Delegate Mission Request: Optimism Dominance in Yield-Bearing Assets 1B

[opjulian]

Delegate Mission Request: Optimism Dominance in Yield-Bearing Assets 1B

Application Link

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Optimism Dominance in Yield-Bearing Assets (2 of 4)

Delegate Mission Request Summary:

This mission is part of a package that is intended to make Optimism the dominant venue for trading and creating yield-bearing assets. The target assets include real-world assets (RWAs), yield-bearing DeFi tokens that are simple in structure, and staked ETH.

This mission is specifically designed to encourage Optimism protocols to diversify their treasuries into yield-bearing assets including, but not limited to, RWAs and staked ETH. This helps build an organic user base for yield-bearing assets on Optimism, and encourages DAOs and companies primarily on Optimism to hold assets that can be relied upon in a down market where their own native tokens are not able to finance growth and expansion.

S5 Intent

Intent 3: Grow application devs on the Superchain

Proposing Delegate

GFX Labs

Proposal Tier

Scales up to tier of proposer

Baseline Grant Amount

500k OP total. Up to 50,000 OP per Optimism-native organization, at an annualized rate of 5% (dollar-denominated) based on the market price of OP on the day of this Mission passage. The Grants Council is authorized, at its discretion, to lower this 50,000 OP cap if market conditions or budget constraints require it.

Should this Mission be fulfilled by one or multiple applicants

Multiple

Completion Date

Within 6 months of Mission passage.

Specification

How will this Delegate Mission Request help accomplish the above Intent?
This incentive program is intended to encourage organizational users (e.g. DAOs) on Optimism as of May 1, 2024 to diversify their onchain asset holdings on Optimism. This helps yield-bearing assets (with permissionless token transfers) develop a user base on Optimism, and encourages DAOs and other onchain organizations to be financially secure to support their own future expenditures. This will provide a user base to attract yield-bearing, permissionless assets to Optimism so a trading and investing ecosystem can develop.

What is required to execute this Delegate Mission Request?

• A whitelist of eligible yield-bearing assets with permissionless token transfer to incentivize. This includes at inception: wstETH, rETH, cbETH, sfrxETH, USDM, USDY, and bI0B1. wstETH and rETH are already important assets on Optimism, cbETH and sfrxETH are assets closely associated with major Superchain members, and USDM, USDY, and bI0B1 are permissionless tokens that were recently vetted and approved for Arbitrum's treasury diversification.
• A process for organizations present on Optimism as of May 1, 2024 to apply for the subsidy, which includes easy verification by the Grants Council (or its designated agent) of the amount of the subsidy.

How should the Token House measure progress towards this Mission?

• Number of DAOs and other Optimism-native organizations taking advantage of this program.
• Number of yield-bearing assets whitelisted for this program.
• Amount of yield-bearing assets held by Optimism-native organizations at the close of this program vs at its inception.

Milestones

• Onchain organizations (e.g. DAO treasuries) hold $10,000,000 in yield-bearing assets. Assets held by their own issuer are not counted towards this metric.

How should badgeholders measure impact upon completion of this Mission?

• Aggregate capital inflows from the real-world economy, Ethereum, and other chains for yield-bearing tokens on Optimism.
• Number of RWAs and yield-bearing projects deployed on Optimism that also have permissionless token transfers.
• Trading activity of permissionless yield-bearing project tokens on Optimism DEXs like Velodrome, Uniswap, and Curve.
• Amount of rated yield-bearing assets held in Optimism DAO treasuries, to help foster economic resiliency of those organizations.

Have you engaged a Grant-as-a-service provider for this Mission Request?

No.

Has anyone other than the Proposing Delegate contributed to this Mission Request?

No.

This Mission Request is considered failed or withdrawn if the other three missions labeled “Optimism Dominance in Yield-Bearing Assets” do not pass.

Which metric will the success of this Mission Request be evaluated against?

The North star metric against which this Mission Request should be evaluated is TVL, because the initiatives outlined above aim to attract an influx of additional assets. This metric was suggested by the foundation and approved by the Grants Council.