We propose to focus on Arbitrum for Notional V3’s first L2 deployment.
Deploying on L2 is critically important for the success and growth of Notional. Gas costs on Ethereum mainnet price out the vast majority of users, and a presence on L2 is required to reach a broad user base.
With Notional V3 launching soon, we must decide where to focus our initial effort. We plan to launch a deployment of Notional V3 on many L2s, but each one takes time, effort, and resources if we want it to succeed. This means that we need to focus on a single L2, so choosing the best one for Notional is important.
Here are the main reasons why we believe Aribtrum is the best L2 to start with:
Arbitrum is Ethereum’s leading L2. It has the most user activity and TVL (~$2.4B vs. ~$1B for Polygon and Optimism).
Notional will be able to deploy the same leveraged vault strategies on Arbitrum that it does on Mainnet because Balancer and Convex are deployed there, and Aura will deploy there as well.
Notional is already testing its V3 UI against an Arbitrum deployment, so focusing on Arbitrum instead of Polygon or Optimism will involve less marginal work.
Major potential integrators like Contango have chosen Arbitrum which would increase the immediate size of Notional’s L2 ecosystem and reach.