Decentralized Basis Trade
OP S6: Mission Request
S6 Intent
Intent 3: Grow application devs on the Superchain
Delegate Mission Request Summary:
The goal of this Mission Request is to enable users to easily earn fully onchain yield through a Decentralized Basis Trade Vault. Accomplishing this will require integrating fully onchain perps, staking, and/or lending infrastructure, thus allowing users to earn yield while maintaining a delta-neutral position.
The growth of Ethena to >$2B TVL on Ethereum L1 indicates the desire to capture yield generated via a delta-neutral basis trade. There is an opportunity to bridge some of this demand to Optimism through the integration of fully onchain Optimism-native protocols, boosting Optimism TVL and utility.
Proposing Delegate/Citizen:
MasterMojo, Matt Losquadro, and Synthetix Ambassadors
Total Grant Amount
200k OP total is requested for this program. Individual grants are capped at 50,000 OP OP
Should this Mission be fulfilled by one or multiple applicants: Multiple
How will this Mission Request help accomplish the above Intent?
The primary goal of this initiative is to incentivize developers to create a user friendly, decentralized basis trade, onboarding developers to build and users to earn yield onto Optimism. This basis trade should be accomplished through the usage of Perps, but can be paired with any asset (including LSTs/LRTs, yield-generating collateral, and so on) with a necessity being that it is scalable (and properly risk managed) and can support deep liquidity.
What is required to execute this Mission Request?
- Must launch a basis-trade vault on OP Mainnet, which allows users to deposit and earn yield while maintaining a delta-neutral market position
- Must provide documentation outlining the mechanics and risk factors associated with depositing into the vault
How should governance participants measure impact upon completion of this Mission?
Milestones:
- Creation of short-term launch plan to support minimum liquidity support and MVP of product and design. (upon application)
- Launch of Product in Beta/Alpha to support initial sets of users with liquidity support (within 2 months)
- Creation of vault with a hedge (within 3 months of grant approval)
- Fully Launch Decentralized Basis Trade Vault (within 4 months of grant approval)
- Optional: Launch a yield-bearing token from the Vault, which can be used in lending markets, LP vaults, etc.
Metrics:
- Total Value Locked
- User and Deposit Growth
- Performance of the vault
Impact: Total gas fees
Has anyone other than the proposer contributed to this Mission Request? TBD
These are still in DRAFT Mode.