Thanks for the proposal! If you plan to have this reviewed in Voting Cycle 6, can you please specify which committee should review your proposal (NFTs and Gaming, Tooling, or DeFi) under the grant category field in the updated proposal template for Cycle 6?
hey @lavande done ser, also updated to the updated tempalte
Disclosure: Rubicon integrated with Socket to provide an in-app Bridge and would benefit from the Builders portion of this proposal.
We chose to integrate with Socket because we think they have the best tech stack for helping users navigate across chains. As outlined above, several Optimism apps, Coinbase Wallet, and others rely on Socket as critical cross-chain infrastructure for their users.
Their requested amount is appropriately the exact same as other bridge/cross-chain infra proposals (Hop, Stargate, and Celer). Socket has already onboarded 51k (!) addresses to Optimism, and these incentives would only accelerate users onboarding to L2.
I will be voting in favor of this proposal.
In support of this so far and love the work you guys are doing with Socket. Got a couple of questions.
Do you have a rough figure of what the cap might be? Also, thoughts on refunding 80-90% instead of 100%?
Cumulatively, you’d be able to refund more people, and covering 90% of their cost is a great catch anyway.
Thanks @Bobbay_StableNode !
- Do you have a rough figure of what the cap might be?
Currently, at 15 gwei, GAS spent for a swap & bridge txn from Ethereum is ~$11. Estimated spend at:
- 50 gwei → $33
- 110 gwei → $70
We plan to have a max cap such that users are encouraged to onboard to Optimism even (& especially) during high L1 GAS periods, while still ensuring we can optimize for onboarding max users to Optimism. Based on last few months, we feel cap should be based on 110 gwei i.e. $70 fee. Of course, open to suggestions/feedback here
- Also, thoughts on refunding 80-90% instead of 100%? Cumulatively, you’d be able to refund more people, and covering 90% of their cost is a great catch anyway.
This makes 100% sense, as this acts like a discount for users instead of a free functionality. Will be editing the proposal accordingly.
Based on the 90% reimbursement, the cap of reimbursement will be $63 (or $60 to round it off)
Disregarding the above grant proposal template changes, I’d like to post the following
I am an Optimism delegate [Delegate Commitments - #65 by mastermojo] with sufficient voting power and I believe this proposal is ready to move to a vote once these grant proposal template updates are in.
Hi @DeFi_LATAM_Joxes - made the edits accordingly. Kindly let us know if there’s anything we might have missed
I am an Optimism delegate [Delegate Commitments - #18 by katie] with sufficient voting power and I believe this proposal is ready to move to a vote.
Hi, I have a few questions:
1- Do you have link from Dune about the metrics you mention in Optimism.
2- Can you list the number of Optimism projects that have already integrated your SDK?
3- What is the maximum and minimum amount of bridgning to avoid a farmeo? How will you avoid sybil attack?
4- Will the protocols that have already received Optimism grants participate in your grant to builders?
hey, I leave some doubts about your proposal
Do you mean any tool / service that can be considered a public good for Optimism? Could you elaborate a little more on this?
based on your statement; What do you think will happen after the subsidy ends?
Is the amount of tokens requested based on any metric? which is the reason
in the case of bridges such as Hop Protocol, which have incentives in $Op tokens; How would the double incentive of this interaction play out?
Excellent point, i would include Li.fi as well to the list. Or in more general term, what is your approach toward protocol with already approved OP grant with respect to double incentives
1 - Do you have link from Dune about the metrics you mention in Optimism.
The stats were sourced from our internal on-chain analytics since we couldn’t use Dune as it doesn’t support all chains.
You can however refer to this Dune dashboard to track our daily activity on Optimism: https://dune.com/optimismpbc/Optimism-Project-Deep-Dive?1%20Project%20Name=Socket
2 - Can you list the number of Optimism projects that have already integrated your SDK?
There are different projects on Optimism that have done this:
- DeFi apps: Synthetix, Lyra, dHedge, Polynomial, Rubicon Finance, Premia, Brahma Fi
- Wallets/Portfolio Apps: Zapper, Zerion, One Key, Sequence Wallet, Ambire Wallet, Plasma Finance, Choise
- Many more coming soon, including more top apps on Optimism & biggest Ethereum wallets
3 - What is the maximum and minimum amount of bringing to avoid a farming? How will you avoid sybil attack?
We are just rebating 90% of the bridging fees, hence it is by default sybil-resistant since it is unviable & a person trying to sybil just ends up with a net loss.
4 - Will the protocols that have already received Optimism grants participate in your grant to builders?
No, we only plan to reward builders/protocols that haven’t received an Optimism grant
1 - What do you think will happen after the subsidy ends? Is the amount of tokens requested based on any metric?
Running calculations on the historical txns for the users we onboarded we found that on average a user coming into Optimism spends $4 in gas + bridge fee
We are requesting 1M tokens with 60% allocated to onboarding = 600K $OP or roughly $600K based on average $OP prices
So with $600K we aim to onboard 150K users (4$ for 1 user) over 6-8 months which we think is a reasonable target since we have onboarded 30K+ users in just the last 2 months with zero incentives!
2 - In the case of bridges such as Hop Protocol, which have incentives in $OP tokens; How would the double incentive of this interaction play out?
Currently Socket supports the following bridges to Optimism, and here are our plans for each:
Optimism Native bridge - No $OP grant. Hence Socket OP incentives will apply
Hop - Have already committed in their proposal that they won’t consider bridge aggregators. Hence Socket OP incentives will apply
Across - Use a combination of referrals to know wallets to reward & also mentioned they are strongly against farming. We plan to request Across to blacklist Socket contracts, so no rewards are received. Hence Socket OP incentives will apply
Biconomy - Their incentives are towards builders and LPs. Hence Socket OP incentives will apply
Multichain - No $OP grant. Hence Socket OP incentives will apply
Celer - Has plans to use incentives for onboarding. We are in touch with Celer team and can ensure we get blacklisted here too. Socket OP incentives will apply after we do this.
Could you clarify this question, unable to get you?
Answer for other bridges answered here:
For LiFi, since they are just doing gas rebates which are also unviable to sybil, we feel their proposal & incentives are irrelevant to our distribution plan
Thank you. Appreciate your detailed response covering all point
if you can tell us a little more about these plans; specifically if what you plan to build is only tied to Socket and its peer dapps or think it could be beneficial for projects not tied to the protocol?
I appreciate your clarity in the other answers.
I have voted against this proposal.
My reason for voting against, is the 40% allocation is simply providing a team with a lot of working capital.
I refer to…
What we’re building would be beneficial for all protocols & the broad Optimism ecosystem as a whole.
Here are a few examples of how different apps use Socket & how it’s already benefiting the broader ecosystem:
Wallet & Portfolio Management apps (Zapper, Zerion, One Key, Sequence Wallet, Ambire Wallet & more): Use Socket to allow web3 users to seamlessly bridge into Optimism & interact with the ecosystem. Thus bringing Optimism within reach of users right from their wallets.
DeFi apps (Synthetix, Lyra, dHedge, Thales & more): Use Socket to make it easier for users on non-Optimism chains to start using their app immediately by seamless onboarding into Optimism. This ensures users get a great first onboarding experience to Optimism, and get to try out the secure, fast & cheap Optimism experience, which encourages them to explore the broader ecosystem
There are also apps like Bungee (built by Socket team itself), Via & more using Socket to provide an excellent bridging experience & also solve major pain points like being stuck without gas. These apps enable cross-chain swaps, so users can go from a token on any chain to the required token for the Optimism app in one transaction!
Across all these examples, by enabling a great onboarding experience & narrowing the gap for a non-Optimism user to interact with an app, we have continuously strived to reduce the major problems hindering web3 users from participating with the broad Optimism ecosystem!
We are an officially recognized Tooling Governance Committee, responsible for assessing proposals related to tooling and infrastructure (wallets, bridges etc.).
To begin with, for this proposal we identified a possible conflict of interest between our team members:
These individuals were excluded from assessing this proposal.
Socket plans to be an “interoperability protocol”, which means that it allows the passing of messages (and therefore assets) between Optimism and other chains for different dApps and using different primitives to make it possible.
For now, their released products, Bungee, a bridge aggregator; is based on bridges and DEXes they route the best parameterized alternative with aspects such as latency, costs and security. Additionally, Refuel allows users to send gas for transactions to other chains, with the advantage of not receiving any fee or charge beyond the transaction cost.
Similar OP Governance proposals:
The proposal was presented in a previous cycle, and this committee emiting a No because high amount requested, receiving other recommendations and applying again. The new proposal just made changes in the amount request and duration.
- Added value (good to bad): good. Through the Socket, users and dApps could potentially benefit from their crosschain services in the same way that DEX aggregators are often the basis within the interactions of multiple DeFi applications.
- Impact or expected usage (high to low): medium. For now its bridge aggregator is seen as a plugin and suitable for less experienced users. However, the presence of multiple bridges with grants awarded focused on a better experience for users could overshadow the current target of its main application. On the other hand, the usability of future Socket tools in dApps is undetermined, which will depend on which ones and their user base (as they suggest some good ideas).
- Current Status [Development stage/Open Source?] (early to ready): almost ready. For now, they have two functional products focused on bridging assets and several integrations, but developers are encouraged to use the Socket bases for new use cases.
- Expenditure plan and distribution (appropriate to inappropriate): standard. Subsidies are seen as a standard in terms of encouraging the use of bridges (60%). One remaining for development, this bucket would be destined for future ideas and third party teams working around Socket, there is no way to estimate the success of it and it is at the complete discretion of the Socket team.
- Amount requested (high to low): standard. At the moment there is a considerable number of bridges and the like beginning to make use of the OPs granted by the governance (by example, implementing some sort of builder grants and user subsidies). For this reason we requested a reduction of amount of this proposal in a previous attempt. The team was responsive with these considerations and cut by a half.
The proposal seems reasonable. After they have addressed our request about reducing the amount, all the rest of valuations remain as they were determined in the recommendation of the previous cycle.
This post will be restored to its original version after the completion of Voting Cycle #8. Cycle 6 recommendation currently at the end of this thread: [READY] [GF: Phase 1 Proposal] Socket - #30 by lavande