KIP-61: Perps V2 Trading Incentives

Simple Summary

Distribute 30,000 OP in weekly Perps V2 trading rewards for 20 weeks, totaling 600,000 OP.

Abstract

Due to hurdles in implementing KIP-29 and the deprecation of V1 Cross Margin, it is necessary to replace the KIP-29 distribution plan with an updated distribution for v2.

This KIP replaces KIP-29 with a plan which closely mirrors a distribution plan from Synthetix, providing some overlap in technical implementation and ensuring a large number of Kwenta traders can realize a more significant benefit than Kwenta could offer by distributing rewards in isolation.

Motivation

The SIP-2003 proposal currently being discussed in Synthetix governance distributes 200,000 OP tokens per week to perps v2 traders, which will be claimed through the Kwenta frontend. A distribution of Kwenta’s OP tokens over the same time period ensures that Kwenta traders realize the maximum benefit over this period.

Although previous plans targeted traders on other platforms, this unique opportunity to work in conjunction with Synthetix and maximize rewards for Kwenta traders should incentivize users to migrate and try Perps v2 without the need for the added complexity of targeting only users of other exchanges.

To ensure the spirit of the original Optimism Grant proposal is maintained, no tier multiplier will exist for KWENTA stakers in order to direct incentives at new users migrating from other platforms. Incentives for KWENTA distributed in locked KWENTA already ensure that staking is attractive for traders.

Specification

For more information, visit: https://app.radicle.xyz/seeds/maple.radicle.garden/rad:git:hnrkq1oex148yz4zi9tm7spfnjaryyuc93yay/tree/master/kips/drafts/kip-61.md