How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also include a justification as to why each of these initiatives align with the problem statement this proposal is solving. Distribution should not include the sale of any tokens by the grantee or the use of tokens for compensation, protocol expenses, etc. :
- Optimism customer deposits on the Alluo mobile and web dApps [45,000 OP (18% of request)]
- On-ramping to Optimism through the Alluo mobile app [60,000 OP (24% of request)]
- On-ramping to Optimism through the Alluo web dApp [45,000 OP (18% of request)]
- On-ramping to Optimism through any other OP dApp that integrates with our white-label API onramp [100,000 OP (40% of request)]
We will
- Incentivise Alluo fixed-rate farm deposits from both mobile & web app with OP tokens [20% of request]
- We will issue 50,000 OP tokens over a 16 week emissions schedule whereby we deploy 13.5% in week 1, ranging down to 2.7% in week 16
- The full schedule is as follows:
| Week | OP Tokens |
|---|---|
| 1 | 6,763 |
| 2 | 5,748 |
| 3 | 4,886 |
| 4 | 4,153 |
| 5 | 3,779 |
| 6 | 3,439 |
| 7 | 3,130 |
| 8 | 2,848 |
| 9 | 2,592 |
| 10 | 2,358 |
| 11 | 2,146 |
| 12 | 1,953 |
| 13 | 1,777 |
| 14 | 1,617 |
| 15 | 1,472 |
| 16 | 1,339 |
- This incentivisation will allow us to offer market leading rates on the farms across the campaign
- We will deploy liquidity on blue-chip and Velodrome, Synthetic or Beefy pools encouraging new user participation and introducing fresh liquidity.
- Incentivise on-ramping directly through the Alluo apps [60% of request]
- We will provide 5% of the value of customer deposits to those that on-ramp to OP from fiat in both the Alluo mobile app or dAPP
- This will be capped at 100k OP for the mobile app and at $1000 per depositor
- This will be capped at 50k OP for the dAPP and $1000 per depositor
- This will incentivise new liquidity to come and try out our App and Optimism, appealing to existing Alluo customers and new alike
- Incentivise on-ramping using the white-label API for ANY OP dAPP that integrates the white-label API on-ramp [20% of request
- We will provide 5% of the value of customer deposits to those that on-ramp to OP from fiat via the white-label API integrations on other dApps
- This will be capped at 50k OP in total and $1000 per depositor and issued on a first-come-first-served basis
- This incentive will encourage other dApps to integrate with our payment API which will increase the ability for customers to on-ramp to Optimism
- Adding a completely new way to on and off-ramp to OP with a significantly improved UX across multiple dApps will set Optimism apart from its peers for user experience
Over 80% of incentives are proposed to go towards on-ramping to minimise the potential for Sybil attacks. These are made more difficult because:
- We need the depositor’s name
- We’ll get the incoming bank account or debit card used
- We limit the maximum reward to $1000 for each depositor
So unless you are easily able to create lots of bank accounts (not usually true) it will be hard for you to circumnavigate this.
Over what period of time will the tokens be distributed for each initiative?:
- Fixed rate farm deposits - 16 weeks
- On ramping to the dApp and mobile app - 12 weeks
- On ramping using the white-label payments API - 12 weeks
Please provide benchmark milestones for this project. These milestones should guide the Optimism community on the progress of your project throughout your work on the project. Do not use distribution of the grant itself as a milestone:
As with all predictions, it is always difficult to be 100% accurate but we have skewed the emissions so as to front end loaded, to ensure early awareness. Integration with the likes of Velodrome or Synthetix could increase volumes significantly in a very short timeframe.
By End March (pre-grant)
- Deploy liquidity capture on OP to show willingness, speed of delivery and appetite
- Start initial payment gateway build on Optimism
- Start Liquidity Direction for fixed rate farms on Optimism
- Funds sourced on Optimism, polygon & mainnet can be routed to strategies on OP (e.g. Velodrome/synthetix or Beefy)
- Start awareness campaign
By end April
- Deploy Liquidity Direction on OP
By end June
- Alluo mobile app migration to OP
- Integrate on and off ramp on dApp
- Integrate on and off ramp on mobile app
- API enabling the on/off ramping of USDC on Optimism for UK and EU based-customers is live in Beta and available through a few protocols deployed on optimism
End July
- Payment API deployed on 3+ tier 1 Optimism dApps
- Geographical expansion to either one country in LATAM or Africa - note that every integration with a new payment partner requires us to do some additional development given that each local providers have their own custom interfaces (for instance SEPA in Europe and PIX in Brazil are not the same and require different payment partners)
- Beyond geographical expansion, we would also like to provide unique features for an on/off ramp such as the ability to call a set of smart contracts after the funds have been brought on chain, enabling the ability to go from money in a user’s bank account to funds deployed in a liquidity pool in just 1 transaction (leveraging meta transaction and batched transactions to optimise user experience)
August to October
- Continued awareness campaign fo new users
- Ongoing re-targeting of mobile app customers within app
- Further geographical expansion to either one country in LATAM or Africa - in general, our ambition will be guided by the customer needs as they arise in the optimism ecosystem and the ability for us to strike new partnerships with local payment partners
| Month | Monthly volume | Cumulative |
|---|---|---|
| 1 | $6,000,000 | $6,000,000 |
| 2 | $10,000,000 | $16,000,000 |
| 3 | $4,000,000 | $20,000,000 |
| 4 | $2,000,000 | $22,000,000 |
| 5 | $1,500,000 | $23,500,000 |
| 6 | $1,500,000 | $25,000,000 |
For a high resolution view please follow this link (https://cdn.discordapp.com/attachments/974996461987201024/1082297026320015411/OP_Growth_Grant_timeline.jpg)
Please define critical milestones for this project. Critical milestones are meant to show good-faith efforts to accomplish the project. Non-completion of these milestones could lead to revocation of remaining grant rewards. Do not use distribution of the grant itself as a milestone:
Critical milestone 1:
Having our dApp live on Optimism to capture liquidity
Critical milestone 2:
Having our Liquidity Direction Protocol live on Optimism to direct liquidity captured on OP, Polygon and Ethereum mainnet to OP farms
Critical milestone 3:
Mobile app migrated to OP to capture customer deposits through the mobile app
Critical milestone 4:
API live and enabling the on/off ramping of USDC on optimism with best-in-class speed (ie <60 seconds from when funds are received), fees (<1% for bank transactions of any size) and ability for protocols to tailor the experience and look and feel the way they want to.
Critical milestone 5:
Having our API integrated in production with at least 5 different protocols on Optimism - this will demonstrate our ability to build partnerships with protocols and showcase the superior experience we aim to create for both end-users and developers.
If the OP tokens are for direct distribution to users, why will incentivized users and liquidity on Optimism remain after incentives dry up?:
Our customer-centric product makes it easy and friction-free to access great Optimism DeFi yields from boh our mobile and dApp. When combined with the new payment API the user experience will be second to none. Customers will be able to onramp directly from their bank account to yield farms and over time we will introduce the ability to link existing debit cards to their farm position so that it immediately withdraws money when funds dip between a minimum threshold.
Our integration on Optimism will deliver real-world improvements in money management to tens of thousands of users and this will persist way beyond the initial incentivised trial period.
Moreover, our target customer base for the mobile app are those that want DeFi on auto-pilot. A key USP of the proposition is the set-and-forget nature and so are very much planning for longer-term time horizons than the usual degen yield farmer. This makes the liquidity on our platform sticky here for the long run.
Please provide any additional information that will facilitate accountability (smart contracts addresses relevant to the proposal, relevant organisational wallet addresses, etc.):
Optimisim Safe: Safe
Optimism Relationship
Does your project solve a problem for the Optimism ecosystem? If so how?:
Providing retail customers with a simple, easy route to earning great DeFI yields on Optimism direct from mobile and dApp, with a Fintech-like UX, will step-change the volume of customers and liquidity interacting with dApps on the chain.
Furthermore, by providing a white-label payment API is a core feature to lower the bar for everyday people to transact on Optimism. This, in turn, could enable a broader range of use cases to be developed on Optimism, particularly real-world applications where interfaces with more traditional payment methods are necessary.
We believe that it is still difficult for new users to get funds on optimism today - particularly if they are not familiar with Centralised exchanges and bridges. We believe that a “native” experience that feels like web2 but gets funds on chain and deployed into protocols on Optimism (including Alluo) is one of the key ways to grow the ecosystem.
Similarly, the ability for people to easily get funds back off-chain should also limit any fear that people might have going on-chain in the first place. Often, people will want to make sure they can get their money out before committing larger sums on chain.
Why will this solution be a source of growth for the Optimism ecosystem?:
We believe bringing new users and money to the Optimism ecosystem is fundamental to its long term sustainability - we would love for Optimism to be the first chain that tens of thousands of new to chain people interact with for the first time.
Is your project Optimism Native?:
No
Confirmations
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: [Yes/No]:
Yes
I understand that I will be expected to follow the public grant reporting requirements outlined here: [Yes/No]:
Yes