This update shows significant changes in the proposal:
- Ironbank as co-proposer has already meaningfully contributed to (TVL) growth on Optimism incl. the liquidity mining campaign financed with IB tokens
- Overall distribution of tokens will still be 80% towards liquidity and 20% for builders. Of the 80%, 15% go to OP lenders on IB which “might” cause less selling pressure than the 85% (680K Op) for liquidity mining of popular Uni V3 pairs.
- IB offers co-incentives of 111K IB (current price 3$). Price of IB is trending down though and the marketcap is only $500K USD - hence the effective co-incentives might be much lower.
- Distribution of LM rewards over 50 weeks instead of 16 weeks.
- Ask increased again from 800K to 1M Op in total.
To summarize our thinking:
- Alpha + IB demonstrated already value-add and potential to move significant TVL to Optimism.
- 6 months distribution of LM rewards would make more sense. (Follow-up proposal possible)
- 20% (200K Op) Builder incentives can spur additional, sustainable growth.
- It’s great to have another place to take out a loan against Op on Optimism. (15% of 80% = 120K Op)
- 85% of 80% = 680K Op for liquidity mining incentives is still a huge ask.
- 111K IB as co-incentives on top of leveraged yield farms & lending pools show good will but there is a ? how much that will actually contribute.
→ Maybe reduce Ask by 50%+, stick to distribution over 6 months & create a new proposal when this co-growth program ends, success was demonstrated - incorporating lessons learnt.
Overall, this co-proposal looks stronger than the proposal before. Thank you for bringing in Ironbank. We appreciate the hustle for co-incentives though we are not confident they will be significant due to illiquidity and low floating supply.
Echoing @jackanorak’s comment, we don’t see a good reason for changing the distribution schedule towards 1 year and raising the Ask to 1M - still lacking significant co-incentives.
@prima You mention TVL contribution (see below): Liquidity is very important for protocols to enable traders and other protocols to build on. That said, we should look more at effective liquidity, marginal value added to the Op ecosystem and sustainable incentives, which also means that tokens should not be temporary APY boosters which are instantly sold & less Op incentives are left for the rest of the ecosystem. Some earlier proposals (xToken, Gamma, Uni Staker; all grants) might have gotten a larger amount but it’s important for Optimism to spend Op more wisely going forward to not waste resources, grow the overall ecosystem & not add risk without reward.