Hi all, thank you for the great feedback over the last week! As a quick refresher here: as part of Phase 0 of the Optimism Governance Fund, Uniswap received 1M $OP tokens to incentivize future growth within the Optimism ecosystem. Ken’s proposal to receive the OP, made on behalf of UGP (now part of the UF), proposed using 80% of that OP (800k OP) to support liquidity mining initiatives.
Above, the UF proposed initial parameters to the program. Below, we summarize community feedback. Because there are suggested changes to the selected pools and program structure, we will launch 3-day Snapshot polls to decide on the right approach tomorrow morning (10/14) at 9 am EST. We will also Tweet about the Snapshot polls to get broader distribution.
Two community members (@GabePZ and @jony) also included more in-depth frameworks which we are excited to leverage in Phase 2 of the program - with additional community feedback, analysis, and the benefit of learnings from Phase 1.
Comments were as follows:
From @BP333, a suggestion on pools: replace the WETH/OP 0.3% pair with the DAI/USDC 0.01% pair.
“… xToken and Gamma Strategies received 600K OP collectively to incentivize the WETH/OP 0.3% pair, so those incentives may be better placed for another pair.
I think what may be strategic for Uniswap is to incentivize the DAI-USDC 0.01% pool on Optimism. It’s one of the more crucial trading pairs, and a 10K swap for DAI is mostly getting routed to Velodrome and Kyberswap on 1inch. Both of those platforms are incentivizing that trade route. I think we can win that route if we were to incentivize the USDC/DAI pair.”
From @OPuser, suggestions on pools and program structure: remove the WETH/OP 0.3% pair for the reason @BP333 mentions above, and breaks the program into three parts. Specifically: 1) 2 weeks, 50k OP, 2) 3 weeks, 100k OP, 3) 650k OP until funds run out.
From @barbarossa_Arrakis, a suggestion to ensure liquidity mining is easy to access and use for all LPs. We agree with the suggestion and are excited to highlight and work with three community projects which both provide a great UX and more expansive strategies to LPs.
For Phase 1, we plan to deploy incentives with Arrakis, Gamma Strategies, and xToken Terminal to deploy incentives.
“… the question here is, for this upcoming LM program, what mechanism of incentive distribution should be used so that
1. More LPs can easily participate and be rewarded
2. Risks of whales hording bulk of the incentives, e.g. another Ribbon Incident, can be eliminated or at least reduced”
From @jony, suggestions on pools and program structure: remove the WETH/OP pool, and extend Phase 1 to 4 weeks. We will include the suggestion to extend Phase 2 to 12 weeks in a separate discussion on that Phase.
Both @GabePZ and @jony include more in-depth frameworks for assessing how the community should approach liquidity mining. We are excited for these two, in addition to the broader community, to further flesh out these approaches and to incorporate Phase 1 information into our Phase 2 (and 3?) plans.
Thanks again to everyone for their in-depth feedback. For the Snapshot Polls, we will post the following tomorrow morning (10/14) at 9 am EST.
On LM program structure:
- 2 Phase Deployment, Option 1 [200 OP/ 2 weeks, 600 OP]
- 2 Phase Deployment, Option 2 [200 OP/ 4 weeks, 600 OP]
- 3 Phase Deployment [50k OP/ 2 weeks, 100k OP/ 3 weeks, 650k OP until funds are all used]
On LM pool selection:
- WETH/USDC, WETH/DAI, WETH/OP
- WETH/USDC, WETH/DAI, USDC/DAI
- WETH/USDC, WETH/DAI
Please let us know if you have any additional thoughts for now. Though note we will not include any additional comments in the Phase 1 snapshot polls, unless there are corrections from the commenters above.