Delegate Mission Request Summary: Bolster presence of LRTs on Optimism as the primary L2 for hosting LRT liquidity. LRTs cumulatively have a TVL of $11Bn+, mostly concentrated on Mainnet.
S6 Intent : Intent 3a: grow application devs on OP Mainnet
Should this Mission be fulfilled by one or multiple applicants: Upto 6 (Maximum 120K OP for each applicant)
How will this Mission Request help accomplish the above Intent?
Currently more than $10 Billion in liquidity is locked as LRTs on Mainnet. Shifting even a fraction of this liquidity to Optimism from Mainnet will be significant.
LRT liquidity is still nascent on most of the L2s, which means they are still in process to expand to L2s, giving Optimism an opportunity to be an early mover L2 in this space.
Increased liquidity on Optimism, will help for further structured product integrations within Optimism, increasing developer concentration.
Mission funding specifically for LRT projects with staking tokens, and not defi protocols that use the tokens of these projects
What is required to execute this Mission Request?
Grantees must launch their proposed project by the half time mark of the Mission period, which in this case is 3 months.
The grant to the project should be used to incentivize users to use the project and not for development/deployment to Optimism.
How should governance participants measure impact upon completion of this Mission?
Milestones: Milestones should represent tangible progress towards the deployment of the tool or application, and also also clearly define the features that will be complete and useable by the end of the grant period.
Active Restaking infrastructure from the grantee project along with the rewards/incentives/points system that is also available on mainnet
Milestones tied to the total liquidity that the projects bring on Chain
Metrics: Did the project succesfully deploy? Is the project useable end-to-end as described in the application? Is the project reaching it’s desired users?
Metrics to be measured in terms of the verifiable Token supply and number of users, using Optimism block explorer as a source of truth
Impact: How many users did the grantee bring on with their project? How large is the design-space in applications unlocked by this project? How has this project contributed to developer growth?
Has anyone other than the proposer contributed to this Mission Request? No
Which metric will the success of this Mission Request be evaluated against?
The North star metric against which this Mission Request should be evaluated is TVL, because the initiatives outlined above aim to attract an influx of additional assets. This metric was suggested by the foundation and approved by the Grants Council.
Hey @Chain_L interesting question. Our intent is to attract existing LRT projects on mainnet to OP Mainnet. The requirement is for applicants to have sizeable liquidity on Mainnet, regardless of the fact that they have launched on OP Mainnet or not.
The Grant should only be used to incentivise users of the Grantee projects to mint those tokens on OP Mainnet. We see that happening in two ways
Projects are already live on both ETH and OP Mainnet: High liquidity on ETH Mainnet, Infrastructure already exists on OP Mainnet as well, initial traction is also there.
Projects Live on ETH Mainnet but not on OP Mainnet: Project still eligible for Grants, but they have to carry out the deployment to Optimism on their own resources or apply for builders grants separately. They will require to link deployment as one of the initial milestones for grant payout and give a detailed plan of deployment of incentives for the Mission period
Would love to hear your thoughts on anything that we can add here to make it even better for the performance of this mission.
Hi @Boardroom, Pete here from Origin Protocol. We recently launched OETH on an L2 and are considering Optimism and Base for the next L2 deployment. Would you be open to having an LST work on this mission, instead of just LRTs?
This is a compelling mission request with clear value adds for the network. By targeting the increasingly growing market of LRTs with over $17 billion in cumulative TVL on Mainnet, Optimism has the opportunity of tapping into and capturing a meaningful portion of this liquidity. This mission could significantly enhance the position of Optimism in the Layer 2 space for LRTs, where liquidity is still developing and growing over time.
Besides pure TVL growth, the second-order effects of this mission are appealing and shall not be underestimated. One of the most appealing elements of this mission is its potential to foster ecosystem growth. An increase in LRT liquidity on Optimism would attract further product integrations and development, effectively increasing activity and engagement with the ecosystem from users, developers and builders.
The mission also demonstrates thoroughness in its execution, deliverables and selection of appropriate metrics that are reflective and representative of the desired behaviours. Additionally, the requirement for grantees to use funds for user incentives rather than development aligns the initiative’s goals with actual adoption and usage, rather than sole infrastructure buildout.
thank you @Deelabs for the feedback on the mission. We are confident that OP will be at the forefront of capturing the latest DeFi narrative which will ultimately help in growing the superchain.
Hey @pete thank you for the question, this mission request was partially inspired by the previous Grants council request for LSTs by @jackanorak
So in that aspect we would like to fund the LRT category that has not been focused on before for grant funding. LST projects will still be eligible to apply for the Growth Experiments grants which award up to 250K OP to projects.
We welcome any community suggestions regarding this Mission request scope.
A North Star Metric has been added at the bottom of this Mission Request in an effort to enable the Collective to make data-driven decisions. By using a single metric for each Mission Request, the Collective is better able to evaluate the performance of all the Season 6 missions in a standardized manner, which will be critical when the Collective makes decisions about Intents, budgets, or other critical components of governance.
@pete we confirmed with other Council members, the Growth experiments grants will not be available as this cycle will specifically focus on Mission intents