[Mission Request] Decentralized Solvers and Aggregators on OP Mainnet / Superchain

Governance Fund Missions šŸ¹
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Delegate Mission Request Summary: This mission seeks to incentivize the development and integration of decentralized solvers, aggregators, and limit order functionality on Optimism Mainnet and the Superchain. The focus is on recruiting projects similar to: CowSwap, 1inch Fusion, Pyth Express Relay, and others with similar technology to support OP Mainnet & provide a plan for future Superchain support. There is a strong emphasis on supporting the wider Superchain, with plans ready to support interoperability.

S6 Intent: Intent 3: Grow application devs on the Superchain

Proposing Delegate/Citizen: Matt

Total grant amount: 250k OP

Should this Mission be fulfilled by one or multiple applicants: Multiple

How will this Mission Request help accomplish the above Intent? By bringing decentralized solvers and aggregators to Optimism, we can improve the trading efficiency and user experience, foster innovation in decentralized exchange mechanisms, and increase overall liquidity/trading volume on the network.

Additionally - This will help to serve as a template for bringing these same solvers to the rest of the Superchain, with a focus on borrow/aggregation across the Superchain and implementing the Superchain ERC-20 standard.

What is required to execute this Mission Request?

  1. Integration and Frontend Support

    • Integrate decentralized solver and/or aggregator with Optimism Mainnet (minimum requirement)
    • Provide frontend support for users and/or protocols

  2. Superchain Support

    • Demonstrate a plan for supporting the wider Superchain (e.g., Base, Mode, other Superchain chains)
    • Note: Supporting additional Superchain chains is critical, but OP Mainnet support is mandatory per OP rules for grant funding.

  3. Functionality

    • Implement limit order functionality where applicable (for user-facing DEXs)
    • Integrate with a mix of DEXs on OP Mainnet (e.g., Velodrome) or other Superchain chains (e.g., Aerodrome on Base)
    • Incorporate outside liquidity for aggregation

  4. Funding Allocation

    • Providers can request up to 70k OP
    • Funds can be allocated as needed to support development and launch

  5. Integration and Specification

    • Provide a list of protocols intending to integrate (for protocol integration level)
    • and/or frontend-facing DEX aggregator details
    • Submit a full specification of the solver/aggregator network, including:
      • Operational mechanics
      • User fee structure
      • Typical spread
      • Distribution of surplus/fees (specify if to solvers, market makers, or users)

  6. Documentation

    • Outline plans for frontend/protocol support across the Superchain

How should governance participants measure impact upon completion of this Mission? Milestones:

  1. Successful integration (or additional feature support) of at least 3 major decentralized solvers/aggregators on Optimism
  2. Increase in volume for decentralized solving services on Optimism, as of now there is only 1inch fusion.
  3. Demonstration of Superchain compatibility for integrated projects

Metrics:

  1. Trading volume through decentralized solvers/aggregators on Optimism
  2. Number of unique users/protocols interacting with these new integrations
  3. Gas savings/Trading Surplus for users & protocols compared to traditional DEX trading (Ex: CowSwap surplus vs back running MEV)

Impact:

  1. Increased DeFi activity on Optimism
  2. Improved capital efficiency in the OP Ecosystem
  3. Enhanced user experience for traders on the network

Has anyone other than the proposer contributed to this Mission Request? Synthetix & Pyth Note - Matt has worked with Pyth in the past propose integrating Pyth Express Relay at Synthetix (not completed yet), but the integration will be done on Base and not on OP Mainnet (as per current OP rules, OP can only be rewarded for integrations on OP Mainnet, elsewhere must be separate)

Which metric will the success of this Mission Request be evaluated against? The North star metric for this Mission Request will be the number of transactions emitting event logs. This metric directly reflects the adoption and usage of the newly integrated decentralized solvers and aggregators on Optimism.

As an optional, but more critical metric, it is critical to also include transaction volume for this mission request, though it is not the only north-star (due to the intent itself)

Additional Notes:

  • Interoperability technology will require more work for these solver networks, necessitating a separate mission request in the future with additional funding to support future initiatives (borrow/lend aggregator, cross-chain swaps, etc.).
  • The increased grant amount is designed to provide sufficient incentives for builders to conform to the OP Stack standards and prepare for cross-chain interoperability.
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hey @MattL ! remember that the MR proposal must be included in this forum post.

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From convos in calls with Grants Council:

  • Focus heavily on borrow/aggregation across the Superchain
  • Superchain ERC 20 standard to be included in this proposal
  • Reach out to providers to see their appetite for launching on OP/Superchain - builders support required
  • confirm target metric is in compliance (re gonna)

additional points to be added to the proposal:

  • requirement to have a list of protocols that intend to integrate (for protocol integration level) and/or frontend facing DEX aggregator
  • place emphasis on supporting Superchain as well (Base, Mode, etc)
  • Note that interop tech will rely more work for these solver networks, requiring a separate mission request in the future with more funding to support future initiatives (borrow/lend aggregator, cross chain swaps, etc)
  • cost - cost of the program may be too low to entice builders to conform to the OP Stack standards & prepare for cross chain interop
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For the metrics team to be able to compare multiple approved applicantā€™s success in this mission request we need you to propose only one metric from this table as the Northstar:

  1. Number of addresses voting for the first time
  2. Number of addresses delegating for the first time
  3. Total amount of OP delegated from new addresses using the granteeā€™s protocol
  4. TVL in the granteeā€™s protocol
  5. Number of transactions emitting event logs
  6. Number of active addresses interacting with granteeā€™s contracts
  7. Total amount of gas fees generated from granteeā€™s contracts
  8. Percentage of retained active addresses interacting with granteeā€™s contracts
  9. DAA/MAA ratio
  10. Number of testnet transactions emitting event logs
  11. Number of active developer addresses interacting with granteeā€™s contracts
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Just as an informational, limit orders + aggregated routes is already available on Optimism, Base, and Lisk through oku.trade. We would likely apply to this to add the capability to other Superchain members, but is currently available on three members now (disclosure: GFX Labs developed and maintains oku.trade)

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Great callout. It would be very beneficial if CowSwap, 1inch Fusion, Oku, and others in this realm supported not only OP Mainnet but also received builders grants to support Base/Mode/and other chains.

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Iā€™ve made the necessary edits, as reflected in the above + cleaned up the compliance around metrics (re @Gonna.eth)

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Hey Iā€™m Mark and I work at the Foundation, Iā€™m speaking on my own behalf.

This is more of a question rather than a request. However, would this Mission Request apply to creating a central front end DeFi interface for the Superchain? Similar to the upcoming Polygon Ecosystem Explorer, the idea is an interface that connects users to underlying DeFi applications on the Superchain so that a user can bridge, trade, LP, and lend/borrow all from a singular application interface.

The DapDap team that is behind the Polygon Ecosystem Explorer (coming soon) has proposed to build a unified platform for Optimism that would enable improved accessibility across the diverse applications on the entire Superchain. This would be an ambitious offering that would attempt to be a mega DeFi app for the entire Superchain, leading to increased exploration across the entire Superchain.

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Hey Iā€™m Mark and I work at the Foundation, Iā€™m speaking on my own behalf.

Was this grant passed through by the Token House?

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Hey @0xmark! Yes, it passed:

Open to receive applications :cowboy_hat_face:

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Hey @0xmark - Apologies just seeing this.

While I would like this to apply to generating a central front-end DeFi interface to the Superchain, this wouldnā€™t be within the scope/mandate of the Grants Council within this epoch. Weā€™re unable to approve grants for development/growth for pure Superchain projects.

Instead, this grant is trying to bring decentralized solvers to OP Mainnet and then push them to create plans to deploy elsewhere. However, the scope for developmental costs / growth-related incentives can only be focused on OP.

A few other Missions are attempting to build these sorts of Superchain-focused DeFi apps, such as the Borrow/Lender aggregator or similar grants. But they all struggle within these confines.