TLDR
Why Movr?
Rollup centric roadmap is kickstarting- Arbitrum & Optimism are almost here & zk rollups are expected to come soon. With this, most dapps are planning to go multi-L2/multi-chain.
Staying on a single chain is infeasible for most dapps because of lack of composability between L2s. In a multi-L2 world, staying single chain essentially means either loss in volume (users & other protocols on a different L2 won't be able to interact with it), or loss in functionality (dapp may not be able to interact with other single chain protocols).
DApps going multi-chain however will lead to liquidity fragmentation across L2s/chains. It also will cause frequent need of rebalancing funds, scalability issues like we have now, bad UX for users & maintenance overhead for developers.
Liquidity fragmentation in-turn leads to capital inefficiency which means higher cost for users. The problem only worsens as we keep adding new L2s & dapps (or their forks) launch on these new L2s. We are already seeing fragmented liquidity. For example: SushiSwap launched on Polygon sometime back. Now, 30% of their liquidity is on Polygon.
What is Movr?
Movr is a cross-L2 communication protocol. Dapps can transfer data & interact with protocols on other L2s quickly & cost efficiently using Movr. This allows dapps to stay on a single chain without significant losses in functionality (dapp can interact with protocols on other L2s) & volume (users & protocols can interact with dapp on other L2s).
Movr has 3 components:
- Fund Movr: A bridge aggregator that moves assets across L2s & Ethereum via the most efficient route. Think 1Inch/Paraswap for bridges. We can support non-evm rollups too. We also plan to release Fund Movr as an app for users.
- Finality Gadget: Network of attesters which verify L2 state updates & act as relayers b/w the L2s to enable fast finality. Any mismatch in state update will lead to slashing of nodes, minimizing the trust assumptions.
- Data Movr: Allows for call data to be transmitted between L2s with the help of Finality Gadget. Data Movr enables async cross-L2 composability by allowing dapps to interact with protocols on other L2s.
Let's look at some interesting use cases for Finality Gadget & Movr.
Movr Use Cases
- Maker DAO: Can use Movr Finality Gadget to facilitate their fast withdraw bridge. Finality Gadget essentially acts as an oracle for Maker Bridge. Users deposit DAI into the Maker Bridge → Oracle attests to the validity of L2 state update → Maker Bridge mints fDAI → Maker Contract mints L1 DAI using fDAI.
- Fixed Interest Protocols: Above model can similarly be used by Element Finance, Pendle or APWine to make their protocol multi-chain & act as an innovative fast exit mechanism for users. Users deposit tokens on Element Finance on a L2 → gadget attests to the validity of L2 state update → Element Finance mints PT & YT on destination L2 → User can trade PT & YT and get quick exit.
- Nova by Rari Capital: Nova is a L2→L1 communication mechanism. It currently relies on individual relayers (or bots) that take on the risk of L2 state validity & provide liquidity too. Finality gadget can replace bots & connect with Rari Capital's fuse pools, providing fuse liquidity providers a higher yield. Finality Gadget essentially acts as a trust minimised coordination mechanism for Nova.
- Hop Exchange: Hop too relies on individual bots that take on the risk of L2 state validity & provide liquidity too. Finality gadget can replace these bots to ensure L2 state validity & a liquidity pool can be created by Hop on all L2s, allowing liquidity providers to participate without running any node.
- NFTs: Fast exits for fungible tokens can be assisted with asset bridges, but it does not work for NFTs. Inspired by Maker DAO approach, NFTs can be burned on origin chain & minted on the destination chain once Finality Gadget attests to the validity of state update.
- UMA: UMA recently announced their plans to scale to all EVM compatible chains by deploying L2 specific Optimistic Oracles which communicate with their Ethereum Optimistic Oracle. UMA can use Movr as a trust-minimized communication bridge to relay messages between any given set of optimistic oracles.
- Yearn Finance: Yield maximizing protocols like Yearn move assets wherever there is more yield now need to be truly multi-chain. They need to now select Protocol-Chain combination (ex: Aave-Arbitrum, Compound-Optimism etc.) for maximizing yield. Yearn Protocol/Yearn vaults can use Movr to get any info needed to allocate the liquidity.
- Instadapp: deMovr can act as a debt-migration bridge for Instadapp. For example: Instadapp had to create a special portal to allow users to migrate their L1 positions to Polygon. This is because current asset bridges are not evolved for moving messages b/w L1 & L2. Such a use case can be generalized using Movr, allowing users to migrate their positions as it is on other L2s.
- Aave: Aave & it's liquidity pools can actually reside on a single L2 while Aave is 'virtually' present on all L2s. Aave essentially open ups its end points on all L2s using Movr. This enables protocols & users to interact with Aave from any chain. Aave can this way operate at a META level where users & protocols get same APYs & rate of borrowing across chains (ignoring any diff in migration fee).
