During the next few months we will be distributing 240,000 OP, received from the Optimism Collective, to incentivize the growth of the auto-compounder, and Uniswap v3 liquidity, on Optimism.

The full reward amount will be distributed during three incentives periods, where the rewards are claimable at the end of each period via a Merkle distributor contract. We will use the value compounded by each position to determine their pro-rata portion of the rewards. To avoid gaming of liquidity incentives there will be a vesting period where the position has to be in-range to receive the full amount of rewards. Complete parameters and script will be published at the end of each incentives period, and they may change in subsequent periods. The goal here is to accelerate the growth of long term liquidity on Optimism.

The first incentives period starts on November 7th 00:00 UTC time trough November 28th 00:00 UTC time with 60,000 OP to be distributed in these three weeks. The minimum vesting time for positions during this first incentives period will be 5 days.

The growth of Optimism is incredibly exciting for us in that it brings about interesting opportunities for LPs, but more so for LPs with smaller positions. We believe there are pretty well aligned incentives between the Compoundor and Optimism. Lower gas costs means that LP positions that are too small to compound profitably given mainnet gas costs can be profitably compounded on Optimism. So migrating these smaller positions to Optimism effectively increases the addressable market for the Compoundor. More generally, low gas costs make providing liquidity in AMM pools more accessible to a larger number of users, which in turn increases demand for powerful tools to understand and optimize the performance of these positions.

To read more about the criteria for the incentives program, and step by step tutorials on how to participate and start earning OPs head over to the mini-site.