FAQ : Why bring $MAG to Base?

Rizzo

• 1 min read

1. Why have $MAG on Base as well as Ethereum?

$MAG on Base allows us to leverage a cheaper, more scalable Layer 2 (L2) network. With lower transaction costs and a broader user base, Base opens the door for:

  • Increased Volume: More affordable transactions encourage participation, leading to higher trading activity.
  • Price Arbitrage: If $MAG pumps on Base, the demand affects Ethereum $MAG as well due to the 1:1 peg, creating opportunities for arbitrage.
  • More Users: Base’s lower costs attract more participants, driving interest in $MAG and boosting overall liquidity.

2. How are $MAG tokens bridged between Ethereum and Base?

We use LayerZero, a highly trusted bridging solution:

  • When $MAG moves from Ethereum to Base: Tokens on Ethereum are locked in a contract, and an equivalent supply is minted on Base.
  • When $MAG moves back to Ethereum: Tokens on Base are burned, and the locked tokens are unlocked on Ethereum.

This ensures the total supply across both chains remains the same.

3. Does the total supply of $MAG increase with this bridge?

No, the total supply of $MAG will only ever be 880 million. The distribution adjusts between the two networks:

  • If 440 million $MAG circulates on Ethereum, only 440 million $MAG can circulate on Base.

4. Why does Ethereum $MAG have higher gas fees than Base $MAG?

Ethereum is a more expensive network to transact on due to its higher gas fees. Base, as a Layer 2 network, offers significantly cheaper fees, making it accessible to more users and increasing trading activity.

5. What happens to liquidity when $MAG is on Base?

Liquidity on Ethereum stays locked in its pool, unaffected by the bridging process. A separate liquidity pool is established on Base to support trading activity there.

6. How does this setup benefit $MAG holders?

  • Increased Trading Volume: Lower costs on Base attract more users and trading activity, boosting interest in $MAG.
  • Arbitrage Opportunities: Price movements on Base and Ethereum create chances for arbitrage, benefiting active traders.
  • Sustained Scarcity: The total $MAG supply remains fixed, maintaining its value across both networks.

7. What’s next for $MAG liquidity on Base?

We’re working with partners like ApeBond to raise liquidity on Base, ensuring robust trading support. This strategic move is part of a well-thought-out plan to grow the $MAG ecosystem.

By bridging $MAG to Base, we’re expanding access, reducing costs, and creating new opportunities for our community while maintaining the integrity of the token supply.