Cycle 34 Grants Council final report

We’re pleased to share the final results of Cycle 34, marking the successful completion of the second cycle under Season 7.

Key Outcomes

  • Applications Approved: 5
  • Applications Deferred to Cycle 34: 8
  • Applications Declined on Final step: 9
  • Approved Audit Applications: pending

Funding Overview

  • Total OP Granted for TVL Growth: 1,364,000 OP
  • Total OP Granted for Audits: pending
  • Remaining Budget for future cycles: 3,285,070 OP

Many applications were pushed to the next cycle due to missing answers or the need for projects to adapt to interoperability requirements.

Cycle 35 Outlook

  • 28 new applications for TVL Growth submitted
  • 4 new Audit Requests submitted (so far)

Process & Improvements

As always thanks to the Developer Advisory Board (DAB) for their insights on all Final Review applications.

We made iterations to the rubric by changing a “Discretionary Factor” to “Application Readiness”. This score signals if the reviewers see the application ready to pass, pending information, or if it’s not aligned with the Grants Council objective and so declined.

We added 2 more questions to the form:

  • Are you going to support SuperchainERC20?
  • How much Superchain TVL do you have today?

We also made it mandatory for applicants with projects deployed on chains marked as orange in the registry to provide co-incentives.

We want to congratulate Immunefi and Certora for joining the whitelisted Auditing Service Providers, welcome to the Superchain team!

Futarchy Experiment

These are the projects selected by the Grants Council for the Futarchy experiment being run by the Foundation. The list is ordered by priority rank:

Rank Project
1 Extra Finance (ExtraFi/ Francium)
2 Rocket Pool
3 SuperForm
4 Gyroscope Protocol
5 Reservoir Protocol
6 Balancer & Beets
7 QiDAO
8 Silo
9 HAI Protocol (Reflexer)
10 SynFutures

Retrofunding Algorithm

After extensive exploration, we have not found a suitable algorithm to evaluate individual Grants Council member performance. Every approach considered could introduce biases or create possible incentives for unhealthy behaviors potentially leading to gaming the performance metrics.

As a result, we have decided that the best resolution is to tie the Grants Council Retro Budget (50,000 OP) to the TVL KPI proposed in the Grants Council budget: 10,000,000 OP, estimated conservatively at $5.5 per OP, which equates to $55,000,000 in TVL.

  • If 50% of the TVL objective is met, we will evenly distribute 50% of the retro budget among Grants Council members.
  • If 100% of the TVL objective is achieved, we will evenly distribute 100% of the retro budget.

This approach ensures alignment with ecosystem growth while maintaining fairness in rewards distribution.

We appreciate the efforts of all applicants, reviewers, and stakeholders in Cycle 34 and look forward to refining and scaling the process in Cycle 35! :rocket:

Here is the final list of Cycle 34:

Nr Title OP requested Result
1 Fluid DEX on Base 500,000 Passed
2 Morpho Co-Incentives (World Chain) 464,000 Passed
3 Sake Finance 250,000 Passed
4 Mode DeFAI Application 100,000 Passed
5 WOOFi Superchain grant application 50,000 Passed
6 Euler Finance - Season 7 500,000 Pushed to Cycle 35
7 Mountain Protocol (USDM) - Grant Application 130,000 Pushed to Cycle 35
8 Extrafi S7 Grant Application 150,000 Pushed to Cycle 35
9 f(x) Protocol deployment on Base 100,000 Pushed to Cycle 35
10 iETH 50,000 Pushed to Cycle 35
11 Morpho Incentives 700,000 Pushed to Cycle 35
12 Neemo Finance application 100,000 Pushed to Cycle 35
13 Pendle x Ethena: Bootstrapping USDe/sUSDe TVL on Base 500,000 Pushed to Cycle 35
14 Arcadia Finance 164,000 Declined
15 BMX Grant 225,000 Declined
16 Sonus Exchange S7 Incentives Application 50,000 Declined
17 Anzen - RWA backed stablecoin 500,000 Declined
18 Bedrock’s LRT Growth Plan 500,000 Declined
19 Stargate Finance Grant Application 500,000 Declined
20 Uniswap on Superchain 600,000 Declined
21 Compound SuperChain Expansion - OP, Base, Unichain 600,000 Declined
22 LRT Rewards on SwellChain : KING Protocol 200,000 Declined
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Where can we learn more about the Futarchy Experiment?

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Here is a good thread you can read and follow: Experimenting with Futarchy* for Optimism Grant Allocation Decisions

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