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Well-known Decentralized Finance (DeFi) protocol Curve Finance has recently expressed its wish for a grant from the Ethereum layer-2 network Optimism of one million OP tokens.
On July 24, Curve Finance submitted a grant proposal on the Optimism forum. Liquidity providers (LPs) who provide liquidity on Curve pools on Optimism will receive incentives if the proposal to grant one million OP tokens passes.
The plan states that over the course of 20 weeks, these 1 million OP tokens will be allocated as emissions to qualified pools. Curve Finance stated that “100% of OP will be distributed to LPs that provide liquidity on Curve.”
The three qualifying Curve pools on Optimism at the moment are sUSD, sETH, and sBTC. These pools will split the weekly 50,000 OP token emissions with any additional eligible pools. The proposal states:
“We plan to distribute a fixed quantity of OP per week, to the amount of 50,000 OP/week. By calculating the weekly gauge weight allocated to Optimism pools, we can determine the proportional OP allotment toward each pool.”
In April this year, Optimism announced the launch of a governance token OP and a governance system called Optimism Collective. Just before the launch, the rumors of the OP token airdrops by Optimism led to its projects spiking, as TheCoinRise reported. In March, Optimism raised $150 million from investors co-led by Paradigm Capital and Andreessen Horowitz (a16z).
Curve Finance hopes for massive growth
Notably, Curve Finance is currently incentivizing liquidity on Optimism in the form of CRV emissions which are controlled by veCRV voters.
Therefore, according to the company, “it is impossible to predict exactly how much weighting they will give to Optimism pools going forward.” However, it expects that the influx of LPs to Optimism will help Curve pools on Optimism in attracting more liquidity. This, according to the company, will contribute to the growth of the Optimism ecosystem.
Curve, with a total value locked (TVL) of $5.94 billion across ten blockchains, has TVL at $17.47 million on Optimism.
The post Curve Finance seeks a grant for one million OP tokens from Optimism appeared first on Blockchain, Crypto and Stock News.
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