MakerDAO’s Protocol Engineering Team and Optimism have launched the official DAI token bridge on Optimism.
Optimism is a Layer 2 solution that leverages the Optimistic Virtual Machine (OVM) to run smart contracts in a scalable Layer 2 environment. The OVM makes this possible by aggregating many transactions in a rollup block and publishes them on the L1 chain in bundles to achieve scale.
This development brings a fast, trustless, decentralized and official DAI token bridge to optimistic rollups. L2 DAI is a modernized version of L1 DAI that exists to facilitate cheaper transactions and is redeemable through the official bridge for L1 DAI. Deposits are almost instant but withdrawals are subject to a 1 week wait period.
L2 DAI has been officially integrated with the Optimism Gateway UI and is supported through Uniswap on Optimism. Users can now trustlessly verify that they are interacting with the official DAI token by referencing the official token address below.
The Optimism DAI contract has been minimally simplified to remove push/pull/move functions. Furthermore, the permit function was made compatible with EIP 712.
DAI was deployed on vanity address: 0xda10009cbd5d07dd0cecc66161fc93d7c9000da1
All addresses available here: GitHub - makerdao/optimism-dai-bridge: Optimism Dai and upgradable token bridge
In this release, Layer 2 DAI withdrawals are subject to a 1 week wait period. Although the Optimistic Virtual Machine (OVM) state is present on L1 and can be independently verified by anyone from the Canonical Transaction Chain (CTC), there is a requirement to wait one week to ensure that the computation of the corresponding state is correct. This is a limitation of all optimistic rollups.
Governance decision making and decentralization is built into the design of the token bridge. This means that Protocol Engineering does not hold any upgrade keys and changes to DAI can only be made via Governance votes on L1. It is worth noting that Optimism related contracts can however be upgraded by the Optimism team.
This release of the Optimism Dai Bridge is the first step in a rollout that will support fast withdrawals and the minting of DAI directly on Optimism as described in our March forum post. The Protocol Engineering Team is excited to continue working on this functionality as part of the next milestones in Maker’s Multichain strategy.