Official DAI Token Bridge now live on Arbitrum One

Official DAI Token Bridge now live on Arbitrum One

Following the highly anticipated optimistic rollup launch of Arbitrum on mainnet earlier this month, MakerDAO’s Protocol Engineering Core Unit is today launching the official DAI Token Bridge.

This means that users are now able to trade, lend, provide liquidity and yield farm with DAI on Arbitrum One. The deployment and integration of a custom DAI token bridge on Arbitrum is an important milestone to facilitate DAI usage across a growing Arbitrum ecosystem.

The Arbitrum DAI Bridge is an upgradable token bridge and governance relay. Over the next week, the deployer address will be removed, and Governance will be the only authority that can upgrade the bridge. This gives us flexibility to introduce future upgrades, but retain security over the bridge, as no multisig keys or individuals are in control of the bridge. Further detail about the design implementation can be read on our Github.

The L2 DAI address has been verified against Arbiscan, with all contract addresses visible in the MakerDAO Github repository. Users can use the DAI bridge to do token deposits and withdrawals via https://bridge.arbitrum.io/ :

Note that although this new development enables the use of DAI on Arbitrum, at this point in time Maker vaults do not exist on L2. Due to the fact that Arbitrum is a separate chain, it is not possible to send DAI directly from an L1 address to an L2 address - users must instead transact through the DAI token bridge if they wish to interact on an alternative network, otherwise user funds will be lost. Similarly, users are not able to send L2 DAI directly to their vaults on L1, the L2 DAI must again go through the DAI token bridge in order to become L1 DAI. Please check the network you are on and the network and address you are sending to otherwise tokens may be lost, and if you are in anyway in doubt please ask on the Maker forum, Arbitrum or Optimism discords for support.

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Does the 7 days waiting period still apply when transferring the dai from arb back to mainnet?

Correct, the wait period is 7 days to withdraw. Our next initiative will be working on designs for the fast withdraw bridge.

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Do we have timelines on when oasis or something will launch on arbitrum to take out a loan in DAI against ETH and other assets?

There is no timeline, however the bridge is designed so that this will be possible in the future. It should be noted though this requires significant change to the core L1 infrastructure which is not trivial. We want to make sure that if such facility (minting on L2) is available, the DAI that you would mint on L2 will be fully fungible with DAI from L1. What that means, is that you will be able to withdraw your L2-minted DAI anytime to L1 regardless of the amount (otherwise it would not be the same DAI !). This requires L1-part of MakerDAO (i.e. the existing vat) to understand how much has been minted/burned on all L2s.

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Now there is one more choice for cross-chain

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I’m having a bit of a misunderstanding on how Hop Protocol’s hDAI maintains the checks and balances with native DAI. I see that Hop Protocol offers a pool of aDAI and hDAI, but how can we be certain that every hDAI is native, and how does Hop Protocol maintain that the validators are not running away with aDAI and supplying hDAI that is not correlated to native DAI? Probably a question for the Hop team but I wonder how your team has thought this through?

TY in advanced Bartek.

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Sorry @ElProgreso for the late reply, the question somehow missed my msg inbox :slight_smile:

So each hDAI is actually backed by DAI on L1. The actual liquidity flow is quite involved. Have a look at some slides I made on how it works - hopefully it answers some of your concerns Hop Protocol - Google Slides

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