<aside> 👨🎓 L2 Assessment Score: 18
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Metis plans to become the first ever L2 to decentralize its sequencer, from a single-seq model to multiple node operators. Their strategy is to win as many sequencer nodes as possible with LSDs that way rather than delegating, there's a strong use case, and a great launchpad to slingshot Metis into the head of the LSD arms race. Nodes would earn a guaranteed 20% yield in Year 1 (TBD after that).
Decentralized sequencer timeline:
Metis is currently in talks with LIDO, Rocketpool, Swell, Stone, and several others to build staked ETH presence as well as staked METIS. METIS is the native gas token (it isn't on OP and Arb), so the Metis team believes there's a unique value play for top LST-related protocols to increase in value with stMETIS.
Metis is also talking to Eigen, Pendle, and others about restaking and generally optimizing the benefits of staked METIS.
⁃ The Metis Foundation has a 4.5M METIS (~$600M) grant/ecosystem fund to bring builders onchain ⁃ Metis Sequencers are launching which means LSTs are coming onchain in a big way. (Testnet currently) ⁃ Conversations ongoing with Lido, Rocketpool, Swell, Stader, etc. to not only bring over their ETH products but also Metis LSTs (Ex: stMETIS) ⁃ It will take time for sequencers to come online and fill (weeks-months) and once they do, Balancer becomes a super important piece of that ecosystem ⁃ Prove an L2 LST strategy that will be repeatable for ARB/OP/etc. ⁃ METIS circulating supply should shrink once LSTs launch which should mean extremely positive price action (Metis’ opinion). ⁃ The projects who get the first grants have the opportunity for them to be worth multiple x’s by the time others come onchain
⁃ Bal/Aura have a ton of LST relationships ⁃ Bal v3 is launching in q2 which will be a major catalyst for both ecosystems. ⁃ Top tier teams for both projects ⁃ Much more sustainable tokenomics compared to other large DEX platforms like Curve
Engage with Metis team to determine full scope of a partnership, and understand timing, dependencies, and requirements from BAL/Aura.