TLDR: Hey Fraximalists! This proposal suggests Frax Finance begin to migrate over to Ethereum L2’s, given upcoming optimizations both on mainnet settlement layer and off-chain execution layer that favors rollups.
Overview: As we are all familiar with, Ethereum mainnet is beginning to become infeasible to those that want to participate in EVM-based applications with meaningful liquidity (e.g. Frax Finance). Though this is no fault of Ethereum or the application developers (due to bootstrapping incentives on both sides), Ethereum has begun its transition towards optimizing for off-chain execution via L2-rollups.
Three primary examples of Ethereum’s emphasis on rollups jump to my mind: (1) EIP-4488 (decrease tx calldata gas cost reduction, reducing fees for rollups), (2) soon-to-come compression on L2-rollups, further reducing gas fees on rollups (which are currently not yet ideal for retail users), and (3) increasing adoption on Ethereum L2s, particularly Optimism and Arbitrum (which effectively enable Solidity devs to port over existing codebases on mainnet to rollups right out of the box).
Though Frax Finance scaling out to alternative L1s is also an effective way of broadening Frax’s scale in Web3, doing so may sacrifice full trustlessness (through reliance on cross-chain bridges, which are not fully decentralized) and liquidity fragmentation (which is generally not ideal for user experience or app-dev experience b/c of lack of composability).
Conclusion: Thus, I propose Frax places an emphasis on migrating to Ethereum L2 rollups (particularly Optimism and Arbitrum) to enable more effective access of liquidity (users and devs may easily migrate to Ethereum settlement, Arbitrum to Optimism, etc. through Hop Protocol or other innovative ways that rollups can compose with each other) and better user experience (users may simply migrate their Frax ecosystem positions on mainnet to Ethereum L2, enjoying lower gas fees).
I also understand the Frax team is already placing emphasis on scaling beyond Ethereum mainnet, which is awesome! Just wanted to indicate my support for this migration. 