[Mission Request] Optimism Dominance in Yield-Bearing Assets (3 of 4)

Governance Fund Missions 🏹
,
22

Hello, this is Ayham, a founding contributor for Silo Finance. We would like to request to be included among the whitelisted protocols.

Silo has been providing users with efficient and secure lending markets since September 2021, having shown exponential growth on Optimism since our deployment in June 2024. Silo is currently the third largest Lending protocol on Optimism, with 33M TVL of which 11.4M deposited/borrowed belong to Yield-Bearing Assets. We are set for continued development in the Superchain, building upon our recent expansion to Base.

Silo’s innovative design brings numerous benefits, from enabling better risk management and optimizing yield to unlimited markets for the under-served crypto segment. Our upcoming v2 will introduce new features, including veSILO Governance, Liquidity Vaults and Silo v2 Markets.

If whitelisted, Silo will direct all granted OP to the subsidizing of supply and borrow rates on all whitelisted yield-bearing assets markets (currently wstETH, rETH, sfrxETH, wUSDM). This would allow new and existing users to engage with these assets at a much higher level, arbitrage among the subsidized rates, and leverage their exposure to the assets’ native yield.

Silo has proved through its previous mission request that it can be efficient with such grants. An independent analysis by the Optimism DAO has already shown that Silo had among the most significant impact per OP received.

1600×1400 256 KB

We’ve also made the statistics from the previous round of grants available to the public via dune and with this round in play we’ll continue to make progress on data availability for analysis.

https://dune.com/silo_finance/optimism

Besides the dune dashboard, our incredible community members have built an API for the most critical metrics. This API can be found in Silo.Observer.

Resources and socials

2 Likes
23

Hey everyone!

I’m Majin (Eli Clendenin), Moonwell core contributor writing on behalf of the Moonwell community to express our interest in this mission request re: Optimism Dominance in Yield-Bearing Assets. The Moonwell Protocol was recently activated on OP Mainnet and we are thrilled to see that the May 1st clause has been removed, as it opens the door for protocols like Moonwell to participate. We are excited to announce that we will be applying for this mission request in Cycle 28.

For those who may be unfamiliar, Moonwell is an open lending and borrowing protocol built on Base and OP Mainnet that has been designed from the ground up to be simple to use and accessible for users of any skill level. The Moonwell Protocol is supported by, not only an active community of users, delegates, and DAO participants, but also world class contributors including Lunar Labs, Solidity Labs, Halborn Security, Gauntlet, as well as the Moonwell Foundation. The Moonwell app has been translated into multiple languages and has been developed to mimic the user experience of common web2 websites/applications. Moonwell supports a variety of asset markets and contributors have developed many novel features including USDC Anywhere and our cross chain governance infrastructure dubbed “Temporal Governance”. Please visit the Moonwell docs for more information about Moonwell, Moonwell Governance, available markets, audit reports, smart contract information, current risk parameters, and more.

Moonwell is well-positioned to contribute to this initiative, as we already support several of the whitelisted yield-bearing assets, including cbETH, rETH, and wstETH. Additionally, Mountain Protocol is preparing to engage with the Moonwell DAO regarding support for USDM.

Here are a few key points highlighting Moonwell’s readiness for this program:

  1. Contributors have recently developed and implemented new incentive distribution infrastructure, enabling the community to efficiently direct OP incentives to targeted markets. This tooling is currently being used to allocate both WELL and OP rewards to markets through automated, onchain governance proposals every 28 days (1 epoch).100% of granted RetroPGF funding will continue be allocated to liquidity providers on Moonwell.

  2. Moonwell is currently the only major lending protocol on OP Mainnet to support cbETH, demonstrating the Moonwell community’s commitment to expanding the ecosystem’s yield bearing asset offerings.

  3. The Moonwell community is actively working to build liquidity on the network for cbETH, including incentivizing a cbETH pool on Aerodrome.

  4. OP Mainnet markets are visible and easily accesible to the existing community on Base using the Moonwell app. LPs exposed to these rates through the Moonwell app may choose to migrate assets to OP Mainnet to participate in this liquidity incentives campaign.

Moonwell’s support for multiple, whitelisted yield-bearing assets and the community’s ongoing efforts to foster liquidity align perfectly with the goals outlined in this Mission Request. Additionally, there is significant potential to introduce these yield opportunities to existing users on Base.

We are excited to submit our application in Cycle 28 and contribute to the growth of OP Mainnet in the yield-bearing asset space. Thank you for considering Moonwell for this exciting opportunity, and we look forward to collaborating on this mission. Please let me know if you have any questions, comments, or feedback and I’ll be happy to answer! :last_quarter_moon_with_face: :red_circle: :first_quarter_moon_with_face:

1 Like
24

@majin.eth @aiham.eth
We recommend going ahead and filing out an application. You can find materials and information here. Thanks for the interest!

2 Likes
25

Hey @GFXlabs!

I noticed on another project’s Mission Request application that GFX noted:

These subsidies are only available to newly bridged/minted assets. Please confirm Compound has the capacity and willingness to ensure grant funds do not go to all users with these assets, only those that bridge in new ones for deposit into Compound. Existing and past depositors are not covered under this Mission Request.

Currently, Moonwell distributes OP and WELL rewards on a market-wide basis, meaning that the DAO doesn’t have the capacity to specifically target only newly bridged assets for rewards distribution. Given that there’s virtually no DEX liquidity for cbETH on OP Mainnet at the moment, and with the Moonwell community actively working to attract new liquidity, we were wondering if this market could still be eligible for incentives under the Mission Request. Rewards would be distributed across the entire cbETH market, but the vast majority of cbETH liquidity would be newly bridged. For this to be effective, there also needs to be a push for additional incentives for cbETH on Velodrome/Uniswap. The Moonwell community has begun this process by working with the Velodrome team to create a cbETH liquidity pool and applying a small amount of WELL incentives. Without sufficient DEX liquidity, lending protocols don’t have the ability to safely increase supply/borrow caps to meaningful levels.

Additionally, Mountain Protocol has put forward a proposal to list USDM on Moonwell. If this market goes live alongside these new OP incentives, all deposits would technically be newly minted — though not necessarily freshly bridged to OP Mainnet.

We also have an rETH market ($700k TVL) and a wstETH market ($2m TVL). With additional OP incentives from this mission request I believe we could see these markets grow substantially, but again we have no way to delineate between old/new mints when allocating.

Would there be a path forward to make at least cbETH and USDM eligible for incentives on Moonwell, even if the rewards are distributed at a market-wide level? Any guidance on this would be helpful before we move forward with our application.

Looking forward to your feedback. Thank you!

26

We would suggest this be clearly and prominently noted in your application. Then reviewers can decide for themselves if they feel it is sufficient for the cbETH and USDM. The rETH and wstETH markets seem clearly in need of a way to separate users, though. The entire purpose of the mission request is to reward new capital on Optimism, not capital that is already present.

27

The entire purpose of the mission request is to reward new capital on Optimism, not capital that is already present.

Understood, but this requirement is also missing the forest for the trees. The vast majority of newly supplied rETH and wstETH on Moonwell (OP Mainnet) would not come from competing protocols on OP Mainet, but from users of our Base deployment that see a more attractive APR and bridge over.

Anyways, thanks for your response and we will work on submitting our application as soon as possible.

28

Yes, but it also was originally drafted for existing protocols so brand new protocol deployments like Moonwell just weren’t really considered. Agree it’s a gap that should be addressed if this Mission Request is submitted again next year.

1 Like
29

Since the official launch of Super OETH 10 days ago, superOETHb has grown its TVL to over $119m to become the #1 Pool on Aerodrome and 3rd largest Base protocol by total TVL. Origin still plans to launch superOETHo and has already added its logo to the OETH dapp. Please whitelist superOETHo as we intend to replicate the Super OETH success on Optimism and anticipate incredible growth.

30

The Grants Council will discuss internally, and if an update to the whitelist is made, we will notify you.

31

Hi, my name is Mark, I work at the Optimism Foundation, and I am speaking within my personal capacity. :handshake:

I have personally been wondering when we should see incentives being streamed to these lending protocols. Is there a status page that I can monitor to know when this MR is taking effect? Thank you!

32

It should be following the standard process where the applicant clears compliance with Foundation and then gets the first tranche of the grant. So speed of deployment probably is a function of compliance backlog + applicant’s speed at implanting.

@Gonna.eth may know if there’s a public dash to see if/when individual grant tranches have been distributed to applicants.

33

Hi Mark, Lucas from IntoTheBlock (ITB) here. Thanks for pushing to get more clarity with the time of this mission request.

@GFXlabs understand your message that the deployment timeline depends on backlog and implementation, but unfortunately this is still very vague.

For context, ITB is one of the largest liquidity providers in DeFi, automating yield generation and risk management for the largest crypto institutions to be able to deploy into the space. We’ve been monitoring this proposal for weeks now, but it is difficult to help coordinate capital allocations when there is lack of certainty on the timeline.

We’re keen to help bootstrap liquidity into the Optimism ecosystem and clarity on timelines would go a long way. Happy to further discuss.

34

Proposal to Whitelist Glo Dollar (USDGLO)

The Glo Foundation proposes to add Glo Dollar to the whitelist of eligible assets.

Glo Dollar is a US-regulated stablecoin that donates 100% of its profits to public goods. On Optimism, Glo Dollar market cap by default generates funding for Retro Funding.

Integrating Glo Dollar (USDGLO) into Optimism’s asset list will drive substantial public goods funding and enhance treasury stability, contributing significant amounts annually to Optimism’s Retro Funding program. This aligns directly with Optimism’s mission and provides a scalable funding model for the ecosystem longterm. At $10 million in TVL, Glo Dollar could generate up to $400,000 annually for public goods. If Glo Dollar grows to a $120 million market cap (10% of Optimism’s current stablecoin TVL), it would contribute up to $5.2 million each year to Optimism’s Retro Funding. In addition, we believe that this synergistic collaboration is such a strong narrative that more TVL will flock to Optimism to contribute to Optimism’s Retro Funding and Glo Dollar growth. This could further grow Glo Dollar’s contribution to Retro Funding 10-100x.

Who is the interested party for this application?

Glo Dollar, (USDGLO) is an 1:1 fiat backed, US regulated stablecoin. We donate 100% of our profit into public goods, including Optimism’s Retro Funding.

Provide a brief high-level overview of the project.

Glo Dollar (USDGLO) is a fully-backed stablecoin, similar to USDC, designed to fund public goods. What sets Glo Dollar apart is that 100% of the profits from its reserves are donated to public goods and charitable causes, instead of being distributed to private shareholders.

Stablecoins typically generate around $10 billion annually from their reserves, and Glo Dollar reinvests all of this into public goods. For example, if Glo Dollar were to capture just 10% of the stablecoin total value locked (TVL) on Optimism, it would contribute over $5.2 million annually to public goods. As the Optimism network grows, so does Glo’s impact, potentially funding millions more as its market share increases.

By using Glo Dollar, users help fund initiatives like Optimism’s Retro Funding, without any extra cost. Glo Dollar is already live on 7 chains, including Ethereum, Celo, Optimism, Base, Arbitrum, Polygon, and Stellar.

1082×874 160 KB

Provide a brief history of the project.

In April 2024, Glo Dollar launched as the stablecoin that funds public goods. We launched our app where Glo Dollar holders to decide which charitable causes and public goods they’d like to support. This includes Optimism’s Retro Funding, Gitcoin, Protocol Guild, and Giveth. More information here: Glo Dollar 2.0: the stablecoin that funds public goods

Proven Partnerships and Broad Adoption

Glo Dollar is integrated across major networks, including Ethereum, Optimism, Base, Celo, Arbitrum, Polygon, and more. Several organizations, including Polygon Labs, Mento Labs, ShutterDAO, and Gitcoin, have already swapped 6-7 figure amounts into Glo Dollar, demonstrating trust in its model and mission. Giveth, CCN, CCN x Octant and Regen-Coordination have also run large scale grants programs, up to 250k using Glo Dollar as the payout token.

Efficient Liquidity and Swap Capabilities

Glo Dollar also offers direct 1:1 minting and redemption swaps through trusted partners like Brale and OTC desks. These services ensure that large trades are executed with guaranteed liquidity and zerominimal slippage, providing reliable exchange rates for institutional users andor DAOs. This helps maintain Glo Dollar’s stability and ensures predictable pricing for participants across various ecosystems.

Cross-Chain Swap Capabilities:

Glo Dollar supports easy cross-chain swaps through platforms like Jumper.exchange and Squid Router. These integrations allow users to move Glo Dollar throughout the Superchain, enhancing liquidity and flexibility across multiple chains.

Bear Market Stability

Glo Dollar protects treasuries during bear markets by offering a stable value while continuing to fund public goods within the ecosystem at zero cost to holders. This reduces reliance on volatile assets and ensures consistent support for contributors.

Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

Link any available audits of the project.

Smart Contract Audits

Monthly Reserve Reports

Link to any active communities relating to your project.

Optimism Retro Funding is a newly added recipient of funds.

Mento (Celo) swapping $1M into Glo Dollar

ShutterDAO swapping 300k into Glo Dollar

Polygon Labs swapping 150k into Glo Dollar

Gitcoin swapping 100k into Glo Dollar

Gitcoin Community rounds using Glo Dollar as their payout token

Giveth rounds using Glo Dollar as their matching fund stablecoin token

How is the applying collateral type currently used?

Similar to USDC, we use Cash and US Treasury Bills

Our monthly Reserve Reports

Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

We collaborate with Brale to issue Glo Dollar. Brale, a US regulated financial institution (NMLS ID #2376957) is responsible for Glo Dollar’s financial and compliance requirements, and operate the centralized minting and redemption portal that all Glo Dollars in circulation stem from., Similar to USDC, the assets backing Glo Dollar are conservatively managed in cash, cash equivalents, and short-term US government-backed debt. These assets are held in US-based financial institutions and undergo monthly attestations by a third-party accounting firm, verifying that reserves equal or exceed the amount of Glo Dollar in circulation for full transparency and compliance.

Where does exchange for the asset occur?

Multiple options depending on preference of OP:

  1. Our centralized minting and redemption portal powered by Brale (infinite liquidity)
  2. OTC through Bitgo, blockchain.com, or 1Konto (infinite liquidity)
  3. DEX trade through Jumper.exchange / Uniswap

Conclusion

By including Glo Dollar (USDGLO) in Optimism’s treasury diversification asset list, the ecosystem can ensure treasury stability while driving substantial public goods funding at no cost. Integrating Glo Dollar amplifies the financial impact on Optimism’s Retro Funding and long-term ecosystem growth.

1 Like
35

Hello! I’m Felix and I just wanted to inform you that we’ve submitted an application for Alchemix. Full details are available in the submission, but let me provide a quick summary of why we feel that including Alchemix makes sense for this mission.

For those unfamiliar with the protocol, Alchemix allows users to take a like-kind loan off of stablecoin and ETH collateral deployed in DeFi yield strategies. Because the loan is like-kind, and because the yield earned is used to repay the loan, the user experiences a non-liquidatable self-repaying loan. The set-and-forget nature of Alchemix loans creates long-term TVL and enables users to spend their loans off-chain for real-world use cases. Actual examples include buying a boat, wedding ring, timber mill, house down payments, and more!

One of Alchemix’s most successful products has been alETH, with 14,780 ETH staked in the vaults at the time the application. Due to the nature of the self-repaying loan product, where users deposit their yield-bearing assets into Alchemix and take out a like-kind loan in the form of alETH with little-to-no position management necessary, TVL in the vaults is sticky. Unless users repay their loans, or paid until the loans are paid off, the collateral assets remain in place.

With the OP grant as part of this mission, Alchemix will be able to attract new TVL in the form of wstETH to Optimism that will be sticky. As such, the OP grant should not just lead to a temporary boost in TVL for Alchemix on Optimism, but will instead be of a more permanent nature.

Alchemix is already live and fully deployed on Optimism and has the infrastructure in place to efficiently distribute the grant. We have submitted our application for Cycle 29 to help onboard more (sticky!) wstETH TVL to Optimism and look forward to your feedback. Please let us know if there are any questions or comments!

1 Like