We support Sushi’s updated proposal as written, consistent with Committee A. It’s simple: we want easier, highly-used onramps onto Optimism, we could stand to use more Tether support, and this proposal offers some more backstopping for OP. We’re not enormous fans of straight-up liquidity support
Sushi needs little introduction. Being early and consistent in preparing for a multichain world, Sushi appears finally poised to deliver on its promise. We’re excited to see them fully participate in Optimism.
All of the OP tokens granted to Sushi will be distributed to liquidity providers who help bootstrap the initial Optimism liquidity for Trident with cross-chain swaps via SushiXSwap being the focus. SushiXSwap is a unified, multichain UI for swapping tokens across any of the major chains.The team solves the liquidity crunch by plugging into our own Sushi liquidity pools which are currently deployed on over 18 different chains. Being able to use this liquidity guarantees our users to always receive the best price for any pair across all the chains. SushiXSwap can be currently used here 1.
With cross-chain swaps in mind for the rewards, we’re proposing to incentive these 3 pairs to start:
OP rewards will be used to bootstrap the 1% fee tier for OP-ETH, and 0.05% USDT/USDC - ETH pairs. Each of the pairs will be constant product pools (50-50), and will have TWAP oracles enabled. With the OP rewards we will be targeting around 10% APR on $10m in TVL for ETH-USDC, $5m for ETH-USDT, and $3m for OP-ETH.
Sushi has plans to co-incentivize the liquidity pools as well. With targeted 10% APRs on the pairs, we believe this provides enough rewards to bootstrap the main pairs enough to get things kick started for cross-chain swaps and help increase the activity & usage on Optimism. We’ll also be looking to bootstrap other pairs with SUSHI as they work their way into the onsen program. With increased liquidity on OP, it’ll also open the opportunity for native projects to have a place for their token to become liquid for cross-chain swaps as well.
Added benefits in the form of BentoBox’s strategies will also deploy idle capital (OP, WETH, USDC, USDT) within the Optimism ecosystem, and thus will help aid in increasing usage and liquidity across OP.
With Velodrome and Uniswap as the top Dexes on Optimism, it will be beneficial to have a third Major Dex