Stabilize ETH will be migrating to Arbitrum Layer 2 solution in the near future

The Stabilize Protocol is a decentralized finance application designed to help keep stablecoins, ETH and BTC proxy tokens’ prices stable by using active strategies that arbitrage across multiple exchanges. Users earn from price fluctuations between tokens, whether the market is in bull or in bear. Currently, the protocol can be utilized on both Ethereum and Binance smart chain networks.

The Stabilize protocol has been running successfully for almost 1 year. As we celebrate its first birthday, we continue to look for advancements in technology and utilize them to better support the underlying protocol.

Sticking to this mission, in the near future, we will be migrating the Stabilize Ethereum Layer 1 version to a Layer 2 solution called Arbitrum One which is built on-top of Ethereum and inherits its security. In the long run, this will increase the efficiency of the protocol while decreasing the gas costs to interact with it.

What is Arbitrum?

Arbitrum is a layer 2 scaling solution for the Ethereum blockchain powered by optimistic rollups. Arbitrum One specifically is a blockchain network running Arbitrum. Arbitrum supports the EVM just like normal Ethereum and bridging between Arbitrum One and normal Ethereum is trust-minimized unlike when bridging between other layer 1 blockchains.

Because Arbitrum uses optimistic rollups as its scaling solution, it inherits the security and decentralized properties of normal Ethereum while obtaining new features such as a higher throughput that is significantly more than the native chain. Because of this, Arbitrum gas costs can be up to 10 times less than those of Ethereum.

Why Arbitrum?

Arbitrum does not have its own token for gas, it uses Ethereum, which makes bridging simple and utilization straightforward. It takes a few minutes to convert native ETH to Arbitrum ETH.

Arbitrum also supports a growing infrastructure with multiple exchanges and millions of dollars in liquidity already present on its blockchain, Arbitrum One.

Contract deployment to Arbitrum is the same process as it is with native ETH and there are no changes required in the code for it to work. This makes migrating audited code much simpler.

What will happen to the STBZ token?

The Stabilize token (STBZ) will be migrated to Arbitrum One and the tokenomics of the Arbitrum-based STBZ will be different than the current tokenomics. There will be more details on the new tokenomics and the migration process in a later article.

Join our community to learn more

Visit the website to get started using the Stabilize protocol, follow us on Twitter and join the community on Telegram.

Website: stabilize.finance
Twitter: @StabilizePro
Telegram: StabilizeProtocol