Several month’s ago Optimism did their initial airdrop where nearly 250k ETH addresses were able to receive the $OP tokens.
Optimism announced their airdrop and also explained criteria how users were eligible to receive the airdrop on April 2022.
19% of the total token supply is allocated to the $OP token airdrops and only 5% of the token supply were distributed to the Phase #1 eligible addresses. You can read more about the distribution here.
In addition to that, Optimism also figured out a very unique way of incentivizing both builders and users. They’ve broken down the allocation on different types of categories.
You will be able to read more about the distribution here.
So looking carefully at the token allocation chart above, only 5% of the total supply have been airdropped to the users and there are 14% more remaining.
In this post, I will be sharing my strategy on how I may be eligible to receive $OP tokens in the Phase #2 airdrop.
We’ll be using the following dApps:
- Aave
- Orbiter Finance or Hop Protocol (if you’re funds are in a different chain like Arbitrum/Polygon. You can also use Optimism’s native bridge to get your funds to the Optimism Network.)
Below is a screenshot of my dashboard in Aave.
Supplying $ETH in Aave pays you $ETH with 0.67% APY, moreover, aside from the $ETH you’re getting for supplying to Aave you’ll get additional 2.16% APR on $OP tokens from their rewards program that they’ve recently announced.
What I did to maximize my $OP token farming, I’ve borrowed $USDT which has a 3.63% APY for borrowing, however, you’ll get bonus 1.11% APR on $OP tokens just for borrowing funds.
Please be aware of the associated risks on supplying/borrowing funds in Aave.
It will be completely up to you on how you’d like to play the risks associated with the health factor/LTV when borrowing funds. But here’s what I did, I’ve supplied 2.7 ETH in Aave and then borrowed 1,100 $USDT giving me a 21.34% LTV which is way far from being liquidated (82.50% LTV is the liquidation %).
Furthermore, to maximize my farming I have supplied the 1,100 $USDT to Aave, which will give me 2.62% yields on my $USDT and on top of that I earn additional 2.09% on $OP tokens.
So if we’re going to the math I get:
supplying $ETH = 0.67% yields earned in $ETH + 2.16% yields paid in $OP
borrowing $USDT = I will be paying 3.63% APY on the loan amount for borrowing. However, I earn additional 1.11% yields paid in $OP.
supplying $USDT = pays me 2.62% APY earned on $USDT + 2.0% in $OP
In total, I get a total of 5.27% APY in just $OP token farming aside from the $ETH and $USDT yields that I’m getting. In addition to that, I may also qualify for the Phase #2 of the $OP token airdrop as I’ve used Optimism regularly and have participated on their Ecosystem Fund Program.
There are many other ways on how you may qualify for the upcoming $OP token airdrop. It could be just by simply using the native bridge or any other bridge by sending your main net ETH to Optimism or by simply using other dApps in the Optimism ecosystem.
Here are the list of dApps in the Optimism ecosystem: https://www.optimism.io/apps/all
Here are the other dApps who qualified for Optimism's Governance Fund distribution: https://docs.google.com/spreadsheets/d/1kiMnAKXTxrmoL7duvLrDlhMfa35HGE55QgUK0Rq2Sso/edit#gid=1014306106
Better to prepare now than to be sorry later on. Stay Optimistic.
Please note that this is not a financial advice and all of these are based on my belief and my speculation for the upcoming Phase #2 airdrop.