Proposal: Building the Future of NFTs: The Rarible Protocol - Arbitrum Integration Proposal [REVISED]

[Janabe]

This is the 2nd revision of the draft proposal by the RARI Foundation, addressing community feedback.

Abstract

The Rari Foundation is submitting a proposal to jumpstart the growth in the Arbitrum NFT ecosystem. The proposal involves integrating Arbitrum One with the open-source Rarible Protocol, which is an indexer, order book, and SDK powering NFT-based applications, which, once integrated, can be freely and easily used by the Artbitrum builders.

Motivation

The Arbitrum ecosystem is hard for independent developers to build NFT-based applications due to a lack of easy-to-use tooling and infrastructure. Without this support, the developer community will opt for other chains with more robust support for building.

Optimism vs. Arbitrum NFT stats as of July 27, 2023, indicate Arbitrum is not the first choice for the creation of NFT assets or contracts. Source NFT Scan.

The open-source Rarible Protocol is focused explicitly on the NFT use case and will enable builders to develop their next dapps choosing Arbitrum, resulting in bringing in new Arbitrum users and sequencer revenue.

The Rarible Protocol is a trusted choice as it’s community governed, has an easy-to-use API, a comprehensive SDK, and is committed to expanding its capabilities to power innovative NFT use cases. Furthermore, the Protocol is used by Rarible.com NFT marketplace, whose brand and community can be leveraged in raising awareness about Arbitrum venturing deeper into NFT tooling. Such signaling to the market will show that the Arbitrum community is serious about growing its ecosystem and flourishing NFTs. Rarible and the Rari Foundation will promote the integration in a cross-marketing push to ensure the NFT and crypto community knows that Arbitrum is serious about NFT growth. This support will consist of (and shall not be limited to):

• Regular features on Rarible.com top spotlight section (1 million MAU)
• Dedicated social support for the launch on Rarible’s and Rari Foundation’s owned channels (Twitter, Instagram, Discord, 800k+ followers combined)
• Email blasts for the integration (500k+ subscribers)
• Leveraging Rarible’s and Rari Foundation’s press relations
• Potentially a hackathon

This proposal is being submitted outside of the pending grants framework in order to implement the integration asap, as waiting for the grants framework would result in significant implementation delays. As such, the Arbitrum DAO has an opportunity to express its willingness to incentivize ecosystem growth via strategic partnerships.

Rationale

The proposed AIP aligns with the Arbitrum community’s mission and guiding values by enhancing the utility, scalability, and inclusivity of the Arbitrum network. The Rarible Protocol, a decentralized toolset for NFT applications, is open-source and free, mirroring Arbitrum’s commitment to technical inclusivity and neutrality.

By integrating Arbitrum One into the Rarible Protocol, we empower developers to create more complex and innovative applications on Arbitrum. This integration increases accessibility to real-time and historical Arbitrum blockchain data, aligning closely with Arbitrum’s commitment to user-centricity and technical inclusivity.

Key Terms

The Rari Foundation: The legal entity for the Rari DAO community that is in possession of $RARI Treasury and on the path of possession of the Rarible Protocol

Rarible Inc.: A leading NFT marketplace that allows users to mint, buy, and sell NFTs. One of the applications using the Rarible Protocol.

Rarible Protocol: Open-source, free-to-use, community-governed Protocol (which includes an SDK, indexer, and order book) for the creation, transaction, and distribution of NFTs.

Rarible SDK: A part of the Rarible Protocol that provides a set of tools for developers to interact with multiple blockchains

A few notes on the Rarible Protocol:

• It is an open-source, EVM-based SDK and multichain indexer that currently powers 4,000+ NFT marketplaces (including Rarible.com), and a series of non-marketplace-based applications (like wallets and NFT analytics services - see more use cases here).

• Designed as a set of building blocks, the Rarible protocol empowers the creation of fully customized NFT experiences of any level and complexity. ️

• API access is lightning-fast, unified, and comprehensive. You gain seamless access to NFT Items, Collections, Activities, and NFT Metadata across multiple blockchains, including ETH, POL, IMX, FLOW, and TEZ, to name a few —all consolidated within a single endpoint.

• The Protocol’s indexer is the fastest on the market. It retrieves blockchain data through fast APIs, eliminating the need for your own indexer and reducing costs associated with maintaining Blockchain Nodes.

• User-friendly SDK allows you to connect wallets seamlessly, mint NFTs, put them up for sale, purchase NFTs, showcase collections, and so much more. The Protocol is the feature-rich product on the market (you can do anything NFT related on our Protocol).

• Comprehensive Marketplace Support: Our platform offers unrivaled support for various marketplaces, providing access to aggregated order books from major platforms like OS, LR, X2Y2, Sudoswap, and Tezos, so you can ensure your users have access to the most competitive listings in the market.

• Cutting-Edge NFT API Integration: We pride ourselves on providing the best NFT API support, seamlessly integrating with popular communication tools such as Discord, Zendesk, VIP support, Slack, and TG.

• Powerful Analytics Capabilities: Our platform boasts best-in-class analytics tools, including OLAP statistics and floor price analysis, empowering users with valuable insights into market trends and performance.

• Unmatched Reliability: We maintain the highest level of reliability, ensuring a remarkable 99.99% uptime for our Protocol, making us the most dependable choice in the market.

Specifications

Below is a detailed breakdown of how the integration will take place and the platforms and technologies that will be used.

Rarible Protocol: Integrating Arbitrum One

The Rarible Protocol is a decentralized toolset that allows developers to build NFT applications. It includes smart contracts, an indexer, an SDK, and APIs. The integration of Arbitrum One into the Rarible Protocol will extend these capabilities to the Arbitrum ecosystem, enhancing its utility and inclusivity.

• Rarible Arbitrum SDK
  • The Rarible SDK will expedite Arbitrum application development. By extending the SDK to support Arbitrum One, we will provide developers with tools for interacting with smart contracts, supporting NFT operations like minting, transferring, and burning, and integrating with multiple wallets.
• Rarible Orderbook & Smart Contracts
  • Our contracts, specifically the Rarible Exchange V2, will be deployed to the Arbitrum chain, granting access to our off-chain order book. Certain actions, such as canceling, confirming, updating, or when price changes occur, are on-chain, but orders are created off-chain.
• Rarible Public API
  • With the integration of Arbitrum One, the API will offer extended support for these chains, allowing developers to easily access and interact with NFT data on Arbitrum.
• Rarible Arbitrum Indexer
  • Rarible’s multichain indexer will be able to track and record NFT events on Arbitrum, providing developers with a comprehensive view of NFT activities on Arbitrum.

Steps to Implement

Arbitrum One integration into Rarible Protocol

The first key milestone will be integrating Arbitrum into the Rarible Protocol, which will set the foundation for future milestones involving building NFT applications on Arbitrum.

Tasks: Integration of Arbitrum One chain into Rarible Protocol

• Arbitrum API Integration: This task involves integrating the Arbitrum API into the Rarible Protocol API to support Arbitrum One.
• Node Preparation: A separate node for Arbitrum will be set up for rapid indexing upon approval
• Contract Deployment: The Rarible Shared NFT, Rarible Factory (for creating collections), and Rarible ExchangeV2 contracts will be deployed to Arbitrum for users to interact with.
• Orderbook: Rarible’s order book will be able to store listings, orders, and bids made with the Protocol
• Arbitrum Indexer: Index NFT contracts, ERC-721/1155, ERC-20 tokens, Exchange orders & bids (from Seaport & Rarible).
• Arbitrum support on Rarible Multichain SDK: This involves adding a new blockchain, connectors to wallets, and ensuring functionality similar to ETH/Polygon.
• Debugging and Testing: General debugging of all components will be conducted, along with testing on production with OpenSea orders.
• Build Testnet for Arbitrum: An additional environment for the testnet will be set up, including indexing, reindexing, etc.

Timeline

The tentative timeline consists of 7 weeks, 5 of which are the integration phase. If the proposal is approved by early September 2023, the project implementation can be executed in early Q4 2023.

Overall Cost

As the integration of the Rarible Protocol and Arbitrum will benefit both ecosystems, we are offering to split the Rarible Protocol integration costs between our two parties with an equal share.

Integration of Arbitrum One into the Rarible Protocol

Duration: 5 Weeks

Costs: 200,000 $ (Artibtrum portion = 100,000 $)

Payment terms:

1. 50% payable upon proposal approval
2. 50% payable upon completion

The amount is payable in USDC or ETH.

Note that the Rari Foundation will absorb costs related to the service and maintenance of the Protocol upkeep after the integration implementation.

[Frisson]

As an Arbitrum delegate, I support this proposal.

While Arbitrum remains the leader in the L2 space, Optimism is making strong headway. In particular, Optimism is emerging as the preferred stack for developers. Arbitrum has to respond. This proposal from RARI Foundation will improve developer infrastructure for NFTs in the Arbitrum ecosystem, thus improving the overall developer experience on Arbitrum. $100,000 is a fair price to pay for this NFT developer toolset, and I appreciate the RARI Foundation’s willingness to engage and incorporate delegate feedback.

In my opinion, it is important we signal to Ethereum developers that the Arbitrum DAO is excited to fund meaningful projects that enhance the Arbitrum ecosystem. Funding this proposal would be a strong step in this direction.

[Jon_Beat]

Looking forward to the integration of classic protocol to Arb eco.

[xamoseg]

What chains is Rarible currently deployed on? Out of those, which ones did you receive grants from?

Would be good to see the level of adoption and user activity you have achieved on other chains.

[Soby]

As an Arbitrum delegate, I support this proposal but also have a few questions and some feedback.

Questions: What other EVM chains is Rarible integrated with? Can you share analytics with regards to the Marketplace and protocol on these other chains?

Feedback: I think the token swap bit should be cut from the proposal. $50,000 isn’t meaningful for either DAO. The Arbitrum DAO is rather large, such a small token allocation wouldn’t make it meaningful for the DAO to participate in Rarible governance.

[Janabe]

Thanks for the comment! The Rarible Protocol supports ETH, POL, Tezos, FLOW, IMX (more details here). We have not applied for grants previously, as these integrations were part of enterprise agreements.

Regarding the level of adoption and user activity on other chains, we’ll get back to you with the latest stats. Stay tuned!

[Janabe]

Thanks for the feedback, Soby!

The Rarible Protocol supports ETH, POL, Tezos, FLOW, IMX. We can pull the latest Marketplace and protocol analytics - is there anything you’d like us to include, in particular?

The token swap is optional and can be taken out if not of interest to the DAO.

[menaskop]

I think the idea is quite sound. I did a tutorial on minting NFTs on Arbitrum not too long ago: if you expand the potential number of users through the marketplace, the idea is a good one. Especially since OpenSea has obviously been having some problems lately and constantly crashing, if not the Ethereum. Besides, NFT 2.0 and programmable assets are the future (almost here) and Arbitrum should definitely participate in it.

[DisruptionJoe]

As a delegate, I am in support of this proposal. I do see a few issues that might hurt it’s chances of passing, but my opinion is that the DAO can take some risks early before a proper grants framework is in place. We can’t let perfect be the enemy of good.

Here are some of the issues:

Size of the proposal makes it difficult to gain the delegates attention

Even if it is a good proposal, delegates should be managing an ecosystem and aren’t likely to have the time and attention for this size proposal.

50k Governance allocation

Soby says it right here:

@Soby

Feedback: I think the token swap bit should be cut from the proposal. $50,000 isn’t meaningful for either DAO. The Arbitrum DAO is rather large, such a small token allocation wouldn’t make it meaningful for the DAO to participate in Rarible governance.

Next steps

I’d encourage you to put this to snapshot. It is worth seeing how the DAO responds. It is likely it will have trouble hitting quorum, but we will learn together. I think the DAO will appreciate your effort and it will speak volumes when looking for the opportunity once the grant programs are up and running.

[yahras]

excellent, I support this project

[Janabe]

Thank you for this feedback. We’ll take out the token swap and are excited to go on Snapshot!

[Janabe]

Following up on the data request:

We looked into pulling stats to assess the activity on the Rarible Protocol across different chains as well as on the marketplaces built with the Protocol. Only recently, we established optional API keys and have been tracking ~0.4bn API monthly calls - we haven’t been tracking these by chain, however. Where we have insights into activity on different chains are the marketplaces. These are not an exhaustive use of the Protocol (which supports other applications such as data analytics, bots, wallets etc.), but to give a sense of scale for the marketplaces (Rarible.com + community marketplaces), there are ~935k MAU and ~90k MAUW, where for example, Polygon tracks ~69k monthly average unique sellers\buyers\minters.

[Janabe]

In case anyone wishes to review the proposal in more detail or discuss their feedback live, please join us in an open review call:

Open call: Rarible Protocol <> Arbitrum proposal review
Friday, August 4 · 12:30 – 1:00pm
Time zone: America/New_York
Google Meet joining info
Video call link: https://meet.google.com/dhq-ftuc-vxx
Or dial: ‪(US) +1 805-946-0563‬ PIN: ‪823 288 839‬#
More phone numbers: https://tel.meet/dhq-ftuc-vxx?pin=5403981090901

[jengajojo]

Thank you Rarible for submitting a revised proposal.

• In order to ensure long term alignment I suggest the ask to be funded (atleast partially if not completely) with vested tokens.
• The token swap idea should be a separate proposal and not be mixed with this grant request

[Janabe]

Hi Jenga,

Thanks for the feedback! We’ll take the token swap out of the proposal as we’ve heard from a few delegates now that the swap would not be meaningful to the Arbitrum community.

Re ensuring long-term alignment, we have proposed to absorb 50% of the costs and will service and maintain the Protocol upkeep after the integration implementation. The requested funding will be used on salaries, and as such, we’d prefer a liquid form of payment - we can have the amount paid in ETH if that’s preferred.

[Insider]

I understand the long-term alignment to absorb the cost.
The funding on salaries and a liquid form of payment.

For made a constructive mindset , this interaction may help

Building PROOF: A conversation with Kevin Rose and Chris Dixon

imo lot of subscription models can be explore

[jengajojo]

Thanks for the update @Janabe

@Janabe

service and maintain the Protocol upkeep after the integration implementation

it would be great to have this language in the proposal.

[Usain]

@menaskop
In the name and the fabric itself of decentralization.
i agree with you.

[Janabe]

great build - thanks @jengajojo

[Janabe]

Thanks, everyone, for your input! The above proposal has been updated with new content to reflect the received feedback. We’ll join the community call to answer any last questions and we’re ready to progress to a Snapshot vote.