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dear bankless nation,
optimism is one of the dominant Layer 2s on Ethereum.
Since the beginning of August, Total Value Locked (TVL) is up ~26% on optimism.
Source: L2Beat
This is because there are a ton of market opportunities that allow users to earn OP – the network’s recently launched governance token – by using a range of different applications.
Want to get in on the action?
Here’s a guide to the top 5 opportunities to look out for.
Don’t wait too long though, as these rewards are all up for grabs and all liquidity mining campaigns will eventually come to an end!
OP summer is here. π΄
Let’s capitalize on this.
– Bankless team
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Unbanked Author: William M PeasterBankless contributor and metaversal writer
Photo credit: Logan Craig
This summer, the Optimism Ecosystem Fund awarded $OP tokens to Optimism dApp teams.
In turn, these projects distributed the tokens to encourage and reward their users who make the L2 leap. This bankless tactic shows you the best opportunities to target now to maximize your $OP earnings!
βSince launching 12 of 43 incentive programs, over $700 million has been bridged from L1 to Optimism, an increase of >600% compared to pre-incentives over the same period. An ecosystem is only as strong as the projects that make it up. Projects that implemented their incentive programs also saw significant increases in inflows, liquidity, TVL and transactions.β β The Optimism CollectiveAugust 23, 2022
Optimism is currently the second largest L2 in the crypto economy, and efforts in the scaling solution ecosystem are now spanning the full breadth of Web3, including bridges, DAOs, DeFi protocols, NFTs collections, wallets, and beyond.
However, not all of these projects offer OP rewards to their users. And from those that are, we’ve seen a wide range of reward pool sizes. For example, some dapps only had 300,000 OP to give away, while others reserved up to 9 million OP for rewards.
All in all, if you want to maximize your potential OP earnings right now, you should aim for the projects that have the largest OP reward pools.
The idea?
The higher the number of OPs to be distributed, the more income can be generated for more people. Intuitively, 9 million tokens go much further than 300,000.
So let’s say you already have some money for optimism and you want to earn as much OP as possible.
Where to start
Don’t worry, I’ve got you covered – here are the 5 dapps with the deepest OP reward pools right now!
π° Reward allocation: $9,000,000 OP
ποΈ Rewards start date: August 25, 2022
π€ Actions are rewarded: Provision of liquidity
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Decentralized Derivatives Protocol synthesis launched its first wave of OP reward distributions last week by allocating 10,000 OP each to liquidity providers sUSD/3CRV and sETH/ETH Pools on the curve.
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The idea with these rewards is to entice LPs to migrate their Synthetix synths i.e. sUSD and sETH from the Ethereum mainnet to Optimism where the UX is friendlier. If you want to earn OP rewards to support this migration, consider making a deposit into the designated Curve pools.
π° Reward allocation: $5,300,000 OP
ποΈ Rewards start date: August 4, 2022
π€ Actions are rewarded: Borrowing and Lending
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Decentralized lending protocol Aave launched a 90-day OP liquidity mining program for Aave V3 users earlier this month, meaning there are over 60 days left in the campaign.
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To participate, just go over to Aave V3’s Optimism Market and lend and borrow tokens. You can currently provision ETH, DAI, and USDC, while the tokens currently available for lending are ETH, DAI, USDC, WBTC, LINK, and sUSD. Claiming support for your accumulated OP rewards is not live yet, but will be available soon.
π° Reward assignment: $5,200,000 OP
ποΈ Rewards start date: July 14, 2022
π€ Actions are rewarded: Provision of liquidity
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Perpetual Protocol, which enables decentralized perpetual futures, launched its OP-liquidity mining program, the Pool Party, last month. The goal was to incentivize and increase liquidity in the Perp v2 system.
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On a weekly basis, the Pool Party is currently distributing 27,000 OP among LPs in the Perp v2 ETH market, 5,000 OP among LPs in the AAVE, BNB, BTC, FLOW and PERP markets, and $3,000 OP among LPs in all other markets markets.
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To start earning from these payouts, just go to Perp v2 appdeposit liquidity into the market of your choice, then collect your OP rewards every Monday as they are allocated.
π° Reward allocation: $3,000,000 OP
ποΈ Rewards start date: August 2, 2022
π€ Actions are rewarded: Staking and providing liquidity
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As part of his new Avalon Incentives Program, decentralized options protocol Lyra has started distributing OP rewards to LYRA stakers and to LPs of its market maker vaults.
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You can use LYRA at the Lyra Rewards dashboard. Just remember that OP rewards are released every two weeks and there is also a two-week period in which you wish to withdraw your underlying LYRA.
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As for LPing, you could go to Vault Dashboard and provide liquidity to Ethereum (sETH-sUSD) or Bitcoin (sBTC-sUSD) vault to earn OP rewards, also released bi-weekly.
π° Reward allocation: $3,000,000 OP
ποΈ Rewards start date: July 13, 2022
π€ Actions are rewarded: Token lock
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Decentralized liquidity marketplace Velodrome, the I wrote a tactic about it Earlier this month, is currently distributing OP rewards to users who lock their VELO tokens to veVELO.
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Over the next few months, the protocol allocates ~50,000 OPs to VELO lockers every two weeks. To enter, you would go to the Velodrome vest dashboard and adjust your locking position.
However, many OP liquidity mining programs are not yet live are just before the start.
Some to keep on your radar as they fall are the following:
Activity on optimism is burgeoning in all directions right now, and the OP token offers an easy way to get βindex-like exposure.β [this] broader optimism ecosystem,β says my colleague Ben Giove noticed recently.
If you’re interested in stacking as much OP as possible, make sure you don’t sleep during the biggest OP liquidity mining campaigns happening today!
Are you still navigating the optimism? Here are some Bankless resources to help you navigate L2 more easily:
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π₯ Check out the $OP summer programs synthesis, Spirit, Perpetual Protocol, lyreand Velodrome
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π Check out our previous ones too This is how you get liquidity for your NFTs Tactics if you missed it!
William M Peaster is a professional writer and creator of metaversalβ a new bankless newsletter focused on the emergence of NFTs in the crypto economy. He has also recently contributed content to Bankless, JPG and beyond!
Why this matters: Liquidity mining campaigns are useful for overcoming sluggishness, but it is debatable whether they will lead to sustainable growth or not. Although Optimism saw a huge increase in active users at the start of its liquidity mining campaigns, this user activity has since waned.
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No financial or tax advice. This newsletter is for educational purposes only and is not investment advice or a solicitation to buy or sell any assets or make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.
disclosure. From time to time I may include links to products I use in this newsletter. I may receive a commission if you make a purchase through one of these links. Additionally, the bankless scribes hold crypto assets. See ours Investment information here.
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