Popular decentralized finance (DeFi) protocol Curve Finance is seeking a grant of one million OP tokens from the Ethereum layer-2 network, Optimism.
Curve submitted a grant proposal on the Optimism forum on Sunday (July 24, 2022). The one million OP tokens will provide incentives to liquidity providers (LPs) who provide liquidity on Curve pools on Optimism
According to the proposal, these 1 million OP tokens will be distributed as emissions to eligible pools over 20 weeks.
There are currently three eligible Curve pools on Optimism: sUSD, sETH, and sBTC. These pools, as well as others that become eligible, will share the weekly 50,000 OP token emissions.
“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.”
The proposal stated that the grant will help to attract more liquidity to Curve pools on Optimism which can also contribute to growing the latter’s DeFi ecosystem.
Currently, Curve’s total value locked (TVL) is $5.94 billion across 10 blockchains, with TVL on Optimism at $17.47 million.
As previously reported by CryptoPotato, Optimism announced the launch of a governance system called Optimism Collective, along with a governance token OP, in April 2022.