Project Name: LI.FI
Author name and contact info: Chris | LIFI (Discord), email@example.com (email)
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes
L2 Recipient Address: 0x4D218d77cDdD700565826A31837277e9e2Ea0564
Which Voting Cycle are you applying for?
Grant category: Tooling / DeFi
Is this proposal applicable to a specific committee?
LI.FI enables a future multi-chain world by reducing complexity to navigate the fragmented landscape of bridges and DEXs across chains. The easy-to-use widget and SDK allow developers to easily integrate cross-chain capabilities into any existing product. With that users can move and swap assets without having to choose the right bridge or worry about available liquidity.
Apart from the B2C showcase transferto.xyz (originally designed as a demo, now already driving a lot of traffic) more and more products are integrating LI.FI as the go-to bridge aggregator. Examples of current integrations are Alchemix, SpiritSwap, Frontier Wallet, Rubic, Etherspot, Treehouse, or specifically on Optimism: DeFi Saver, Perpetual Protocol, Etherspot, Superfluid, Omni.
There are further contracts signed and tests running with bigger integration partners such as the largest wallets in the space (>20M monthly active users), which will then enable driving even more liquidity to Optimism through LI.FI.
- Website: https://li.fi/
- Twitter: https://twitter.com/lifiprotocol
- Discord/Discourse/Community: LI.FI / TransferTo.xyz
- Blog: https://blog.li.fi/
- Github: LI.FI (Li.Finance) · GitHub
- Substack: https://lifi.substack.com/
Additional team member info (please link):
- Philipp Zentner (CEO): https://twitter.com/PhilippZentner / https://www.linkedin.com/in/philippzentner/
- Max Klenk (CTO): https://www.linkedin.com/in/maxklenk/
- Vilen Rodenski (Product Design): https://www.linkedin.com/in/vilenrodeski/
- Ed Zynda (Solidity Lead): https://twitter.com/what_the_func
- Matthias Moeller (Backend Lead): https://www.linkedin.com/in/mathias-moeller/
- Adrian Weniger (Frontend Lead): https://www.linkedin.com/in/adrian-weniger-8a35b6132/
- plus many other team members
Please link to any previous projects the team has meaningfully contributed to:
Relevant Usage Metrics: (TVL, transactions, volume, unique addresses, etc.)
- Unique users: 74,802
- Transfer volume: 245,158,681 USD
- Total transfers: 193,537
- Bridges supported: 10
- Networks / Chains: 17
- DEXs: 17
Is/will this project be open sourced?
open source and audited contracts, widget, B2C app and SDK can be found here: LI.FI (Li.Finance) · GitHub
No (on several chains, 17 in total)
Date of deployment/expected deployment on Optimism: December 2021
Ecosystem Value Proposition:
What is the problem statement this proposal hopes to solve for the Optimism ecosystem?
Users often have tokens on other chains and would like to use dApps on Optimism. For projects or dApps it’s significant development effort to be multi-chain compatible and complex to navigate the current bridging landscape.
How does your proposal offer a value proposition solving the above problem?
We provide an SDK and Widget which makes it easy for projects to support OP and enable users to bridge any token to OP without having to choose a bridge or leave the dApp.
Why will this solution be a source of growth for the Optimism ecosystem?
More bridging integrations for Optimism and projects providing such within the dApp will be a key factor to enable Optimism usage and adoption.
Has your project previously applied for an OP grant?
Number of OP tokens requested:
Did the project apply for or receive OP tokens through the Foundation Partner Fund?
If OP tokens were requested from the Foundation Partner Fund, what was the amount?
How much will your project match in co-incentives?
The co-incentives we’ll provide are technical support for integrating bridging to Optimism as well as content marketing based on in-depth research.
We currently value our hands-on development support at $5k-$20k per project per month. We’d like to provide dev integration support valued at $20k per month (1-4 projects / month) over a time period of 6-9 months (up to $180k) in total.
Apart from technical integration one of our biggest strengths is the content we produce, especially regarding the bridging space, to support understanding of emerging ecosystems. In the past we’ve e.g. written the bridges articles for the Ethereum Foundation (e.g. Introduction to blockchain bridges | ethereum.org) or published educational content regarding Arbitrary Messaging Bridges.
We’d love to create content in terms of Optimism bridging in general (which we’d be happy to white label) as well as for specific projects. Marketing channels we will use to spread such knowledge are content posts in Twitter Threads, announcement articles, cross-chain insider newsletter, substack, Q&A interviews, Twitter spaces, Discord/Telegram and additional ways on a per team basis.
Proposal for token distribution:
As a bridge aggregator we provide the most straight-forward path for users and projects to onboard to Optimism. We’d like to support this with financial incentives for users (initial gas) to get started on Optimism as well as financial and technical support for projects to enable bridging to Optimism through LI.FI.
How will the OP tokens be distributed?
- Incentivize transfers to Optimism by providing initial gas for all bridges (50%)
In terms of initial gas we believe 0.003 ETH (~3.8 USD) for users after first time bridging is a good starting point to make transactions and interact with dApps on Optimism. At the current OP/ETH price we could onboard roughly ~26k new users to Optimism with that.
- Support projects to integrate bridging to Optimism through LI.FI (50%)
We’d like to enable more projects to support Optimism and onboard users from other chains to Optimism. For that we’d like to provide different grants to such projects depending on the size and complexity of the integration. Smaller ones (<10k) for simple SDK / widget integrations and larger ones for deeper integrations including e.g. cross-chain contract calls.
The priority will be for projects deployed on Optimism and seeking bridging from other chains.
In addition to these grants we’ll provide technical and content marketing support to such projects, especially larger ones.
Over what period of time will the tokens be distributed for each initiative?
- Initial gas after bridging: 3-6 months (based on current bridging number and assumptions)
- Project support: 5-9 months
How will this distribution incentivize usage and liquidity on Optimism?
The initial gas amounts will make it easier and more financially attractive for users to move assets to Optimism and start using dApps there.
The financial and technical support for bridge integration will enable more projects to easily allow their users to adopt Optimism coming from other chains.
Please list the milestones/KPIs you expect to achieve for each initiative, considering how each relates to incentivizing sustainable usage and liquidity on Optimism. Please keep in mind that progress towards these milestones/KPIs should be trackable.
KPI for initial gas incentives:
- number of new users who have received initial gas after bridging to Optimism
KPIs for project support to integrate OP bridging:
- number of projects support
- total amount of financial support / grants given out to these projects
- number of new users who have received initial gas after bridging to Optimism (same as above as requested in feedback comments)
Why will the incentivized users and liquidity remain after incentives dry up?
Over time users will be used to the UX of bridging to OP and enjoy the simplicity of being able to do so directly through different dApps’ integrated swapping/bridging capabilities powered by LI.FI. This improved first user experience with dApps on OP will provide a great entry point for more long-term usage.
Please provide any additional information that will facilitate accountability:
Smart contract addresses can be found here: Deployments - LI.FI Documentation