Key Takeaways
- OP token liquidity mining is now lively on the Optimism model of Aave.
- For the reason that replace went dwell, 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 entire 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 season.” The undertaking has allotted 5 million OP tokens to DeFi lending large Aave for distribution to its customers over the following 90 days.
For the reason that replace went dwell, customers have bridged a whole lot of tens of millions of {dollars} of tokens to Optimism and deposited them into Aave to earn further OP tokens. Based on 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 slightly below $420 million value of property locked in its good contracts.
Whereas the Aave liquidity mining program is the biggest on Optimism to this point, it isn’t the primary. For the reason that Ethereum rollup launched its native OP governance token in Might, 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.
Because of its OP token incentives, Optimism has considerably elevated its person base and the entire worth of property locked in good contracts on the chain. Based on L2Beat data, the community’s whole worth locked, excluding its native OP token, has increased 63% for the reason that OP token launched on Might 31. Extra lately, the beginning of Aave liquidity mining has pushed the entire worth locked up an extra 27%. Optimism presently holds roughly $1.51 billion in whole worth locked, trailing solely Arbitrum’s $2.48 billion within the Layer 2 race.
Optimism is likely one of the main Layer 2 tasks 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 provide customers substantial gasoline financial savings in comparison with transacting on mainnet. For instance, L2 Fees data exhibits that the present value to swap tokens on Optimism prices $0.36 in comparison with $6.49 on Ethereum.
Disclosure: On the time of scripting this piece, the creator owned ETH and a number of other different cryptocurrencies.