Expanding the Mosaic PoC: Accepting SushiSwap LP and Aave aToken Deposits & Swaps

Composable is pleased to be further expanding the Proof of Concept of Mosaic, so that it can now accept liquidity provisioning and cross-layer swapping of LP tokens from SushiSwap and aTokens from Aave. Specifically, LP deposits of wETH-USDT SLP, wETH-USDC SLP, aDAI, aUSDC, and aUSDT are now live, and will continue to be available for deposits the next 3 days. Subsequently, cross-layer transfers of these tokens will open.

With our Proof of Concept (PoC) up-and-running for our cross-layer asset transferral system, Mosaic, we can now focus on expanding and improving this offering for users.

As previously announced, we reopened deposits into our layer 1 (L1) LPing vault in our PoC to support TriCrypto, the LP tokens generated on Curve Finance. Now, we are similarly reopening deposits into this vault for LP tokens generated on SushiSwap (specifically, wETH-USDT SLP and wETH-USDC SLP) as well as three of Aave’s aToken lender receipt tokens (aDAI, aUSDT, and aUSDC).

As a result, LPs can provide liquidity for cross-layer, pool-to-pool transfers of these tokens, and other users can leverage this liquidity to arbitrage SushiSwap liquidity provisioning fees and Aave interest rates between Polygon, Arbitrum, and mainnet, and between Polygon and Arbitrum, respectively.

How can you participate?

The deposit period for SushiSwap LP tokens and Aave aTokens is currently live. For the next 3 days, you will be able to deposit the previously specified aTokens and SushiSwap LP (SLP) tokens into Mosaic’s layer 1 vault. After this period, deposits in the pool will be halted so that swaps between these tokens can go live, allowing other users to port their current SushiSwap LP positions of wETH-USDT SLP and wETH-USDC SLP between Polygon, Arbitrum, and mainnet, as well as their Aave positions of aDAI, aUSDC, and aUSDT between Polygon and mainnet.

Specifically, these positions can easily be swapped between pools using the Mosaic PoC. This is depicted below, using the example of the aTokens:

Once these transfers are complete, users will be able to transact with their SLP and aTokens as normal along the layer they have moved to.

Why have we opted to include Aave aTokens and SushiSwap LP tokens?

Aave aTokens produced by this protocol are receipt tokens representing a user’s lending share stake. Aave has instances across Ethereum’s mainnet and Polygon, providing users with a reason to want to be able to move their aTokens across these layers and take advantage of the best LP opportunities on each instance of Aave. Mosaic’s swaps effectively allow for interest rate arbitrage as a result.

SushiSwap has many LP tokens from this platform that users have generated already. Further, SushiSwap has instances across Arbitrum, Polygon, and the Ethereum mainnet, prompting users to want to be able to move their LP positions across these layers, to obtain different fees associated with each pool.

Looking to the future of Mosaic:

The overarching goal for Mosaic is to enable seamless cross-layer asset transfers for all asset types and all L2s, with ample liquidity to facilitate these transactions. Thus, we first deployed our PoC for Mosaic to accept LPing and transfers of USDC across Polygon, Arbitrum, and mainnet. We are currently adding a multitude of other token types to this system, with a special focus on those that users will be most interested in transacting between these particular platforms. Subsequently, we aim to add a plethora of other L2s to Mosaic, again prioritizing those that will have the most utility to users.

We will continue to update our community as we work towards the objective of ultimate flexibility in cross-layer transactions.

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