Recommendation from DeFi committee C
Details
Detailed proposal focused on liquidity mining and protocol integration. Homora (Prima) was active throughout the cycle, indulging community by answering their query and adjusting their proposal on the basis of suggestion and feedback.
Value-Add
Homora attracts significant liquidity (17MTVL according to Defillama) and can improve liquidity on key pairs for Optimism. They outline clearly in their proposal which pool/assets will be added and how liquidity will improve. The builder incentives are rather large but focused with a direct impact on Optimism.
Traction
Not native to Optimism but the integration with UniV3 is new and unique. Initial pool selection shows a good understanding of UniV3 volume drivers, already accounting for half of USDC/wETH (0.05%) total TVL on UniV3. Activity on other chains has shown a consistent pattern of integration and resilience in the face of a downturn market movement. Comparing Uniswap V3 TVL for the last months shows it has been steadily in the 49 to 55 M range. Their track record for Liquidity Mining shows a TVL expansion to accompany them.
Amount
Incorporated feedback and reduced the amount to 684K OP - which is reasonable for the size of Alpha & impact of this proposal.
a) Type 1 (56%): Liquidity Mining to incentivize borrowing (384k OP)
- OP = 11,000 OP/week
- ETH = 5,000 OP/week
b) Type 2 (44%): Builder grant for protocols on top of Homora (300K OP)
Intention to forward 3 large grants to 3 affiliated projects (Sharpe AI, Blue Swap Labs, x) which build yield strategies on top. They will use Op to incentivize growth which seems beneficial to Optimism & Homora.
OP Distribution
Good time-frame and reasonable weekly distribution
- Liquidity incentives: 16K Op per week for 6 months
- Builder grant will also be distributed over min 3 months
Co-incentives
Iron Bank will offer 45K IB Tokens ~154k USD at the moment of review. They represent around 40% of total liquidity ask which is rather low compared to others.
Alignment
Alpha seems to be very aligned with the Ethereum ecosystem as a whole and Homora implementation is a building block on top of many DEXs AND Iron Bank for additional yield strategy protocols.
General comment regarding Open Source, Homora has stated they will not open source on the short term, as a measure of security with its users.
KPIs
Clearly defined
- Liquidity gains & TVL share
- Support of key assets/pairs
- Ecosystem integrations
Recommendation :- Yes
This proposal is focused on increasing liquidity along with protocol integration.
Our past recommendation is available on committee recommendation thread