[DRAFT][GF: Phase 1 Proposal] RabbitHole Quests on Optimism

Basic Details

Project name: RabbitHole

Author name and contact info (please provide a reliable point of contact for the project.): Brian Flynn (@flynnjamm on Telegram)

L2 recipient address: 0xbD72a3Cd66B3e40E5151B153164905FD65b55145

Which Voting Cycle are you applying for?: 11

I confirm that I have read the landing pages for the Sub-Committees and that I have determined my proposal is best suited to be reviewed by the Growth Experiments Sub-Committee: [Yes/No]: Yes

I understand that Growth Experiments grants are subject to a “no sale rule,” and I have read the terms of the rule: [Yes/No]: Yes

Project Details

What are you building?: RabbitHole is a token distribution platform that enables users to earn ERC20 tokens for completing on-chain tasks in various protocols. RabbitHole makes it easy for protocols to distribute tokens in quick, ad-hoc quests, all on-chain through its Quest Protocol.

Why do you believe what you are building is going to succeed?: We’ve already demonstrated success through Quests, and want to use the grant to supercharge efforts.

How many users does your project have currently? Please include how you arrived at this estimate: We’ve driven 22,000 unique wallets to do 36,000 t/xs on Optimism over the past two weeks, and have 197,000 unique wallets across all networks just in the two weeks since we’ve launched V2. This data is verifiable on-chain with a Dune query.

How will receiving a grant enable you to further the mission of maximizing the number of users interacting with Optimism? Please include a step-by-step flow of how you imagine this grant can lead to a greater number of user interactions with Optimism:

  • RabbitHole will create daily on-chain tasks for the top protocols on Optimism, distributing tokens evenly across a fixed time period.
  • The protocols that will be incentivized are as follows: PoolTogether, Superfluid, Velodrome, Sonne, and Mirror.
  • RabbitHole will seek to find price equilibrium which will maximize the efficiency of token spendings to drive certain actions in each of these protocols.

Tell us about the users you plan to target with this grant. Include any defining characteristics that will help you identify and target them.:

  • We plan on targeting users that are sensitive to gas fees and want to discover Optimism applications in a safe and easy way.

How would these users interact with Optimism? For how long?:

  • Users will interact with Optimism on a daily basis over the course of seven weeks.

Provide us with links to any of the following for the project:

Do you have any metrics on the project currently? (TVL, transactions, volume, unique addresses, etc. Optimism metrics preferred; please link to public sources such as Dune Analytics, etc.): You can see Optimism metrics here: (https://dune.com/0xRob/rabbithole-v2/1935b513-4909-4183-bd9a-5cabe8303f64)

Who are your competitors, and are they on Optimism?:

Galaxe/Layer3/Coinbase Earn.

Please link to code audits (if any): Audits can be found in Quest Protocol GitHub repo


Who are your founders?: Brian Flynn

What makes your team well-suited to carry out the project described in this proposal? RabbitHole has been running quests for two years and have helped major projects like ENS, Uniswap, Gnosis Safe, dydx, and others to grow their project through quests. We’ve helped projects distribute millions of tokens and drove hundreds of thousands of users. We’ve recently built RabbitHole V2 so protocols can quickly spin up quest opportunities in a matter of minutes.

Is this your first Web3 project?: No

If not, what else have you built? (Share links, Github repository, or any other useful information.): The team has worked at Dapper Labs, OpenSea, Coinbase, among other various crypto projects.

Grant Request

What is the size of the grant request? (250k OP max): 248,500

How do you justify the size of the grant?: We already are distributing OP tokens from our own treasury, and plan on catalyzing these efforts through an OP grant, which we plan on distributing over the course of seven weeks.

Roadmap and Distribution Plan

Describe in discrete steps how you will successfully implement your grant plan: See below

How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also include a justification as to why each of these initiatives align with the problem statement this proposal is solving. Distribution should not include the sale of any tokens by the grantee or the use of tokens for compensation, protocol expenses, etc.:

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 SUM
OP Distributed 17,500 22,750 27,300 32,760 39,312 47,174 56,609 243,405
Unique Users Per Week 40,000 44,000 48,400 53,240 59,096 65,006 70,862 380,605
Transactions 62,000 68,200 75,020 82,522 91,307 100,437 108,548 588,034

Total Distributed: 243,405 OP

The tokens will be distributed to quests across the following projects:

  • PoolTogether (Deposit)
  • Velodrome (Swap)
  • Sonne (Lend)
  • Mirror (Collect/Publish)
  • Lyra (Swap)
  • Agora (Delegate)

And more…

Over what period of time will the tokens be distributed for each initiative?: The tokens will be distributed over a period of 7 weeks.

Please provide benchmark milestones for this project. These milestones should guide the Optimism community on the progress of your project throughout your work on the project. Do not use distribution of the grant itself as a milestone: We will scale the number of tokens being distributed via quests linearly to ensure that users are transacting on Optimism according to our estimates. Each week will be a new milestone for grant, to ensure a quick feedback loop with the community.

Please define critical milestones for this project. Critical milestones are meant to show good-faith efforts to accomplish the project. Non-completion of these milestones could lead to revocation of remaining grant rewards. Do not use distribution of the grant itself as a milestone: Each week refers to its own milestone. Please refer to the table above for the appropriate milestones. Data from the quest protocol can be verified on-chain directly.

If the OP tokens are for direct distribution to users, why will incentivized users and liquidity on Optimism remain after incentives dry up?: We’ve found that users will come back if there is a daily reward to stay engaged with the protocol. We can condition repeat behavior through daily quests. We plan on doing this efficiently so the economics make sense for the Optimism Network long-term, and that substantial fees are being generated.

Please provide any additional information that will facilitate accountability (smart contracts addresses relevant to the proposal, relevant organizational wallet addresses, etc.):

You can track completion of Optimism Quests at our contract address here: 0x52629961f71c1c2564c5aa22372cb1b9fa9eba3e

Does your project solve a problem for the Optimism ecosystem? If so how?: RabbitHole is not only a platform for users to discover crypto applications, but it is also a tool for projects to experiment with incentives. We hope that projects in the Optimism ecosystem will use RabbitHole to A/B test token incentives and maximize efficiency of token spendings through small-scale, rapid experimentation of Quests. We hope to demonstrate the effectiveness of the tool by dogfooding it ourselves with a grant and show results to the community. Over time, we also plan on integrating Attestation Station as one potential way to filter users for quests.

Why will this solution be a source of growth for the Optimism ecosystem?: We’ve already demonstrated that RabbitHole V2 can drive tens of thousands of users to the Optimism Ecosystem in just two weeks, we expect to multiply those numbers through the grant.

Is your project Optimism Native?: Yes (Only deployed on Mainnet, Optimism, and Goerli)


I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: [Yes/No]: Yes

I understand that I will be expected to following the public grant reporting requirements outlined in the Public Reporting Requirements for Grantees: [Yes/No]: Yes


I have read several articles from RabbitHole and I love the approach that RabbitHole is taking on airdrops. In addition to that, the iteration-based approach of RabbitHole, which takes inputs from previous iterations and modify the future iterations based on that, would perfectly match the Optimism’s road toward airdrop and Optimism quests.

If you are interested, take a look at my post wrt analysis on the Optimism quest!

Besides, I have a question. Are there any specified plans or directions on how to design a daily quest on the protocols mentioned above (PoolTogether, Velodrome) and will the content of the quests be updated throughout the seven weeks?


Big fans of Rabbithole. Ask & distribution seems reasonable for an easy to track incentive program :+1:t3:

We hope to see a real user / learning journey for different protocols which goes above and beyond making people simply swap on a DEX or lend & borrow on a money market. The Mirror quests might help with that :slight_smile:

Looking forward to a bit more details on daily tasks and potential iterations throughout the season.


Are there any specified plans or directions on how to design a daily quest on the protocols mentioned above (PoolTogether, Velodrome) and will the content of the quests be updated throughout the seven weeks?

We’ll definitely consider adjusting the content throughout the seven weeks if the community is interested. We want to make sure that we’re first and foremost driving growth and have a clear way to show progress, so wanted a little variability as possible in the seven week program.

We hope to see a real user / learning journey for different protocols which goes above and beyond making people simply swap on a DEX or lend & borrow on a money market. The Mirror quests might help with that :slight_smile:

Defintiely! We’re quite limited by the protocols that exist on Optimism today, so if there are interesting use cases or protocols that aren’t DeFi or NFTs related, we would be happy to support those as well.

1 Like

this is an effective way to lead people by the nose to explore and understand/familiarize themselves with various platforms/dApps that (I may) not otherwise have incentive to use. I say this having learnt about useful projects via similar ‘Quest’ walk throughs on both Optimism & Arbitrum Polygon Avalanche . Some of the dApps get bookmarked for future use. at the end of the day there are some very cool & useful dapps being built but there are a myriad of projects to sort through/discover/choose from : Gamifying that search & exposing people to the UI with a step by step quest instruction helps with marketing. speaking as a user


Hello and thank you for your proposal! Throughout the application process, this forum thread will be one of the official means of communication. Please be sure to monitor it for updates over the course of the review period.

At this stage, applications are mainly being reviewed for completeness, and nothing at this stage should be construed as support or opposition by any members of the Grants Council.


Thank you for the very specific, unambiguous milestones. Just as a general comment, we recommend to all projects to explicitly state that team wallets will be excluded from both metrics and rewards. We also recommend a pledge to provide documentation to the Grants Council to avoid delays in verifying the milestones were met. Otherwise, it’s great to see such confidence in the milestones and the level of specificity you have here.


Just as a general comment, we recommend to all projects to explicitly state that team wallets will be excluded from both metrics and rewards.

We also recommend a pledge to provide documentation to the Grants Council to avoid delays in verifying the milestones were met.

Both of these are acknowledged!

1 Like

Hello and congratulations on being a finalist for Round 11! Please verify that the milestones and grant size above are accurate. Thank you!


We just updated the milestones to make them more clear, and distinguish between unique users per week and transactions per week happening on RabbitHole’s Quest Protocol. Slightly adjusted the OP distributed as well as a result.


Thank you! Can you please provide a link to what the source of truth will be for your milestone completion?

1 Like

You can track it on our Dune Dashboard here. We’ll work on creating a section in the Dune Dashboard to make the milestones easy to track as well.


Hi @katie was just wondering how strict these milestones are. Due to the 5x increase in gas costs from the time of writing, we feel that it may be a big challenge, since the congestion across networks has made it more difficult for users to complete. Happy to keep them the same, but curious your thoughts before proceeding.


Hi @brian_rabbithole thank you for letting us know. Since the Council is not active at the moment, I’m not sure how an extension would be processed. Tagging @danelund.eth and @lavande for guidance

1 Like

@brian_rabbithole, I defer to @danelund.eth, as the Council Lead, on process.

I can provide the following perspective on the intention behind the milestones: The critical milestone comes with potential consequences if a grant recipient “fails to execute” on it but someone would have to put forward a clawback proposal, which the Token House would then have to approve (as outlined in the Operating Manual.) The milestones are really meant to ensure accountability against grant misuse and “failure to execute”, not to prevent grantees from responding to extenuating circumstances. The more you can document any reason for delays and provide updates on the expected completion of the critical milestone, the less likely it could be viewed as a “failure to execute.”

1 Like

Great, thanks. Because gas prices are up 4x from the proposal date and OP is down 40%, this combined has decreased the subsidy by ~90%. The network congestion has had meaningful impact, so we will need to slightly revise the plan.

Here is the revised structure as a result. We plan on extending the distribution from 7 weeks to 14 weeks to weather against any future network congestions as well.

Targets Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 SUM
OP Distributed 6080 6992 8041 9247 10634 12229 14063 16173 18599 21389 24597 28287 32530 37409 246269
Total Unique Users 4,500 5,175 5,951 6,844 7,871 9,051 10,409 11,970 13,766 15,830 18,205 20,936 24,076 27,688 182,271
Total Transactions 7,000 8,050 9,258 10,646 12,243 14,080 16,191 18,620 21,413 24,625 28,319 32,567 37,452 43,070 283,533

We will begin the distribution next week, and report back using the same Dune dashboard. Let me know if you have any questions.

1 Like

The ecosystem scaling in such a direction looks good to me

Could you provide more details on how the daily on-chain tasks created by RabbitHole will incentivize users to interact with the protocols on Optimism, and what specific actions are being incentivized?

1 Like

We’re excited to report the RabbitHold grant program is going very well and we’re significantly outpacing plan. In this report you’ll find key volume and efficiency metrics and their performance relative to our plan posted 5/12/23.

Request: We’re now 43% complete on the total plan in terms of protocol actions driven (Quests), and ready to receive of the remaining 60% of the grant for us to complete the distribution plan.

Performance Summary To-Date

The Optimism program has garnered significantly more user interest & volume than plan. Key volume metrics:

Metric Plan Actual % of Plan
Unique Weekly Users 22,470 49,016 218%
Quest Completions 34,954 126,028 361%

Efficiency in terms of how much volume-per-OP has also been better than expected. Efficiency metrics (< 100% means better efficiency than plan):

Metric Plan Actual % of Plan
OP / Transaction 0.87 0.48 56%
OP / Unique User 1.35 1.24 92%

Weekly Metric Trends

Quest completes have far outpaced plan in every week.

Unique users have also outpaced plan, with a large uptick driven last week when we launched our new “Quest Terminal” product.

Equally important to volume is efficiency- in total the cost-per-action driven has been ~half of plan (better efficiency than plan).

On a per cost-per-unique user standpoint we’ve also beat plan by a moderate amount.

Top Protocols

To-date 15 protocols have been included in our grant program. Below are action counts driven to each protocol.

Protocol Actions Driven
Mirror 24809
Agora 21786
Exactly 20000
Stargate 13127
Beethoven X 12500
Velodrome 10739
Clipper 5747
Uniswap 5100
Perpetual 2500
Pool Together 2345
Cozy 2042
Orbiter 1970
Lyra 1607
Pika 1150
AAVE 586

Overall, we’re really happy with how well the program has been received, and are excited to continue to work to advance Optimism protocol initiatives in the future. Let us know if you have any questions and what the next steps are for receiving the remaining grant.

I agree with the proposal, and believe this is a good way: It will bring more people in touch with Optimism, thus showing them the ecosystem, and hopefully have them “stay”.