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
TVL: $282,000,000 across 16 different blockchains
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.