Really appreciate you both jumping in here @krzkaczor @hexonaut and also appreciate the kind words. As a long time Maker holder, I’m really excited about the work you all have done and it’s great to hear you both think there are opportunities to collaborate with Hop.
It sounds like, at least from the couple comments above, that there is support for collaboration on the Hop side as well. If we do head this direction, we would need to decide how long to keep the Hop DAI bridge alive for before sunsetting it in favor of Teleport in the UI. There are a couple main factors for this timing decision:
- The DAI bridge AMM liquidity and bonder returns are unsustainably low and integrating Teleport, even for just for L1 <> L2 transfers, would bring these both down even further. If DAI is not sunsetted immediately, injected liquidity from a D3M will definitely be needed and subsidies for the DAI bonder liquidity may be needed. Ideally, the additional AMM liquidity from a D3M would help attract enough volume that bonder subsidies aren’t needed though.
- Sunsetting the Hop DAI bridge immediately when Teleport is integrated would mean DAI L2 <> L2 transfers as well as Gnosis Chain/Polygon would no longer be available for DAI in the Hop UI until they are supported by Teleport.
@hexonaut do you have an idea of how long it would take to set up a D3M module to inject DAI liquidity across the Arbitrum, Optimism, Polygon, and Gnosis Chain Hop AMMs? Do you think 2M to 4M DAI is possible? If not, we may have no choice but to sunset the Hop DAI bridge because the bonder will likely not stick around given the current state and future outlook of returns.