Recommendation from DeFi committee C
Proposal is written thoroughly, and author was actively seeking feedback on proposal but only few feedbacks are reflected in the proposal.
Abra allows users to mint their collateral-backed stablecoin, MIM, which can be used to swap any other traditional stablecoin. Abra is not fully deployed on Optimism yet but their TVL on mainnet is large - despite trending down since the bear market started & demand for leverage went down.
During the bull market, Abra had several Billion USD in TVL across chains. Today, Abracadabra is a multi-chain DeFi platform available on 4 chains with maximum liquidity on the settlement layer Ethereum.
TVL as per:-
- Defillama :- 377M
- Their centralized powerBI dashboard: - 425M
- In Proposal: - 450M+
Average loan side is approx. $20K and total open loans are 10.5K (as per their BI Dashboard)
800K $OP - amount on the high-end but reasonable for a large stablecoin project. Strong focus on liquidity mining might not be long-lasting.
640K Op for Liquidity mining and 160K Op will be used for delegation. Their goal is distribute $10K weekly bribe distributed between $OP and $Spell
7.5M $Spell (approx 7.5K) /week
Abra’s TVL on chains outside Ethereum was short-lived and seems to have very little traction now. Abracadabra is not yet fully deployed on Optimism and we are not 100% confident in the team’s long-term alignment with Optimism.
We would like to see Abra fully deployed on Optimism. Once its deployed and they have some user traction, we recommend Abra to submit their proposal again. Preferably, we’d also like to see more sticky incentives and not a pure focus on liquidity mining.
Our committee expects grant recipients to use grant funding for specific actions to spur growth on Optimism. Our committee does not believe that grant recipients should use $OP received for governance. Optimism governance is open, transparent and community oriented, anyone can participate and have their voice heard by simply being an active part of the collective. If voting power is needed, we encourage to seek other available options such as market buying $OP or asking community to delegate their tokens.
Our past recommendation is available on committee recommendation thread.