SLURP-28 | Deploy stake.link to Metis
It is proposed to the stake.link Governance Council that stake.link is deployed to Metis as the next L2 blockchain network deployment. This would include: SDL, reSDL, wstLINK, and the ability to claim accrued stLINK rewards from reSDL held on Metis. We make note that rewards will still be claimable on Ethereum. Not in scope for this deployment: Depositing LINK to the Priority Pool and claiming wstLINK on Metis.
This SLURP would supersede SLURP-16 but not preclude the deployment of stake.link to Optimism (or other networks) in the future.
Rationale and Scope of deployment
Metis L2 is an up and coming optimistic rollup in the Ethereum Ecosystem that’s shown alignment with stake.link and Chainlink’s core values of decentralization for the greater good. This ethos is alive and well on Metis L2 as can be seen in their beginning of year 2024 announcement of decentralizing their sequencer set – a feat that no L2 in the Ethereum Ecosystem has yet accomplished.
On top of embodying this shared ethos, Metis has shown it goes beyond walking the walk when it comes to alignment with the Chainlink Ecosystem: it’s talking the talk.
In September 2022, Metis joined the Chainlink SCALE program with Co-Founder and CEO of Metis Elena Sinelnikova remarking “The Chainlink SCALE program allows us to boost the growth of the Metis developer ecosystem while helping ensure Chainlink oracles operate in a cost-efficient manner on the layer-2 Metis network. By providing enhanced access to Chainlink services, developers on Metis can pioneer the next generation of decentralized applications that serve more complex use cases and scale to meet fast-paced global markets."
At Ethereum Denver in February 2024, Metis announced that it would be integrating Chainlink CCIP as its canonical bridge and went live with the integration in August 2024.
Co-Founder of Metis Kevin Liu: “With Chainlink CCIP now live as Metis’ canonical cross-chain infrastructure, developers can unlock an array of transformative cross-chain use cases. With cross-chain applications underpinned by the industry-standard CCIP, liquidity is set to flow into Metis ecosystem and help scale DeFi.”
The results of becoming a Chainlink-aligned chain are already bearing fruit: Metis metrics are across the board headed in the right direction as can be seen in the Metis Explorer here.
- Total Transaction count has been in a consistent in the 2024 year and compared to previous years
- Active addresses have seen a considerable rise in the 2024 year with a sharp increase since just after the CCIP integration went live in August.
- Unique wallet addresses are seeing a parabolic rise
- Both active senders and active receivers show noteworthy rises
…and much more.
In addition to the above, Metis’s ultimate objective that’s driving their integrations with Chainlink and initiative to decentralize their sequencer set is the goal of becoming a fully self-sufficient, economically viable chain that will over time rely less and less on token subsidies and establish a truly developer-focused and user-friendly chain to operate on.
In order to see this vision become a reality, Metis has established a robust grant program to support protocols deploying to the chain.
After having connected with the Metis team in early 2024 and been selected by Metis Governance to be one of the LST Protocols to deploy to the chain as part of the decentralized sequencer pairing initiative, stake.link is proud to announce that after months of back and forth negotiations and fine tuning, we’ve been awarded a grant from the Metis Ecosystem Development Fund (MetisEDF) to the tune of 1,500 METIS tokens that will be put to use on procuring auditing services that encompass both Native LINK Staking Withdrawals and Native Metis Staking / Staking Withdrawals.
Not only has stake.link been awarded with a grant from the Metis EDF, stake.link has also been selected to receive a delegation from the Metis Foundation to the tune of 20,000 METIS tokens to support our initial deployment as an LST Protocol who will be paired with enterprise-grade staking provider A41, who custodies an aggregate 2.5B USD of staked assets under management across 17+ blockchain networks.
With the protocol being delegated 20,000 METIS tokens in order to hit the ground running and go-live with our pairing partner and Sequencer A41, it is proposed that rewards from the 20,000 delegated METIS be directed as follows:
- 50% of stMETIS rewards from the 20,000 staked METIS be directed to the SDL Rewards Pool benefitting reSDL holders.
- 50% to stMETIS holders to incentivize METIS staking through stake.link.
The outcome of this split will mean more rewards being directed to SDL Stakers / reSDL holders, and a higher reward rate for stMETIS making stMETIS the highest yield-bearing METIS LST in the Metis Ecosystem.
Specification
As part of negotiations for the MetisEDF Grant and the Metis Foundation Delegation,stake.link with DAO approval, will commit to migrating its staking infrastructure previously on Arbitrum L2 over to Metis L2 as well as encouraging further migration of stake.link protocol tokens and activity to Metis L2 from Ethereum L1 upon acceptance of SLURP-28.
The deployment of stake.link to Metis L2 will leverage CCIP’s arbitrary messaging and lock and mint token bridging functionality to enable the following in phased rollouts:
- Bridging wstLINK, SDL, and reSDL NFTs back and forth from Ethereum mainnet as well as Arbitrum mainnet.
- Purchasing wstLINK, SDL, and reSDL on Metis L2.
- Staking SDL, generating reSDL NFTs, and claiming accrued wstLINK rewards on Metis L2
Audits for this functionality have been completed by Cyfrin and CodeHawks, and results and reports will be made publicly available in the stake.link audits repo on GitHub upon completion and resolution of any possible issues discovered in the course of the CodeHawks audit.
Liquidity Mining & DEX Listings
All incentives are to be run for a period of 90 days and can be reassessed publicly. Should it be decided major changes are required (e.g. new pairs, or new DEXes), or should it be proposed to substantially increase any amounts, a new SLURP will be required.
Metis L2 Incentives, Proposed:
wstLINK / LINK
Hercules DEX SDL / METIS or SDL / LINK
Hercules DEX
In summary, this represents:
- Daily spend of 1,590 SDL
- Monthly spend of 47,700 SDL
- Quarterly spend of 143,100 SDL
- Yearly spend of 572,400
