Proposal for Integrating Uniswap V3 via Oku on Metal L2

Introduction

Dear Metal DAO Community,

We are pleased to submit this proposal for integrating the Uniswap V3 protocol on the Metal L2 blockchain, facilitated by Oku. Our goal is to enhance the Metal L2 ecosystem by introducing advanced decentralized exchange (DEX) functionalities, thereby improving liquidity and trading capabilities for our users.

To achieve this, we propose the following:

• Integration Costs: $45,000 for initial integration and $5,000 monthly for 12 months post-launch.

• Liquidity Bootstrap: Allocation of 250,000 MTL tokens for liquidity provisioning, managed by Metallicus Inc.

• Incentives Matching: Allocation of 250,000 MTL tokens for liquidity incentives to be matched by the Uniswap DAO. In the event that the Uniswap governance proposal is unsuccessful, these funds will be returned to the Metal DAO.

Overview of the Proposal

About Oku

Oku specializes in integrating Uniswap V3 deployments across various EVM-compatible chains. We provide a seamless interface and backend support to ensure users can efficiently access Uniswap's functionalities.

Oku was built by GFX Labs and made possible thanks to a Uniswap Foundation grant. Oku launched in July 2023 and recently celebrated its first birthday. Over the last year, the team has conducted nearly two dozen deployments of Uniswap v3 and has played a key role in expanding Uniswap v3 to new ecosystems, such as Base and Binance Smart Chain, on behalf of the DAO. 

Objectives

• Deploy and Verify Uniswap V3 Contracts: Ensure the Uniswap V3 protocol is fully operational on Metal L2.

• Integrate Oku Interface: Provide Metal L2 users with a user-friendly trading platform.

• Liquidity Provisioning: Bootstrap liquidity in key pools using 250,000 MTL tokens.

• Incentive Program: Allocate 250,000 MTL tokens for liquidity incentives to be matched by the Uniswap DAO.

• Set Up Limit Order Functionality: Enhance trading features with limit orders using our automation partner.

• Coordinate Marketing Efforts: Collaborate with Metal's marketing team for a successful launch.

Proposal Details

1. Deployment and Verification

• Contract Deployment: Deploy the Uniswap V3 contracts on Metal L2.

• Verification: Verify contracts using Metal L2's block explorer (Blockscout).

• Ownership Transfer: Implement a method to pass contract ownership back to the Uniswap DAO.

2. Oku Backend Integration

• API Setup: Integrate the deployed contracts into the Oku backend and set up the Oku API.

• Interface Deployment: Set up the trading app, analytics dashboard, and routing mechanisms.

• Smart Order Routing: If available, integrate with existing smart order routing systems like Odos, 0x, OKX, or others that Oku supports.

3. Limit Order Functionality

• Automation Partner Integration: If Chainlink Automation is unavailable, integrate with an alternative partner to enable limit orders.

4. Liquidity Provisioning

• Liquidity Bootstrap: Allocate 250,000 MTL tokens to bootstrap liquidity in the following pairs:

  • ETH/USDC: $100,000 worth of liquidity

  • MTL/ETH: $150,000 worth of liquidity

• Management: Metallicus Inc. will manage the liquidity funds.

• Benefits: Initial liquidity will encourage trading activity and attract more users to the platform.

• Liquidity: will stay on the deployment for at least six months and then is callable by the DAO. 

5. Incentive Program

• Incentives Allocation: Allocate 250,000 MTL tokens for liquidity incentives.

• Matching Funds: These tokens are intended to be matched by the Uniswap DAO under their incentive programs.

• Contingency Plan: In the event that the Uniswap governance proposal is unsuccessful, the 250,000 MTL tokens allocated for incentives will be returned to the Metal DAO.

6. Marketing and Communication

• Launch Plan: Collaborate with Metal's marketing team to maximize visibility.

• Ongoing Support: Provide continuous support post-launch to ensure sustained growth.

Alignment with Uniswap DAO Initiatives

Uniswap recently passed Proposal 59, introducing onboarding packages for new Uniswap V3 deployments. The proposal includes:

1. Frontend Support: The DAO funds Oku to integrate new chains.

2. Incentives: Allocation of $250,000 to $1 million in UNI for liquidity incentives over three months.

3. Rewards System: Angle Merkl was selected to manage rewards without requiring staking actions.

By proceeding with the integration through Oku and allocating 250,000 MTL tokens for incentives, we strengthen our case for matching incentives from the Uniswap DAO. Should the Uniswap governance proposal be unsuccessful, the allocated MTL tokens for incentives will be returned to the Metal DAO.

Financial Breakdown

• Integration Costs:

  • Initial Integration: $45,000

  • Monthly Maintenance (12 months): $5,000/month

    • Total for 12 Months: $60,000

  • Total Integration and Maintenance: $105,000

• Liquidity Provisioning:

  • Liquidity Bootstrap: 250,000 MTL tokens allocated as follows:

    • ETH/USDC Pair: Up to $100,000 worth of liquidity

    • MTL/ETH Pair: Up to $150,000 worth of liquidity

• Incentives Allocation:

  • Incentives Fund: 250,000 MTL tokens to be matched by the Uniswap DAO.

  • Contingency: If the Uniswap DAO does not approve the matching funds, the 250,000 MTL tokens will be returned to the Metal DAO.

Benefits to the Metal Ecosystem

• Enhanced Trading Capabilities: Users gain access to Uniswap V3's advanced features.

• Increased Liquidity: Seeded pools and incentive programs will facilitate smoother trading experiences.

• Ecosystem Growth: Attract new users and projects to Metal L2.

• Revenue Generation: Trading fees and increased activity can boost the DAO's financial health.

Conclusion

Integrating Uniswap V3 via Oku on Metal L2 is a strategic initiative that will significantly enhance the trading capabilities of the Metal ecosystem. By allocating 250,000 MTL tokens for liquidity bootstrap and 250,000 MTL tokens for incentives to be matched by the Uniswap DAO, we aim to stimulate trading activity and attract more users to Metal L2.

We appreciate the opportunity to collaborate with the Metal DAO and are committed to making this integration successful. Should the Uniswap governance proposal not succeed, the allocated incentive funds will be returned to the Metal DAO, ensuring fiscal responsibility.

Thank you for your consideration.

Sincerely,

The Oku Team