Metalswap - Growth Experiments Grant - Cycle 11

ARCHIVED & OLD Missions Grants Council Cycle 10-11
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Project name: Metalswap

Author name and contact info:

Marco Braglia - CTO

email : team@metalswap.net

Telegram : Telegram: Contact @marcob8986

L2 recipient address: Multisig Optimism Wallet 0xB0E9021096d7d6458D747CFe959E5E066Fc52dED

Which Voting Cycle are you applying for?: Cycle 11

I confirm that I have read the landing pages for the Builders 8 and Growth Experiments 11 Sub-Committees and that I have determined my proposal is best suited to be reviewed by the Growth Experiments Sub-Committee: Yes

I understand that Growth Experiments grants are subject to a “no sale rule,” as explained in this post 5, and I have read the terms of the rule: Yes

Project Details

Metalswap is a decentralized hedging swap protocol that provides a tool for protecting assets from market volatility. This unique financial primitive is built from scratch and is currently unique in the DeFi market. The hedging swap tool is commonly used in centralized commodity markets such as the London Metal Exchange. Metalswap’s mission is to enable businesses to cover themselves from commodity price volatility using a DeFi approach. The tool is also useful for DeFi users who want to hedge against price volatility of crypto digital assets.

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What are you building?:

Our product has been live on the ETH mainnet since September 13th and currently supports three different digital assets on our DApp. Users can utilize the Hedging Swap Tool with ETH, WBTC, and WPAXG (a PAXG wrapped version), all of which are paired with Stablecoin.

Moving forward, our project is focused on three main areas:

1 - Find technical solutions to include RWAs (Real World Assets) in our dapp that are also useful for traditional businesses that need coverage on the volatility of commodity prices. Our tool is in fact widely used in this way by many companies in centralized markets

2 - Deploying our tool on a new blockchain to reduce transaction fees for our users and unlock novel use cases

3 - Creating a business funnel to address regulatory concerns of traditional businesses

Why do you believe what you are building is going to succeed?:

We believe that our tool has numerous use cases in DeFi as well as in the commodities business, making our project highly relevant to traditional businesses. We have created a sustainable protocol with a real yield business model, where the fees from Hedging Swaps are used to buy back our governance token and redistribute value to the protocol DAO. To add value to our product, we want to deploy the smart contracts on a reliable chain with lower transaction fees compared to ETH, which will have a lesser impact on the total commission costs.

How many users does your project have currently?

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:

1 - We Deploy our smart Contracts on Optimism and suddenly Our users will have a much less expensive tool due to a significant savings in terms of transaction fees.

2 - We will implement the system with three tokens that people can use to hedge against market volatility: OP, ETH, WBTC paired with USDC.

3 - We will activate the existing Usage Incentives in our system with our Governance token XMT

4 - We will use the OP Grants to distribute to those who use our product and provide liquidity as detailed later

5 - On the Optimism blockchain, there will be a unique financial primitive that is only present on Ethereum with much lower transaction costs. Users will be able to hedge against the volatility of their assets, including OP, and will also be incentivized to do so with the OP distribution program.

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

  • Defi Users: Any Defi user who wants to protect themselves from the volatility of digital assets, such as Lido Stakers, Univ3 or Velodrome Liquidity Providers, are some of the most interesting examples that we discuss and will discuss in our blog. All of these actors would have a clear advantage in using our product on the Optimism blockchain.

  • Optimism Dao Members: Any member of the Dao who wants to protect their value by hedging against the volatility of the Op price.

  • Trader : the Hedging Swap, like any other financial derivative, can be used as a trading operation. In this case, our product has the advantage of having a predetermined closure of the operation, which feeds interesting strategies.

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

Users of our product will interact with our tool’s contracts using the Optimism blockchain, and they will do so continuously, given the usefulness of our product, the cheaper tx price and the possibility to Open new Hedging Swaps against OP and other Assets not present elsewhere.

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.):

Hedging Swap Stats https://dune.com/matteov

  • Distinct Addresses interacting with our Tool Smart Contract - 131

  • Overall Hedging Swap opened - 426

  • Total ETH target Size - 100,07 ETH

  • Total WBTC target Size - 2,43 WBTC

  • Total USDT target Size - 128023,00 USDT

  • Total WPAXG target Size - 4,83 WPAXG

TVL Stats https://defillama.com/protocol/metalswap

  • Ethereum - 841 k USD (Hedging Swap Liquidity included)

  • Bnb Chain - 302k USD

  • Polygon - 36k USD

Our Governance Token XMT is present on all three of the mentioned chains, while our Hedging Swap tool is currently only available on the Ethereum chain.

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

Metalswap Hedging Swap is a unique financial primitive in Defi. It is widely used in the commodity sector of centralized markets and has many use cases when used in Defi with tokens such as ETH, WBTC, and OP. One of its advantages is that it can be used with any ERC-20-like token present on this chain. Metalswap can become the first protocol where OP Dao members can hedge against price volatility.

Please link to code audits (if any): https://www.certik.com/projects/metalswap

Team

  • Marco Braglia - CTO

  • Lorenzo Niccolai - Marketing Manager

  • Mirko Semprebon - Content Manager

Who are your founders?:

  • Tiziano Tridico - Leading Italian Crypto KOL

  • Paolo Luini - Digital Entrepreneur and Investment Expert

  • Umberto Prestini - Entrepreneur with experience in the specific field of metals

What makes your team well-suited to carry out the project described in this proposal?

The team has already demonstrated its ability to achieve set goals. The Whitepaper promised the development of an innovative tool built from scratch with a high level of security, and the team has successfully delivered on this promise. Our current objective is to showcase the usefulness of our product through the creation of high-quality content that highlights the numerous use cases for both Defi users and traditional businesses.

Is this your first Web3 project?: Yes

Grant Request

What is the size of the grant request? (250k OP max): 30k OP

How do you justify the size of the grant?:

With the help of this grant we have the opportunity to bring our userbase to Optimism and to make our tool known to all those who already use Optimism

There will be two ways to incentivize the use of our tool on Optimism:

1 - Liquidity Pool NFT Rewards - Each liquidity position represented by an NFT that guarantees Hedging Swaps will receive a daily reward in both XMT and OP tokens based on the time they lock their assets. It will be possible to deposit ETH, WBTC, USDC, and OP as Hedging Swap Liquidity.

2 - Hedging Swap Rewards - Each operation will receive a reward in XMT and OP tokens based on the target size and duration of the operation.

Roadmap and Distribution Plan

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

1 - Create a Testnet to test our product on Optimism

2 - After testing, deploy our smart contracts on the chain adapted to the XMT and OP distribution system

3 - Provide initial liquidity to ensure operations can be guaranteed

4 - Create an editorial calendar to allow the Optimism community to understand how to use our product with use cases and the benefits of using our Product on Optimism Chain.

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. See the no sale rule here 5):

1 - Liquidity Pool NFT Rewards - 10K OP - 30% - Approximately 55 OP will be distributed daily to Liquidity Providers in proportion to their share of liquidity relative to the total. This amount was determined to reach a liquidity target that allows the ecosystem to generate good trading volumes and allow Liquidity Providers to have an interesting profit while locking their ETH, WBTC, USDC and OP in our protocol. Our initial liquidity target is 500k USD in value divided among ETH, WBTC, USDC, and OP considering the current prices. In fact, this mechanism will establish an elastic incentive effect to provide liquidity. When the liquidity is lower than the target, there will be attractive APYs due to the fixed daily incentive. When the liquidity on Optimism is close to the target, depositing these digital assets on our dapp will have an APY in the range of 7-9% in counter value. In case the liquidity is above the target, there will be lower APYs.

2 - Hedging Swap Rewards - 20k OP - 70% - Users who use our tool will receive both XMT and OP as rewards. This will increase the volume and number of our transactions. Users will receive a number of XMT and OP based on the target size of the coverage and the duration of the position. Our target for the number of Hedging Swap positions opened is 3000 within the 6 months of distribution. Since our users will not pay Ethereum tx fees, they will be incentivized to open more positions that last longer and with higher target sizes.
Assuming an average target size of $1000 and an average position duration of 7 days, the user will receive approximately 50 XMT and 6 OP if the coverage remains open until the expiry date. Otherwise, they will receive a portion of the incentive based on the time the coverage was open.In this way, the incentive will be distributed over the 6 months if the number of operations and the average target size is as projected. The duration of the OP distribution may vary based on these parameters.
The increase in the number of operations and the average target size of operations are based on three positive effects that will increase transactions: a drastic decrease in tx fees, international visibility of the OP grant, and OP distribution.
The number of OP distributed per operation, like XMT distribution, depends on the operation fees that are linked to the target size and time. We have decided on a number of OP to ensure there is no excessive degen operational activity, which can increase user retention even after the incentive period.
In our plan, we expect that at the end of the OP incentive, the XMT reward will be more attractive and create a smoother transition from the period when OP+XMT are distributed to when only XMT will be distributed.Indeed, 80% of the fees collected by our protocol are used to do a buyback on our Governance token XMT.

Over what period of time will the tokens be distributed for each initiative?

The Liquidity Pool Rewards will be distributed over 6 months with a certain number of OP tokens distributed every day. The Hedging Swap Rewards will be distributed based on the volume of operations created, and according to our target volume, these rewards will also be distributed over a period of 6 months. However, the distribution of Hedging Swap Rewards may end a little before or after the 6-month period, depending on various factors.

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:

1 - We’re thrilled to announce the successful deployment of an initial version of MetalSwap’s tool on the OPTIMISM Goerli testnet. We invite you to explore and play with it at the following temporary address:

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Our next goal is to optimize the testnet product and deploy the double rewards mechanism.

Deadline: 10th May

2 - We plan to bridge our governance token, XMT, onto the Optimism network. It’s important to note that the OP token will be distributed alongside XMT as rewards, and users will be able to use it for Liquidity Providing, enabling others to Open new Swaps and receive rewards. Deadline: 30th May

3 - We’ll create a comprehensive Docusaurus guide on using the Hedging Swap tool on Optimism’s network. Deadline: 10th May

4 - To keep our users informed and engaged, we’ll be publishing a monthly “Optimism Grant Report” on MetalSwap’s Official Blog. This report will include two new use cases and our progress updates.
Having such a unique tool compared to the competitors, we need to explain in the best possible way how it works, especially since Hedging Swap is a relatively new concept in the DeFi environment. We’re excited to show more Use Cases and help users to learn about this unique financial product and bring innovative hedging strategies to the DeFi space. Deadline: every month starting with the plan

5 - In our first three months on ETH Mainnet, we had approximately 110 swaps per month. Taking into account the net reduction in transaction fees, international visibility, and OP distribution, we aim to have 1000 positions opened in the first 3 months. Deadline:15th July

6 - After reaching 1000 swaps in the first three months, we’re setting a goal of 2000 swaps for the remainder of our plan, supported by our progress updates discussed in point 4. Deadline: 15th October

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:

1 - We’ll deploy Hedging Swap and Liquidity Pool smart contracts on the Optimism network. Deadline: 30th May

2 - We’ll provide initial liquidity for three token pairs: ETH/USDC, WBTC/USDC, and OP/USDC, within one month of distribution. Deadline: 30th May

3 - We’ll develop comprehensive documentation and publish six articles (use case examples and grant reporting) in two months on our blog and docs. Deadline: 15th June

If the OP tokens are for direct distribution to users, why will incentivized users and liquidity on Optimism remain after incentives dry up?:

As mentioned before, Metalswap is built to have XMT incentives. So, after OP incentives dry up, our governance token incentives will remain.

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

Optimism Relationship

Does your project solve a problem for the Optimism ecosystem? If so how?:

Yes, Creating a OP Hedging Swap will be the first “forward financial derivative contract” built with OP token and Optimism holder can cover themself from price volatility with a Expire date contract. Will also bring in Optimism Chain a unique Feature.

Why will this solution be a source of growth for the Optimism ecosystem?:

This proposal would not only incentivize the use of the Optimism chain but also allow OP holders to hedge against price volatility, encouraging their participation in the ecosystem’s DAO

Is your project Optimism Native?:

No, as mentioned before we deployed in Ethereum Mainnet as first and unique step

Confirmations

I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes

I understand that I will be expected to following the public grant reporting requirements outlined here: Yes

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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. Please note that the cutoff for modifications is Monday.

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.

Please update your milestones to include measurable KPIs with timelines. Additional information on milestones can be found here.

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Hey @katie !
Thank you for your useful feedback; we have made some changes accordingly:

Request 50–>30k OP we think is an interesting figure for a first round of grants in our case, we can decide later to participate in a subsequent grant round.
Time period: 6 months

We have also better specified the reason for our size choices based on our numbers, now updated Milestones section contains clearer points and measurable KPIs

1 - Liquidity Pool NFT Rewards - 10K OP - 30% - Approximately 55 OP will be distributed daily to Liquidity Providers in proportion to their share of liquidity relative to the total. This amount was determined to reach a liquidity target that allows the ecosystem to generate good trading volumes and allow Liquidity Providers to have an interesting profit while locking their ETH, WBTC, USDC and OP in our protocol. Our initial liquidity target is 500k USD in value divided among ETH, WBTC, USDC, and OP considering the current prices. In fact, this mechanism will establish an elastic incentive effect to provide liquidity. When the liquidity is lower than the target, there will be attractive APYs due to the fixed daily incentive. When the liquidity on Optimism is close to the target, depositing these digital assets on our dapp will have an APY in the range of 7-9% in counter value. In case the liquidity is above the target, there will be lower APYs.
2 - Hedging Swap Rewards - 20k OP - 70% - Users who use our tool will receive both XMT and OP as rewards. This will increase the volume and number of our transactions. Users will receive a number of XMT and OP based on the target size of the coverage and the duration of the position. Our target for the number of Hedging Swap positions opened is 3000 within the 6 months of distribution. Since our users will not pay Ethereum tx fees, they will be incentivized to open more positions that last longer and with higher target sizes.
Assuming an average target size of $1000 and an average position duration of 7 days, the user will receive approximately 50 XMT and 6 OP if the coverage remains open until the expiry date. Otherwise, they will receive a portion of the incentive based on the time the coverage was open.In this way, the incentive will be distributed over the 6 months if the number of operations and the average target size is as projected. The duration of the OP distribution may vary based on these parameters.
The increase in the number of operations and the average target size of operations are based on three positive effects that will increase transactions: a drastic decrease in tx fees, international visibility of the OP grant, and OP distribution.
The number of OP distributed per operation, like XMT distribution, depends on the operation fees that are linked to the target size and time. We have decided on a number of OP to ensure there is no excessive degen operational activity, which can increase user retention even after the incentive period.
In our plan, we expect that at the end of the OP incentive, the XMT reward will be more attractive and create a smoother transition from the period when OP+XMT are distributed to when only XMT will be distributed.Indeed, 80% of the fees collected by our protocol are used to do a buyback on our Governance token XMT.
We also updated the Benchmark and Critical Milestones section, defining the deadlines of each point:

Benchmark:

1 - We’re thrilled to announce the successful deployment of an initial version of MetalSwap’s tool on the OPTIMISM Goerli testnet. We invite you to explore and play with it at the following temporary address:
[hhhhhhhhh.dv3ypqgsfgu3j.amplifyapp.com](https://hhhhhhhhh.dv3ypqgsfgu3j.amplifyapp.com/#delegate-updates ### MetalSwap Webapp
Official MetalSwap web app

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Our next goal is to optimize the testnet product and deploy the double rewards mechanism.
Deadline: 30th May
2 - We plan to bridge our governance token, XMT, onto the Optimism network. It’s important to note that the OP token will be distributed alongside XMT as rewards, and users will be able to use it for Liquidity Providing, enabling others to Open new Swaps and receive rewards. Deadline: 10th May
3 - We’ll create a comprehensive Docusaurus guide on using the Hedging Swap tool on Optimism’s network. Deadline: 10th May
4 - To keep our users informed and engaged, we’ll be publishing a monthly “Optimism Grant Report” on MetalSwap’s Official Blog. This report will include two new use cases and our progress updates.
Having such a unique tool compared to the competitors, we need to explain in the best possible way how it works, especially since Hedging Swap is a relatively new concept in the DeFi environment. We’re excited to show more Use Cases and help users to learn about this unique financial product and bring innovative hedging strategies to the DeFi space. Deadline: every month starting with the plan
5 - In our first three months on ETH Mainnet, we had approximately 110 swaps per month. Taking into account the net reduction in transaction fees, international visibility, and OP distribution, we aim to have 1000 positions opened in the first 3 months. Deadline:15th July
6 - After reaching 1000 swaps in the first three months, we’re setting a goal of 2000 swaps for the remainder of our plan, supported by our progress updates discussed in point 4. Deadline: 15th October

Critical:

1 - We’ll deploy Hedging Swap and Liquidity Pool smart contracts on the Optimism network. Deadline: 30th May
2 - We’ll provide initial liquidity for three token pairs: ETH/USDC, WBTC/USDC, and OP/USDC, within one month of distribution. 30th May
3 - We’ll develop comprehensive documentation and publish six articles (use case examples and grant reporting) in two months on our blog and docs. Deadline: 15th June

Hopefully, this will have fully answered your request for clarification. We would be happy to answer any further questions.

- MetalSwap Team

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First of all thanks to the Grants Council for considering MetalSwap for the Final Review - Cycle 11 - Grants Preliminary Roundup .
I am Tiziano Tridico, one of the founders of the project. I’d like to add that I’m also the owner of one of the biggest “crypto” YouTube channels in Italy: Tiziano Tridico - YouTube
It would be for me a pleasure to talk about this Grant and how Optimism could solve some efficiency problems that the dApp is having on the Ethereum Mainnet.
This project is introducing a new financial service in DeFi and still very unknown outside of Italy, I’m sure that with the deploy of the smart contracts on Optimism this discovery process could have an important boost bringing many transactions to this L2 solution.
Best,
Tiziano

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As a reminder, while grant evaluations are being finalized, grant distribution is as follows:

If a grant plan is approved, the applicant will receive 40% of the total funding. To unlock the remaining funds, critical milestones must be met. Please ensure that your milestones are discrete, trackable, and geared toward accomplishing their aims in 4-8 months.

To evaluate your milestones, you can use this milestone assessment link: Milestone Assessment.

If your critical milestones are well-detailed, align with the guidelines provided in the milestone assessment link, and you are comfortable with them, then you’re good to go. However, please be prepared to submit documentation proving that you have met your milestones, where necessary, to avoid delayed disbursement of the remaining funds

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Hi @MattGov.eth

Thank you for the reminder.

We have followed the advice of reviewing the milestone assessment and have decided to make some minor changes to our milestones that are not substantial but helpful for clarity.

Our previous version of milestones referred to the start of the grant plan as a time reference. Instead, we have decided to set specific dates as deadlines for each milestone, so that the Optimism Community can evaluate the achievement of our milestones in the clearest and most objective way possible.

We remain available for further clarification.

- MetalSwap Team

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Dear Op community,

I had to say to you my doubts about metalswap. Their ideas to introduce hedging swap in defi world is good, but I don t trust them at all.
There is a criminal complaint against this project for scam and pump and dump activity. Also, one of the founders has another criminal complaint for a fraud of almost 70 milions of euro. This guy lives promoting fake classes, Ponzi schemes and Miraculous alternative healings. I think he s really dangerous for the people who follow him in his adventure, expecially now , cause he s joking with the health of people.
Tridico knows him very well and he doesnt do anything to stop his behaviour.

I dont like that these people will have any kind of relation with Optimism, cause I understood Op values are differents from their values.
Thanks for your attention

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Hello Op Community,

As part of our benchmark milestone timeline, we have created some Docs which we will link here. These Docs will explain to users of our dApp to use our product on the Optimism L2 blockchain. These Docs will be made available once we have completed the deployment of our Smart Contracts.

The OPTIMISM Goerli testnet has been online since March 27th and is ready to be optimized with a fantastic double reward mechanism. We will provide more details in the future on how technically this distribution works.

The Metalswap DAO will vote on the deployment of the smart contracts on Optimism from May 17th to May 20th. This is the official MIP-3.
After this crucial step, if the outcome is positive, we will be ready to deploy our Smart Contracts in line with our critical milestones and start this beautiful journey together.

See you at the next update!

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Quickly summarizing the recent updates:

MetalSwap’s DAO successfully decided to port the Hedging Swap tool to OP.

The proposal has been approved, the pull request passed and once the official OP bridge frontend updates are completed, we’ll proceed to bridge the XMT token.

Following the successful bridging of the XMT token, we will be ready to deploy Hedging Swap and Liquidity Pools Smart Contracts with the double reward OP+XMT. These have been tested in Goerli OP to ensure stability, security, and effectiveness.

Concurrently, the Foundation is prepared to provide a total liquidity of 60k (30k USDC, 10k WBTC, 10k WETH, 10k OP) on Hedging Swaps’ liquidity pools.

While all systems are ready on our side, XMT ERC-20 Smart Contract has been deployed on OP, and now after the merged pull request on github, the only pending item is the activation of the native bridge. We made the request this past Saturday, and the repository was passed through 24 hours ago.

We published 4 different articles speaking about the topic, keeping our audience deeply involved.

We are looking forward to the activation and will keep you up-to-date on any further updates.

Best Regards

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Hi OP Community!

Exciting updates from our end:

We are thrilled to announce that our XMT token has been successfully bridged on Optimism. You can verify this from the following link / source of truth:

In addition, the double reward Smart Contracts have now been deployed on the OP Chain.

Hedging Swap Smart Contracts:

ETHUSDCSwap → 0x0a4B586d26AD35423Fb1e118E2C0b53D6931bEaA

WBTCUSDCSwap → 0xb3B8944268c651Da419Dc0cF94a4f012E0189E81

OPUSDCSwap → 0xf106D078EE2B861D1b07E117e91394E9a2914467

Simultaneously, we’ve prepared the chosen liquidity for Liquidity Providing, together with XMT Rewards.

Liquidity Pools with XMT rewards

Pool ETH → 0x5B7C5daa5f4Bb37c457dA468Da1CDaA6219892A1

5,36 ETH of Liquidity + 10k XMT of Reward

Pool USDC → 0x24682cFDc060316355C26C420d0748F289502e83
30k USDC (Liq) + 30k XMT (Rew)

Pool WBTC → 0x469CC7AF1696B5e4E6151796Dc3B3fEf39b34f39

0,36 WBTC (Liq) + 10k XMT (Rew)

Pool OP → 0xc9394748D5f633152AD3F8f557a9B7743148db1B

7121 OP (Liq) + 10k XMT (Rew)

NFT Staking pools with OP Rewards

ETH Liquidity NFT Staking Pool → 0x6d3CF2b5231a9e7b2926B512c60ceeE5d53Cf2bD

666 OP of Rewards for ETH Liquidity Providing

USDC Liquidity NFT Staking Pool → 0xd181819e5670E4367355ae42E92c7E0E4B245F59

2000 OP of Rewards for USDC Liquidity Providing

WBTC Liquidity NFT Staking Pool → 0xc5bBe6C7e97FCa74987C5DedcF7bF9EF651Fe76b
667 OP of Rewards for WBTC Liquidity Providing

OP Liquidity NFT Staking Pool → 0x463F3d041bd82CDd7815a3eCC7Fc31e9A91E3514

667 OP of Rewards for OP Liquidity Providing

The XMT / OP rewarding the Opened Swap positions are taken directly by Treasury’s Multisig from the swap reward manager contract. Treasury’s balance can be verified here: 0xB0E9021096d7d6458D747CFe959E5E066Fc52dED

After an internal testing phase, we plan to update the official dApp frontend.

As always, we will keep you informed about our progress.

Best Regards

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Dear Community,

We hope this message finds you well. We’re thrilled to share significant progress in line with our milestones:
Our dedication to knowledge sharing and transparency is manifest in our latest output of comprehensive documentation.
We actually have published a total of eleven articles on MetalSwap’s blog, surpassing our initial target of six, with more to come. These articles, ranging from use case examples to grant reporting, provide valuable insights into our operations and vision. You can access these articles at the following links:

As we continue with the testing of our official dApp frontend, we also aim to publish a dedicated docusaurus section. This will be launched soon after our official frontend goes live, further enhancing our documentation and making it easier for users to access and understand our platform.

We are proud of these achievements, and we know the journey doesn’t end here.

Next update will be about the launch of the OP distribution.

Kind Regards

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Hi there!
We’re pleased to provide the most recent update to our milestone table, reflecting MetalSwap’s progress and plans for the near future.
We identified an opportunity to enhance the retention of OP tokens within the Hedging Swap community with a particular distribution. It will be deeply explained in the coming days on MetalSwap’s blog & docs.
However, this commitment to betterment has led to a little delay in our official frontend’s publishing date. Milestones concerning open positions will be tracked overtime from that moment. We’ve been at work designing and testing this new system for distributing OP tokens to Hedging Swap’s users.
We believe this focus on retention will strengthen our community and align all users more closely with both OP and Hedging Swap’s overarching objectives.

Milestone Type Milestone Source of Truth
Benchmark Double Reward Mechanism on Testnet MetalSwap Webapp ← OP Goerli
Benchmark Bridge XMT onto Optimism Network Source
Benchmark Docusaurus Guide MetalSwap OPTIMISM Docs - Google Docs to be deployed together with the Official Frontend.
Benchmark Optimism Grant Report on MetalSwap Official Blog One month after the Official frontend publishing
Benchmark 1000 positions opened mid July
Benchmark 2000 more positions opened mid October
Critical Hedging Swap and Liquidity Pools deployed on Optimism Network ETHUSDCSwap, WBTCUSDCSwap, OPUSDCSwap, Pool ETH, Pool USDC, Pool OP, Pool WBTC, ETH Liquidity NFT Staking Pool, USDC Liquidity NFT Staking Pool, WBTC Liquidity NFT Staking Pool, OP Liquidity NFT Staking Pool, Treasury’s Multisig Address
Critical ETH/USDC, WBTC/USDC & OP/USDC pairs: initial liquidity provided Pool ETH, Pool USDC, Pool WBTC
Critical Comprehensive documentation and six Blog Posts (use case examples and grant reporting) Blog 1, Blog 2, Blog 3, Blog 4, Blog 5, Blog 6, Blog 7, Blog 8, Blog 9, Blog 10, Blog 11, docusaurus upcoming

We are excited to share more details about the new distribution system soon.
See you at the next update!

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MetalSwap - Growth Experiments Grant - Cycle 11 - Update

Hello Optimism Community,

We are excited to share the latest updates on our project. As you may know, we started with the OP Grant distribution on 26th June 2023. We decided to delay the start of distribution from the dates provided by the initial benchmark milestone in order to realise an exclusive functionality to achieve the following objectives:

  • Incentivise the use of Hedging Swaps and Liquidity Providing on the optimism chain.
  • Reward the most active people in the dApp.
  • Allow the incentive to decrease slowly, creating a smooth transition between the incentive and non-incentive period.
  • Maintain a high number of dApp users at the end of the incentive.

You might be wondering, how did the MetalSwap team manage to do this with just one feature? We explain it all in our latest Blog Post where we detail the feature.

Now, let’s move on to the updated benchmark milestones:

  • Benchmark 1: 1000 positions opened by 26th September 2023
  • Benchmark 2: Additional 2000 positions opened by 26th December 2023
  • Critical: A Docusaur “Hedging Swap on OP Layer2” dedicated section of three articles has been added to the Official MetalSwap’s Docusaurus Page
Milestone Type Milestone Source of Truth
Benchmark 1000 positions opened 26th September 2023
Benchmark 3000 positions opened 26th December 2023
Critical Comprehensive documentation Hedging Swap Layer2 Docs , Liquidity Providing Layer2 Docs , How To Connect to Optimism Docs

We are committed to providing regular updates on our progress and look forward to your continued support. Thank you for being a part of our journey.

Best,

1 Like
14

Hello community!
We’re thrilled to announce that with the completed critical milestones, the Grant Council released the 60% of the $OP to distribute over MetalSwap’s dApp!

To provide a brief summary of our current status:
We already claimed 10k $OP. We have sent 6k $OP to t0xb9e4162c27860fc81379c4a30f7288ab9deac164, which is designated for Liquidity Providing -related distribution.
The remaining 4k serves as a boost for Hedging Swap rewards on Optimism.
This leaves 8k on the grant contract still to be claimed, which we plan to request in two separate 4k distributions to boost swaps when needed.

We are taking this approach as we seek the best retention possible over $OP, understanding its importance.

Best,

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15

Hello everybody!

We are thrilled to share the progress we’ve made with the Grant distribution.
The remaining 60% of the grant has been unlocked, and we’re in the process of claiming and fulfilling our Hedging Swap Pools in 2-3 different rates. The first rate has recently been applied, adding 4000 OP directly to the Hedging Swap Liquidity Rewards.

Let’s dive into some insights about the total number of Hedging Swaps:

78 Hedging Swaps for the asset of ETH
3 Hedging Swaps for WBTC
94 Hedging Swaps for OP

Our Liquidity Pools are growing steadily. Please remember that the LP NFT must be staked until the end of the distribution period to obtain the 10k OP rewards. At the moment, on Optimism’s Layer2 we have a Total Liquidity of:

14.154 ETH
0.73322 WBTC
14.9k OP
46.3k USDC

We’re excited to announce that a total of 1513.78 OP has already been distributed across MetalSwap dApp’s users. We want to express our gratitude to all our users for their active participation and support.
We look forward to sharing more updates with you soon.

Best,

2 Likes
16

Hi community!
We’re delighted to bring you the latest updates, as featured in our August Monthly Recap on the MetalSwap Blog in Grant Reporting section. We’ve got some exciting numbers to share, especially in the topic of OP token distribution.

OP Token Distribution

We’re thrilled to announce that we’ve seen a significant increase in the distribution of OP tokens. Here’s a quick summary:

Metric July August
Total OP Tokens Distributed 4,300 7150

The penultimate rate of $OP is coming soon to push more the distribution over the month of September.
We remind that all the staked Liquidity Providing is going to be distributed in right after the Staking Period that closes at the end of the year.

Opened Hedging Swaps

Let’s delve into the number of hedging swaps opened in August:

Token Number of Positions Opened
ETH 50
WBTC 14
OP 112

OP continues to be the preferred choice for hedging swaps, and we’ve seen a notable increase in WBTC positions compared to last month.

We’ll be giving more updates soon!
Best regards,

-The MetalSwap Team

1 Like
17

Hello Community!

As always, we’re eager to keep you in the loop with the latest developments and achievements of MetalSwap, especially concerning the OP Grant distribution. Among other news, we publicly recap every month also on MetalSwap Blog

OP Token Distribution Update

September has been another fruitful month for us, and we’re excited to share the progress:

  • Total OP Tokens Distributed in September: 9205 OP

This distribution was primarily focused on rewarding users who opened a Hedging Position. As a reminder, the rewards for Liquidity Providers are scheduled for distribution after the 23 December.

Opened Hedging Contracts in September

Diving into the specifics:

  • ETH: 30 positions opened
  • WBTC: 0 positions opened
  • OP: 109 positions opened

It’s evident that $OP remains the top choice for our users, while the number of open positions for $ETH and $WBTC has seen a decline.
A total of 582 positions have been opened on the Hedging side.
A total of 72 NFT have been minted on the Liquidity Providing side.

Looking Ahead

As we approach the end of the year, we’re gearing up for the next phase of our journey. Our commitment to incentivizing the use of Hedging Swaps and Liquidity Providing on the optimism chain remains unwavering. We’re also dedicated to rewarding our most active dApp users and ensuring a smooth transition between the incentive and non-incentive periods.

Best regards

1 Like
18

Hello Optimism Community,

We’re back with another exciting update on MetalSwap’s journey, especially highlighting the progress in the OP Grant distribution. Let’s dive into the details of our latest developments, a brief overview is always readable also in MetalSwap’s monthly recap blogpost, precisely in the section “OP Grant Reporting”.

OP Token Distribution

In October, the focus remained on rewarding users for opening new hedging positions.

  • Total OP Tokens Distributed in October: Over 1200 OP tokens were awarded to users who opened hedging positions.
  • Cumulative OP Token Distribution: As of now, a total of 10,406 OP tokens have been distributed to 680 opened positions. Given the current token value of $1.89, this equates to a monetary value of approximately $19,667.

Hedging Contract and Liquidity Providing Updates

On the Hedging Contract side, we’re pleased to announce the inclusion of the latest rate of 4,000 OP tokens in our rewards pool. These tokens will be distributed in line with platform usage, ensuring that active users are duly rewarded.

For Liquidity Providers, we want to remind that the remaining 10,000 OP tokens are earmarked for distribution after December 23rd. This is a crucial part of our commitment to incentivize liquidity providing on the Optimism chain.

Looking Forward

As we near the year’s end, MetalSwap is not just looking back at our achievements but also gearing up for the future. Our dedication to enhancing the user experience on the Optimism chain, through both Hedging Contracts and Liquidity Providing, remains stronger than ever.

Stay tuned for more updates, and remember to visit the blog for monthly recaps and detailed insights.

Best regards

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