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Mainnet Swap Workflow Analysis: USDS & TSLAon

This document analyzes the swap workflow for Chain 1 (Ethereum Mainnet), specifically for the proposal "Will Tesla shareholders approve the 2025 CEO Performance Award?".

Scenario:

  • User: Has 100 USDS on Mainnet.
  • Goal: Buy YES_TSLAon (Long Tesla).
  • Chain: Ethereum Mainnet (1).

1. Key Differences: Mainnet vs. Gnosis

Feature Gnosis Chain (100) Ethereum Mainnet (1)
Base Token sDAI / xDAI USDS (0xdC03...)
Swap Router SushiSwap V3 / Algebra Universal Router (0x66a9...)
Approvals (Swap) Standard ERC20 Permit2 (0x000...BA3)
Approvals (Split) Standard ERC20 Standard ERC20
Gas Costs Low (< $0.01) High ($5 - $50+)

2. Contract Addresses (Mainnet)

Based on the provided proposal data:

  • Futarchy Router: 0xAc9Bf8EbA6Bd31f8E8c76f8E8B2AAd0BD93f98Dc
  • Universal Router: 0x66a9893cc07d91d95644aedd05d03f95e1dba8af (Standard Mainnet Deployment)
  • Permit2: 0x000000000022D473030F116dDEE9F6B43aC78BA3

Tokens:

  • Base (USDS): 0xdC035D45d973E3EC169d2276DDab16f1e407384F
  • Split (YES_USDS): 0x87f94FaBA3e8FD5fbb9f49F7e9Ab24E8fC6E7B7E
  • Target (YES_TSLAon): 0x192e4580d85dc767F81F8AD02428F042E3c1074e

3. Step-by-Step Workflow

Step 1: The Split (Standard ERC20)

The user holds USDS and needs YES_USDS to swap. This interaction happens with the Futarchy Router.

  1. Approve USDS:

    • Call: USDS.approve(FutarchyRouter, Amount)
    • Why: The Futarchy Router needs permission to pull USDS to split it.
    • Note: This is a standard ERC20 approval, NOT Permit2. FutarchyCartridge.js uses standard approve.

  2. Split Position:

    • Call: FutarchyRouter.splitPosition(Proposal, USDS, Amount)
    • Result: User sends 100 USDS -> Receives 100 YES_USDS + 100 NO_USDS.

Step 2: The Swap (Permit2 + Universal Router)

Now the user holds YES_USDS and wants to swap for YES_TSLAon. This interaction uses the Universal Router via uniswapSdk.js.

  1. Approve YES_USDS to Permit2:

    • Call: YES_USDS.approve(Permit2, MaxUint)
    • Why: Universal Router uses Permit2 for token transfers. The user must first allow Permit2 to control their YES_USDS.
    • Frequency: One-time per token.

  2. Permit2 Signature / Allowance:

    • Call: Permit2.approve(YES_USDS, UniversalRouter, Amount, Expiration)
    • Why: This authorizes the Universal Router to pull the specific amount from the user via Permit2.

  3. Execute Swap:

    • Call: UniversalRouter.execute(Commands, Inputs)
    • Commands: V3_SWAP_EXACT_IN (0x00) + SWEEP (0x04).
    • Path: YES_USDS -> [Fee] -> YES_TSLAon.
    • Result: User sends 100 YES_USDS -> Receives ~95 YES_TSLAon.

4. Technical Analysis: Why this works on Chain 1

The architecture is designed to be chain-agnostic regarding the Futarchy logic, while adapting the Swap logic to the chain's best-in-class DEX.

  1. FutarchySDK (FutarchyCartridge.js):

    • Uses standard viem / ethers contract calls.
    • splitPosition and mergePositions are standard contract interactions that work identically on Gnosis and Mainnet, provided the FutarchyRouter is deployed (which it is: 0xAc9B...).

  2. UniswapSDK (uniswapSdk.js):

    • Specifically checks chainId.
    • If chainId === 1 (Mainnet), it defaults to using the Universal Router and Permit2 flow.
    • It handles the extra complexity of Permit2 approvals automatically (checking allowance -> approving Permit2 -> approving Router).

  3. Gas Optimization:

    • On Mainnet, Permit2 allows for batched approvals and signature-based permissions, which can save gas compared to multiple standard approvals if used correctly (though the initial setup requires an on-chain approval).
    • The UniversalRouter allows executing multiple commands (Swap + Sweep) in a single transaction.

5. Conclusion

Yes, the system is fully capable of handling Chain 1 (Mainnet). The key distinction is the Swap step:

  • Gnosis: Uses SushiSwap/Algebra (Standard Approvals).
  • Mainnet: Uses Universal Router (Permit2 Flow).

The Split/Merge logic remains consistent (Standard Approvals) across both chains.