bridge to lock their tokens, it sends a message to the L2 Bridge on Base via Chainlink’s decentralized oracle network.
- Base (L2) Bridge: The Burn and Mint Bridge Contract on Base will receive messages from the L1 Bridge and mint new $RARE tokens on the Base network. These tokens will be transferred to the user’s address, enabling them to utilize their $RARE tokens on Base for transactions, transfers, or sales.
- L2 $RARE Token: A new $RARE token contract has been created to support burn and mint functionalities,which are required to support the L2 bridge. This ensures that users can move their tokens back to Ethereum by burning them on Base and unlocking the original tokens on the mainnet. This contract will only ever be deployed to L2 and is not a replacement for the original token on Ethereum.
The repo for the Rare Bridge and L2 token contracts can be found here, and the audit can be found here.
Chainlink CCIP Integration
The Rare Bridge will be implemented using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). CCIP is a decentralized and secure standard for cross-chain communication, enabling seamless interoperability between different blockchain networks.
Key benefits of using Chainlink CCIP for the Rare Bridge include:
- Decentralized Security: CCIP leverages Chainlink’s decentralized network of oracles to securely relay messages between chains. This eliminates single points of failure and ensures that the bridge is resilient to attacks or manipulation.
- Anti-Fraud Measures: CCIP includes built-in anti-fraud protections, such as the ability to verify the integrity of cross-chain messages using cryptographic proofs. This ensures that only valid messages from authorized contracts are processed by the bridge.
- Standardized Interface: By adopting CCIP, the Rare Bridge benefits from a standardized and well-tested interface for cross-chain communication. This reduces the risk of implementation errors and ensures compatibility with other CCIP-based bridges and protocols.
Why choose Base for the first deployment?
Our proposal to use Base as the first Layer 2 deployment is based on several factors, including its access to retail consumers, adoption within the onchain art ecosystem, and integration with Optimism’s “superchain.” This positions Base as a highly performant and scalable option, increasing our total addressable market and reducing transaction costs for users compared to Ethereum alone. Furthermore, Base’s connection to the broader Ethereum ecosystem through Optimism ensures that we maintain strong ties to the mainnet while benefiting from Layer 2 efficiencies.
Impact on Existing $RARE Holders
It’s important to note that this Base deployment will not have any adverse effects on existing $RARE token holders:
- $RARE tokens on Ethereum will continue to function as normal.
- The total supply of $RARE across both networks will remain constant, as Base tokens are only minted when Ethereum tokens are locked and vice versa.
- Holders can freely move their tokens between Ethereum and Base using the bridge, allowing them to take advantage of Base’s lower fees without losing any functionality.
Part 2: Deployment of the Marketplace Contracts to Base
In addition to the $RARE token and Rare Bridge, we propose deploying the marketplace contracts to Base. While there are no immediate plans to integrate these contracts with SuperRare.com, making them available on Base has several benefits:
- Enabling Experimentation: Deploying the marketplace contracts opens up opportunities for developers to build new experiences and integrations. This can help inform our future roadmap for Layer 2 expansion.
- Grants Program Alignment: Having the contracts on Base creates another surface area for grant recipients to build on, extending our recent work with initiatives like the development of Farcaster frames and Rare Tipping.
It’s important to note that this proposal only seeks authorization for the deployment of the marketplace contracts themselves. It does not imply any immediate commitment to indexing, UI integration, or other changes to SuperRare.com.
Part 3: Duplication of the Council Multisig
To maintain DAO governance over contract deployments on Base, we propose deploying a duplicate of the current council multisig. This new multisig will:
- Have the same signers as the mainnet multisig
- If possible, have the same address as the mainnet multisig
The Base multisig will be granted upgrade authority over all Rare Protocol contracts deployed to Base under this proposal. This ensures that the DAO retains control over the official Base deployments.
We recognize that duplicating the multisig is a short-term solution with some drawbacks:
- Increased coordination overhead for signers
- Scalability concerns as Rare expands to more Layer 2s
However, we believe this is an acceptable tradeoff to move quickly on the Base deployment while preserving DAO governance. In the future, we plan to explore more scalable approaches like executable voting via Tally’s Multigov feature. The Base deployment will provide valuable learnings to inform this transition.
Benefits
- Lower Transaction Costs: Deploying on Base reduces transaction fees by 50-100x compared to Ethereum, making $RARE more accessible and easier to use.
- Increased Adoption: Base’s tight integration with Coinbase and widespread adoption within the Farcaster community opens Rare Protocol to a large user base.
- Experimentation: Deploying contracts in a low fee environment enables experimentation and contributions from the community.
Drawbacks
- Coordination Overhead: Managing multisigs across chains adds complexity for signers.
- Long-Term Scalability: Duplicating the council multisig is a short-term fix, not a scalable cross-chain governance solution.
Proposal Execution
Upon passage of this proposal, the following shall be resolved:
- RareDAO Foundation is authorized to deploy the L1 Bridge, L2 Bridge, L2 Token, and any other related contracts necessary for deployment and bridging of the token to EVM L2s at its discretion or by request of the DAO council.
- RareDAO Foundation is authorized to deploy all protocol contracts necessary for marketplace operation on Base. These deployments may include minor changes such as specifying different contract addresses for other deployed contracts, and logic to avoid errors due to the absence of Staking contracts on Base at this time.
- RareDAO Foundation shall deploy or actively support the deployment of a new council multisig on any chain to which it is deploying or has deployed protocol contracts, unless some other crosschain governance mechanism is defined in a later proposal.
This SIP has fulfilled the DAO requirement and has moved forward to