L2 Flexible Voting

This codebase contains smart contracts that enable governance voting from Layer 2 rollups using bridged tokens. The current implementation is an MVP. These contracts have not yet been audited or deployed in production. Use at your own risk.

• About
• Architecture
• Testing
• License

About

Flexible Voting is a Governor extension that enables arbitrary voting contracts to be developed, allowing token holders to maintain their voting rights even when they deposit tokens in DeFi or any other contract.

This codebase contains smart contracts that enable governance voting from Layer 2 rollups using bridged tokens. Today, when a user deposits their governance token into a bridge, they lose access to the voting rights of that token. These contracts allow holders of bridged governance tokens to vote on Layer 2—paying the lower gas fees these networks offer—then see their votes reflected on Layer 1 in a trust minimized fashion.

The current implementation was built with a grant from the Ethereum Foundation. It is a minimum viable product, demonstrating the feasibility of such a system with a set of contracts that could be deployed in production. Please note these contracts have not yet been audited, and should be used only with caution in their current state.

Architecture

This diagram represents the architecture of the current implementation.

flowchart TD
    subgraph L1
    X(ERC20 Bridge)
    E --------> |Fetches proposal metadata|G(Governor Metadata Bridge)
    end
    subgraph L2
    A(Token holder) -->|votes| B(Vote Aggregator)
    X -------> |Bridge Token| A
    A --> |Withdraw token|X
    B --> |Read proposal metadata|F(Governor Metadata)
    G --> |Bridge proposal metadata| F
    X ---> |Cast Vote| E(Governor)
    B --> |Send message with vote distribution| X
    end

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Let's review each component individually and summarize its role in the system.

On Layer 1

• Governor - The DAO's Flexible Voting compatible governance contract.
• Governor Metadata Bridge - Contract that reads governance proposal metadata from the Governor and sends it to L2.
• ERC20 Bridge - Contract where users lock their tokens to bridge them to L2. Also receives the aggregated votes from L2 and forwards them (via Flexible Voting extension) to the Governor.

On Layer 2

• Bridged ERC20 - The delegation-enabled ERC20 voting contract the user receives on L2.
• Governor Metadata - The contract that receives governance proposal metadata sent from L1 and makes it available to the vote aggregator.
• Vote Aggregator - The contract that collects the votes of holders of the bridged governance token on L2 and forwards the aggregated votes back to L1.

Development

Foundry

This project uses Foundry. Follow these instructions to install it.

Getting started

Clone the repo

git clone [email protected]:ScopeLift/l2-flexible-voting.git
cd l2-flexible-voting

Copy the env.sample file and populate it with values

cp env.sample .env
# Open the .env file and add your values

forge install
forge build
forge test

Formatting

Formatting is done via scopelint. To install scopelint, run:

cargo install scopelint

Apply formatting

scopelint fmt

Check formatting

scopelint check

Scripts

This repository contains a series of Foundry scripts which can be used to deploy and exercise the contracts on testnets or real networks.

• WormholeL2FlexibleVotingDeploy.s.sol - Deploys all of the components needed to setup up L2 Flexible Voting.
• WormholeMintOnL2.s.sol - Calls the bridge on L1 which will call the mint function on the L2 token.
• WormholeSendProposalToL2.s.sol - Create an L1 and L2 governor metadata contract, and have the L1 contract pass a proposal to the L2 metadata contract.

While WormholeL2FlexibleVotingDeploy.s.sol can be used for production deployments, the other scripts are meant for end-to-end testing on real networks.

Deploying L2 Flexible Voting

The script used to deploy all of the components for L2 Flexible Voting is in WormholeL2FlexibleVotingDeploy.s.sol. Some environment variables that should be set when deploying to production are:

• L1_GOVERNOR_ADDRESS: The address of the Governor on Layer 1. If this is left blank a mock Governor will be deployed.
• L1_TOKEN_ADDRESS: The address of an ERC20Votes compatible token which is used by the L1 Governor. If this is left blank then a mock L1 token will be deployed.
• L1_BLOCK_ADDRESS: The address of the contract on L2 that tracks the L1 block time. If using Optimism the contract address can be found here. Other L2's like Arbitrum may use the L1 block number when calling block.number and would require a custom contract. If this is left blank we deploy a mock L1Block contract.
• CONTRACT_OWNER: The address that is used for the owner of ownable contracts. This defaults to msg.sender when blank. We recommend consulting Forge's best practices when deploying.
• L2_TOKEN_NAME: The name of the L2 token that will be deployed. If this is left blank an example name will be used.
• L2_TOKEN_SYMBOL: The symbol of the L2 token that will be deployed. If this is left blank an example symbol will be used.

We recommend filling in all of these values when deploying to production.

To deploy run the below with a preferred private key solution.

forge script script/WormholeL2FlexibleVotingDeploy.s.sol:WormholeL2FlexibleVotingDeploy --broadcast

License

This project is available under the MIT license.

Copyright (c) 2023 ScopeLift