Sponsored by GFX Labs for MiLLie

Description

Since the original proposal to introduce a 1bp fee tier last fall Discussion Adding 1 Basis Point Fee Pools in v3, there has been overwhelming data produced supporting the effectiveness of a 1bp fee tier in increasing swap volume on Uniswap.

Currently, the Uniswap 1bp fee tier is only available on Ethereum and Polygon (Polygon 1bp Fee Tier 1), but I believe there is logic to deploying the fee tier to every chain that Uniswap is deployed to, given how impactful it is on stable swap volume. Optimism makes for an excellent candidate to deploy the 1bp fee tier to next, given the recent spike in activity.

Since this result of the proposal will be executed on Optimism, the executing action needs to be forwarded to the proper target. To do that, Timelock will send the transaction to OVM_L1CrossDomainMessenger (Optimism mechanism to forward transactions from L1 to L2).

The transaction will then be sent via Optimism contracts to Uniswap’s CrossChainAccount, that is the privileged contract that can execute administrative tasks on protected contracts on L2 Optimism, and CrossChainAccount will forward the transaction, if it has the right origin, to the target Contract, in this case to UniswapV3Factory.

This proposal has been already been executed on Kovan as a test. Kovan Proposal Kovan Optimism Execution

More info can be found on the consensus check forum thread. Snapshot