diff --git a/script/DeployL2XPufETH.s.sol b/script/DeployL2XPufETH.s.sol
new file mode 100644
index 0000000..6a3845c
--- /dev/null
+++ b/script/DeployL2XPufETH.s.sol
@@ -0,0 +1,61 @@
+// SPDX-License-Identifier: GPL-3.0
+pragma solidity >=0.8.0 <0.9.0;
+
+import { stdJson } from "forge-std/StdJson.sol";
+import { BaseScript } from ".//BaseScript.s.sol";
+import { XERC20PufferVault } from "../src/l2/XERC20PufferVault.sol";
+import { UUPSUpgradeable } from "@openzeppelin-contracts-upgradeable/proxy/utils/UUPSUpgradeable.sol";
+import { Initializable } from "openzeppelin/proxy/utils/Initializable.sol";
+import { NoImplementation } from "../src/NoImplementation.sol";
+import { Timelock } from "../src/Timelock.sol";
+import { ERC1967Proxy } from "openzeppelin/proxy/ERC1967/ERC1967Proxy.sol";
+import { AccessManager } from "openzeppelin/access/manager/AccessManager.sol";
+
+/**
+ * @title DeployL2XPufETH
+ * @author Puffer Finance
+ * @notice Deploy XPufETH
+ * @dev
+ *
+ *
+ *         NOTE:
+ *
+ *         If you ran the deployment script, but did not `--broadcast` the transaction, it will still update your local chainId-deployment.json file.
+ *         Other scripts will fail because addresses will be updated in deployments file, but the deployment never happened.
+ *
+ *         BaseScript.sol holds the private key logic, if you don't have `PK` ENV variable, it will use the default one PK from `makeAddr("pufferDeployer")`
+ *
+ *         PK=${deployer_pk} forge script script/DeployL2XPufETH.s.sol:DeployL2XPufETH -vvvv --rpc-url=... --broadcast
+ */
+contract DeployL2XPufETH is BaseScript {
+    address operationsMultisig = vm.envOr("OPERATIONS_MULTISIG", makeAddr("operationsMultisig"));
+    address pauserMultisig = vm.envOr("PAUSER_MULTISIG", makeAddr("pauserMultisig"));
+    address communityMultisig = vm.envOr("COMMUNITY_MULTISIG", makeAddr("communityMultisig"));
+
+    function run() public broadcast {
+        AccessManager accessManager = new AccessManager(_broadcaster);
+
+        Timelock timelock = new Timelock({
+            accessManager: address(accessManager),
+            communityMultisig: communityMultisig,
+            operationsMultisig: operationsMultisig,
+            pauser: pauserMultisig,
+            initialDelay: 7 days + 1
+        });
+
+        address noImpl = address(new NoImplementation());
+
+        bytes32 xPufETHSalt = bytes32("xPufETH");
+
+        ERC1967Proxy xPufETH = new ERC1967Proxy{ salt: xPufETHSalt }(noImpl, "");
+        vm.label(address(xPufETH), "xPufETH");
+
+        XERC20PufferVault newImplementation = new XERC20PufferVault();
+
+        vm.expectEmit(true, true, true, true);
+        emit Initializable.Initialized(1);
+        NoImplementation(payable(address(xPufETH))).upgradeToAndCall(
+            address(newImplementation), abi.encodeCall(XERC20PufferVault.initialize, (address(accessManager)))
+        );
+    }
+}
diff --git a/src/l2/XERC20PufferVault.sol b/src/l2/XERC20PufferVault.sol
new file mode 100644
index 0000000..a22b1e1
--- /dev/null
+++ b/src/l2/XERC20PufferVault.sol
@@ -0,0 +1,285 @@
+// SPDX-License-Identifier: UNLICENSED
+pragma solidity >=0.8.4 <0.9.0;
+
+import { IXERC20 } from "./interface/IXERC20.sol";
+import { UUPSUpgradeable } from "@openzeppelin-contracts-upgradeable/proxy/utils/UUPSUpgradeable.sol";
+import { AccessManagedUpgradeable } from
+    "@openzeppelin-contracts-upgradeable/access/manager/AccessManagedUpgradeable.sol";
+import { ERC20PermitUpgradeable } from
+    "@openzeppelin-contracts-upgradeable/token/ERC20/extensions/ERC20PermitUpgradeable.sol";
+
+contract XERC20PufferVault is IXERC20, AccessManagedUpgradeable, ERC20PermitUpgradeable, UUPSUpgradeable {
+    /**
+     * @notice The duration it takes for the limits to fully replenish
+     */
+    uint256 private constant _DURATION = 1 days;
+
+    /**
+     * @notice The address of the lockbox contract
+     */
+    address public lockbox;
+
+    /**
+     * @notice Maps bridge address to bridge configurations
+     */
+    mapping(address => Bridge) public bridges;
+
+    constructor() {
+        _disableInitializers();
+    }
+
+    function initialize(address accessManager) public initializer {
+        __AccessManaged_init(accessManager);
+        __ERC20_init("xPufETH", "xPufETH");
+        __ERC20Permit_init("xPufETH");
+    }
+
+    /**
+     * @notice Mints tokens for a user
+     * @dev Can only be called by a bridge
+     * @param _user The address of the user who needs tokens minted
+     * @param _amount The amount of tokens being minted
+     */
+    function mint(address _user, uint256 _amount) public {
+        _mintWithCaller(msg.sender, _user, _amount);
+    }
+
+    /**
+     * @notice Burns tokens for a user
+     * @dev Can only be called by a bridge
+     * @param _user The address of the user who needs tokens burned
+     * @param _amount The amount of tokens being burned
+     */
+    function burn(address _user, uint256 _amount) public {
+        if (msg.sender != _user) {
+            _spendAllowance(_user, msg.sender, _amount);
+        }
+
+        _burnWithCaller(msg.sender, _user, _amount);
+    }
+
+    /**
+     * @notice Sets the lockbox address
+     *
+     * @param _lockbox The address of the lockbox
+     */
+    function setLockbox(address _lockbox) public restricted {
+        // if (msg.sender != FACTORY) revert IXERC20_NotFactory();
+        lockbox = _lockbox;
+
+        emit LockboxSet(_lockbox);
+    }
+
+    /**
+     * @notice Updates the limits of any bridge
+     * @dev Can only be called by the owner
+     * @param _mintingLimit The updated minting limit we are setting to the bridge
+     * @param _burningLimit The updated burning limit we are setting to the bridge
+     * @param _bridge The address of the bridge we are setting the limits too
+     */
+    function setLimits(address _bridge, uint256 _mintingLimit, uint256 _burningLimit) external restricted {
+        if (_mintingLimit > (type(uint256).max / 2) || _burningLimit > (type(uint256).max / 2)) {
+            revert IXERC20_LimitsTooHigh();
+        }
+
+        _changeMinterLimit(_bridge, _mintingLimit);
+        _changeBurnerLimit(_bridge, _burningLimit);
+        emit BridgeLimitsSet(_mintingLimit, _burningLimit, _bridge);
+    }
+
+    /**
+     * @notice Returns the max limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function mintingMaxLimitOf(address _bridge) public view returns (uint256 _limit) {
+        _limit = bridges[_bridge].minterParams.maxLimit;
+    }
+
+    /**
+     * @notice Returns the max limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function burningMaxLimitOf(address _bridge) public view returns (uint256 _limit) {
+        _limit = bridges[_bridge].burnerParams.maxLimit;
+    }
+
+    /**
+     * @notice Returns the current limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function mintingCurrentLimitOf(address _bridge) public view returns (uint256 _limit) {
+        _limit = _getCurrentLimit(
+            bridges[_bridge].minterParams.currentLimit,
+            bridges[_bridge].minterParams.maxLimit,
+            bridges[_bridge].minterParams.timestamp,
+            bridges[_bridge].minterParams.ratePerSecond
+        );
+    }
+
+    /**
+     * @notice Returns the current limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function burningCurrentLimitOf(address _bridge) public view returns (uint256 _limit) {
+        _limit = _getCurrentLimit(
+            bridges[_bridge].burnerParams.currentLimit,
+            bridges[_bridge].burnerParams.maxLimit,
+            bridges[_bridge].burnerParams.timestamp,
+            bridges[_bridge].burnerParams.ratePerSecond
+        );
+    }
+
+    /**
+     * @notice Uses the limit of any bridge
+     * @param _bridge The address of the bridge who is being changed
+     * @param _change The change in the limit
+     */
+    function _useMinterLimits(address _bridge, uint256 _change) internal {
+        uint256 _currentLimit = mintingCurrentLimitOf(_bridge);
+        bridges[_bridge].minterParams.timestamp = block.timestamp;
+        bridges[_bridge].minterParams.currentLimit = _currentLimit - _change;
+    }
+
+    /**
+     * @notice Uses the limit of any bridge
+     * @param _bridge The address of the bridge who is being changed
+     * @param _change The change in the limit
+     */
+    function _useBurnerLimits(address _bridge, uint256 _change) internal {
+        uint256 _currentLimit = burningCurrentLimitOf(_bridge);
+        bridges[_bridge].burnerParams.timestamp = block.timestamp;
+        bridges[_bridge].burnerParams.currentLimit = _currentLimit - _change;
+    }
+
+    /**
+     * @notice Updates the limit of any bridge
+     * @dev Can only be called by the owner
+     * @param _bridge The address of the bridge we are setting the limit too
+     * @param _limit The updated limit we are setting to the bridge
+     */
+    function _changeMinterLimit(address _bridge, uint256 _limit) internal {
+        uint256 _oldLimit = bridges[_bridge].minterParams.maxLimit;
+        uint256 _currentLimit = mintingCurrentLimitOf(_bridge);
+        bridges[_bridge].minterParams.maxLimit = _limit;
+
+        bridges[_bridge].minterParams.currentLimit = _calculateNewCurrentLimit(_limit, _oldLimit, _currentLimit);
+
+        bridges[_bridge].minterParams.ratePerSecond = _limit / _DURATION;
+        bridges[_bridge].minterParams.timestamp = block.timestamp;
+    }
+
+    /**
+     * @notice Updates the limit of any bridge
+     * @dev Can only be called by the owner
+     * @param _bridge The address of the bridge we are setting the limit too
+     * @param _limit The updated limit we are setting to the bridge
+     */
+    function _changeBurnerLimit(address _bridge, uint256 _limit) internal {
+        uint256 _oldLimit = bridges[_bridge].burnerParams.maxLimit;
+        uint256 _currentLimit = burningCurrentLimitOf(_bridge);
+        bridges[_bridge].burnerParams.maxLimit = _limit;
+
+        bridges[_bridge].burnerParams.currentLimit = _calculateNewCurrentLimit(_limit, _oldLimit, _currentLimit);
+
+        bridges[_bridge].burnerParams.ratePerSecond = _limit / _DURATION;
+        bridges[_bridge].burnerParams.timestamp = block.timestamp;
+    }
+
+    /**
+     * @notice Updates the current limit
+     *
+     * @param _limit The new limit
+     * @param _oldLimit The old limit
+     * @param _currentLimit The current limit
+     * @return _newCurrentLimit The new current limit
+     */
+    function _calculateNewCurrentLimit(uint256 _limit, uint256 _oldLimit, uint256 _currentLimit)
+        internal
+        pure
+        returns (uint256 _newCurrentLimit)
+    {
+        uint256 _difference;
+
+        if (_oldLimit > _limit) {
+            _difference = _oldLimit - _limit;
+            _newCurrentLimit = _currentLimit > _difference ? _currentLimit - _difference : 0;
+        } else {
+            _difference = _limit - _oldLimit;
+            _newCurrentLimit = _currentLimit + _difference;
+        }
+    }
+
+    /**
+     * @notice Gets the current limit
+     *
+     * @param _currentLimit The current limit
+     * @param _maxLimit The max limit
+     * @param _timestamp The timestamp of the last update
+     * @param _ratePerSecond The rate per second
+     * @return _limit The current limit
+     */
+    function _getCurrentLimit(uint256 _currentLimit, uint256 _maxLimit, uint256 _timestamp, uint256 _ratePerSecond)
+        internal
+        view
+        returns (uint256 _limit)
+    {
+        _limit = _currentLimit;
+        if (_limit == _maxLimit) {
+            return _limit;
+        } else if (_timestamp + _DURATION <= block.timestamp) {
+            _limit = _maxLimit;
+        } else if (_timestamp + _DURATION > block.timestamp) {
+            uint256 _timePassed = block.timestamp - _timestamp;
+            uint256 _calculatedLimit = _limit + (_timePassed * _ratePerSecond);
+            _limit = _calculatedLimit > _maxLimit ? _maxLimit : _calculatedLimit;
+        }
+    }
+
+    /**
+     * @notice Internal function for burning tokens
+     *
+     * @param _caller The caller address
+     * @param _user The user address
+     * @param _amount The amount to burn
+     */
+    function _burnWithCaller(address _caller, address _user, uint256 _amount) internal {
+        if (_caller != lockbox) {
+            uint256 _currentLimit = burningCurrentLimitOf(_caller);
+            if (_currentLimit < _amount) revert IXERC20_NotHighEnoughLimits();
+            _useBurnerLimits(_caller, _amount);
+        }
+        _burn(_user, _amount);
+    }
+
+    /**
+     * @notice Internal function for minting tokens
+     *
+     * @param _caller The caller address
+     * @param _user The user address
+     * @param _amount The amount to mint
+     */
+    function _mintWithCaller(address _caller, address _user, uint256 _amount) internal {
+        if (_caller != lockbox) {
+            uint256 _currentLimit = mintingCurrentLimitOf(_caller);
+            if (_currentLimit < _amount) revert IXERC20_NotHighEnoughLimits();
+            _useMinterLimits(_caller, _amount);
+        }
+        _mint(_user, _amount);
+    }
+
+    /**
+     * @dev Authorizes an upgrade to a new implementation
+     * Restricted access
+     * @param newImplementation The address of the new implementation
+     */
+    // slither-disable-next-line dead-code
+    function _authorizeUpgrade(address newImplementation) internal virtual override restricted { }
+}
diff --git a/src/l2/interface/IXERC20.sol b/src/l2/interface/IXERC20.sol
new file mode 100644
index 0000000..4d4b4e5
--- /dev/null
+++ b/src/l2/interface/IXERC20.sol
@@ -0,0 +1,125 @@
+// SPDX-License-Identifier: UNLICENSED
+pragma solidity >=0.8.4 <0.9.0;
+
+interface IXERC20 {
+    /**
+     * @notice Emits when a lockbox is set
+     *
+     * @param _lockbox The address of the lockbox
+     */
+    event LockboxSet(address _lockbox);
+
+    /**
+     * @notice Emits when a limit is set
+     *
+     * @param _mintingLimit The updated minting limit we are setting to the bridge
+     * @param _burningLimit The updated burning limit we are setting to the bridge
+     * @param _bridge The address of the bridge we are setting the limit too
+     */
+    event BridgeLimitsSet(uint256 _mintingLimit, uint256 _burningLimit, address indexed _bridge);
+
+    /**
+     * @notice Reverts when a user with too low of a limit tries to call mint/burn
+     */
+    error IXERC20_NotHighEnoughLimits();
+
+    /**
+     * @notice Reverts when caller is not the factory
+     */
+    error IXERC20_NotFactory();
+
+    /**
+     * @notice Reverts when limits are too high
+     */
+    error IXERC20_LimitsTooHigh();
+
+    /**
+     * @notice Contains the full minting and burning data for a particular bridge
+     *
+     * @param minterParams The minting parameters for the bridge
+     * @param burnerParams The burning parameters for the bridge
+     */
+    struct Bridge {
+        BridgeParameters minterParams;
+        BridgeParameters burnerParams;
+    }
+
+    /**
+     * @notice Contains the mint or burn parameters for a bridge
+     *
+     * @param timestamp The timestamp of the last mint/burn
+     * @param ratePerSecond The rate per second of the bridge
+     * @param maxLimit The max limit of the bridge
+     * @param currentLimit The current limit of the bridge
+     */
+    struct BridgeParameters {
+        uint256 timestamp;
+        uint256 ratePerSecond;
+        uint256 maxLimit;
+        uint256 currentLimit;
+    }
+
+    /**
+     * @notice Sets the lockbox address
+     *
+     * @param _lockbox The address of the lockbox
+     */
+    function setLockbox(address _lockbox) external;
+
+    /**
+     * @notice Updates the limits of any bridge
+     * @dev Can only be called by the owner
+     * @param _mintingLimit The updated minting limit we are setting to the bridge
+     * @param _burningLimit The updated burning limit we are setting to the bridge
+     * @param _bridge The address of the bridge we are setting the limits too
+     */
+    function setLimits(address _bridge, uint256 _mintingLimit, uint256 _burningLimit) external;
+
+    /**
+     * @notice Returns the max limit of a minter
+     *
+     * @param _minter The minter we are viewing the limits of
+     *  @return _limit The limit the minter has
+     */
+    function mintingMaxLimitOf(address _minter) external view returns (uint256 _limit);
+
+    /**
+     * @notice Returns the max limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function burningMaxLimitOf(address _bridge) external view returns (uint256 _limit);
+
+    /**
+     * @notice Returns the current limit of a minter
+     *
+     * @param _minter The minter we are viewing the limits of
+     * @return _limit The limit the minter has
+     */
+    function mintingCurrentLimitOf(address _minter) external view returns (uint256 _limit);
+
+    /**
+     * @notice Returns the current limit of a bridge
+     *
+     * @param _bridge the bridge we are viewing the limits of
+     * @return _limit The limit the bridge has
+     */
+    function burningCurrentLimitOf(address _bridge) external view returns (uint256 _limit);
+
+    /**
+     * @notice Mints tokens for a user
+     * @dev Can only be called by a minter
+     * @param _user The address of the user who needs tokens minted
+     * @param _amount The amount of tokens being minted
+     */
+    function mint(address _user, uint256 _amount) external;
+
+    /**
+     * @notice Burns tokens for a user
+     * @dev Can only be called by a minter
+     * @param _user The address of the user who needs tokens burned
+     * @param _amount The amount of tokens being burned
+     */
+    function burn(address _user, uint256 _amount) external;
+}