Gluon aims to be a Layer 2 scalable trading engine built on top of Ethereum, unlocking low fees and high frequency trading.
Fraud proofs allow actors watching the chain to prove that the state is incorrect. Because the data is not present on chain the security of fraud proofs is severely weakened.
Proof construction and state derivation rely fully on data that is NOT published on chain.
The code that secures the system can be changed arbitrarily and without notice.
Users can force the sequencer to include a withdrawal transaction by submitting a request through L1. If the sequencer censors or is down for , users can use the exit hatch to withdraw their funds.
Users are able to trustlessly exit by submitting a Merkle proof of funds.
After some period of time, the published state root is assumed to be correct. For a certain time period, usually one week anyone can submit a fraud proof that shows that the state was incorrect.
Funds can be stolen if there is no one that checks the published state. Fraud proofs assume at least one honest and able validator.
The transaction data is stored on a plasma chain and is not recorded on the Ethereum main chain.
Funds can be lost if the external data becomes unavailable (CRITICAL).
The operator is the only entity that can propose blocks. A live and trustworthy operator is vital to the health of the system.
MEV can be extracted if the operator exploits their centralized position and frontruns user transactions.
Independent exit allows the users to escape censorship by withdrawing their funds. The system allows users to withdraw their funds by submitting a transaction directly to the contract on-chain.
Users can be censored if the operator refuses to include their transactions. However, there exists a mechanism to independently exit the system.
The user executes the withdrawal by submitting a transaction on L1 that requires a merkle proof of funds.
In case the operator is malicious all users need to exit within a predetermined time frame. Users that do not manage to do this will lose their funds.
Funds can be stolen if users are unable to withdraw in a mass exit event.
This contract stores the following tokens: ETH, DAI.
The current deployment carries some associated risks:
Funds can be stolen if a contract receives a malicious code upgrade. There is no delay on code upgrades (CRITICAL).