[READY] [GF:Phase 1 Proposal] Pickle Finance

Pickle Finance Proposal
Updated based on community feedback

Project Name: Pickle Finance

Author Name: @PickleMaz

Number of OP tokens requested: 200,000

L2 Recipient Address: 0x7A79e2e867d36a91Bb47e0929787305c95E793C5

Relevant Usage Metrics:
TVL
Total across 12 chains: $10m
Optimism TVL: $115k

Optimism alignment (up to 200 word explanation):
Pickle Finance was the first yield aggregator to launch on Optimism in January (Eternal Optimism. Pickle Finance launches on Optimisim! | by Pickle Finance | Medium). We want to give Optimism users the best yield farming opportunities possible.

Since our launch we have continued to roll out various farming opportunities for Optimism users and see great opportunity to build more with our yield aggregation skills. Specifically, we have identified a key opportunity in building out our Uniswap V3, auto-rebalancing Jars on Optimism as continued trading activity increases.

In this bear market, users are looking for high %APY opportunities, and will go to the chain that makes this a possibility. Our auto-compounding Jar strategies, PICKLE token emissions and OP rewards can attract these users to Optimism.

Proposal for token distribution (under 1000 words):

How will the OP tokens be distributed?
OP tokens will be distributed as duel rewards on all our existing Optimism Jars, and any new Optimism Jars for 200 days. This means 1000 OP will be distributed a day - roughly $450/ day at an OP price of $0.45.

How will this distribution incentivize usage and liquidity on Optimism?
Duel rewards have been proven to bootstrap and attract new liquidity to an ecosystem. We ran a similar program with Polygon Chain when they first launched. Our Polygon TVL increased to $10m at its peak during this phase (our total TVL got to $150m). Combine these OP rewards with the launch of our highly successful Uniswap V3 Jars (currently on Mainnet and Polygon), and we expect a similar amount of new capital will flock to gain this attractive APY.

Why will the incentivized users and liquidity remain after incentives dry up?
There are two reasons we are confident liquidity will remain after the OP incentives run out

  1. We will be simultaneously incentivising our OP Jars with our native PICKLE token emissions. Therefore APYs will still be boosted for these Optimism Jars even after the OP rewards stop.
  2. When we launched our duel rewards on Polygon at the start of 2021 we only saw a 10% decrease in TVL the month after the MATIC duel rewards ended. While our TVL on Polygon has since decreased over this time, we put this down to capital moving to the plethora of new chains that launched over the past 18 months, and the severe bear market we are experiencing.

Over what period of time will the tokens be distributed?
As stated above the OP tokens will be distributed over 200 days, only for our Optimism Jars. This will ensure a good APY boost, while also keeping TVL within the Optimism ecosystem over an extended period of time.

How much will your project match in co-incentives?
Pickle Finance will launch 10% PICKLE emissions on Optimism for our Jars and Farms, at current prices ($1.1/PICKLE) that is roughly $475 of emissions per day for those in our Optimism Jars. These emissions will continue past the 200 days of OP rewards to retain a nice incentive for staying in our these strategies.

10 Likes

I remember pickle! Good project long time ago.

1 Like

200K OP distributed in 100 days without any mention of how you are planning to hold user or increase tvl long term, can you please provide some more information.
Once 100 days are over and incentives are gone, as a user, why would I stay with your project ?

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Hi @OPUser two things we’ll be doing

  1. We’ll be releasing our own PICKLE emissions across Optimism, and at the current price this equates to another $475 of emissions per day just from PICKLE. PICKLE can be locked for DILL to boost yield on our Jars so there will be incentive to hold the PICKLE and vote for where Jar boosts should go on Optimism.

  2. We are launching our Uniswap V3 auto-rebalancing Jars. These Jars automatically keeps users in range in a Uniswap V3 pool to earn higher fees and not have to manually rebalance, saving time and gas.

We feel with these two launches on Optimism users will stick with Pickle Finance. The 100 days would incentivise liquidity as we continue to build out our offering on Optimism. If you think these rewards should be spread out over a longer period the happy to take on that feedback.

Maz

2 Likes

Great proposal Pickle. Your revolutionary Uniswap v3 auto rebalancing strategy will be in high demand on Optimism. I just feel you can double up on request and extend the 100 days to 200. Have you got any plans to educate the Optimism users on how good your Uni v3 strategy is?

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Great idea!! Will update to 200 days.

Thanks for the compliment on our Univ3 Jars! We’ve done a few articles with third party publishers on what these Jars are, for example APY Vision. Pickle Finance’s Uniswap v3 Auto-balancing Jars earn users high, accurate yields | APY.Vision

We’re also creating an educational 101 page for Pickle Finance which we could utilise for this education. Our DAO are also super informed so hopefully if Optimism users join us on Discord they’d get a crash course :slight_smile:

2 Likes

Ask is reasonable and it is matched+ with PICKLE. From my experience PICKLE has a good track record of building despite difficult conditions. Happy to support this.

1 Like

i think incentives here are aligned, it seems pickle would put these funds to great use.

Good proposal and nice adjustments in reply to the comments here.

I am most probably going to support this proposal. It’s a reasonable ask and sounds like it can benefit optimism users by bringing more liquidity into optimism.

What’s more I have some personal experience with pickle finance. I was one of the victims of a hack that happened in L1 back in Q4 2020 and the way they handled everything back then showed integrity even though they were unable to pay back the victims (which is fine imo).

I am a holder of quite a bit of CORN :sweat_smile:

3 Likes

I’m in support of this! :cucumber:

Haha we keep buying and burning each week. Might take a while for it to get to $1 though :sweat_smile:

1 Like

Voted: Yes

  1. Reasonable amount of token asked, incentives are matched. Popper distribution plan for circa 6 moths, happy to support this.

On other node, would appreciate your input on these two

This proposal fits into Gov Fund Phase 1 and the value-add to Optimism is solid: Voting Yes

Value-add: Medium (small AUM & community but interesting product)
Amount: Reasonable
Op distribution: Okayish
Co-incentives: Good

This funding round’s goal is primarily in increasing liquidity and users on Optimism. Pickle Finance has been building quality vaults before, been early to Optimism and the mentioned Uni V3 auto-rebalancing Jars make especially sense in a low-transaction-cost environment such as Optimism. Duel incentives have indeed been proven to attract liquidity initially and we expect this resulting in users & community moving to Optimism. Echoing other commenters, we also hope to see some long-term programs and more sticky liquidity on Optimism.

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Pickle Finance has a good track record and would bring a valuable contribution to the Optimism ecosystem. Coupled with co-incentives to have your own pickle emissions last another 200 days, this is a good incentive. We have voted yes.

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Voted : Yes
Positive track record: :white_check_mark:
Tokens requested in range comparable to other projects: :white_check_mark:
Expected to grow Optimism ecosystem: :white_check_mark:

Yield optimizers are important in any DeFi ecosystem. While spending 100% of the OP token allocation on liquidity incentives isn’t the most creative, it does align with the gov fund phase 1 objectives.