Proposal: Bridge Back to the CarbonDeFi Vortex

[foxsteven]

To be posted to Snapshot on Jan 19, 2025

TL:DR

• Bancor protocols, CarbonDefi & ArbFastLane, have generated fees on multiple EVM chains
• A recent proposal has described how these fees should be converted into a single token https://vote.bancor.network/#/proposal/0x82b918fd7d51809102bb0c3620ce22959e49b5ccdf29228da42360e48edadd46
• This proposal outlines a specific method to send these tokens to the Carbon Vault on Mainnet (Vault | Address 0x60917e542addd13bfd1a7f81cd654758052dadc4 | Etherscan)
• From the vault, anyone can send these to the vortex by calling execute: execute() | Carbon DeFi Dev
• After execute is called, the specified tokens are sent to the Carbon Vortex on mainnet (OptimizedTransparentUpgradeableProxy | Address 0xD053Dcd7037AF7204cecE544Ea9F227824d79801 | Etherscan)
• This new contract is something that anyone can trigger via a public function

New Bridge Function

• A new contract associated to each Carbon Vortex will have a new public function called “bridge()”
  • This does not include Ethereum
• The details of this function on each chain will be different to fit the relevant bride available for this chain
• On execution:
  • Indicate amount or send the full currently available budget of the token
  • Submit a transaction to the bridge
  • Destination on Ethereum will always be the carbonVault address

Note 1: This proposal suggests no caller incentive for this Function as it is likely to be triggered by someone in the community who does not require a financial incentive - this also simplifies the contract.

Note 2: For safety, we should enforce minReturn to prevent bridge actions that “leak” funds in the process as a result of low bridge liquidity.

Bridge Function

1. SEI to Ethereum

Consolidate all tokens into wETH
Bridge: Stargate V2

2. Celo to Ethereum

Consolidate all tokens into wETH
Bridge: We will use their upcoming native bridge

3. Base to Ethereum

Consolidate all tokens into ETH
Bridge: Stargate V2

4. Fantom to Ethereum

Consolidate all tokens into wETH
Bridge: Stargate V1

5. Mantle to Ethereum

Consolidate all tokens into wETH
Stargate V2

6. Linea to Ethereum

Consolidate all tokens into ETH
Stargate V2

7. Blast to Ethereum

Consolidate all tokens into wETH
Bridge: Across

8. Telos to Ethereum

Consolidate all tokens into wETH
Bridge: LayerZero

9. IOTA to Ethereum

Consolidate all tokens into wETH
Bridge: Stargate V2

For:

Bridge back to the mainnet as described above

Against:

Take no action

[glenn]

In full support of this proposal and glad to see the fees collected from other networks being brought back to Ethereum mainnet in order to send them to the Bancor Vortex. Regarding the fees, for anyone reading that is not aware about the source for them, I wrote a post here that has the details:

Vortex burn stuck?

It is not stuck and to give you a comprehensive answer around the source of fees see below: The Bancor Arb Fast Lane which is deployed across multiple blockchains directs 50% of the arbitrage profits back to the Bancor protocol. These fees collect in a vault and then eventually get sent to the vortex in order to be consolidated to a single token. The fees metrics for the Bancor Arb Fast Lane can be found in Dune (see link below) for most of the blockchains where it is currently deployed (alth…