How did Primex deploy to Arbitrum One?
Hello! In this article, we will discuss the deployment of Primex on the Arbitrum One network, which is a big deal and means that the protocol has become multi-chain. Following a successful launch on Polygon on October 19, 2023, this expansion opens up new opportunities and advanced features for members of the protocol’s community.
The deployment process for decentralized applications (DApps) on layer 2 scaling solutions like Arbitrum One typically involves the following steps:
Choose the Layer 2 Solution:
Primex, or any other DApp, needs to select a layer 2 scaling solution. Arbitrum One is one such solution that utilizes Optimistic Rollups.
Smart Contract Deployment:
Once the layer 2 solution is chosen, the smart contracts of the DApp need to be deployed on the chosen layer 2 chain. This involves interacting with the layer 2 chain's deployment tools and APIs.
Bridge Integration:
If the DApp requires moving assets between the layer 1 (mainnet) and layer 2, a bridge needs to be integrated. This allows users to deposit or withdraw assets from the layer 2 to the layer 1 and vice versa.
Testing:
It's crucial to thoroughly test the smart contracts and the DApp on the layer 2 testnet before deploying on the mainnet. This helps identify and resolve any issues or bugs.
User Interface Changes:
If the DApp has a user interface (UI), adjustments might be needed to reflect the changes in the layer 2 environment. Users should be able to interact seamlessly with the DApp on the layer 2.
Announcement and Documentation:
Once everything is set up and tested, the DApp team may announce the deployment to the community. Documentation should be provided to guide users on how to use the DApp on the layer 2 solution.
Please note that the deployment process may vary based on the specific layer 2 solution and the tools or frameworks used by the DApp. It's recommended to check Primex's official documentation, blog posts, or announcements for the most accurate and up-to-date information regarding their deployment to Arbitrum One or any other layer 2 scaling solution.
Brief Overview of Primex
Primex Finance stands as a non-custodial spot margin trading protocol designed to elevate the trading experience on decentralized exchanges (DEXs). Unlike traditional decentralized exchanges, Primex aggregates liquidity pools to improve users’ trading experience. The protocol is Ethereum Virtual Machine (EVM) compatible and seamlessly integrates with various DEXs.
Credit Buckets are central to Primex, serving as liquidity pools for leveraged operations without relying on over-collateralization mechanisms. Traders can borrow funds from these Buckets, exceeding their initial deposit value, enabling leveraged spot trading on supported DEXs. Simultaneously, Lenders contribute liquidity to Credit Buckets, earning interest backed by margin trading fees. Currently, through lending and participation in the Liquidity Mining Program, users can secure a guaranteed 7% Annual Percentage Yield (APY) reward in stablecoins.
Primex employs a decentralized trade execution mechanism, leveraging a network of community-hosted Keeper bots. These bots handle liquidations and execute automated trades, including Limit, Stop Loss, and Take Profit orders, creating a secure and efficient trading environment.
Arbitrum One
Arbitrum One, developed by Offchain Labs in August 2021, emerges as a prominent layer 2 scalability solution. Operating as a layer 2 chain on top of Ethereum, Arbitrum One utilizes Optimistic rollup technology for enhanced scalability. This bundling of transactions in batches and processing them on the L2 results in cost-effective transactions and rapid confirmation times. Arbitrum relies on Ethereum’s security and decentralization for transaction finalization.
With a significantly lower cost for transactions compared to Ethereum’s mainnet, Arbitrum One has become a top-tier layer 2 solution in the decentralized finance (DeFi) landscape. Its average block time of 0.26 seconds and increased daily transactions highlight its efficiency and popularity within the crypto community.
Arbitrum One is a layer 2 scaling solution for Ethereum, developed by Offchain Labs. It is designed to improve the scalability and reduce the transaction costs of the Ethereum blockchain. Arbitrum One utilizes a technology known as Optimistic Rollup.
Here are key points about Arbitrum One:
Optimistic Rollup Technology:
Arbitrum One is built on the Optimistic Rollup technology. This approach involves using a secondary chain (layer 2) that relies on the Ethereum mainnet for security but processes transactions more efficiently and quickly. The "optimistic" part refers to the assumption that most transactions are valid and will be accepted, with the ability to roll back in case of disputes.
Scalability:
By offloading transactions to the Arbitrum One chain, users can experience significantly faster and cheaper transactions compared to executing them directly on the Ethereum mainnet. This is particularly valuable in addressing Ethereum's scalability challenges.
Smart Contract Compatibility:
Arbitrum One is designed to be compatible with Ethereum smart contracts. DApps (Decentralized Applications) and smart contracts developed for Ethereum can be deployed on Arbitrum One with minimal modifications.
Bridge for Asset Transfers:
Users can transfer assets between the Ethereum mainnet and Arbitrum One using a bridge. This bridge facilitates the movement of assets from layer 1 to layer 2 and vice versa.
Security:
While the Arbitrum One chain operates independently, it relies on the Ethereum mainnet for security. The optimistic rollup model allows for a high level of security by leveraging Ethereum's robust decentralized network.
Ecosystem Adoption:
The success of layer 2 solutions like Arbitrum One depends on the adoption by developers and projects within the Ethereum ecosystem. As more projects deploy on Arbitrum One, users can benefit from improved scalability and reduced transaction fees.
Primex Arbitrum Deployment
The deployment of Primex on Arbitrum One, scheduled for November 27, brings forth essential parameters for users to consider:
Supported DEXs:
Primex on Arbitrum supports popular DEXs such as Sushiswap v2 and v3, Uniswap v3, Camelot v3, Ramses v2, PancakeSwap v2 and v3, Curve, and Balancer.
Available Assets:
Initial Buckets entering the liquidity mining accumulation stage include USDC, USDC.e, USDT, ETH, WBTC, and Arbitrum (ARB). Traders can utilize these assets for spot margin trading.
Minimum Position Size:
Responding to community feedback, Primex reduces the minimum position size to just $1, enhancing accessibility for users. Opening a position now requires only a minimal fee to cover Keeper actions.
Expanded Asset Range:
Traders on Primex can now engage in Spot 1x trading with a broader range of assets, including $USDC.e, $USDC, $USDT, $WETH, $WBTC, $ARB, $DAI, $LINK, $PENDLE, $GMX, $GNS, $RDNT, $MAGIC, $JOE, and $STG. Market swaps support all assets available on Uniswap.
Implications of Arbitrum Deployment for Primex
The deployment on Arbitrum One signifies a pivotal moment in Primex’s evolution. By tapping into Arbitrum’s extensive user base, Primex can expand its reach and onboard new Lenders and Traders. Being live on two leading layer 2 solutions, Primex users now have increased flexibility, with options to access spot margin trading at reduced gas fees and faster block times.
Lenders and Traders can seamlessly choose between Arbitrum and Polygon for their activities, benefiting from a wider selection of DEXs, assets, and Buckets within the protocol. This deployment enhances the overall user experience, making Primex more versatile and user-friendly.
Scalability:
Deploying on Arbitrum can significantly enhance the scalability of Primex. As a layer 2 solution, Arbitrum is designed to relieve congestion on the Ethereum mainnet by processing transactions off-chain and periodically anchoring the state to the Ethereum blockchain. This can lead to faster and more cost-effective transactions for Primex users.
Cost Efficiency:
By utilizing Arbitrum, Primex can benefit from lower transaction fees compared to executing transactions directly on the Ethereum mainnet. This can be particularly important for users who want to interact with Primex without incurring high gas fees.
Improved User Experience:
Faster transaction confirmation times and reduced costs contribute to an overall improved user experience. Users may find it more convenient to interact with Primex on a layer 2 solution like Arbitrum, leading to increased adoption and engagement.
Interoperability:
Arbitrum is designed to be compatible with existing Ethereum smart contracts and decentralized applications. If Primex leverages standard Ethereum development practices, it can seamlessly deploy on Arbitrum without major modifications. This ensures interoperability and compatibility with the broader Ethereum ecosystem.
Ecosystem Synergy:
By deploying on Arbitrum, Primex becomes part of a growing ecosystem of projects and developers embracing layer 2 solutions. This can lead to potential collaborations, partnerships, and increased visibility within the blockchain community.
Bridge Integration:
If Primex facilitates the movement of assets between the Ethereum mainnet and Arbitrum, users may use a bridge. This can allow users to transfer assets seamlessly between the two environments, providing flexibility and liquidity.
It's crucial to check official Primex channels, including their website, blog posts, and social media, for the latest and most accurate information on their deployment on Arbitrum. Additionally, reviewing Arbitrum's documentation and updates can provide insights into the technical aspects of the deployment.
Conclusion
The deployment of Primex on Arbitrum One signifies a strategic move towards becoming a multichain protocol. As users embrace the enhanced features and options provided by Arbitrum, Primex continues to solidify its position as a leading spot margin trading platform in the decentralized finance space. Community members are encouraged to explore the Primex Liquidity Mining Program on Arbitrum, contributing to the protocol’s growth and earning Early Primex Token (ePMX) rewards.
To embark on this new phase, users can access the Primex app, connect their wallets, and switch to the Arbitrum network. Whether you’re a Trader, Lender, or both, Primex offers a diverse range of opportunities to earn rewards and actively participate in this groundbreaking multichain ecosystem.
