Week of September 19, 2022
Summary
Well here we are in the final, voting week of Cycle #6. There was a flurry of activity (and some confusion) as teams got their proposals ready to be included in the Roundup and the newly formed Governance Committees got to work. Some proposals didn’t make it in time for this Cycle, but you can still take a look at what’s being put forward for the next Cycle.
Proposals
Summaries of the dHedge and Otterspace proposals were in included in last week’s recap (see above); here are summaries of the remaining eight:
Across Protocol claims to be “the fastest, cheapest and most secure bridge between L1 and L2s.” With this proposal Across asks for 750k OP, 75% of which will be used to “subsidize bridge fees for users that would like to transfer assets to Optimism.” The remaining portion will be allocated as a reward to anyone who operates a relayer on Optimism. Across will also provide up to 320% ACX as a co-incentive for those bridging to Optimism. Across believes that the proposed incentive programs could create from $500m to $1b of volume on Optimism.
Bankless Academy describes itself as a “free-to-access, open-source, education hyper-structure seeking to empower internet society with the information and tools necessary to achieve financial self-sovereignty.” The Academy does this by creating lessons or “quests” that guide the user through the experience of using progressively more complex web3/crypto tools and platforms. This proposal asks for 33,000 $OP, 60% of which will be distributed to contributors building the lessons for onboarding Academy users to Layer 2s (including Optimism); the remainder will go to the community treasury to support future development of the Academy.
Interest Protocol, from GFX Labs, ****is as a “fractional reserve, overcollateralized borrowing protocol.” Deployment to Optimism is predicted in the “immediate future” should the grant be approved. Importantly, “Interest Protocol is designed to allow tokens held as collateral to still be able to participate in governance via delegation controlled by the user,” meaning OP holders could use the protocol without losing their ability to participate in Optimism governance. The proposal requests 31,764 OP to provide 50% of estimated developer costs to deploy the protocol on Optimism. Interest Protocol would then be able to accept OP as collateral, creating a “demand sink” for the token without sacrificing the token holder’s ability participate in governance.
The Kromatika dApp was first active on Optimism in December of 2021 and is one of the few (if not the only) DEX protocols with automated limit orders and a swap aggregator on Optimism. As the proposal states, “DEX trading is complicated, expensive and is limited in terms of convenience when compared to CEX trading. Kromatika hopes to solve this problem for the Optimism Ecosystem.” Kromatika’s goal is to make “DEX trading simple, accessible, and affordable on Ethereum L1 and L2’s.” The proposal asks for 300k OP.
OptiChads is focused on “improving Health & Wellness in Web3 through our art. We have a very active and passionate community of Chads focused on self improvement in and out of the gym.” The proposal asks for 50k OP, 100% of which will be used to incentivize health and wellness behaviors through the use of Web3 quests. As a co-incentive, 50 OptiChad NFTs will be given to the addresses with the highest completion rate.
The Revert Compoundor, created by Revert Labs, automates the compounding of fees for liquidity providers on Uniswap V3 — a function that can substantially improve returns for the user. The proposal asks for 240k OP to incentivize users to bring liquidity to Uniswap on Optimism (estimated to increase by ~20m USD) via the Compoundor. 100% of OP incentives will go to Compoundor liquidity providers over the course of three months.
“Socket is an interoperability protocol for secure & efficient data and asset transfers across chains.” The project aims to create “seamless user onboarding,” which is, as the proposal describes in detail, often complicated, onerous, and expensive. One million OP are requested, 60% of which would be used to subsidize 90% of fees for every user that onboards to Optimism via Socket. The remaining 40% is allocated to builders that integrate Socket into their UX or their dApps.
Tarot is a decentralized lending and leveraged yield farming protocol that has been on Optimism since May of 2022. This proposal, which was initially introduced in mid July, requests 600k OP, 90% of which will be “allocated to liquidity bribes and incentivization mechanisms on Velodrome, Beethoven X, and/or other major DEXs on Optimism to incentivize TAROT-based liquidity.” The remaining 10% is allocated to the Tarot team, which will pair the OP with TAROT to provide initial liquidity on Optimism for a minimum of 12 months.
Check out the Governance Committee Recommendations concerning the above proposals:
Vote now! — voting is live only until September 28, 7PM GMT. That’s Wednesday.
In the Forums
Shadow Governance Committee: DeFi Committee B, which is not an official Governance Committee, has posted its recommendations, which are “just suggestions that we hope are coming from a helpful, informed perspective.” This has been, unsurprisingly, controversial.
Delegate communication. @polynya has updated their thread, outlining their approach to the new season.
Another delegate commitment. @Tjark, on behalf of a collective of PoolTogether community members, has laid out their delegate case.
A grant update from PoolTogether, “the front door to defi on Optimism,” has been posted by @Leighton.
Proposals for retroactive public goods funding. @Jonas has posted some recommendations for the next experiment.
In Discord
Lots of discussion in #gov-general about seeking delegate feedback and approval.
Formally signaling that a proposal is ready for the voting cycle is not an indication of a delegate’s endorsement of the proposal itself.
Should Governance Committee recommendations be posted earlier in the voting cycle?
In the future, Governance Committee recommendations may be linked to in Snapshot.
New and improved Gov docs have been put out there, incorporating feedback.
Check in on the #gov-temp-check channel to respond to proposals looking for feedback.
On Twitter
This week in Optimism.
OP Radio is a weekly Twitter Spaces event “covering a wide range of topics in the Optimism ecosystem” — every Wednesday at 3PM GMT.
Optimism Docs are now available as an app for mobile and desktop.
Claim your Delegatooor.
A proposal tracker, courtesy of @OPGovWatch.
Governance Calls
Join the next call (Discord event link) — which is sure to be lively — on September 27, 5PM GMT. Call details and agenda items are in this forum post.
Quick Gov Links: Working Constitution | Operating Manual v0.2 | Proposal template | Delegates | Snapshot | Optimism on Boardroom