If OP tokens were requested from the Foundation Partner Fund, what was the amount?: Not applicable
How much will your project match in co-incentives? (not required but recommended, when applicable): We do not currently have a token for DefiEdge. When we do launch the token, we will initiate liquidity mining rewards to support liquidity and grow the ecosystem.
How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also include a justification as to why each of these initiatives align with the problem statement this proposal is solving.): We have created the following distribution guidelines:
25% of tokens will be distributed on blue-chip and legacy pools on UniswapV3, encouraging new user participation and introducing fresh liquidity.
25% tokens will be distributed to Optimism native token pools like KROM/wETH, THALES/wETH, rETH/wETH, etc. (subject to change, after guidance from governance) to incentivize strategies on DefiEdge to manage their pool on UniswapV3 natively. A part of the rewards will also be used to encourage new token pools to launch on UniV3.
50% tokens will be distributed through trading competitions to increase volume and make Optimism the venue of price discovery for these tokens as liquidity providers & traders use DefiEdge to create new strategies, rebalance, deposit, position transfers, and place buy or sell orders on their strategy.
Over what period of time will the tokens be distributed for each initiative? Shorter timelines are preferable to longer timelines. Shorter timelines (on the order of weeks) allow teams to quickly demonstrate achievement of milestones, better facilitating additional grants via subsequent proposals: Three to six months.
Please clearly define the milestones you expect to achieve in order to receive milestone based installments. Please consider how each milestone relates to incentivizing sustainable usage and liquidity on Optimism. Progress towards each milestone must be trackable: Any two of the following milestones will be fulfilled:
Increasing total TVL on DefiEdge strategies to >=$15M). Currently at about $4.5M.
Total volume on Optimism to 100M. Currently at about 20M.
Total investors in DefiEdge strategies on Optimism to be 1000+. Currently at about 450 investors.
Why will incentivized users and liquidity on Optimism remain after incentives dry up?: Many liquidity providers thronged to our platform to earn liquidity mining rewards when we were chosen by Uniswap governance to distribute OP tokens on select pools on the Optimism chain. Yet users chose to manage liquidity in the same pools through our platform, knowing very well that this liquidity will not receive any rewards.
UniswapV3 is an organic source of generating passive revenue. It is the primary source of real returns and active fee generation. Liquidity providers can choose to earn a low-risk passive yield by depositing liquidity in a wide range. DefiEdge will make this process simpler and easier to track because of our integrated webhooks. They can also choose to participate in strategies launched by active strategy managers that amplify their yields in exchange for a performance fee determined by a free and open market.
Many liquidity providers will choose to stick around and use the platform purely because of the broad range of yield opportunities that UniswapV3 presents. Still, it is inaccessible due to the cumbersome and restrictive nature of LPing as it exists today. This makes the liquidity on our platform sticky and turbocharges liquidity provisioning in ways not yet imagined.