[DRAFT] [GF: Phase 1] Palm Finance

📜 Grant Proposals Governance Fund: Phase 1
1

[DRAFT] [GF: Phase 1] Palm Finance

Based on the community feedbacks we adjusted our proposals for Optimism as below:

Project Name: Palm Finance

Author Name: @chloeee Palm Finance

Number of OP tokens requested: 400,000 OP

L2 Recipient Address: 0x523EB9cD802990A009816504156C9484cB384dc6

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

Palm Finance is 80% completed and hasn’t been deployed on any Chain.

Current Valuation of Market Cap: $ 20 Million

Target Market Cap:$ 1 Billion

Optimism alignment:

1.Nowadays there are emerging many new assets in crypto world, new assets (NFTs, LP, interest-bearing coins) are bringing a large number of new users, especially enthusiasts of NFTs. However, there are still no enough usage scenarios for these assets, Palm is designed to resolve this. If deployed on Optimism, Palm will contribute by connecting group of new users.

2.Palm accepts LPs, interest-bearing tokens as collaterals, and can realize up to 21x leverage, multiplying mining profits of users holding these assets, will help to boost the TVL growth of other protocols in the ecosystem.

3.Stablecoin is one of the most important ecosystems in every chain. Palm accepts collaterals of $OP and some DEX’s tokens on Optimism, allows users to deposit them & generate stablecoin $PUST, which can play a positive role in stabilizing $OP price.

4 .Palm is highly composable . Like we can see in the Ethereum ecosystem, the cooperation among FRAX, MIM, LUSD and various protocols have so much positive impact on the entire ecosystem. We believe that if PALM can cooperate deeply with other protocols in Optimism, it will certainly better promote the development and stability of the ecosystem .

Proposal for token distribution (under 1000 words):

How will the OP tokens be distributed? &How will this distribution incentivize usage and liquidity on Optimism?

200K of the OP tokens will be used for liquidity incentives , to reward the users who deposit LP tokens of PUST/USDC for farming. Will be distributed in 3 months

100K OP will be used for project auditing.

100K OP will be used for marketing and launch events.

Why will the incentivized users and liquidity remain after incentives dry up?

Palm provides creative usage scenarios for new assets of NFTs, LPs, yield-bearing assets, users benefit from it by holding and earning.

Borrowing stablecoins at 0% interest and getting leverage can multiply users profits, protocol can survive even without incentives.

Over what period of time will the tokens be distributed?

Over 3 months

How much will your project match in co-incentives?

We will match 1:1 to the OP tokens.

For more detials on Palm:
Testing version: http://54.254.5.72:8089/#/borrow
Docs: Overview - Palm Finance

2

Hi. I have a few questions.

When will you launch?

15% of the tokens “might” be used for future partnership - what will you do with the tokens if you don’t use them for that purpose?

Why airdrop OP tokens to large OP holders and only large OP holders? In what way does that incentivize usage or liquidity?

2 Likes
3

couple of points:-

  1. why airdrop to only users holding $5K in OP
  2. How long do you think this 80% incentive will last ?
  3. Are you willing to decrease the number of token requested and submit another proposal with more data and statistics ?

  4. protocol can survive even without incentives.

then why you need 500K OP ?

1 Like
4

Please could you expand on how different Palm is to something more widely understood such as Maker?

And hopefully confirm that the PALM token won’t be accepted as collateral (because we’ve all seen what happens then…).

Finally, if we’re going to fund 400,000 OP to boost your liquidity pools, what benefit does this provide to Optimism? Does your stablecoin offer something unique that will lead people to prefer it over USDC/DAI/SUSD once the liquidity rewards we provide run out?

1 Like
5

Hi Justin, we’re adjusted our proposal, kindly have a look.
We plan to launch in July or August, will choose a suitable time when the market is relativly more stable.

6

Hi OPUser, thanks for asking!

We just updated a better incentive program in proposal
Total 500K OP will be distributed in this way:
-300K will be used as liquidity incentives (100K/month, will last for 3 months)
-100K for auditing
-100K for marketing

The liquidity incentives will bring higher APR for the trading pair PUST/USDC, Palm will be more competitive & attract more attention than competitors on other chains, which will help the TVL growth of both Palm and Optimism.

In the 3-month incentive period, we will cooperate with more protocols in OP ecosystem, increase our exposure and traffic, these incentives will give us to bigger space for cooperation and marketing, very important for us to grow.

We believe once Palm is combined with enough protocols partners, it will keep working smoothly and healthily even when the incentive period is ended.

7

Good questions.

We won’t support PALM tokens as collaterals, instead, we will always choose tokens with better liquidity depth as collaterals.

As we added in our proposal, the benefits Palm will provide to Optimism are:

-Palm accepts LPs, interest-bearing tokens as collaterals, and can realize up to 21x leverage, multiplying mining profits of users holding these assets, will help to boost the TVL growth of other protocols in the ecosystem.

-Palm accepts collaterals of $OP and some DEX’s tokens on Optimism, allows users to deposit them & generate stablecoin $PUST, which can play a positive role in stabilizing $OP price.

-Palm is highly composable. We believe that if PALM can cooperate deeply with other protocols in Optimism, it will certainly better promote the development and stability of the ecosystem.

When the liquidity incentives run out, we will have continuous liquidity mining rewards in $PALM.

What we’re different from USDC, or DAI, is that we’re not only stablecoins, but also a yield aggregator. Through the leverages it will amplify the mining incomes for depositing LP tokens or interest-bearing tokens.
Borrowing against the assets portfolio instead of single assets, will realize a up to 22x farming yield.
Palm protocol realizes an innovation of integrating the functions of YFI+Alpha+MIM+BendDao.
For Defi users who want to increase their asset efficiency, Palm proposes a better solution for accelerating asset yield.

1 Like
8

Thanks for the reply, pretty reassuring answers!

1 Like
9

Thank you.

Few input from my side:-

  1. I am against providing budget for a project for their internal development, unless its open-source project.
  2. marketing budged is fine.
  3. I think 300K is too much as you are yet live on OP chain.

I would suggest you deploy the project to OP chain and submit the proposal again. Second, from comments it seems you are confident that users will stay once the incentives are gone, reduce the number of token to 200K.

Then I will be happy to support your proposal, in this current form, I will vote against it.

2 Likes
11

Hi, We talked internally and we agree with that, we’ll modify into 200K for incentives + 100Kmarketing + 100K auditing if I got you corretly. Hope to gain you and community’s support, we’d very happy to be deployed on OP.

12

I have to echo @OPUser here. This is a terrible proposal, not sure what you’re seeing @MinimalGravitas but all I see is a 500k OP dumpfest.

Palm is proposing to have LP providers dump 200K OP, then give another 100k to marketers who will also dump OP.

2 Likes
13

I’m not sure I see a fundamental problem with tokens being issued and then ‘dumped’. I don’t think that our distribution of OP to any projects should be aimed at primarily at propping up the value of of the token, as surely any funding we issue is likely to be swapped, recipients don’t benefit if they just hold the OP we provide them.

The reason this project seems worthwhile to me is that Optimism doesn’t yet have a native stablecoin, obviously things like DAI are available on Optimism, but the Maker infrastructure that lets you mint DAI is only on L1. Having a stablecoin that can be minted directly on OP seems like a useful addition to the ecosystem.

On the other hand, it would of course be nice to see the project deployed before we start offering liquidity incentives, so I’m open to the idea that this proposal might just be being submitted a bit early?

14

I echo this and would love to support this once they are live.