[DRAFT][GF: Phase 1 Proposal] Prime Rating

Project Name: Prime Rating

Author Name: Salome

Number of OP tokens requested: 220.000

L2 Recipient Address: Prime Rating Grant Multisig TBD

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

62 Raters in our community (with on-chain reputation): Prime Raters overview

130+ DeFi protocols ratings,
30 Metaverse ratings
17 ReFi ratings

Details: Prime Rating

Optimism alignment (up to 200 word explanation):

Prime Rating’s proposal is based on the idea that a comprehensive, unbiased review and assessment of protocols is a mandatory requirement in a blockchain for Common goods. We see our products and services as a necessary public good to help users navigate an extremely fast-moving explorative ecosystem where users can not keep up with all information.

Our vision is to provide all Optimism users access to important information in an easy, professional-grade, and actionable format. Applying this strategy to all our products and services is how Prime Rating aims to reduce socioeconomic inequality.

We decided to reach out to Optimism because it stands out not only for its capacity to scale but also for its commitment to pursuing the vision of decentralized public goods.
Together, we believe that we can help foster a deeper culture of full transparency, and increase safety, usability, and trust within Web3.

The core of Prime Rating’s ethos is open-source,community-driven, and permissionless systems so we decided to reach out to Optimism for expansion. In the near future, we are interested in introducing a framework to facilitate deeper synergistic relations, diversify treasury and gain voting power between the two communities.

Proposal for token distribution (under 1000 words):

Prime Rating is a platform providing a permissionless review framework to evaluate the quality and risk of DeFi and other web3 projects. We foster community-driven research through a rate-2-learn & earn approach, that is fully open source and enables anyone with the right expertise to contribute.

The ratings are done in a seasonal approach. Each season is a 5-6 week long contest, where raters get rewarded for successful submissions and can win additional prizes based on quality and other criteria.
We are going to use ~75% of the funds to reward participants for the next rating events.

Seasons are our lifeblood, it’s where the insights are created. All insights are freely accessible via the website. Thus, we rely on grant support and sponsors to cover the costs of the contests and prize money. Previous supporters included 1kx, Celo, MetaPortal & DeFi Safety.

Rating creates much-needed transparency on quality and risk in DeFi. We aim to introduce a new Rating framework for Optimism, curate the Optimism ecosystem and sort it by quality. For the user, this means a simplified way to navigate around pitfalls and find the projects that actually have something to offer, according to their risk appetite and fit within the broader public goods ecosystem.
In the end, we will contribute to a free, improved, and more resilient experience that increases user retention on Optimism.

At the same time, we aim to also foster income generation through our API and add-on services such as ratings on demand, research, and, soon, consulting services.

Our latest contribution was this research paper about legal structures for DAOs Costs and Benefits: Thinking Through Legal Structures for DAOs — PrimeDAO

How will the OP tokens be distributed?

~75% of the funds are used to reward participants during rating events of Optimism dapps. Upon successful submission, i.e. when reports passed governance, the raters are rewarded with 150$ in OP + 200 D2D.

15% will be used to create an Optimism specific framework that, for example, includes social impact, environmental impact, and other Commons-centric metrics. This will require partnerships with other protocols on Optimism to review the framework.

The remaining 10% will be used to cover some of our operational efforts to run the rating events.

TLDR:

  • The requested OP tokens will be used to sponsor up to 4-6 Rating Events (e.g. 2 DeFi + 2 Metaverse contests + 2 ReFi contests) for a time period of approximately 9-12 months (a mix of longer and shorter virtual rating contests will be conducted).
  • 8-12 expert sessions (workshops or AMAs), to educate the community on fundamental analysis and risks in DeFi, Metaverse, or ReFi)
  • Some regular marketing and paid ads for 1-2 events, Optimism logo on our website, Twitter push for each event.
  • Twitter spaces & 1-2 research articles about overall findings from the Optimism Ecosystem

How will this distribution incentivize usage and liquidity on Optimism?

With Prime Ratings permissionless rating framework for open finance protocols and beyond. It is our goal to make DeFi and the whole ecosystem more resilient, by increasing transparency of quality and risk through our permissionless and open-source evaluation method.

New opportunity for Optimism’s community and analysts to contribute towards meaningful work to improve the ecosystem and make it more resilient.

New innovative, Commons-oriented review framework for permissionless coverage.

An improved user experience by providing a comprehensive overview of projects, sorted by quality.

Attractive rewards for all participants and prizes for the best analysts (75% of funding goes back to the community).

Foster full transparency about quality, risks, and impact for Web3 projects.

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

Prime Rating enables users to navigate in a space without boundaries and room for exploration, we guide users to help do their own research before interacting with new dApps. Interacting with apps on Optimism should work flawlessly. Our platform will continue to be updated as a means of discovery for users looking to use applications on Optimism. In addition, the data collected and ratings that Prime Rating published will continue to exist and be useful for users who seek to interact on Optimism.
Also, in the near future, we are interested in launching a framework to facilitate deeper synergistic relations, diversify treasury and gain voting power between the two communities.

Over what period of time will the tokens be distributed?

Over a time period of 9-12 months depending on how many successful report submissions of fundamental rating reports from the community are received.

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?

The D2D part for successful fundamental report submissions is covered by PrimeDAO. We typically pay participants in USDC, however, we can also accept other means of funding, e.g. pay our raters/researchers in OP tokens as mentioned above.

We hope the Optimism community sees the value in what Prime Rating is building and welcomes us to be part of the success story. We are looking forward to your feedback on the proposal.

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