Key Takeaways
- OP token liquidity mining is now energetic on the Optimism model of Aave.
- Because the replace went reside, deposits to Aave on Optimism have elevated 493%.
- The liquidity mining program has additionally helped push Optimism’s whole worth locked as much as over $1.5 billion.
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A brand new liquidity mining program on Aave has helped push the full worth locked in Optimism above $1.5 billion.
Optimism Launches Liquidity Mining on Aave
Optimism has launched one other spherical of token rewards.
The Ethereum Layer 2 community announced the beginning of its newest liquidity mining program Thursday, a part of what the chain is asking “OP Summer time.” The challenge has allotted 5 million OP tokens to DeFi lending big Aave for distribution to its customers over the subsequent 90 days.
Because the replace went reside, customers have bridged a whole lot of hundreds of thousands of {dollars} of tokens to Optimism and deposited them into Aave to earn further OP tokens. In line with data from Defi Llama, Aave deposits on the Layer 2 community have elevated 493% over the previous 24 hours. At press time, Aave V3 on Optimism has just below $420 million value of property locked in its sensible contracts.
Whereas the Aave liquidity mining program is the most important on Optimism to date, it isn’t the primary. Because the Ethereum rollup launched its native OP governance token in Could, a number of different protocols have begun distributing incentives. Amongst them are the automated market maker Velodrome, the decentralized swaps app Perpetual Protocol, and the sports activities betting app Extra time Markets.
Due to its OP token incentives, Optimism has considerably elevated its person base and the full worth of property locked in sensible contracts on the chain. In line with L2Beat data, the community’s whole worth locked, excluding its native OP token, has increased 63% because the OP token launched on Could 31. Extra not too long ago, the beginning of Aave liquidity mining has pushed the full worth locked up a further 27%. Optimism at the moment holds roughly $1.51 billion in whole worth locked, trailing solely Arbitrum’s $2.48 billion within the Layer 2 race.
Optimism is without doubt one of the main Layer 2 initiatives working to scale Ethereum. It makes use of Optimistic Rollups to bundle transactions collectively and ship them again to Ethereum mainnet for affirmation. Rollups like Optimism supply customers substantial gasoline financial savings in comparison with transacting on mainnet. For instance, L2 Fees data reveals that the present value to swap tokens on Optimism prices $0.36 in comparison with $6.49 on Ethereum.
Disclosure: On the time of penning this piece, the creator owned ETH and a number of other different cryptocurrencies.