Cross-Chain
The numa protocol will be cross-chain in the near future
Overview
As part of our distribution model for the numa protocol, the protocol and all associated tokens are in the process of being deployed on other EVM chains. The numa protocol will be forked and entirely redeployed on each chain: only the $NUMA token is able to be bridged between chains, while the nuMoney synthetics are tied to a given chain and vault. As such, synthetics offerings, yield, and loans are native to the numa protocol deployment on a given chain: thus, some chains may have higher yield than others at any given moment. Bridging will allow arbitrage to happen across chains; however, bridging will only happen from vault-to-vault, and only using supply that was originally bridged from the master vault on Arbitrum. Bridging will transfer collateral from vault-to-vault and help equalize $NUMA token prices on different chains.
Master Chain (Arbitrum)
The master chain, Arbitrum, operates the master vault that brings master $NUMA into circulation. $NUMA minted on the master chain operates with a lock and unlock LayerZero OFT adapter contract. This means $NUMA minted on Arbitrum can be bridged to other chains—where $OFTnuma is subsequently minted—by locking Arbitrum $NUMA into the OFT adapter contract. $OFTNUMA on other chains can be burned to unlock $NUMA in the OFT adapter contract on Arbitrum, up until locked tokens are exhausted. Therefore, only $NUMA supply that was originally bridged out of Arbitrum can be bridged back.
Satellite Chain (all other chains)
As mentioned, each new chain will require an independent deployment of the complete numa protocol, such that synthetics, yield, and loans are native to the given deployment. Only the $NUMA token itself will be able to be bridged, vault-to-vault.
All other deployments of the numa protocol will implement the $OFTNUMA token standard, where the OFT contract has burn and mint privileges for the $OFTNUMA token. Bridging will only be supported from the satellite chain to the master chain and not from satellite to satellite. Each satellite corresponds to a discrete OFT adapter contract on the master chain. This means an unlimited amount of $NUMA can be bridged into each chain from the master chain, but only that same amount of $OFTnuma that was bridged to the given chain can be bridged back to the master chain, until the amount of supply locked in that chain's related master OFT adapter contract is empty.
Bridging
The only way a user can interact with the bridging contract is via a whitelisted function that also interacts with the vault. Only $NUMA that was minted from a vault in the same transaction can be bridged out. Likewise, any $NUMA bridged into a chain—including back to the master chain—must be immediately sold into the vault on that chain. Essentially, the $NUMA token is bridging rETH value, rather than $NUMA supply. Users would do this in order to profit from arbitrage, such that they receive more rETH when selling than was used to mint $NUMA.
Rollout Plan
The numa protocol will deploy on new EVM chains in succession with each $NUMA token price starting much lower than the master chain price. Because $OFTnuma can only be bridged back to the master chain after supply from master chain has been bridged to the satellite chain, arbitrage will not occur until the new satellite chain’s vault sell price is greater than the buy price on the master chain vault. This means the master vault will be unaffected by the launch of the satellite chain until it sees significant adoption.
After this occurs, the arbitrage process will begin to expand vault assets in the master vault while removing vault assets from a satellite vault, once it begins to outperform the master chain in price. However, the dynamic buy fee will increase in the master vault during this period from vault buys, and thus will not cap the satellite chain from continuing to expand. Further, the fees from the vault sells in the satellite will also increase the $OFTnuma price through increased backing ratio.
The numa protocol will deploy on every major EVM chain, so long as the required Chainlink price feeds are available and liquidity is sufficent. The initial priorities are to launch on Base, Sonic, and Ethereum main net. Subsequent chains will be announced once the initial deployments are complete.
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