This mission is aimed at significantly increasing the total value locked (TVL) of liquid staked ether (LST). Winning grants would contribute to this objective through innovative liquid staking functionalities, enticing migration incentives, and enhancements in cross-chain messaging, thereby bolstering Optimism’s position in the DeFi ecosystem.
200k OP designed to fund initiatives that will drive LST functionality and growth on Superchain. This includes developing new staking and restaking functionalities, crafting attractive migration incentives, and improving crosschain communications.
Should this Foundation Mission be fulfilled by one or multiple applicants
Multiple
Submit by
[Date to be set by Grants Council]
Selection by
[Date to be set by Grants Council]
Start Date
[If applicable]
Completion Date
September 1, 2024
Specification
How will this Delegate Mission Request help accomplish the above Intent?
This mission builds off of the more general capital migration mission proposal but is a targeted one at a particularly low hanging fruit: liquid staked ether, which represents over 80% of all the 60-odd billion TVL on Mainnet. Enhancing Optimism’s appeal to LST holders, Ether stakers, and projects built around staking eth can be a major vector of capital migration.
What is required to execute this Delegate Mission Request?
Any of:
Development of innovative liquid staking solutions or functionalities that are unique to Optimism
Designing and implementing migration incentives to attract LST holders
Development of crosschain communication tools to facilitate useful but previously impossible functions related to staking.
Proposals must demonstrate technical feasibility, security considerations, and a clear plan for implementation within the Optimism ecosystem.
Proposals encouraging the use or migration of lesser-used but high-quality LSTs should be favorably treated
How should the Token House measure progress towards this Mission?
Reports on the development and deployment of new liquid staking functionalities and migration incentives.
Monitoring increases in LST TVL on Optimism post-implementation as well as messaging from organizations involved in staking
New launches of LST protocols on Optimism
How should badgeholders measure impact upon completion of this Mission?
TVL of LSTs on the Superchain.
Adoption rate and user feedback regarding the new staking functionalities and incentives.
Success of crosschain transactions in terms of capital interactions, transaction volume, and user experience.
Have you engaged a Grant-as-a-service provider for this Mission Request?
No.
Has anyone other than the Proposing Delegate contributed to this Mission Request?
and yes i mean 100k OP, will add that there. Is that high? Low? Feel like this is an achievable moonshot so i’d be fine with increasing it but i’m not sure.
Happy to support this now you’ve added this bit:
I am an Optimism delegate with sufficient voting power and I believe this proposal is ready to move to a vote.
Like @Griff raised though, I do just want to make it very clear that if we end up promoting Lido’s dominance I’ll be pissed; everything I was ranting about 18 months ago still stands.
Yep, you’re not alone in this – we need to ensure a broad distribution of liquid staking providers. Was never the intention to do otherwise but was a good idea to enshrine it in the request.
Hey Jack, i love this idea to bring more LST and soon LRT to Optimism.
Bringing this liquidity onchain will not only get the collective the possibility to be exposed but as well allow defi composability and get projects like Pendle and Timeswap to find a real activity on Optimism which is imo too low at this moment.
As a defi Observer, i support greatly this proposal.
Welcome to the Collective @Jstar - Looks like this mission will be moving forward. Please have a think on how Stakewise could fulfill this request. I can assist in creating the proposal and connect you with other Optimists with more experience with these processes.
Welcome to the collective @amirpuffer , please have a think on how Puffer can fulfill the above mission request. I can help you submit the proposal and connect you with other Optimists with more knowledge and experience with these processes.
I think that mission proposals will now need approvals from 4 top delegates each right?
Just like others said after you added this
I am inclined to approve this proposal. It would not only drive more adoption and usage into optimism but also support LST diversity and as an extension the health of the L1 network all rollups depend on.
Chatting with a few LST protocols about this proposals. The cost of audits is a recurring topic. Could this be taken into consideration to increate the baseline amount?
I would like to congratulate you on your proposal for an Optimism Foundation mission. I think it is a very interesting idea with the potential to make Optimism a more attractive network for LST users.
In particular, I like the idea of focusing on the development of new LST features. I think this is an important area that could help differentiate Optimism from other staking networks.
I also think it is important to focus on creating incentives for users to move their LST to Optimism. This could help attract new users to the network and increase the locked value.
Finally, I think it is important to improve cross-chain communication. This could help LST users interact with other users on different blockchains, which could open up new opportunities for staking.
Overall, I think this is a very strong proposal with the potential to have a positive impact on Optimism.
I will be happy to keep up to date with the progress of this proposal.
GM! I’m inclined to approve this proposal. I’ll wait to see if there are any modifications to the amount, and I would like to know if you chose that Trust Tier for a specific reason?
yes, although my hope is that they’d be better off going for in-kind audit grants. but there would be other ways to bring them on. probably should adjust trust tiers to accommodate a wider range of LSTs.
increased ask to 200k in light of likely breadth of applicants (in very new LSTs entirely new to optimism, not just existing ones) and reception from delegates.
Welcome to the collective @gonemultichain ! Please review this mission request to consider how Stader & KelpDAO can fulfill these needs on OP. Happy to support with the application process when the time comes
