In short, A yield-sharing stablecoin funding approved grantees of the Optimism Collective.
We are live on OP mainnet:
Introduction
Optimism brought us retrospective funding, and we aim to complement it with proactive funding. Our vision is straightforward: fund builders within the Optimism Collective for the work they are doing right now and in the future. Not solely for what they have done in the past.
We aim to leverage decentralized finance (DeFi), particularly the yield-bearing stablecoin ecosystem, to create a stablecoin that serves the Optimism Collective’s largest stablecoin portfolios. By tapping into decentralized lending markets, this stablecoin will generate yield and equitably distribute it to all grantees approved by Optimism’s Grant Council. This approach bridges the funding gap, supporting grantees during their 12-month OP token vesting period while recognizing their active contributions and risks.
Why Another Stablecoin?
Stablecoins already play a crucial role as a refuge for large treasuries, and our solution preserves this utility while extending its impact within the Collective. The Optimistic Builder Dollar (obUSD) takes advantage of existing DeFi markets to proactively fund grantees of Optimism’s builder rounds. This complements the retroactive funding model set by the Optimism Collective and provides grantees with trust and financial security during the 12-month lock-up period of builder grants. View obUSD token contract
How It Works
The Optimistic Builder Dollar is built on three key components:
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Minting and Burning
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Yield Generation
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Cohort Creation
Minting and Burning
Minting obUSD begins with users depositing USDC into a yield-bearing lending protocol. We will be using Aave V3 USDC market on Optimism. In return, users receive obUSD, which maintains a value equal to 1 US dollar. Users can burn obUSD at any time to redeem their deposited USDC.
As an ERC-20 token, obUSD can be freely traded, used for payments, or utilized in various DeFi protocols built on Optimism. (Hint: We are already looking into making obUSD a superchainERC-20 for an improved user experience)
Yield Generation
Deposited stablecoins (USDC) are routed to on-chain lending markets, where they generate an annual percentage yield (APY). The yield generation process is transparent and happens in real time, making it an open and verifiable mechanism for fund generation.
Cohort Creation
What sets obUSD apart is its innovative cohort creation mechanism, starting with grantees from Optimism's Governance Season 6. This involves two key events:
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Grant Council Attestations: A project must have an attestation from the Optimism Grants Council confirming approval as a builder grant recipient.
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Community Endorsements: The project must receive endorsements from at least three Optimism Citizens (including badge holders and guest voters) via our application.
Projects meeting these criteria are automatically added to the obUSD yield-receiving cohort. Membership duration is currently set at 8 months following the attestation issuance date.
(Note: The number of required endorsements may change as the project evolves.)View obUSD Cohort selection page
Yield Distribution
Yield generated by the obUSD protocol is distributed equally among projects in the cohort every month. For example:
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If 10 projects are in the cohort and the monthly yield is 10,000 obUSD, each project receives 1,000 obUSD (~1,000 USD).
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This yield is automatically distributed to the OP rewards recipient address of each project.
Get Involved
Follow us: Share our solution with Optimism friends and treasury managers who believe in supporting the builders of the Optimism Collective. We want every approved grant recipient to receive proactive funding for their work while waiting for their retrospective reward.
Contribute: Check out our open-source GitHub repository to contribute to the development of obUSD.
Connect: Are you a grant project, Optimism Citizen, or obUSD minter? Reach out to us with your needs and ideas for important features.
We are here for you, the builders
Retrofunding grants are empowering when you already have funds. But for projects starting out, proactive funding can be the difference between success and stagnation. Together, we can make a difference for the Optimism Collective’s builders.
Let’s build a future where proactive funding meets retroactive rewards.
Socials:
Keep the funds flowing. All yield to OP builders!
Optimistic Builder dollar is a Breadchain solidarity solution.
The obUSD Team
