MIP-8: Should Denaria Deploy Its Perpetual DEX on Linea L2?

🏛 Governance 🟨   MIP: MetalSwap Improvement Proposals
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Summary

This proposal seeks to determine whether Denaria should deploy its upcoming Perpetual DEX on the Linea L2 blockchain. The primary reasons for considering Linea are its robust ecosystem support, its position as one of the leading zero-knowledge rollups, and the opportunity to enter a growing market with low competition within the Perpetual DEX space.

Background and Context

The DAO has recently reached several critical milestones through community votes, including:

All these previous proposals are integral to Denaria’s transition and growth. Deploying the Perpetual DEX on Linea L2 is the next critical step in this evolution, as it will provide a secure, scalable, and supportive environment for the project’s continued development.

Landscape

The Ethereum ecosystem is shifting toward an L2-centric roadmap, where L1 serves as the security layer while L2s handle execution. This approach enhances scalability and enables the deployment of various dApps, such as perpetual DEXs, in an environment where transactions are cheaper and faster than on the Ethereum mainnet.

Linea is at the forefront of this revolution and is expected to play a crucial role in Ethereum’s future. With the support of Consensys—the company behind MetaMask—this chain is set to become one of the leading L2s in the coming months and years.

Proposal Details

Linea is a zero-knowledge rollup, offering Denaria several advantages for deploying its Perpetual DEX:

Key Points:

  • Ecosystem Support: Linea has committed to providing strong ecosystem support to projects deploying on its chain. Denaria would benefit from access to development resources and potential partnerships within this growing ecosystem.
  • Leading ZK Rollup Solution: Thanks to its $550M in TVL, Linea is one of the leading Layer 2 solutions built on zero-knowledge technology and can offer a highly scalable and secure chain. This is critical for Denaria’s Perpetual DEX, which requires fast and secure transactions at low costs.
  • Low Competition: The Perpetual DEX ecosystem on Linea remains in its early stage, presenting Denaria with an opportunity to capture a significant share of this space with less competition than other L2s.

Deployment Details

If approved, Denaria will proceed with the following steps for the deployment of its Perpetual DEX on Linea:

  1. Integration Development: Denaria’s technical team would liaise with Linea’s team to ensure seamless integration of the Perpetual DEX.
  2. Testing and Deployment: After comprehensive testing in a testnet environment, Denaria’s Perpetual DEX would be deployed on the Linea L2.
  3. Ecosystem Launch: Following the deployment, Denaria would engage with the Linea ecosystem, including product growth efforts, collaborations with other projects, and community-building activities to drive the adoption of the Perpetual DEX.

Timeline and Milestones

The following timeline outlines the proposed deployment process:

  • Vote Period: This proposal will be voted on from 12/02/25 to 14/02/25.
  • Development Phase: Upon approval, the integration and testing phase will begin, with an expected completion within a few months
  • Mainnet Deployment: The Perpetual DEX will be deployed to Linea’s mainnet with a timeline dependent on the success of the testnet phase, security auditing processes, and more.

Conclusion

Deploying Denaria’s Perpetual DEX on Linea L2 is a strategic decision that leverages Linea’s technological strengths, ecosystem support, and market positioning. This proposal offers Denaria a unique opportunity to establish a prominent position in a growing market with fewer competitors.

All XMT holders are encouraged to vote and provide feedback on this critical decision, which could significantly impact Denaria’s future success.

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Thanks for sharing the draft of this MIP-8.

I have been a Linea supporter since the beginning of this chain, and I think it can be the right choice for deploying the upcoming Denaria Perpetual DEX. As you mentioned, the perps ecosystem is still not very developed, which means there is space for a revolutionary product like the one the team is building. Besides that, I want to summarize some of Linea’s past achievements, just to add a bit of context about this chain and why I think it is the right choice.

  • Linea has a clear connection with MetaMask, the most-used Web3 wallet. Consensys, the company behind this wallet, will be the one boosting Linea’s growth.
  • MetaMask users, who number around 30 million monthly active users, will be redirected to the Linea L2, and the MetaMask debit card will be based on this scalable solution.
  • While the perpetual DEX sector is still in its early stages, other DeFi primitives are already present. Aave has just announced its upcoming deployment, ENS domains were among the first partners, re-staking protocols like Renzo are already integrated, and high-quality DEXs like Lynex and Nile serve as the liquidity layers of this chain.
  • Linea is preparing for the biggest catalyst in its history: the airdrop of the $LINEA token. The airdrop is expected sometime in Q1 2025, which means it is very close! If the airdrop is successful, it will drive the adoption and usage of this chain.

In conclusion, Linea is one of the L2 solutions with the most growth potential in the upcoming months and years. Deploying Denaria Perpetual DEX can be the right choice to start gaining a consistent market share in a specific sector and to kickstart the perp on-chain journey.

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