The DAO is reviewing a new proposal to enable seamless token transfers between Ethereum and Arbitrum using LayerZero’s messaging infrastructure. This step is part of a larger multichain vision to connect the ecosystem with high security and robust user experience.
What’s the plan?
- Use LayerZero to synchronize token transfers, deploying a lock/release pattern on Ethereum and a mint/burn pattern on Arbitrum.
- Roles for upgrades, permissions, and adapters will remain managed by the DAO for full governance control.
- Short term, only Arbitrum integration will be updated—no changes elsewhere.
Why LayerZero?
LayerZero is one of DeFi’s leading bridging protocols, processing billions in cross-chain value with strong audit history and fast finality. The platform allows for decentralized verification, rate limits, and trusted infrastructure—currently used by major projects like USDT, BTC.b, CAKE.
Security approach:
- Multiple off-chain actors (DVNs) verify all token messages, with a required threshold for activation.
- Only top-tier DVNs (LayerZero Labs, Canary, Deutsche Telekom, P2P) are used; risk mitigation includes rate limiting and infrastructure/client diversity.
- Proposed config: 2 required + 1 optional DVN, keeping fees and latency low for users.
Liquidity and user experience:
- Prevents liquidity fragmentation and chaos by avoiding multiple token instances.
- Lock/Mint is chosen to keep bridging straightforward and unified—users get a simple UI, one endorsed route.
Implementation highlights:
- New upgradable token contract, MintAndBurn adapter for Arbitrum, lock adapter for Ethereum.
- DAO holds all upgrade, mint/burn, adapter configuration roles with strict oversight.
- Deployment and activation phased after DAO governance vote, with Stargate whitelisting for interoperability.
Personal take:
This proposal balances security, liquidity, and a user-friendly bridge—key factors for scaling tokens across Layer 2s. Using LayerZero and a rate-limited, reliable setup, the DAO maintains oversight while enhancing cross-chain adoption.
Community question:
Are you ready for multichain token flows via LayerZero? What security features or bridging UX would you prioritize in future DAO upgrades? Drop your thoughts—robust bridging powers the entire ecosystem.
@Morpho Labs 🦋 #Morpho $MORPHO
