Fixed Forex on Optimism

Optimism is really taking off at the moment and projects that build or are on it are getting large quantities of valuable OP tokens. Currently velodrome (andre cronje fantom dex fork) are dropping OP to lockers.
Some stats on optimism

–Optimism TVL up over 40% past week (across every stat tracked (TVL, DEX volume, transactions etc)
–Velodrome has passed over 100 million locked and have announced 3 million $OP grant and using 750K OP to incentivize lockers
Optimism is distributing over 360 million in OP to projects building or bridging to it
–Synthetix is approved for 9 million OP and is using 3 million OP for sUSD liquidity and bridging incentives. 4 million will go to incentivize the SNX/sUSD pool
–Thales market is approved for 900K OP 495K to thales users and 315K to thales/Eth LP
–Lyra Finance approved for 3M OP (4.5 million dollars) 1.5 M to LP LYRA/WETH options pool 500K
–Balancer labs and beethoven 500k for bribes for FRAX/USDC/MAI pool giving 21% APR with the bonuses
–Hundred finance, Beefy and QIDAO etc
–Curve finance is up for vote now to get OP also

Fixed forex is a great fit for optimism and also the current rewards. There are a lot of OP incentives related to mai, mim and sUSD and bribing velo, curve and balancer pools. Fixed forex uses susd and curve pools.

The proposal is for the fixed forex team to reach out to the optimism team to build on optimism and get allocated OP as incentives for susd/curve pool etc (other suggestions) and many other uses in the future. Optimism summer has kicked off and OP will be given out for the next 20 weeks and started a few weeks ago.

2 Likes

This is a great suggestion. I would like to see this too.

Hey @mcgala,

Great to see some additional topics that aren’t just from me, so really pleased to see an additional suggestion here.

Maybe some useful background info; Keep3r is already working towards brining the jobs network multichain including to optimism in partnership with Connext & Nomad. However, I believe that is likely still a few months out from today & will probably be focused on offering automation of tasks to existing ecosystem protocols

On the purely FixedForex side; as long as end-users can bridge ibXXX assets then there isn’t much of a barrier to users bringing liquidity to Optimism. It also looks as though Iron Bank is getting ready to deploy to Optimism too, based on activity over at their github, so theoretically as long as the IB_controller is prepared to approve supply of new ibXXX to the optimism markets (or burn some of existing supply in ETH) then lending could happen directly on Optimism. This would be especially interesting if Iron Bank bring their long-promised own incentive program to this new market.

There would be some hoops to jump through getting new curve pools launched on optimism and having them added to the gauge controller. It would also mean Keep3r team has to try to maintain incentives for pools across multiple networks - which is tricky given that supporting the number of existing pools is already quite challenging

Although with Synthetix and Iron Bank both over on Optimism then two of the major partners are already “in” on the ecosystem. If Fixed Forex doesn’t move there then it will raise the question of whether new partners more closely aligned to Ethereum network would be a better fit.

To play the role of devil’s advocate a little though;

  • How do you see Velodrome playing a role in Fixed Forex on Optimism, especially given the history?
  • How likely do you think it is that Fixed Forex can time entrance to gain benefits of OP incentives?
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Hi @SeaSaltyFunk
Im not sure on the history of velo. I know its a fork on Andres work but I think they will work with anyone that brings more liquidity.

As for the OP incentives getting them allocated to fixed forex or to KP3R could be done in advance. Other protocols have the OP alocated and are using them as they expand on optimism. My suggestion is to reach out to Optimism team for fixed forex for an allocation even if it will be say 3 months before it was deployed on the chain etc. They may allocate a decent amount to the team to use when deployed. So basically getting OP in advance