[READY] [GF: Phase 1 Proposal] GYSR

đź“ś Grant Proposals Governance Fund: Phase 1
1

Project Name: GYSR

UPDATED ON: 10/4/2022 (All sections have had updates / additions)

Author Name: Alex Koren, Devin Conley

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

L2 Recipient Address: 0x462cc7EA60a364410FeF8c621b73a1f1c78De513

Which Voting Cycle are you applying for?: Season 2, cycle 7

Grant category: Tooling, DeFi, NFTs

Is this proposal applicable to a specific committee? Tooling committee, DeFi committee

Project description:
GYSR is a zero code launchpad for liquidity mining, NFT staking, governance rewards, token distribution, and much more. It makes incentives easier, more accessible, and safer for both the creator and the investor. The platform is decentralized, fully on-chain, configurable, and compatible with any ERC-20 or ERC-721 tokens.

Project links:

Relevant Usage Metrics:

  • Transaction Volume: $1.5B
  • TVL: $4M (down from high ~$50M)
  • Pools: 460
  • Unique addresses: 5,400+

Competitors, peers, or similar projects: xToken Terminal (Uniswap v3 LM only)

Is/will this project be open sourced? Yes

Optimism native?: No

Date of deployment/expected deployment on Optimism: May 31st, 2022

Ecosystem value prop / Optimism alignment:
As the Optimism ecosystem is growing, we believe it’s extremely valuable to have robust, open source platforms and no-code solutions for fair token distribution, liquidity incentives, and governance rewards.

GYSR provides exactly that tooling layer. Our solution helps project teams save time and stay focused on building their own core tech. End users benefit from discovery of new opportunities and by interacting with a known, battle-tested platform. Read more about benefits here.

Has your project previously applied for an OP grant? Yes, this is a resubmission and has been revised based on feedback in this thread

Number of OP tokens requested: 160,000

How much will your project match in co-incentives?
GYSR will be offering up 100K GYSR tokens in incentives for distribution through the GYSR platform on Optimism.

Proposal for token distribution:
GYSR’s goal is to help make Optimism an easy choice for developers and communities to deploy new projects or expand their current ecosystem beyond Mainnet. To accomplish this, we need to ensure that the communities surrounding these projects have the correct incentives and confidence to move to Optimism to take advantage of the scaling infrastructure and ecosystem tools. Further, we want to encourage projects to use GYSR in order to accelerate development speed, improve safety and security, and stay focused on their core tech.

We’d like to use the allocation in four ways:

  1. Provide bonus incentives on top of GYSR Pools deployed on Optimism
  2. Incentivize migration of projects in the GYSR ecosystem from our other supported networks to Optimism
  3. Subsidize development of a new bond sale incentive mechanism for more permanent liquidity provision
  4. Offer small bounties to bizdev and community contributors for project referrals to GYSR on Optimism

How will the OP tokens be distributed?

  1. 60,000 OP (37.5%) to set up incentives for 3rd party Pools deployed on GYSR (on Optimism) for distribution over a year
    a. 5,000 OP per project funding over 50k USD in rewards locked
    b. 10,000 OP per project funding over 200K USD in rewards locked

  2. 40,000 OP (25%) to set up incentives for project migration to Optimism over a year
    a. 5,000 OP per project funding over 50K USD in rewards locked, with existing pool on GYSR mainnet or Polygon

  3. 40,000 OP (25%) towards new bond sale incentive mechanism tooling
    a. 15,000 OP towards development
    b. 25,000 OP towards audit costs

  4. 20,000 OP (12.5%) as bounty referral incentives
    a. 1000 OP per referral over 50K USD in rewards locked

Over what period of time will the tokens be distributed?
For initiatives 1, 2, and 4, we’ve planned for 1 year OP distributions to projects as we believe it’s a long enough time horizon to keep users engaged, but short enough to offer meaningful returns.

For initiative 3, this will be distributed over 90 days, aligned with a development sprint and audit.

Note: any OP not earned by projects within 1 year for initiatives 1, 2, and 4 will be returned to Optimism governance.

How will OP token usage be reported? (KPIs)

  1. For every incentive distributed, we will provide on-chain documentation of
    a. Funding transaction by project that qualified for award
    b. Funding transaction by GYSR team adding additional OP rewards

  2. For every incentive distributed, we will provide on-chain documentation of
    a. Original GYSR pool on another network
    b. Funding transaction by project that qualified for award
    c. Funding transaction by GYSR team adding additional OP rewards

  3. To report usage of OP as a development subsidy, we will provide
    a. Open source release of developed smart contracts
    b. Published security audit report

  4. To report usage for bounty referral incentives
    a. List of all referral bounties that have been paid out
    b. Total amount of OP distributed for referrals

How will this distribution incentivize usage and liquidity on Optimism?
GYSR is designed to make liquidity mining and other on-chain incentives extremely easy to set up. By offering side-by-side rewards and incentives on Optimism, it will encourage users to move their assets to Optimism for better return rates. Since GYSR acts as an add-on for many projects, this means that people coming to GYSR are not only leveraging the GYSR platform - they’re interacting with DEXs, liquidity protocols, and more. That means users having breadth of usage on Optimism, not just on a single dapp.

Why will the incentivized users and liquidity remain after incentives dry up?
The incentives we’ve described are only augmentations to the GYSR Pools that are created. Come for the OP and incentives, stay for the projects that you engage with along the way. GYSR is a hub for many projects to provide their distributions but also users who come to GYSR use it as a source of discovery. Landing on the platform means connecting with projects you know and finding new ones to engage with as they launch which is not dependent on the OP being provided temporarily.

7 Likes
2

The amount of OP you’re asking for is a large percentage of your circulating market cap. Even if we generously assume Optimism gains your entire $7M TVL, paying 400k OP to do that is very expensive. I see little reason to think that TVL would stick around after the OP dries up. Your match is microscopic compared to the OP you’re requesting.

I think the amount of OP needs to be dramatically lowered for this to be remotely considered.

1 Like
3

Sounds like an interesting proposal. Interested to learn more.

4

could you please provide team information, do you have a website ?

also TVL to amount of toke asked is quite low, are you willing to lower it, and submit another proposal later on with more data and statistics ?

5

I have had a look at your website and it looks like you have very little TVL on Optimism with only $2,950.90. How would using OP incentives actually ensure long term usage as it looks like at the moment you have very limited usage and any incentives would only result in short term usage until they dry up.

Source: https://app.gysr.io

2 Likes
6

Thanks for having a look and we can totally recognize the disparity here. $7M TVL is an unusually low amount for the GYSR platform given the current market conditions. We’ve handled TVLs of over $100M over the course of the two years we’ve been live and tend to fluctuate along with the market. Since we’re often used as a liquidity incentive for new projects and launches are down, it’s reasonable that our TVL (and our token price) represents that as well.

That being said, GYSR remains a battle hardened platform that has provided tooling for hundreds of projects with a proven track record of robust contracts and continued development. We hope that these tangibles and intangibles showcase why an investment in GYSR from the grant would be worthwhile to help build our presence on Optimism.

3 Likes
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Hey OPUser, please have a look at our latest response to @solarcurve for some more context!

But in addition, you can check out more here:

and here:

3 Likes
8

I would like to point our that this proposal isn’t only about migrating liquidity over from Mainnet. GYSR is a platform that supports projects and developers in their early days with a variety of liquidity mining and onchain incentive based products. Having GYSR on Optimism benefits the ecosystem as a whole by providing tools to other projects getting their start on Optimism.

9

A very large ask given TVL + unsure of the value here to OP?

10

You should have tried 40,000 :wink: , some self reflection goes a long way <3

1 Like
11

Hey @tongnk! GYSR is first and foremost a tool for builders. We talk a lot about benefits here in the docs, and I think the most important is time savings and focus. By providing an out-of-the-box/zero-code solution for incentives, we can help projects on Optimism build faster and more safely.

2 Likes
12

As a non-developer myself, I’m unable to gauge the value your project will bring to Optimism relative to the (as others have pointed out, large) amount requested, so I’ll choose to Abstain.

13

This proposal fits into Gov Fund Phase 1 but the value-add to Optimism is small: Voting No *

Value-add: LM out of the box - but few projects & small community so far
Amount: A big high
Op distribution: Good
Co-incentives: Small compared to Ask

We saw Gysr as an interesting middleware tool to kickstart projects liquidity and create sticky, long-term incentives. Adoption of Gysr has been small though for a variety of reasons which reflects in the current market cap and consequently also in the value-add (vs. the Ask) to the Optimism ecosystem.

Sidenote: We have been early users of Gysr, liked the gamified incentives for long-term sticky liquidity but saw crippling effects of l1 transaction costs. Hence, we see value in your push to Optimism. We generally like the proposal, would be happy to see Gysr on Optimism. We’d recommend collaborating with launchpads, other projects enganging in liquidity mining on Optimism (See Phase 0/1 Proposals such as the dForce Proposal) and potentially do another proposal with a smaller ask in one of the next phases.

*voted initially Abstain, and changed it to No to align this vote with our decisions on other proposals.

1 Like
14

Voted : No

Token asked is little high compared to how the team is planning to distribute it. 30% to token migration is too much without a plan on how they are going to do this, I can bridge the token to OP and bridge back again…and repeat the same steps to farm the incentives.

Suggestion: Break it into two proposals

On feedback topic, would love your opinion here.

1 Like
15

Hello @gysr, I have been thinking deeply about the proposal & use of the protocol, and what kind of projects will benefit next, it looks risky and very susceptible to gaming the incentive system. What do you think about lowering the amount and (assuming a better reception) see the results for future continuation of your plan. As it stands, my vote is no.

1 Like
16

There is far too little adoption on Optimism and not much value added to Optimism either. The amount requested compared to the TVL on optimism does not correlate. For now, we will be voting no.

17

Thank you for sharing your proposal. I don’t believe the current metrics, particularly TVL, are at a point yet where it makes sense for Optimism to provide that level of funds.

2 Likes
18

Will be voting NO here.

The amount asked is very high, will mostly be used for incentives and the actual TVL of the protocol seems to be way too low for incentives to even make sense here.

1 Like
19

Hey @madibaa08 thanks for the feedback! We will certainly be taking another look at amount requested, along with providing more budget details for the next round

20

Hey @polynya thanks for the response! GYSR is effectively a launchpad to help developers save time building/maintaining incentives tools. You can read more (non technical) info about benefits here