[DRAFT] [GF: Phase 1 Proposal] Beefy

đź“ś Grant Proposals Governance Fund: Phase 1
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Beefy Incentive Proposal

Project Name: Beefy

Author Name: @frondoto

Number of OP tokens requested: 650,000 OP

L2 Recipient Address: 0x4ABa01FB8E1f6BFE80c56Deb367f19F35Df0f4aE

Targeted deployment date: 30/06

Relevant Metrics:

TVL: $282,000,000 across 16 different blockchains
Site: https://app.beefy.com/
Optimism alignment (up to 200 word explanation)

Beefy is a multi-chain yield optimizer known for its high security standards. Every protocol that gets listed in Beefy, passes strict safety checks to ensure the platform where our users are depositing, is safe. This frequently results in Beefy joining talks with these teams, helping them adjust their security measures, and most of the time partnering with the underlying protocol, making it known to our vast multi-chain audience.

Beefy also has a multi-chain app. This means that the opportunities across 16 different chains can be compared side by side to choose the best place to put your tokens to work.

Beefy’s users are quite diverse, but what they all have in common is that they have been priced out of Ethereum. Deploying Beefy on Optimism allows those users to enjoy the safety of Ethereum, without paying the high gas prices.

At the time of writing this we are in talks with 4 different protocols on Optimism to partner with them and multiply even more the effect of the incentives. One example of this is Qidao, their protocol utilizes mooTokens (interest bearing collateral) to allow users to mint MAI and leverage their position. This will be possible since Chainlink is already deployed on the chain.

Proposal for token distribution (under 1000 words)

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

  • 90% of the OP tokens will be distributed through “boosts” in our vaults. This consists of adding extra incentives on top of the auto-compounding lp tokens. This will provide above-market APYs to the vaults, and will be seen by users across other 16 chains, making them want to bridge to Optimism. This distribution also positively impacts the underlying protocols, increasing their liquidity and helping them experience bigger trades with lower price impact.

  • The remaining 10% will be used for strategic partnerships with new Optimism protocols to help them grow their adoption, userbase, liquidity, etc.

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

We believe that if a protocol is good, there is no need to permanently incentivize its use. That said, incentives are an excellent way to welcome new users to try the chain, and stay for their unique products and ecosystem. We will use the incentives to create deep and meaningful partnerships with Optimism protocols, many of which we had great relations with from other chains.

Also at the same time that we distribute the incentives, we are planning education around Optimism, their technology, their unique structure of the governance of the chain, the uses of the OP token, and also provide social events in which our multi-chain users can get to know Optimism protocols, and hopefully bring their liquidity/invest on them.

To accompany this are also are planning to offer investments that contain the OP token, like a vault built on top of the Happy Road (ETH-OP-USDC) farm on BeethovenX. Giving users a safe place to invest their earned rewards.

Over what period of time will the tokens be distributed?

Taking the feedback from this forum, we will distribute the tokens for longer periods, offering above-market APYs, and attracting TVL from other chains. The standard duration will be between 8 and 9 weeks for each boost.

How much will your project match in co-incentives?

BIFI has a max supply of 80,000 which was fully distributed during the IFO, and the DAO holds very little of the supply (less than 1%). That is the reason we can’t match in co-incentives even though we want to.

8 Likes
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Aaaaahhhhhh Beefy! Not much more to say really :+1: :smiley:

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Solid proposal - fully support this.

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Amount of token asked is a big number, please provide matrices of Beefy on OP chain.

I am not in favor of giving 90% as boost incentive as I dont see this as long term solution.

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Hey @OPUser , thanks for getting involved. Beefy is not yet on Optimism but we will be. I understand that 1,000,000 OP tokens might seem a lot, but our plan is to make as much impact as possible on Optimism. We are planning to use it to bring as much new users as we can.

In which ways do you think the proposal can be improved? We truly want to make the most positive impact.

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Hi @frondoto , you are actively seeking feedback on discord as well as here, I appreciate your enthusiasm.

We believe that if a protocol is good, there is no need to permanently incentivize its use. That said, incentives are an excellent way to welcome new users to try the chain, and stay for their unique products and ecosystem

If I go with this statement then you dont need huge amount of token.

Unfortunately, I dont see just LPing and boosting incentive as a long term solution. But at the same time I dont have any better solution, if you are confident the users will stay because of protocol, i would suggest you reward the users gas for bridging asset to OP chain.

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From my perspective, 1M OP is higher a I would expect in this in your state as a future optimism protocol. What about reducing the amount to the half (by example) and lets see how it goes and then in later stages to re-apply to more incentives? In fact, I suppose future vaults of Beefy will also be based on auto-compounding from OP tokens given from other protocols. As @OPUser says, is difficult find a better solution.

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Hello @OPUser , its great that you noticed my activity. I’m honestly impressed of how active and collaborative is the Optimism community, (I see it particularly in Discord). You being a good contributor to that.

About your last comment I think its a great idea, we could snapshot all Beefy users that deposit in other chains, and if by certain date they are depositing on Beefy Optimism, we could airdrop them some OP tokens. What are your thoughts on this? Also could be popular on socials to attract attention.

Also I want to take feedback from @Joxes . Its true that we can later re-apply to more incentives, so its not necessary to ask for 1,000,000 in one go. What if we reduce the amount to 650,000 and we use it for boosts and the reward for bridging?

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Airdrop for just bridging is not a good idea, is it possible to reward the users for moving and staying with Beefy for long term, like rewarding them on the basis of time they are interacting with the protocol, for example if someone lending asset for 6 month get more reward in comparison to some one who is doing it just for 1 month.
Boosting is good idea too, may be combination of 2-3 options, i am just here thinking and typing, not sure if what i said earlier is doable or not.

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Yeah, so I think that the middle ground that we can get is just boost for longer times, to offer just above-average APYs as other chains, and distribute the rewards for a couple of months instead of a couple of weeks. This is the best way to reward them on the time they are “in” the protocol. So instead of doing 3/4 weeks long boost, we can boost for 8/9 weeks, when that is finished we can boost another vault for 8/9 weeks, and so on…

What would you suggest as the amount required of OP tokens to update the main post?
Current split would be 585,000 for boosts and 65,000 to help grow smaller Optimism protocols. (650,000 total)

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Awesome proposal! I love Beefy, and can’t wait to see it launch on Optimism. Give them everything!!!

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I think even 650k is quite a rich ask considering you have not deployed yet, will not be matching, and the distribution method is vanilla “boost vault yield”.

Personally I’d like to see you deploy to Optimism and gain some initial traction THEN come back with a more reasonable proposal. I’m not against Beefy ever getting OP incentives, I just think we need to see a material effort from your side to justify the distribution.

I think you all could do well here considering there are no autocompounders that I know of atm. I do want to support this. Hopefully you can understand my position.

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Hello @solarcurve ! Thank you for answering. I can totally understand your point. I wanted to share another reason on why it will be important for both to have the incentives at the same time we launch. We are planning launch partnerships and activities with many protocols on the chain, (for example BeethovenX), and it would be way more impactful if we could announce a boost on a BEETS pair, while we list all of their pairs. We could track some metrics of both protocols and report it to the Optimism community showing the impact of the grant.

Thank you again for your thorough reply.

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i agree with you on this one. with a revised OP number and initial deployment i would gauge the interest and likely support.

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I don’t really see the point of using 90% of the funds on incentives as generally its just short term fake TVL or volume. The funds would be best getting spent on other things to drive long term adoption and growth of your ecosystem in combination with Optimism

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I’m with @solarcurve on this. I want to support this but will be voting no until we see some form of co-incentives and Beefy deployed on OP

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so, i am happy to hear that beefy wants to be with optimism eco.
i support you.

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Voted : NO

Reason:
I am not a huge fan of giving 90% to boost without a plan on “why a user will stay once the incentive are gone” but I would have even consider this in two scenario.

  1. Reduce the number of token as you not matching the incentive with your token.
  2. Submit two or more than 2 proposal.

Note: Launching your project on OP chain would really help us making a decision, in your favor.

That being said I am spamming all the proposal where I have voted my decision, So i will do the same here.

Now, I am requesting your feedback on these of my ideas. Feedback is two-way approach, you help us and we help you.

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Hello @OPUser, @solarcurve, @MoneyManDoug , @Cryptoz I appreciate your guys feedback and I will be reworking this proposal to get you guys onboard.

The first thing we will do is deploy on Optimism. That will happen this same Monday. We will start with BeethovenX vaults and planning to add Velodrome, wstETH (when live), Qidao stablepools, and more.

I will also make changes to the distribution of the OP tokens. Its completely reasonable that you don’t want 90% of the tokens distributed as boosts. After deep-diving into Optimism I realized that we will need custom strategies for some protocols (Velodrome and Perp for example), so we could direct a small part of the grant for developers to build on Beefy Optimism.

Also we will need liquidity for our BIFI token, so we are talking with Velodrome and Beethoven for this. The plan will be to use OP tokens, and match with BIFI co-incentives.

Again, thank you for your feedback and involvement in this.

Can you advise me in the best path forward with this proposal? Renaming it DRAFT and try to get it ready for Phase 2?

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Glad to hear of all the changes, I think it will be a much improved proposal. I’m not certain on the rules for voting on this again but it seems to me if you make material changes in response to feedback it should be eligible to vote again in the next cycle.

1 Like