DIP040 - Use of $OP grant on Optimism

Summary

We propose to use 100% $OP grant received from the Optimism during Cycle 11 application to incentivize users, developers, and partners who can help grow dForce on Optimism.

Background

dForce kicked off liquidity mining on Optimism from June, 2022 (click here to read the announcement and see our LM schedule in details on dForce’s forum).

Shortly after, we received a grant of 300,000 OP tokens from Optimism community to facilitate dForce’s expansion on Optimism and service its users with secure and reliable dForce products (see our application for OP grant here), which proved to be a great success with dForce stablecoin USX achieving a market cap of $12.6m, 230 unique addresses and 20k on-chain transactions on Optimism in less than 3 months (Nov 2022 ~ Feb 2023).

Now, we are thrilled to receive another 200,000 $OP grants through Cycle 11 grant application which will be distributed to dForce in different tranches upon accomplishments of pre-agreed milestones.

Proposal

It’s proposed to utilize 100% $OP grant received from Optimism to incentivize lending and trading activities, as well as innovative ideas around dForce and $USX on the Optimism network:

• 40% for USX liquidity on Optimism.
• 40% for lending activities around USX on Optimism.
• 20% for marketing campaigns in collaboration with partners across the Optimism ecosystem, as well as teams building on top of dForce on Optimism.

We anticipate that $OP incentives will be distributed to qualified users within 3 months after kick-off of the campaign.