[Draft] [GF: Phase 1] Across Protocol

Project Name: Across Protocol

Author Name: Across community + Risk Labs
(Britt is the author of this post, and the best point of contact. She is the community lead for Across, employed by Risk Labs. Risk Labs is the foundation that built and supports Across)

Number of OP tokens requested: 1,000,000 $OP

Timeline for distribution: until they run out. We hope to see these rewards distributed over a 9-12 month period.

L2 Recipient Address:
0x8180d59b7175d4064bdfa8138a58e9babffda44a

Relevant Usage Metrics: (TVL, transactions, volume, unique addresses, etc.)

  • Total Bridge Volume: $448,940,817
  • TVL: $71,290,836 in total
  • Total Bridge Users: 70,331
  • Total Transfers: 161,586

Optimism alignment:
Across is the fastest, cheapest and most secure bridge between L1 and L2s. Across protocol is a novel bridging method that combines an optimistic oracle, bonded relayers and single-sided liquidity pools to provide decentralized instant transactions from rollup chains to and from Ethereum mainnet.
Across Protocol supports bridging to and from Optimism from Ethereum mainnet and L2s. UMA launched Across Protocol in early November 2021. Across is a bridging solution which uses UMA’s Optimistic Oracle.

Proposal for token distribution:
We aim to use the token to subsidize bridge fees for users that would like to transfer assets to Optimism. Currently, we support USDC, ETH, DAI, WBTC, and UMA.

How will the OP tokens be distributed?
For any user going to Optimism, we will rebate their bridge fee 105% (so they will earn 5% to bridge to Optimism). The composure of this rebate depends on whether or not the user is already earning $ACX rewards on their transaction. If there is no $ACX reward, the bridge fee will be rebated back 80% $OP and 25% $ACX. If there is an $ACX reward, the $OP amount will be (105%-$ACX%). All of this will be computed on the bridge fee component of a transfer and capped at 12 basis points (which covers the entire fee during periods of low to moderate bridge utilization.

As a side note, Across differentiates between the bridge fee and the gas fee. This distribution is only applied to bridge fees, so network conditions that cause an increase in gas fees should not make an impact in this program. For more information on our bridge fees, you can see this section of our docs site.

How will this distribution incentivize usage and liquidity on Optimism?
Users will only receive the tokens if they bridge assets to Optimism.

Why will the incentivized users and liquidity remain after incentives dry up?
Because they will find all the great dapps on Optimism and want to stay!

Over what period of time will the tokens be distributed?
This depends on bridging volume we see to Optimism. Hopefully it is large and tokens are all used within 1 year.

Has your project previously received an OP token grant? If yes, what’s the status of these tokens?
No

How much will your project match in co-incentives?
Between 31% to 320% depending on the type of transaction as explained above. Here is how that math works out. If a bridgooor uses a ref link and is Platinum then they get 80% rebate in $acx and 25% in $op. 80/25 = 320%. If a bridgooor doesn’t use ref link, they get 80% $op and 25% $acx. 25/80 = 31%.

36 Likes

Proposal looks great and would definitely bring value to OP!

6 Likes

Looks like a sound idea and the execution looks straightforward.

Do you have a way to prevent users who bridge funds from cycling the funds repeatedly to game the incentive program?

1 Like

Cool, community…
I couldn’t find who Britt is, but I found that Risk Labs is the dev team.
It’s like:
Author Name: Bitcoin community (Satoshi Nakamoto is point of contact).

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Fair point! I’m the community lead for Across, employed by Risk Labs. I can add that context in that section if it helps :slightly_smiling_face:

1 Like

:blush: In general I like the proposal, for bridge the form of user incentive is correct, but it would probably be better if the refundable fee would be 80-90% max.99% but not 105%. Just my opinion.

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There are 2 things that make it less gameable:

  1. they only get paid the incentive going to optimism. so they would have to pay the proper fee to leave optimism.
  2. We are only subsidizing the bridge fee component, not the destination gas fee. so the user will not immediately profit a full 5% in going to optimism. (Destination gas fee may be pretty small though, so this point is less meaningful than the first).

In theory, you still have to want to be going to Optimism for this to be meaningful.

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Great ! Support it! I believe it will also be beneficial to the ecology of Optimism!

Great proposal!Across is the fastest, cheapest and most secure bridge between L1 and L2s.Please consider this proposal.

Cool! like the proposal, i’m a big fan of Optimism and Across

it’s really great,i like it

This will bring more user volume to Optimism

Very good, this will benefit both Across and OP

Looks good. This would create avid users. Been using Across regularly… pretty smooth.

good proposal
will it open vote on snapshot?

It is suggested to subsidize the excess expenses(12 basis points) in the form of $OP

hey, glad you joined! Seems like a direct subsidy for users to do exactly what we’re hoping for eco growth.

Wanted to know a few things for general knowledge:

What sorts of impediments have you seen in bridging to OP to date - is there, for example, less bridging from mainnet because gas is high (which would make small bridgers not want to spend the gas plus fees on transfer)? Is there any behavior specific to bridging to Optimism you’ve noticed?

Also, where does this subsidy set you relative to other bridging options in terms of user costs? Does it make you more competitive than some, all other bridges, and in which circumstances?

I hope the bridge fee exceed 0.12% will redund as OP!

Topic seems to be getting brigaded by new accounts.

1 Like

Super protocol , op next airdrop will include across bridge users ,no minimum transaction limit,this will help all small and big traders and create great volume