[RFC] Uniswap Onboarding Package for BOB

Requests for Comment
1

This proposal is brought to the DAO by the Uniswap Growth Program in collaboration with BOB (Build on Bitcoin).

Overview

BOB is a unique Hybrid Layer 2 that combines Bitcoin’s security with EVM smart contracts. By placing BTC at the heart of DeFi, BOB can unlock new use cases and trillions in liquidity. This makes BOB the ideal home for Bitcoin DeFi - the best and safest place to earn yield on Bitcoin. In October, 2024, BOB became an official Uniswap V3 deployment. This proposal requests a Uniswap Onboarding Package for BOB Network.

  • As of today 27 Mar 2025, BOB boasts over $247M of TVL across all of its Dapps, with $42.78M in Uniswap v3 pools, ranking 5th among all UniV3 deployment, before OP mainnet and BSC, nearly three times the TVL of Rootstock.
  • As BOB has demonstrated its ability to effectively attract users and LPs across both the EVM and Bitcoin space, BOB is looking to further bolster the network’s state by allocating incentives to Uniswap pools as the BOB TGE takes place. Our goal is to leverage Uni v3 via Oku as the canonical DEX on the chain.
  • BOB will therefore commit $500K over the next 6 months, and BOB is requesting Uniswap to match 75% of that ask.
  • BOB has made it a point to ensure Uniswap sustains its lead as the canonical DEX on the L2, unlike other networks that may prioritize native DEXs.

BOB: The Hybrid L2

  • Built on the OP Stack, BOB joined the Optimism Superchain in August 2024, and quickly became the 3rd largest Superchain by TVL, only after Base and OP Mainnet. (Defillama)
  • Integrated with Babylon to become a Bitcoin-Secured Network, bringing Bitcoin finality to the Hybrid L2. (Read more)
  • BOB acts as a gateway for Bitcoin holders to access EVM-based DeFi opportunities, bringing substantial Bitcoin liquidity to the ecosystem. including highly anticipated and quickly growing BTC LSTs
  • BOB’s co-founder Alexei is a co-author of the BitVM2’s technical blueprint, which enables secure, Bitcoin-backed bridges to Ethereum and other L1s—offering a trustless alternative to existing multisig BTC bridges.

Read the BOB Hybrid L2 Vision Paper, Hybrid L2 Technical Blueprint and the BitVM V2 Paper to learn more

BOB’s Interoperability and Cross-Chain Connectivity

  • BOB Gateway – In-house solution connecting Bitcoin through Intents.
  • OP Standard Bridge – Canonical solution to onboard ERC20 from the Optimism ecosystem.
  • Chainlink CCIP - partnership with BOB
  • LayerZero, endpoint live on BOB
  • Hyperlane additional cross-chain messaging support.
  • deBridge (onboarding in progress): connecting BOB to Solana, BSC, etc.
  • Third-Party Liquidity Bridges – Supported by Owlto Finance, Meson Fi, Free Tech, Orbiter Finance, and more providing multiple cross-chain transfer options.

BTC Intents: The Gateway for BTC Liquidity

  • BOB Gateway, a Bitcoin RFQ-based swap protocol, powered by intents and cross-chain light client proofs. . BOB Gateway simplifies Bitcoin DeFi and staking deposits into a single BTC transaction, solving one of Bitcoin’s biggest pain points: UX. Users can swap L1 BTC against any ERC20 and DeFi receipt tokens on BOB (and soon on other chains) in a trustless manner.

  • BOB Stake, powered by BOB Gateway, is a 1-click Bitcoin staking portal and SDK that enables users to deposit BTC into various BTC LST and DeFi strategies.

Read more on BOB Gateway and BOB Stake.

BOB Impact in the Uniswap Ecosystem

BOB’s Unique Value for Uniswap

  • BOB is positioned to be the main EVM L2 for BTC LSTs and wrapped BTC trading, driving new BTC-native volume to Uniswap.
  • Direct BTC on/off-ramps from Bitcoin L1 is supported via BOB Gateway, with multi-chain integration in progress (BTC L1 to any EVM), expanding access to BTC liquidity on Uniswap across chains.
  • Interest in developing BTC-specific hooks designed to optimize trading and liquidity for Bitcoin-based assets on Uniswap.
  • BOB selected Uniswap as its primary DEX over forks, reinforcing Uniswap’s position as the default venue for BTC trading and solidifying value alignment with the Uniswap DAO.

Uniswap TVL Analysis (Mar 27 2025)

  • BOB’s Uniswap V3 TVL: $43.26M,
  • Ranking 5th among all chains, before OP mainnet and BSC, nearly three times the TVL of Rootstock.
  • Current Pools on Uniswap - BOB: https://oku.trade/info/bob/overview

BOB’s Commitment

TLDR:

  • Ongoing BOB Rise Defi incentive Campaign (OP reward)
  • BOB Fusion: Ongoing point reward for Uni LPs. Uniswap received the highest point multipliers, resulting in the highest activity and % points distributed in the BOB Fusion points campaign to Uniswap users. An estimated total of 18% of all the points have been distributed to Uniswap users on BOB.
  • Upcoming incentives: $500k worth of incentives committed for bootstrapping UniV3 pools on BOB, requested to be matched 75% by Uniswap DAO.
  • To further grow liquidity in BTC, BTC LSTs and other Bitcoin assets on Uniswap on BOB, BOB may allot more incentives for V3 pools later on as well—subject to the findings from previous campaigns.

BOB Rise Campaign

BOB was awarded a 750k OP grant from the Optimism Grants Council in December 2024 to accelerate Bitcoin DeFi adoption within the Superchain. To maximize the impact of this funding, BOB launched BOB Rise, a four-month user incentive program (February – June, 2025) designed to distribute OP rewards strategically across key DeFi protocols in the BOB ecosystem.

Visit BOB Rise Dashboard (managed by Merkl).

Uniswap plays a central role in BOB’s DeFi ecosystem, as a key participant in BOB Rise, Uniswap has maintained its position as the leading protocol by TVL throughout the campaign, with consistent capital efficiency across both incentive tranches.

Uniswap’s Performance in BOB Rise (Feb 26 – Mar 24, 2025):

  • Total OP Incentives for Uniswap: 197,358 OP
  • First Tranche Payout: 98,679 OP (distributed in February 2025)
  • Second Tranche Payout: Scheduled for end of April 2025

Incentivised Pools:

  • wBTC/USDT
  • wETH/USDC.e
  • wBTC/ETH
  • HybridBTC.pendle/wBTC

Campaign Impact as of March 24, 2025:

  • Liquidity Growth: TVL increased by $2.57M, from $40.43M to $43M regardless of downward price pressure.
  • User Engagement: Platform-wide user base grew by 33,149 users (+8.7%) since campaign start.
  • Incentive Utilization: $25,496 in OP rewards distributed (13,047 by Mar 13, 12,449 by Mar 24)

Return on Emission for Uniswap:

  • 7x as of March 13
  • 6x as of March 24

Read more on BOB’s OP grant here

BOB Fusion

Fusion is a point-based reward program designed to bootstrap ecosystem growth and deepen user engagement across DeFi verticals.

Structured across three seasons, the campaign rewarded users with BOB Spice points for meaningful on-chain activity in areas such as lending, liquid restaking, and DEXes. Currently there are over 773k users harvesting Spice points via BOB Fusion.

A core design philosophy behind Fusion was to allocate multipliers strategically to amplify incentives for high-impact behaviors. In the final season, BOB introduced specially high multipliers for DEX activity, with Uniswap (via Oku) receiving a 11 to 33x multiplier —the highest of the campaign. This was a deliberate decision to cement Uniswap as a core DEX on BOB, while also positioning BOB as the go-to place for users to trade BTC and BTC-related assets on Uniswap.

Read more about the Fusion Campaign

Check out BOB Fusion on BOB Dapp.

Fusion reward multiplier for Uniswap

  • Fusion rewards = Asset Multiplier × App Multiplier
  • Note: Uniswap’s app multiplier is 11x, higher than the 10x given to other DEXes, reflecting our intention to make Uniswap the primary DEX on BOB.

Reward multiplier for trading BTC assets on Uniswap:

  • BTC LSTs (uniBTC, pumpBTC, SolvBTC.BBN): 3x × 11 = 33x
  • fBTC: 1.5x × 11 = 16.5x
  • tBTC / wBTC / USDC / ETH: 1x × 11 = 11x

This structure was designed to incentivize BTC LST trading on Uniswap and establish BOB as the best place for BTC DeFi.

1600×959 103 KB

Upcoming Incentives

BOB is committed to allocating $500K to Uniswap to grow liquidity across strategic pools over the next six months. BOB will work with the Uniswap Growth Program to distribute a mix of native token emissions on BOB, partner rewards from the Babylon ecosystem, contributions from collaborating protocols, and additional OP incentives to boost liquidity and drive adoption. The $500k matching incentives stated above is subject to be materially higher based on rewards from partners like Babylon and OP. Exact amounts will be disclosed at a later date but not yet publicly available.

Uniswap’s Onboarding Package

This proposal requests funding for BOB’s Uniswap onboarding package, which includes user incentives for UniV3 pools, as well as retroactive funding for Oku and Merkl integrations.

The total request amounts to $375k worth of UNI, broken down as follows:

  • $250k in UNI incentives for six months across key Uniswap markets
  • $20k for Angle Merkl integration
  • $105k Oku deployment cost rebate

Reference: https://gov.uniswap.org/t/uniswap-revitalization-and-growth/22616?u=getty

Pool Selection

Classic Pairs:

  • wBTC/USDT 40%
  • wBTC/wETH 15%
  • USDT/USDC 15%

Local Pairs:

  • wBTC/LBTC 15%

No BOB token has been announced but if there would be a BOB token, the suggestion is to also set up the following market:

  • wBTC/BOB token 15%

Allocation of the incentives subjected to re-evaluation and adjustment based on performance during the incentivised period.

Details on Local Pairs

Lombard BTC (LBTC)

Designed to be the stETH of Bitcoin, LBTC provides holders with a native staking yield via Babylon whilst simultaneously maintaining liquidity, enabling them to move freely through DeFi.

Read more on Lombard website

BOB x Babylon Integration – Boosting Yield for LBTC Uniswap LPs

BOB is integrating with Babylon to become a Bitcoin Secured Network (BSN), inheriting Bitcoin security from billions of dollars in staked BTC. A share of sequencer fees will go to Babylon stakers—aligning BOB with Lombard and reinforcing BTC re-staking as a core use case.

Fee sharing is tied to LST-driven activity: more LBTC TVL → more trading on BOB → more fees to LBTC Uniswap LPs. This creates a flywheel where Uniswap liquidity not only earns trading fees but also benefits indirectly from Babylon staking rewards—amplifying LP yields.

Timeline

Below is the proposed timeline for delegates’ consideration. The timeline is an estimate and may be extended during the process as more time is required

RFC: 1-2 weeks of request for comment and discussion

Snapshot Vote: 5 days snapshot vote to decide on incentives from the DAO

On Chain Vote: Proceeding snapshot vote

2 Likes
2

We like this initiative, but we think the L2 chain is still too new and hasn’t proven it can sustain long-term growth. We’re facing a bit of a dilemma here: we don’t think it’s a good idea to spend money on these early-stage L2s until they’re at least a year old and have shown they can grow sustainably. At the same time, we believe an initial boost could really help the chain at this stage.

This particular L2 has shown promising growth, it’s part of the OP ecosystem like Unichain, and it supports Uniswap as its main DEX. Because of that, we’re open to making an exception and voting in favor of the proposal, but we’d like to hear what other delegates think first.

3

Of the chains we’ve spoken to as of late, BOB in our opinion has been one of more promising. It’s hard to see what further datapoints would be required to make a compelling case for supporting BOB since they’ve shown considerable growth, eclipsing even Optimism, BSC, and zkSync in TVL without being on the Uniswap.org FE. If Uniswap wants to be relevant on a large Bitcoin L2, BOB is a leader in the sector. Plus, it’s quite difficult to negotiate with a chain to make Uniswap their canonical DEX, especailly without the Uni brand. Many favor native DEXs. BOB is an exception to this scenario.

Re new chains: Uniswap’s goal should be to support new chains early on. If we’re able to monopolize the DEX market on a chain, and sustain the monopoly over time, that’s great. It would be unfortunate if our relationship with a chain that has momentum thus far were to dwindle.

3 Likes
4

Uniswap’s goal should be to support new chains early on.

Is there a potential conflict of interest? UF wanted a chunk of change to promote Unichain but does this biases allocation of incentives for 3rd party chains? Let’s keep in mind that the treasury is not the US federal debt, every $1 depleted need matching $8-10 in stability fund to generated yield (aka profit) to replace. If there is to be a policy of picking which chains, there needs to be some objective selection criteria

5

Rather than a conflict of interest, this represents a complementary approach to growth. While the Uniswap Foundation focuses on going deep through Uniswap Unleashed, the Growth Program is designed to go wide by supporting new chain deployments and incentive/co-incentive opportunities for Uniswap. It may also be the case that the UF decides to branch into alternative ecosystems in the future as well. It’s not a black and white scenario since they’re already focusing on Base and Arbitrum for v4 incentives—as opposed to solely incentivizing Unichain.

We’ve consistently followed the Uniswap Deployment Guideline, helping early-stage chains structure internal incentive programs. For more developed ecosystems or high-potential emerging chains, especially those where Uniswap plays a central role in DeFi, like BOB, we’re presenting co-incentive opportunities to the DAO to expand and maintain Uniswap’s market share.