Onboarding Package for Manta Pacific

Proposal Discussion
1

Onboarding Package for Manta Pacific

TLDR: This proposal adds Manta Pacific to the v3 deployments record and grants Manta an Onboarding Package, which includes $250k of UNI incentives for three months on three key markets and Angle Merkl’s integration of Manta. Separate from this proposal, Manta has arranged for Oku to support Manta, and the contracts have been deployed.

About Manta Pacific

Manta Network is the modular blockchain for zero-knowledge (ZK) applications. Manta Pacific is the modular L2 ecosystem for EVM-native ZK applications and dApps that want to deliver the lowest cost and best experience for users.

Leveraging Manta’s Universal Circuits to enable ZK-as-a-Service and Celestia’s data availability for modularity to deliver low gas fees, Manta Pacific offers the perfect environment for ZK-enabled applications.

Manta Network was created by a team of experienced founders from prestigious institutions, including Harvard, MIT, and Algorand. Manta Network has received investments from many of the top web3 investment funds, including Binance Labs and Polychain Capital. It has grown through participation in the best web3 accelerators, including Alliance DAO and Berkeley Blockchain Xcelerator. Manta is the first Modular L2 with Celestia DA and one of the largest OP Stack chains with zkEVM in its future roadmap. Manta Pacific will achieve data scalability and reduce gas fees by incorporating Celestia’s modular DA.

Learn more about Manta: link

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Today, Manta’s total value locked is ~$2 billion, which makes it the fourth largest chain Layer 2 by TVL, according to L2beats. Notably, it’s only behind Arbitrum, Optimism, and Blast, ahead of several other modern L2 EVM chains.

DeFi

Having launched six months ago, Manta has a rapidly growing DeFi ecosystem. The chain’s core DeFi protocol is Layer Bank, a borrow/lend protocol with $390M in TVL. Manta’s top DEX is QuickSwap v3 (an Algebra DEX), which has $9M in TVL and a weekly volume of $25M. Also, the second largest DEX on Manta is Aperture Swap, which is a Uniswap v3 fork with $7M in TVL.

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Roll out plan

With Manta still in its early stages, Uniswap has the opportunity to grab the majority of its market share without spending considerable capital. We propose directing the requested UNI incentives to the following markets:

  1. WETH/STONE 0.05% - 40%
  2. WETH/USDC 0.05% - 40%
  3. USDC/USDT 0.01% - 20%

Oku has already completed integrating the contracts with its infrastructure. If the proposal passes, we will coordinate with the Manta team, Angle Merkl, and the Accountability Committee to set up the incentives as soon as possible. As of now, we’re shooting to be live the week of April 8th. In the meantime, anyone from the ecosystem who would like the contract details can find them below, or if they want access to the staging deployment for Manta on Oku, they can contact the Oku team.

Deployment Details

GFX Labs deployed the standard Uniswap v3 contracts and the associated peripheral contracts on Manta Pacific. The crosschain account handles the deployment’s ownership via Manta’s messaging system.

Cost

  • $250k in UNI for three months of incentives
  • €20k for Angle Merkl

Two things are worth noting. First, Oku is not included in the costs of this proposal because Manta already arranged for Oku to deploy and integrate the Uniswap v3 contracts. Second, the Accountability Committee already has more than enough UNI in its possession to cover the potential costs of this proposal, thanks to the recent rise in UNI’s price. If this proposal advances to an onchain vote, it will not include a UNI transfer; instead, the existing funds with the committee will be used.

Timeline

Below is the proposed timeline for delegates’ consideration. The timeline is an estimate and may be extended during the process as more time is required.

  • Contracts deployed (completed)
  • Request for Comment (RFC) ends March 31th
  • Temperature check April 1st-5th
  • The onchain vote review period starts on April 6th
  • Onchain voting opens on April 8th
4 Likes
2

is Manta matching the incentives to the listed pools?
existing protocols such as Quickswap seem to be receiving boosted apy from $manta incentives, and it would be nice for Uniswap pools to get some boost to the yield to bootstrap liquidity / awareness

1 Like
3

Support! There is no reason not to incentivize Manta, as opposed to the other chains we have voted to incentivize.

One potential concern arises again regarding evaluation and follow-up. Let’s say that three months have passed. The Manta chain returns and expresses interest in another round of incentives. What happens then, and how does the DAO assess whether the program has been successful?

4

I do think those L2s committing resources to also support Uniswap would be beneficial. If there are difficulties, it’s fair for the community to explore different approaches

1 Like
5

thanks for the proposal @GFXlabs I second the comments made earlier on matching incentives.

  • I also wonder if there is a maintainence cost associated with this deployment?
  • Based on your experience with deployments on other networks, do you have any idea on what will be the expected TVL that uniswap can capture from these incentives?
6

Aperture Finance could also transfer the ownership of its UniV3 deployment (called ApertureSwap) to Uniswap.

Having ownership over this UniV3 deployment is not a priority for Aperture (which is more focussed on using solvers to help LPs).

  • This would port over ~$11M in TVL to Uniswap immediately
  • Aperture, while 2nd in TVL, is #1 in volume on Manta due to the superior LP tooling and LP UX (source: Geckoterminal)
  • This would also prevent Aperture, which is the primary interface for capital efficient LPs on Manta, from having to support both the Uniswap version and ApertureSwap version of the UniV3 contract.
  • This would also prevent liquidity fragmentation

Aperture can post a formal submission but we wanted to mention this here first.

5 Likes
7

Hi everyone,

Thanks for the support thus far. We’re in talks with Manta about matching the incentives and other avenues for Manta to show support in addition to covering Oku’s costs. We should have more information in the coming days.

Questions

This proposal, in line with the Uniswap Revitalization and Growth proposal, only addresses getting the new Manta deployment up and running. If, after three months, Manta would like additional incentives, that would need to be in a subsequent proposal. As a delegate, we would judge that proposal by reviewing the effectiveness of the initial incentives requested to indicate the further effectiveness of incentives and consider what incentives Manta would also contribute at that time.

The maintenance of this deployment is the same as any other. The only difference is that Manta has worked directly with Oku to ensure support rather than asking the DAO to do so.

$250k in allotted UNI to dedicate to kicking off the liquidity incentivization on Manta for 3 months across 3-5 key pools would hopefully garner $5m in liquidity, assuming a reward rate of 20%.

1 Like
8

Adding more detail to @mcd-aperture’s comments above. The existing deployment of Aperture’s smart contract is a clean fork of Uniswap V3’s. With its current state:

  • No.1 Volume on Manta chain (oftentimes twice the volume of QuickSwap, which is the No.1 DEX in TVL on Manta chain).
  • Cumulative of $852M trading volume.
  • TVL of $11.08M.

And Aperture as the leading protocol in Intent & Liquidity management space, it has helped to rebalance $1.3B worth of liquidity for LPs. And it is on track to rebalance more than $5B worth of liquidity annually. This is equivalent to:

  • rebalance roughly all Ethereum TVL ($2.80B based on DeFiLlama) twice
  • rebalance all Arbitrum TVL ($287M based on DeFiLlama) 17 times.

It does not make sense to create another deployment of Uniswap V3 if Aperture is happy with transferring the ownership to Uniswap and working with Uniswap to benefit both Uni stakers and Aperture’s community. As a matter of fact, deploying another Uniswap V3 would further fragment the liquidity and hurt both Manta and Uniswap community.

In addition, Aperture already has $MANTA grants secured to help attract liquidity. With the introduction of Aperture’s recent points campaign, it would help boost up the liquidity even further.

All in all, I do not think it makes sense to create another deployment. The collaboration between Uniswap and Aperture would bring way more benefits to all.

3 Likes
9

Seems like a win-win. This proposal can stay as it is with the exception of deploying new V3 contracts. However it would still require work from OKU: OKU can verify that the existing deployed manta uniswap V3 contracts are a clean fork/deployment, before integrating it into this proposal.

10

Thanks for your thoughts on this.

I don’t think Oku’s work is needed here. Aperture has done audit before going live on Manta, which verified the current deployment is a clean fork of Uniswap V3.

Because the nature of collaboration here: Aperture is transferring an existing fork with significant TVL & volume to Uniswap DAO, I would imagine there could be other nuances and details to be discussed by the community first before proceeding.

It may be better to create a different thread with more details from Aperture’s end. For instance:

  • what are the current $MANTA grants allocated to Aperture that is available for liquidity incentive
  • what are the commitments that Aperture is willing to spend for liquidity incentive
  • what would be needed (or great to have) from Uniswap DAO to help bootstrap liquidity even further
  • what are the cost of running and maintaining Uniswap V3 peripheral infrastructure and would there be grants to help offset these
  • etc.

Based on the context above, in my humble opinion, it is a different set of discussion than what the current thread is intended for.

1 Like
11

We’ll get in touch with the Aperture team and circle back to the forums once we have info to share. Pending review and due diligence, if Aperture is willing to transfer control of the factory contract, it is probably the best path forward.

1 Like
12

Absolutely! This proposal seems like a strategic move to incorporate Manta Pacific into Uniswap’s ecosystem. Including Manta’s modular ZK solutions, backed by its impressive TVL and growing DeFi ecosystem, could significantly enhance Uniswap’s scalability and reach. The proposed UNI incentives and integration with Angle Merkl further solidify this partnership, paving the way for mutual growth and innovation.
I look forward to seeing its positive impact on Manta Pacific and Uniswap.

13

Over the last several days, we have been in touch with the Aperture team, Manta team, and several Uniswap delegates, discussing the opportunity to migrate the ApertureSwap deployment to become an official Uniswap deployment. We appreciate the Aperture team’s contributions to the Uniswap ecosystem and the opportunity extended here. It is the first time such an opportunity has presented itself. Unfortunately, after deliberating and discussing with everyone, we do not believe it is the best path forward for Uniswap to adopt the deployment. Instead, it should stick with precedent and continue the regular deployment process.

GFX Labs would like to thank the delegates who took the time to consider the opportunity.

Update: The Temperature Check is live. Voting ends Wednesday evening.

The following are the proposed pools for the program, but they can be amended for the onchain vote.

  • ETH/STONE 0.05% - 30%
  • ETH/USDC 0.05% - 40%
  • USDC/USDT 0.01% - 10%
  • MANTA/USDC 0.30% - 20%

The Manta team has committed to providing incentives alongside the Uniswap DAO and plans to solidify their exact plans once this Temperature Check is successful and prior to the onchain vote.

14

The below response reflects the views of L2BEAT’s governance team, composed of @kaereste and @Sinkas, and it’s based on the combined research, fact-checking, and ideation of the two.

We’re generally supportive of Uniswap deployments on Ethereum L2s and as such we’ll be voting in favor of adding Manta to the v3 deployment records and including an onboarding package.