Project Name: zeroDAO
Author Name: @jonto
Number of OP tokens requested: 400,000 $OP
L2 Recipient Address: TBD Multi-sig
Relevant Usage Metrics:
59 BTC in volume (in 3 months since public launch)
Optimism alignment (up to 200 word explanation):
zeroBRIDGE significantly lowers the barrier of entry to getting on Optimism by enabling gasless bridging from BTC to Optimism ETH.
zeroDAO is the only way to gaslessly bridge BTC directly onto RenVM enabled chains and swap to the native gas token. A user can bridge BTC directly to ETH on Ethereum mainnet or MATIC on Polygon as an example. zeroBRIDGE is live on mainnet, Arbitrum, Avalanche, Polygon, and just deployed on Optimism.
Our next roadmap item is the release of a native lending component that will allow for 0 and 1 confirmation BTC bridging and trading via the zeroDAO SDK. Native chain assets are lent out trustlessly while the BTC transfer is being confirmed, enabling a DEX-like experience of cross-chain BTC trades.
The Synthetix synth-swap framework, specifically on Optimism, makes it possible to create an Optimism+zerop2p application which can provide a BTC trading experience with no-slippage and low fees. With Optimism, zeroSWAP has potential to dominate permissionless BTC trading.
Proposal for token distribution (under 1000 words):
How will the OP tokens be distributed?
- 100,000 $OP to support further development of zeroBRIDGE on Optimism, zeroBRIDGE integrations into Optimism native apps, and the development of the synth-swap module.
- 50,000 $OP for grants to builders on the zero protocol on Optimism
- 250,000 $OP for bridge incentives and lp incentives for integrated protocols
ZeroDAO aims to be the leader in bridging security and user experience. Bridging choice is important for user acquisition and mass adoption. Ideally there will be many zero-maintained endpoints for users to directly onboard from anywhere onto Optimism native apps.
How will this distribution incentivize usage and liquidity on Optimism?
Any Optimism project looking to onboard new users can make tutorials outlining how users can acquire BTC from a local ATM or exchange, bridge it to Optimism ETH using zeroBRIDGE, and then trade for any token required to use their service. Being completely gasless with BTC support makes zeroBRIDGE an optimal way to onboard.
Then, with the synth-swap features on zeroSWAP, for the first time in DEX history, BTC holders will not need to worry about depositing to an exchange or bridging to swap. Synthetix on Optimism currently has the best balance of low slippage and low fees to support this.
A bridge incentive program will be built to only reward those that bridge funds and keep them on optimism using a series of snapshots. By also having lp incentives on integrated protocols this gives users something to do with their funds after bridging over. For example a velodrome module could be built so users can bridge and swap through velodrome or bridge and deposit into an incentivized pool, building overall liquidity on optimism. Zero integrations will use those pools for routing, bringing volume to integrated DEXs.
Why will the incentivized users and liquidity remain after incentives dry up?
When the $ZERO token is released, a portion of the tokens will be used to incentivize activity through the protocol over the long term. The fees on the bridge are low so ideally the natural pull of users and assets onto optimism will continue generating fees for zeroDAO and any integrators. We will also look for application specific opportunities such as the synth-swap application where unique use cases can be built out, encouraging activity on optimism without users necessarily needing to explicitly bridge or need to know which chain the actions are occurring on. Optimism integration partners will benefit from being eligible for those incentives from Day 1.
Over what period of time will the tokens be distributed?
If approved, the 150,000 $OP for development and grants will be distributed upfront. The 250,000 for LP incentives can be released upfront as well or on delivery of a more detailed incentives plan.
We will also happily work with any other Optimism native projects that would like to have a native bridge of BTC or other assets either into their assets or into positions on their platform.
How much will your project match in co-incentives?
We have completed an initial seed round and have a modest runway. A grant from Optimism would allow us to move Optimism focused initiatives further up in our priority list. We will incentivize all flow through the protocol on token release, but we are exploring ways to incentivize integrators to bridge through the zeroDAO SDK using revenue share controls at the protocol level.
It will be possible for partners and integrators to set their own fee for bridging done using the zeroDAO SDK. If Optimism wanted to host a deployment of zeroBRIDGE, for example, an additional fee can be set with a community fund as beneficiary where it would accumulate fees and eventually the ZERO token.
zeroDAO has been under development for 2+ years by a doxxed team that has grown to 10+ regular contributors. It has received incubation support from badgerDAO, a DAO focused on bringing BTC to DeFi that has been operating for over 1.5 years.
Flex - Lead Dev - Founding CTO of Idex
Jonto - Product, Governance - BadgerDAO core contributor
Mitche50 - Full Stack Dev - BadgerDAO Core contributor
Miewenti - BizDev
Developers - 7 (Eynno, Alo, v, protoeloka, madrone, d1llon, aed)
Community & Marketing - 3 (DefiDan, grey, tito)
Advisors - Arthur Hayes (100x), Loong Wang (Founding CTO @ Ren)