Pascal Chain
Pascal Protocol has successfully migrated to Arbitrum Orbit. By implementing a L3 solution built on Arbitrum's proven technology stack, Pascal addresses critical limitations of previous implementation
Key Innovations
Protocol's migration to Arbitrum Orbit represents a significant advancement in decentralised financial infrastructure and introduces several architectural innovations:
Smart Contract size expansion from 24KB to 96KB, enabling complex trading instruments;
Gas cost reduction of 500-1000x compared to previous implementations
Dedicated computational resources with predictable performance characteristics
Retained value circulation within the ecosystem through fee recapture mechanics
Architectural Overview
Arbitrum One Components (L2)
ATM Contract serves as the custodial interface for all user USDC funds.
Processes cross-chain messaging for secure fund transfers.
Handles CCTP (Cross-Chain Transfer Protocol) integration.
Functions as a stateless proxy, forwarding operations to the Orbit chain.
Gas Token Contract implements an ERC-20 token with 1:1 peg to USDC
Provides 18 decimal precision (versus USDC's 6 decimals) for fine-tuned gas pricing.
Enables controlled supply distribution through allowlist mechanisms.
Facilitates bidirectional conversion between USDC and Gas Token.
Pascal Orbit Chain Components (L3)
The Orbit chain houses core protocol functionality:
Pascal Router: The central smart contract managing all protocol operations
State Management: Maintains all user balances, orders, positions, and platform configurations
Trading Logic: Handles order creation, matching, and settlement
Advanced Features: Implements options trading and other financial instruments requiring larger contract sizes
Cross-Chain Communication Protocol
L2→L3 Messaging (Deposits)
The user initiates a deposit on Arbitrum One by calling the ATM contract
USDC is transferred from the user to the ATM contract
The ATM contract creates a cross-chain message (L2→L3 ticket)
Gas for L3 execution is prepaid on L2 in ETH
The message is processed on the Orbit chain, updating the user's balance
Any excess gas is refunded to a designated address
L3→L2 Messaging (Withdrawals)
The user initiates a withdrawal on the Orbit chain
The Orbit contract updates the user's balance and creates a cross-chain message (L3→L2 ticket)
After the assertion period (configured with AnyTrust fast withdrawals)
The ticket is executed on Arbitrum One, releasing USDC from the ATM contract to the user
For CCTP withdrawals, the process continues with burning USDC on Arbitrum One and minting on the destination chain
Governance and Control
The architecture provides Pascal Protocol with significant control over the chain while maintaining necessary security properties:
Chain Configuration: Pascal can set parameters like gas pricing and block time
Protocol Upgrades: Simplified deployment and upgrade paths for smart contracts
Gas Token Management: Control over gas token distribution and economics
Transaction Prioritization: Ability to allocate the 7M gas per second budget according to protocol needs
Conclusion
By implementing a dual-chain architecture with optimised gas economics, Pascal delivers exceptional performance, reduced costs, and expanded functionality while maintaining robust security guarantees.
Through this architecture, Pascal establishes a foundation for continuous innovation in decentralised derivatives trading while capturing economic efficiencies that benefit all ecosystem participants.
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