Boosting Synth Liquidity on Optimism

September 25th, 2023

Overview

A few months ago, the MetronomeDAO applied for a grant of 149k OP tokens from the Optimism Foundation. Shortly after, the winners were announced, Metronome included. Now with the tokens in hand, we have kickstarted incentives for the new msUSD and msOP pools on Velodrome.

This means Smart Farming users will soon be able to utilize their vaUSDC and vaOP positions on the Optimism network (more to come soon), in addition to the existing ETH options. The added liquidity from the OP incentives will help support these new routes through Velodrome, enabling more diverse Smart Farming options.

The Distribution Plan

Around 80% of the grant (119,200 OP), is designated for weekly Velodrome bribes. The distribution looks like:

msETH-ETH: 2,980 OP
msUSD-USDC: 1,980 OP
msOP-OP: 1,000 OP

The remaining 20% (29,800 OP) will be strategically used for incentive matching with our partners for cooperative activities, such as partner LP pools.

Beyond the OP incentives, our commitment remains to further boost these liquidity pairs from the DAO treasury. This means incorporating the $MET token and ongoing LP incentives via our treasury token assets. Our objective is to ensure a minimum 1:1 dollar-value match of MET incentives to push alongside the OP incentives from the grant.

The 80% of incentives will be spread out over 20 weeks. The remaining 20%, used for partnership activities, is also expected to be distributed within the same timeframe.

How To Get Involved

In order to start earning these rewards, you will need to first provide liquidity to the pair/s of your choice. Follow the steps below to begin:

Head over to Velodrome and connect your wallet.
Navigate to the "Liquidity" tab at the top.

Search for "msUSD", "msOP", or "msETH", depending on which pool you would like to add liquidity to, and click the "Deposit" button (stable pools only).