UMA synths on xDAI

UMA Protocol
1

Given the gas issues plaguing Ethereum, we are investigating leveraging xDAI. It is EVM compatible, works with metamask and has a bridge that allows porting of ERC20 tokens seamlessly.

Perp.fi is already using xdai chain and it has very low gas costs and high speeds. This obviously comes at the cost of decentralization but remember USDC and USDT are centralized as well.

A synth can be deployed on xdai using UMA contract factory and UMA DVM can still be used for settlement and dispute resolution.

Wanted to get the communities perspective on what issues should be considered in taking this up.

2

So would it all be on xdai, or would xdai be running in the background with people uploading collateral etc on the mainnet which is then ported behind the scenes to xdai?

Ensuring collateral on xdai might be a problem, esp for liquidations. Its also another layer of abstraction for users to get their heads around when UMA itself it quite tricky, asking them to move over to xdai might be a step too far.

Also you are adding risk by using a side-chain rather than mainnet as a side-chain is never going to be as well supported/robust.