Project Name: Tarot
Author Name: @TigrisOfGaul
Number of OP tokens requested: 600 , 000
L 2 Recipient Address: 0 x 63 D 5554 b 748598 C 191 aB 0 cBd 0 E 0 e 1 C 638 FFEBEe 6
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes
Relevant Usage Metrics:
Currently on Optimism: ~$ 3 M TVL, achieved with no token incentives
Total TVL on all chains: ~$ 20 M TVL with ~$ 7 . 5 M in borrowing activity
Transactions on Optimism: 28 , 700 + account transactions (e.g. borrow, repay, leverage, deleverage, etc.) via router contracts since launch, as well as ~ 7 , 200 vault transactions per week.
Grant Category: Phase 1 (Governance Fund)
Is this proposal applicable to a specific committee?:
This proposal may fall under the remit of various DeFi committees.
Optimism alignment and ecosystem value proposition:
Tarot is a decentralized lending protocol where users can participate as lenders or borrowers in isolated lending pools. Lenders can supply tokens to earn single-sided passive yield without impermanent loss, while borrowers can leverage their LP tokens as collateral to borrow tokens supplied by lenders.
Since launching in May 2022 , Tarot has become one of the top protocols to single stake OP and earn yield on Optimism. Tarot has several OP-based lending pools, with Supply APRs of up to ~ 34 % for single-sided OP lending with no impermanent loss, and leveraged LP APRs ( 5 x) for OP-based pairs exceeding 200 - 250 %. These pools offer long-term OP holders a source of sustainable yields without selling, ultimately driven by the trading fees and DEX rewards earned by LPs. Supply APRs for ETH and stablecoin lending on Tarot regularly exceed 5 - 10 %.
Tarot is proud to be part of the OP ecosystem. Beyond the many technical merits of the OP ecosystem for an advanced DeFi protocol like Tarot, we believe the core tenets of Tarot DAO are fully aligned with the Optimistic Vision.
Open sourced?:
Yes, Tarot is open sourced.
Optimism native?:
No. Tarot launched on Fantom in June 2021 and on Optimism in May 2022 .
Date of deployment on Optimism:
Tarot has been live on Optimism since May 6 , 2022 .
Has your project previously applied for an OP grant?:
No. Tarot has not previously applied for any OP grants.
Did the project apply for or receive OP tokens through the Foundation Partner Fund?:
No.
How much will your project match in co-incentives?:
3 , 000 , 000 TAROT has been allocated over a 12 -month period towards matching co-incentives, following the adoption of TIP- 018 : Tarot Co-Incentivization on Optimism. This allocation is flexible, and can be used to incentivize any pair, not just those that are TAROT-based. Furthermore, this allocation is broad in scope, and is not limited to DEX liquidity incentives. One such use of this allocation is via Tarot’s own single-token TAROT farming rewards mechanism, which tracks and rewards borrowing activity in the protocol.
OP token incentives for liquidity bribes and other liquidity incentivization mechanisms will be matched with TAROT and/or other token incentives. Additionally, the TAROT-based pools may be co-incentivized by Velodrome and Beethoven X.
Proposal for token distribution:
OP token incentives will primarily be used to drive liquidity to TAROT-based pairs on Optimism.
This includes, for example, the USDC/TAROT pool on Velodrome (co-incentivized by Velodrome) and a TAROT/ETH pool on Beethoven X (currently in discussion to co-incentivize with Beethoven X).
How will the OP tokens be distributed?
Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and incentivization mechanisms on Velodrome, Beethoven X, and/or other major DEXs on Optimism to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT).
Core team + initial OP-TAROT liquidity ( 10 %): 60 , 000 OP is allocated to the Tarot core team in support of Tarot’s growth and operations on Optimism. The OP will be paired with team-held TAROT and provided as initial liquidity on Optimism for a period of at least 12 months.
Over what period of time will the tokens be distributed for each initiative?:
This is flexible, but OP token incentives for liquidity providers are expected to be distributed over 12 - 16 months. Initial OP-TAROT liquidity will be held for a period of at least 12 months.
Please list the milestones/KPIs you expect to achieve for each initiative, considering how each relates to incentivizing sustainable usage and liquidity on Optimism. Please keep in mind that progress towards these milestones/KPIs should be trackable.
Our early liquidity incentivization program with Velodrome has already yielded strong results with unprecedented capital efficiency. Since launching incentives in August, over 7 , 000 , 000 TAROT has been bridged to Optimism and over $ 560 , 000 in TAROT-USDC liquidity has been provided on Velodrome. This includes a significant amount of protocol-owned liquidity (POL) bridged over to Optimism following the adoption of TIP- 019 : Velodrome Liquidity.
Milestones will be structured around sustainable liquidity for TAROT-based pairs, including OP-TAROT liquidity, as well as increased borrowing activity in Tarot’s lending pools:
If we assume $ 15 , 000 in cumulative weekly incentives across all incentivized pools (which includes OP incentives, plus matching co-incentives in the form of TAROT, USDC, and/or other tokens), over a 12 -month period, this yields ~$ 780 , 000 in total rewards. If we propose a long-term target of 20 % to 40 % APR for volatile pairs, we would expect ~$ 2 M to ~$ 3 . 9 M of liquidity depth.
Liquidity for all TAROT-based pairs is eminently trackable, and all lending and borrowing activity in Tarot can be tracked and monitored (e.g., via DeFi Llama, Dune Analytics, and within the Tarot UI).
How will this distribution incentivize usage and liquidity on Optimism?:
By significantly increasing the available liquidity for TAROT on Optimism, Tarot will have the flexibility to offer a number of direct or targeted incentivization models on Optimism for lending pools. In practice, the increase of borrowing activity in Tarot’s lending pools creates a flywheel effect and, in response to higher pool APRs, lenders are incentivized to supply additional tokens, thus increasing TVL and liquidity across the ecosystem.
Liquidity incentivization for the TAROT-based pairs will encourage Tarot stakeholders to provide deep liquidity in the OP ecosystem. This distribution helps Tarot to continue to offer competitive yields, generated by supply and demand for loans in isolated lending pools, to users on Optimism, and will facilitate the creation and expansion of additional lending pools (e.g. USDC/TAROT) with attractive leveraged APRs.
Why will the incentivized users and liquidity remain after incentives dry up?
On Fantom, Tarot lending pools have continued to see strong demand and competitive yields, in the form of single-sided lending, auto-compounding LP, and borrowing and leveraged yield farming, even following the sunsetting of the Tarot Farming Rewards program. Tarot will continue to attract users and liquidity to the OP ecosystem from other chains, and further development of future products and yield opportunities on Optimism will continue, even after the conclusion of OP token incentives.
Project Links:
Website: tarot.to
Twitter: @TarotFinance
Discord: Tarot
The post outlines a grant proposal for the Tarot project on Optimism. The project aims to drive liquidity to TAROT-based pairs on Optimism using OP token incentives, co-incentives, and milestones related to increasing borrowing activity. The strategy focuses on sustaining liquidity, incentivizing users beyond incentive periods, and aligning with the OP ecosystem's core tenets.
OPUser: Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ?
TigrisOfGaul:
Liquidity providers (90%): 540,000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
OPUser: Let me take one step back.
Here 90% of incentives will go toward bribe as you mentioned on those two platform, right? And only towards TAROT based liquidity.
TigrisOfGaul:
Liquidity providers (90%): 540,000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
and this is fine too
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers).
But you can also achieve this by including a OP/TAROT pair and give incentives to it too. I am not suggesting non-TAROT pair, I just want to understand how TAROT/USDC will help with liquidity and OP/TAROT will not
Project Name: Tarot Author Name: @TigrisOfGaul Number of OP tokens requested: 600 , 000 L 2 Reci…
Project Name: Tarot Author Name: @TigrisOfGaul Number of OP tokens requested: 600 , 000 L 2 Recipient Address: 0 x 63 D 5554 b 748598 C 191 aB 0 cBd 0 E 0 e 1 C 638 FFEBEe 6 I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes Relevant Usage Metrics: Currently on Optimism: ~$ 3 M TVL, achieved with no token incentives Total TVL on all chains: ~$ 20 M TVL with ~$ 7 . 5 M in borrowing activity Transactions on Optimism: 28 , 700 + account transactions (e.g. borrow, repay, leverage, deleverage, etc.) via router contracts since launch, as well as ~ 7 , 200 vault transactions per week. Grant Category: Phase 1 (Governance Fund) Is this proposal applicable to a specific committee?: This proposal may fall under the remit of various DeFi committees. Optimism alignment and ecosystem value proposition: Tarot is a decentralized lending protocol where users can participate as lenders or borrowers in isolated lending pools. Lenders can supply tokens to earn single-sided passive yield without impermanent loss, while borrowers can leverage their LP tokens as collateral to borrow tokens supplied by lenders. Since launching in May 2022 , Tarot has become one of the top protocols to single stake OP and earn yield on Optimism. Tarot has several OP-based lending pools, with Supply APRs of up to ~ 34 % for single-sided OP lending with no impermanent loss, and leveraged LP APRs ( 5 x) for OP-based pairs exceeding 200 - 250 %. These pools offer long-term OP holders a source of sustainable yields without selling, ultimately driven by the trading fees and DEX rewards earned by LPs. Supply APRs for ETH and stablecoin lending on Tarot regularly exceed 5 - 10 %. Tarot is proud to be part of the OP ecosystem. Beyond the many technical merits of the OP ecosystem for an advanced DeFi protocol like Tarot, we believe the core tenets of Tarot DAO are fully aligned with the Optimistic Vision. Open sourced?: Yes, Tarot is open sourced. Optimism native?: No. Tarot launched on Fantom in June 2021 and on Optimism in May 2022 . Date of deployment on Optimism: Tarot has been live on Optimism since May 6 , 2022 . Has your project previously applied for an OP grant?: No. Tarot has not previously applied for any OP grants. Did the project apply for or receive OP tokens through the Foundation Partner Fund?: No. How much will your project match in co-incentives?: 3 , 000 , 000 TAROT has been allocated over a 12 -month period towards matching co-incentives, following the adoption of TIP- 018 : Tarot Co-Incentivization on Optimism. This allocation is flexible, and can be used to incentivize any pair, not just those that are TAROT-based. Furthermore, this allocation is broad in scope, and is not limited to DEX liquidity incentives. One such use of this allocation is via Tarot’s own single-token TAROT farming rewards mechanism, which tracks and rewards borrowing activity in the protocol. OP token incentives for liquidity bribes and other liquidity incentivization mechanisms will be matched with TAROT and/or other token incentives. Additionally, the TAROT-based pools may be co-incentivized by Velodrome and Beethoven X. Proposal for token distribution: OP token incentives will primarily be used to drive liquidity to TAROT-based pairs on Optimism. This includes, for example, the USDC/TAROT pool on Velodrome (co-incentivized by Velodrome) and a TAROT/ETH pool on Beethoven X (currently in discussion to co-incentivize with Beethoven X). How will the OP tokens be distributed? Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and incentivization mechanisms on Velodrome, Beethoven X, and/or other major DEXs on Optimism to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT). Core team + initial OP-TAROT liquidity ( 10 %): 60 , 000 OP is allocated to the Tarot core team in support of Tarot’s growth and operations on Optimism. The OP will be paired with team-held TAROT and provided as initial liquidity on Optimism for a period of at least 12 months. Over what period of time will the tokens be distributed for each initiative?: This is flexible, but OP token incentives for liquidity providers are expected to be distributed over 12 - 16 months. Initial OP-TAROT liquidity will be held for a period of at least 12 months. Please list the milestones/KPIs you expect to achieve for each initiative, considering how each relates to incentivizing sustainable usage and liquidity on Optimism. Please keep in mind that progress towards these milestones/KPIs should be trackable. Our early liquidity incentivization program with Velodrome has already yielded strong results with unprecedented capital efficiency. Since launching incentives in August, over 7 , 000 , 000 TAROT has been bridged to Optimism and over $ 560 , 000 in TAROT-USDC liquidity has been provided on Velodrome. This includes a significant amount of protocol-owned liquidity (POL) bridged over to Optimism following the adoption of TIP- 019 : Velodrome Liquidity. Milestones will be structured around sustainable liquidity for TAROT-based pairs, including OP-TAROT liquidity, as well as increased borrowing activity in Tarot’s lending pools: If we assume $ 15 , 000 in cumulative weekly incentives across all incentivized pools (which includes OP incentives, plus matching co-incentives in the form of TAROT, USDC, and/or other tokens), over a 12 -month period, this yields ~$ 780 , 000 in total rewards. If we propose a long-term target of 20 % to 40 % APR for volatile pairs, we would expect ~$ 2 M to ~$ 3 . 9 M of liquidity depth. Liquidity for all TAROT-based pairs is eminently trackable, and all lending and borrowing activity in Tarot can be tracked and monitored (e.g., via DeFi Llama, Dune Analytics, and within the Tarot UI). How will this distribution incentivize usage and liquidity on Optimism?: By significantly increasing the available liquidity for TAROT on Optimism, Tarot will have the flexibility to offer a number of direct or targeted incentivization models on Optimism for lending pools. In practice, the increase of borrowing activity in Tarot’s lending pools creates a flywheel effect and, in response to higher pool APRs, lenders are incentivized to supply additional tokens, thus increasing TVL and liquidity across the ecosystem. Liquidity incentivization for the TAROT-based pairs will encourage Tarot stakeholders to provide deep liquidity in the OP ecosystem. This distribution helps Tarot to continue to offer competitive yields, generated by supply and demand for loans in isolated lending pools, to users on Optimism, and will facilitate the creation and expansion of additional lending pools (e.g. USDC/TAROT) with attractive leveraged APRs. Why will the incentivized users and liquidity remain after incentives dry up? On Fantom, Tarot lending pools have continued to see strong demand and competitive yields, in the form of single-sided lending, auto-compounding LP, and borrowing and leveraged yield farming, even following the sunsetting of the Tarot Farming Rewards program. Tarot will continue to attract users and liquidity to the OP ecosystem from other chains, and further development of future products and yield opportunities on Optimism will continue, even after the conclusion of OP token incentives. Project Links: Website: tarot.to 12 Twitter: @TarotFinance 2 Discord: Tarot
OPUser: Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ?
TigrisOfGaul:
Liquidity providers (90%): 540,000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
OPUser: Let me take one step back.
Here 90% of incentives will go toward bribe as you mentioned on those two platform, right? And only towards TAROT based liquidity.
TigrisOfGaul:
Liquidity providers (90%): 540,000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
and this is fine too
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers).
But you can also achieve this by including a OP/TAROT pair and give incentives to it too. I am not suggesting non-TAROT pair, I just want to understand how TAROT/USDC will help with liquidity and OP/TAROT will not
Regarding relevant usage metrics, Tarot’s TVL on Optimism has increased to ~$ 4 . 2 M since the ori…
Regarding relevant usage metrics, Tarot’s TVL on Optimism has increased to ~$ 4 . 2 M since the original submission of the draft proposal.
Nice to see TVL grow on OP chain.
Few input from my side.
Token duration has big room for adjustm…
Nice to see TVL grow on OP chain.
Few input from my side.
Token duration has big room for adjustment. With 540 K just for LP reward in 6 - 12 months, you might be burning too fast, I would recommend you to reconsider this and adjust accordingly.
As this proposal is mostly focused towards LP, clear co-incentives would add value to your proposal.
TigrisOfGaul: Thanks for the feedback.
Flexibility is needed for long-term liquidity planning, but the expectation is distribution over the longer end of the range (12 months), which I think makes sense considering incentivization is targeting multiple pairs on multiple platforms.
A Tarot DAO governance proposal will be put forward soon (prior to this GF proposal being updated to a READY state), which will solidify matched co-incentivization with TAROT.
What plan of action would be taken if the DAO decides against providing symbiotic rewards?
What plan of action would be taken if the DAO decides against providing symbiotic rewards?
TigrisOfGaul: As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidify TAROT co-incentivization. This GF draft proposal will be updated following its conclusion.
Thanks for the feedback.
Flexibility is needed for long-term liquidity planning, but the expectatio…
Thanks for the feedback.
Flexibility is needed for long-term liquidity planning, but the expectation is distribution over the longer end of the range ( 12 months), which I think makes sense considering incentivization is targeting multiple pairs on multiple platforms.
A Tarot DAO governance proposal will be put forward soon (prior to this GF proposal being updated to a READY state), which will solidify matched co-incentivization with TAROT.
As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidif…
As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidify TAROT co-incentivization. This GF draft proposal will be updated following its conclusion.
Regarding relevant usage metrics, Tarot’s TVL on Optimism has increased to ~$ 4 . 2 M since the ori…
Regarding relevant usage metrics, Tarot’s TVL on Optimism has increased to ~$ 4 . 2 M since the original submission of the draft proposal.
Nice to see TVL grow on OP chain. Few input from my side. Token duration has big room for adjustm…
Nice to see TVL grow on OP chain. Few input from my side. Token duration has big room for adjustment. With 540 K just for LP reward in 6 - 12 months, you might be burning too fast, I would recommend you to reconsider this and adjust accordingly. As this proposal is mostly focused towards LP, clear co-incentives would add value to your proposal.
TigrisOfGaul: Thanks for the feedback.
Flexibility is needed for long-term liquidity planning, but the expectation is distribution over the longer end of the range (12 months), which I think makes sense considering incentivization is targeting multiple pairs on multiple platforms.
A Tarot DAO governance proposal will be put forward soon (prior to this GF proposal being updated to a READY state), which will solidify matched co-incentivization with TAROT.
Tarot is a protocol that genuinely innovates.
Seeing it do as well on Optimism as it does on Fantom…
Tarot is a protocol that genuinely innovates.
Seeing it do as well on Optimism as it does on Fantom would be a big boost for the Optimism ecosystem.
With the right risk-reward, it might convince me to give Optimism a try.
What plan of action would be taken if the DAO decides against providing symbiotic rewards?
What plan of action would be taken if the DAO decides against providing symbiotic rewards?
TigrisOfGaul: As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidify TAROT co-incentivization. This GF draft proposal will be updated following its conclusion.
Thanks for the feedback. Flexibility is needed for long-term liquidity planning, but the expectatio…
Thanks for the feedback. Flexibility is needed for long-term liquidity planning, but the expectation is distribution over the longer end of the range ( 12 months), which I think makes sense considering incentivization is targeting multiple pairs on multiple platforms. A Tarot DAO governance proposal will be put forward soon (prior to this GF proposal being updated to a READY state), which will solidify matched co-incentivization with TAROT.
As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidif…
As mentioned in the post above, a Tarot DAO governance proposal will be put forward soon to solidify TAROT co-incentivization. This GF draft proposal will be updated following its conclusion.
A Tarot DAO governance proposal has been introduced regarding co-incentivization on Optimism:
TIP- …
A Tarot DAO governance proposal has been introduced regarding co-incentivization on Optimism:
TIP- 018 : Tarot Co-Incentivization on Optimism
Tarot is a protocol that genuinely innovates. Seeing it do as well on Optimism as it does on Fantom…
Tarot is a protocol that genuinely innovates. Seeing it do as well on Optimism as it does on Fantom would be a big boost for the Optimism ecosystem. With the right risk-reward, it might convince me to give Optimism a try.
A Tarot DAO governance proposal has been introduced regarding co-incentivization on Optimism: TIP- …
A Tarot DAO governance proposal has been introduced regarding co-incentivization on Optimism: TIP- 018 : Tarot Co-Incentivization on Optimism 17
Wow, great to see Tarot building on Optimism. I’m a big Tarot fan, definitely support this proposal…
Wow, great to see Tarot building on Optimism. I’m a big Tarot fan, definitely support this proposal and the Tarot team!
Wow, great to see Tarot building on Optimism. I’m a big Tarot fan, definitely support this proposal…
Wow, great to see Tarot building on Optimism. I’m a big Tarot fan, definitely support this proposal and the Tarot team!
I’ve worked with the Tarot team for almost a year now and they constantly impress me. I’m pretty su…
I’ve worked with the Tarot team for almost a year now and they constantly impress me. I’m pretty sure they boast the most advanced leveraged yield farming platform in the industry (correct me if I’m wrong). We at Reaper rely on their single-asset pools to generate yield in our multi-strategies and they drive a lot of liquidity to exchanges, so I think their success would have a big effect on the greater Optimism ecosystem.
I’ve worked with the Tarot team for almost a year now and they constantly impress me. I’m pretty su…
I’ve worked with the Tarot team for almost a year now and they constantly impress me. I’m pretty sure they boast the most advanced leveraged yield farming platform in the industry (correct me if I’m wrong). We at Reaper rely on their single-asset pools to generate yield in our multi-strategies and they drive a lot of liquidity to exchanges, so I think their success would have a big effect on the greater Optimism ecosystem.
Excited to see Tarot and its team expand to Optimism!
Definitely one of the most interesting and tr…
Excited to see Tarot and its team expand to Optimism!
Definitely one of the most interesting and trustworthy protocols on Fantom
Excited to see Tarot and its team expand to Optimism! Definitely one of the most interesting and tr…
Excited to see Tarot and its team expand to Optimism! Definitely one of the most interesting and trustworthy protocols on Fantom
Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ?
…
Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ?
TigrisOfGaul:
Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
jackanorak: I think if you’re going to ask that protocols start pairing their token with OP it should be part of a deliberate, thought-out strategy to facilitate the best routing and liquidity systemwide
TigrisOfGaul: As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy for liquidity management. USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume.
That being said, OP paired with TAROT is certainly under consideration, particularly as part of a multiple-token, weighted pool on Beethoven X.
I think if you’re going to ask that protocols start pairing their token with OP it should be part o…
I think if you’re going to ask that protocols start pairing their token with OP it should be part of a deliberate, thought-out strategy to facilitate the best routing and liquidity systemwide
Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ? …
Hey @TigrisOfGaul one quick question, would you consider adding a TAROT/OP pair to this list ? TigrisOfGaul: Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
jackanorak: I think if you’re going to ask that protocols start pairing their token with OP it should be part of a deliberate, thought-out strategy to facilitate the best routing and liquidity systemwide
TigrisOfGaul: As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy for liquidity management. USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume.
That being said, OP paired with TAROT is certainly under consideration, particularly as part of a multiple-token, weighted pool on Beethoven X.
I think if you’re going to ask that protocols start pairing their token with OP it should be part o…
I think if you’re going to ask that protocols start pairing their token with OP it should be part of a deliberate, thought-out strategy to facilitate the best routing and liquidity systemwide
As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy f…
As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy for liquidity management. USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume.
That being said, OP paired with TAROT is certainly under consideration, particularly as part of a multiple-token, weighted pool on Beethoven X.
Thank you matching the incentives. 600 K OP($ 400 K) with 3 M Tarot($ 200 K).
USDC and ETH are c…
Thank you matching the incentives. 600 K OP($ 400 K) with 3 M Tarot($ 200 K).
USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume
I agree with this but let me put this in different way, why not give incentives to different stable and ETH pair then such as USDC/ETH, alUSD/sUSD, sETH/sUSD and so on…why do you need to reward only your native token pair?
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentiviza…
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers).
This proposal doesn’t preclude TAROT incentives for lending/borrowing activity in Tarot’s various pools (e.g. USDC-ETH).
Although incentivizing other non-TAROT pairs on 3 rd party DEXs could benefit Tarot as protocol via more attractive yields in lending pools, it would not have the same impact as direct, targeted incentives for Tarot users.
Let me take one step back.
Here 90 % of incentives will go toward bribe as you mentioned on those …
Let me take one step back.
Here 90 % of incentives will go toward bribe as you mentioned on those two platform, right? And only towards TAROT based liquidity.
TigrisOfGaul:
Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH).
and this is fine too
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers).
But you can also achieve this by including a OP/TAROT pair and give incentives to it too. I am not suggesting non-TAROT pair, I just want to understand how TAROT/USDC will help with liquidity and OP/TAROT will not
jackanorak: @OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity and centrality are WETH and USDC. We would need a broad rethinking about how to organize and incentivize a reshaping of systemic routing before meaningfully changing this state.
TigrisOfGaul: On Velodrome, protocol emissions are aligned with fees generated, not simply liquidity, and USDC-TAROT would collect more fees through trading volume than OP-TAROT. This is reflected in the fact that USDC-based pairs are much more popular than OP-based pairs in terms of total votes by veVELO holders.
Due to the nature of vAMMs, it makes sense to minimize price impact by having more liquidity concentrated in a single pair like USDC-TAROT, rather than splitting liquidity across multiple pairs.
Finally, as many tokens are already paired with USDC, multi-hop trades would route TAROT->USDC->XYZ, rather than TAROT->OP->USDC->XYZ, resulting in a more efficient route with less hops for most trades.
@OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity…
@OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity and centrality are WETH and USDC. We would need a broad rethinking about how to organize and incentivize a reshaping of systemic routing before meaningfully changing this state.
OPUser: thank you for your input @jackanorak , quick question
this is on OP chain ? or on any specific platform ?
most liquidity and centrality are WETH and USDC
and who is “we”
As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy f…
As @jackanorak mentions, our long-term liquidity considerations are part of a deliberate strategy for liquidity management. USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume. That being said, OP paired with TAROT is certainly under consideration, particularly as part of a multiple-token, weighted pool on Beethoven X.
Thank you matching the incentives. 600 K OP($ 400 K) with 3 M Tarot($ 200 K). USDC and ETH are c…
Thank you matching the incentives. 600 K OP($ 400 K) with 3 M Tarot($ 200 K). USDC and ETH are commonly chosen for token pairs in order to facilitate the best routing and trading volume I agree with this but let me put this in different way, why not give incentives to different stable and ETH pair then such as USDC/ETH, alUSD/sUSD, sETH/sUSD and so on…why do you need to reward only your native token pair?
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentiviza…
Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers). This proposal doesn’t preclude TAROT incentives for lending/borrowing activity in Tarot’s various pools (e.g. USDC-ETH). Although incentivizing other non-TAROT pairs on 3 rd party DEXs could benefit Tarot as protocol via more attractive yields in lending pools, it would not have the same impact as direct, targeted incentives for Tarot users.
Let me take one step back. Here 90 % of incentives will go toward bribe as you mentioned on those …
Let me take one step back. Here 90 % of incentives will go toward bribe as you mentioned on those two platform, right? And only towards TAROT based liquidity. TigrisOfGaul: Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH). and this is fine too Driving liquidity for TAROT on Optimism will give Tarot the flexibility to offer direct incentivization in Tarot’s lending pools (for lenders/borrowers). But you can also achieve this by including a OP/TAROT pair and give incentives to it too. I am not suggesting non-TAROT pair, I just want to understand how TAROT/USDC will help with liquidity and OP/TAROT will not
jackanorak: @OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity and centrality are WETH and USDC. We would need a broad rethinking about how to organize and incentivize a reshaping of systemic routing before meaningfully changing this state.
TigrisOfGaul: On Velodrome, protocol emissions are aligned with fees generated, not simply liquidity, and USDC-TAROT would collect more fees through trading volume than OP-TAROT. This is reflected in the fact that USDC-based pairs are much more popular than OP-based pairs in terms of total votes by veVELO holders.
Due to the nature of vAMMs, it makes sense to minimize price impact by having more liquidity concentrated in a single pair like USDC-TAROT, rather than splitting liquidity across multiple pairs.
Finally, as many tokens are already paired with USDC, multi-hop trades would route TAROT->USDC->XYZ, rather than TAROT->OP->USDC->XYZ, resulting in a more efficient route with less hops for most trades.
@OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity…
@OPUser He’s saying that it helps with routing, as currently the two tokens with the most liquidity and centrality are WETH and USDC. We would need a broad rethinking about how to organize and incentivize a reshaping of systemic routing before meaningfully changing this state.
OPUser: thank you for your input @jackanorak , quick question
this is on OP chain ? or on any specific platform ?
most liquidity and centrality are WETH and USDC
and who is “we”
thank you for your input @jackanorak , quick question this is on OP chain ? or on any specific pla…
thank you for your input @jackanorak , quick question this is on OP chain ? or on any specific platform ? most liquidity and centrality are WETH and USDC and who is “we”
‘We’ is Optimism unless I am specifically referring to Velodrome. I speak here in my capacity as an…
‘We’ is Optimism unless I am specifically referring to Velodrome. I speak here in my capacity as an engaged community member. We, Optimism, need an actual plan to ensure OP’s routing and LPing centrality and not piecemeal requests if we desire this. If we look at Uniswap’s TVL’s (here filtered for deep pools), I’d say it’s USDC and ETH and it’s not close. I can’t show a popup in a screenshot so you just have to go off the list here. Give me a few minutes for a more comprehensive display so we can be more certain. image 1867 × 441 44 . 5 KB dune.com Dune 2 Blockchain ecosystem analytics by and for the community. Explore and share data from Ethereum, xDai, Polygon, Optimism, BSC and Solana for free.
Thanks, that make sense. But again, like you said, this needs to be discussed with project team and…
Thanks, that make sense. But again, like you said, this needs to be discussed with project team and OP team. From the gov side, I am willing to wait it out and I hope this get resolved soon.
On Velodrome, protocol emissions are aligned with fees generated, not simply liquidity, and USDC-TA…
On Velodrome, protocol emissions are aligned with fees generated, not simply liquidity, and USDC-TAROT would collect more fees through trading volume than OP-TAROT. This is reflected in the fact that USDC-based pairs are much more popular than OP-based pairs in terms of total votes by veVELO holders. Due to the nature of vAMMs, it makes sense to minimize price impact by having more liquidity concentrated in a single pair like USDC-TAROT, rather than splitting liquidity across multiple pairs. Finally, as many tokens are already paired with USDC, multi-hop trades would route TAROT->USDC->XYZ, rather than TAROT->OP->USDC->XYZ, resulting in a more efficient route with less hops for most trades.
OPUser: TigrisOfGaul:
This is reflected in the fact that USDC-based pairs are much more popular than OP-based pairs in terms of total votes by veVELO holders.
Okey, this I agree USDC-based pairs are more popular but we also need to start somewhere with OP pair too, right ? You can also write it like “we will allocate 10% for TAROT/OP pair for first 6 months, if not used, we will move this reward to TAROT/USDC or other pair”
Apologies, this is above my knowledge and understanding but will wait for someone who has to comment on this.
multi-hop trades would route TAROT->USDC->XYZ, rather than TAROT->OP->USDC->XYZ, resulting in a more efficient route with less hops for most trades.
Sorry, I want to be clear on what you mean by this needing to be discussed with the project team an…
Sorry, I want to be clear on what you mean by this needing to be discussed with the project team and OP team.
OPUser: We, Optimism, need an actual plan to ensure OP’s routing and LPing centrality and not piecemeal requests if we desire this.
This “we”, if a plan is needed and for that involvement from OP Team is required then project submitting the proposal should bring this to OP Team so that they can work on this. One of the goal here is to bring liquidity and if you think creating a plan and working on it collaboratively will help us, I will join you in echoing your voice.
That’s what I mean by project team and OP team.
TigrisOfGaul: This is reflected in the fact that USDC-based pairs are much more popular than O…
TigrisOfGaul: This is reflected in the fact that USDC-based pairs are much more popular than OP-based pairs in terms of total votes by veVELO holders. Okey, this I agree USDC-based pairs are more popular but we also need to start somewhere with OP pair too, right ? You can also write it like “we will allocate 10 % for TAROT/OP pair for first 6 months, if not used, we will move this reward to TAROT/USDC or other pair” Apologies, this is above my knowledge and understanding but will wait for someone who has to comment on this. multi-hop trades would route TAROT->USDC->XYZ, rather than TAROT->OP->USDC->XYZ, resulting in a more efficient route with less hops for most trades.
TigrisOfGaul: The proposal has been updated to clarify that the 10% portion of OP will be paired with team-held TAROT and provided as initial OP-TAROT liquidity for a period of at least 12 months.
We, Optimism, need an actual plan to ensure OP’s routing and LPing centrality and not piecemeal re…
We, Optimism, need an actual plan to ensure OP’s routing and LPing centrality and not piecemeal requests if we desire this. This “we”, if a plan is needed and for that involvement from OP Team is required then project submitting the proposal should bring this to OP Team so that they can work on this. One of the goal here is to bring liquidity and if you think creating a plan and working on it collaboratively will help us, I will join you in echoing your voice. That’s what I mean by project team and OP team.
Ah, understood. Then in that case I’d guide you to reconsider Velodrome’s system-wide proposal for …
Ah, understood. Then in that case I’d guide you to reconsider Velodrome’s system-wide proposal for shoring up OP liquidity 4 , which has been personally supported by Norswap (tho not in a OP team capacity). Not focus on the particularities to be determined, but evaluate the high-level value of the proposal so we can discuss it productively. Even if we move to a different structure, I think it’s as good of a start as anything else proposed. And I’m sure others will join to weigh in.
ahh…okey, if by “we” you meant token house/OP team and your team and we can continue this discussio…
ahh…okey, if by “we” you meant token house/OP team and your team and we can continue this discussion there. For this proposal, I have only one suggestion as mentioned above.
Tarot has been a pleasure to work with on Fantom, and on Optimism. Their products are useful for re…
Tarot has been a pleasure to work with on Fantom, and on Optimism. Their products are useful for retail investors engaging in leveraged yield farming, and they offer single sided staking (a surprisingly popular choice for many smaller holders).
I strongly disagree with the use of 90 % of the OP grant being used exclusively for the incentiviz…
I strongly disagree with the use of 90 % of the OP grant being used exclusively for the incentivization of their own token liquidity. The remaining 10 % is also just being used to pay to the team. This seems like a poor use of OP funds. Additionally, as OPUser brought up, liquidity should be paired with OP, not USDC as that would promote OP on optimism. Furthermore, the timeframe of distribution is too short. 6 - 12 months to distribute all the OP for just TAROT LP incentives does not seem right AND 3 - 6 months for the distribution to pay the team 10 % of the grant?
gabagool: 6-12 months is fairly in line with a number of other grants, afaik?
I agree the 3-6 months for payment could be extended out to match the distribution of rewards.
Its slightly unclear to me what Operations payments means, is this personnel related? Maybe some clarity on these points would help reassure people Tarot is here to build on Optimism for the long term
TigrisOfGaul: Please see my reply to @OPUser above regarding the 10% portion of the OP allocation.
Additionally, the proposal has been updated to firmly set the 90% OP distribution over 12-16 months, as well as providing initial OP-TAROT liquidity for at least 12 months.
6 - 12 months is fairly in line with a number of other grants, afaik? I agree the 3 - 6 months f…
6 - 12 months is fairly in line with a number of other grants, afaik? I agree the 3 - 6 months for payment could be extended out to match the distribution of rewards. Its slightly unclear to me what Operations payments means, is this personnel related? Maybe some clarity on these points would help reassure people Tarot is here to build on Optimism for the long term :slight_smile:
TigrisOfGaul: Updated the proposal to clarify how the 10% portion of OP will be allocated (paired with team-held TAROT and provided as OP-TAROT liquidity for at least 12 months).
This team-held liquidity makes it clear that Tarot is interested in building on Optimism long-term.
The proposal has been updated to clarify that the 10 % portion of OP will be paired with team-held…
The proposal has been updated to clarify that the 10 % portion of OP will be paired with team-held TAROT and provided as initial OP-TAROT liquidity for a period of at least 12 months.
OPUser: Hi @TigrisOfGaul
Thank you for the changes but i dont see it reflected in the proposal.
Liquidity providers (90%): 540,000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT).
Please mention how many pair you are targeting and how much token will be allocated to which pool.
Core team + initial OP-TAROT liquidity (10%): 60,000 OP is allocated to the Tarot core team in support of Tarot’s growth and operations on Optimism. The OP will be paired with team-held TAROT and provided as initial liquidity on Optimism for a period of at least 12 months.
Why do you need token for core team ?
Please see my reply to @OPUser above regarding the 10 % portion of the OP allocation. Additionally…
Please see my reply to @OPUser above regarding the 10 % portion of the OP allocation. Additionally, the proposal has been updated to firmly set the 90 % OP distribution over 12 - 16 months, as well as providing initial OP-TAROT liquidity for at least 12 months.
Updated the proposal to clarify how the 10 % portion of OP will be allocated (paired with team-hel…
Updated the proposal to clarify how the 10 % portion of OP will be allocated (paired with team-held TAROT and provided as OP-TAROT liquidity for at least 12 months). This team-held liquidity makes it clear that Tarot is interested in building on Optimism long-term.
Hi @TigrisOfGaul Thank you for the changes but i dont see it reflected in the proposal. Liquidity …
Hi @TigrisOfGaul Thank you for the changes but i dont see it reflected in the proposal. Liquidity providers ( 90 %): 540 , 000 OP is allocated to liquidity bribes and other liquidity incentivization mechanisms on Velodrome and Beethoven X to incentivize TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT). Please mention how many pair you are targeting and how much token will be allocated to which pool. Core team + initial OP-TAROT liquidity ( 10 %): 60 , 000 OP is allocated to the Tarot core team in support of Tarot’s growth and operations on Optimism. The OP will be paired with team-held TAROT and provided as initial liquidity on Optimism for a period of at least 12 months. Why do you need token for core team ?
gabagool: If we are asking teams to come build on Optimism, it seems totally fine to me that some portion of grants goes towards paying teams.
In this case it seems like 10% of the grant would be paired with team-held TAROT, provided as OP-TAROT as liquidity for minimum 12 months.
In terms of dollar amounts we are talking about $46,000 USD, not sure how many team members Tarot has but don’t feel as though this is about self-enrichment.
TigrisOfGaul: Above all, Tarot seeks to sustainably incentivize liquidity on Optimism for the long-term. It’s much more capital efficient to target incentives over time according to liquidity needs, rather than commit to a specific, fixed allocation for particular pairs an entire year ahead of time.
Please mention how many pair you are targeting and how much token will be allocated to which pool.
The current expectation is to incentivize a USDC-TAROT pair on Velodrome and a weighted pool on Beethoven X with OP, TAROT, and possibly also ETH. Crucially, in addition to OP incentives, pools on Optimism will be incentivized with TAROT (and may also be co-incentivized by Velodrome and Beethoven X).
Proposals from other projects may explicitly commit to allocations and incentive structures far ahead of time, but I believe this is shortsighted. In reality, the target liquidity amounts and APRs for overall incentivization should be monitored and adjusted regularly to ensure they are most impactful for the Optimism network.
Why do you need token for core team ?
The 10% portion of OP goes towards providing a significant amount of initial liquidity on Optimism for a period of at least 12 months. The other side of that liquidity (TAROT tokens) is provided by the team. This demonstrates committment on both sides and ensures long-term alignment of incentives.
If we are asking teams to come build on Optimism, it seems totally fine to me that some portion of …
If we are asking teams to come build on Optimism, it seems totally fine to me that some portion of grants goes towards paying teams. In this case it seems like 10 % of the grant would be paired with team-held TAROT, provided as OP-TAROT as liquidity for minimum 12 months. In terms of dollar amounts we are talking about $ 46 , 000 USD, not sure how many team members Tarot has but don’t feel as though this is about self-enrichment.
Above all, Tarot seeks to sustainably incentivize liquidity on Optimism for the long-term. It’s muc…
Above all, Tarot seeks to sustainably incentivize liquidity on Optimism for the long-term. It’s much more capital efficient to target incentives over time according to liquidity needs, rather than commit to a specific, fixed allocation for particular pairs an entire year ahead of time. Please mention how many pair you are targeting and how much token will be allocated to which pool. The current expectation is to incentivize a USDC-TAROT pair on Velodrome and a weighted pool on Beethoven X with OP, TAROT, and possibly also ETH. Crucially, in addition to OP incentives, pools on Optimism will be incentivized with TAROT (and may also be co-incentivized by Velodrome and Beethoven X). Proposals from other projects may explicitly commit to allocations and incentive structures far ahead of time, but I believe this is shortsighted. In reality, the target liquidity amounts and APRs for overall incentivization should be monitored and adjusted regularly to ensure they are most impactful for the Optimism network. Why do you need token for core team ? The 10 % portion of OP goes towards providing a significant amount of initial liquidity on Optimism for a period of at least 12 months. The other side of that liquidity (TAROT tokens) is provided by the team. This demonstrates committment on both sides and ensures long-term alignment of incentives.
TigrisOfGaul: rather than commit to a specific, fixed allocation for particular pairs an entir…
TigrisOfGaul: rather than commit to a specific, fixed allocation for particular pairs an entire year ahead of time. Fine, dont commit, could you make it flexible. "we are planning to distribute X amount of OP token in first week but if price has to go down, we will do reduce/increase it to Y " and so in… You believe that its much more capital efficient and I dont, in this case we cant have a discussion. but if you provide a plan, we can discuss that. My personal suggestion:- Choose two or max 3 pair. TAROT/X TAROT/Y and TAROT/OP distribute reward equally. 33 % each. Also, in order to get the incentives, as a user, i will need to buy TAROT hence boosting your project native token which is a big red flag in this proposal but I will support if tarot/op pair is part of this.
You’ll be happy to hear that OP-TAROT will certainly be included. Also, to be clear, you will not n…
You’ll be happy to hear that OP-TAROT will certainly be included. Also, to be clear, you will not necessarily need to buy TAROT, as the TAROT incentives (as outlined in TIP- 018 1 ) apply broadly on the Optimism network. As such, TAROT may be earned by lending/borrowing in Tarot’s OP-ETH pool, for example.
I have been a retail user of Tarot since it launched on Fantom. The Tarot team is one of the most p…
I have been a retail user of Tarot since it launched on Fantom. The Tarot team is one of the most professional and hard working teams I have seen in defi. They consistently have some of the best lending rates and the product is just overall enjoyable to use. Would be a great protocol to watch grow on OP
I’m also a retail Beethoven/Tarot user (but on Fantom) so my opinion is biased, but I agree with th…
I’m also a retail Beethoven/Tarot user (but on Fantom) so my opinion is biased, but I agree with the other posters who have mentioned the integrity of the team and the quality of their products. The grant size is appropriate to the TVL and the distribution window is fair.
A Tarot DAO governance proposal has been introduced, which seeks to add protocol-held TAROT liquidi…
A Tarot DAO governance proposal has been introduced, which seeks to add protocol-held TAROT liquidity to Velodrome on Optimism and incentivize veVELO holders to vote for emissions to these TAROT-based pools: TIP- 019 : Velodrome Liquidity 11
Following the adoption of TIP- 019 , ~$ 110 K of initial liquidity has been added to Velodrome for …
Following the adoption of TIP- 019 , ~$ 110 K of initial liquidity has been added to Velodrome for the vAMM-TAROT/USDC pair. The contract address for TAROT on Optimism is 0 x 375488 F 097176507 e 39 B 9653 b 88 FDc 52 cDE 736 Bf Note that this address differs from that of the TAROT token on Fantom The TAROT token can be bridged between Fantom and Optimism via Multichain: https://app.multichain.org/#/router 4
Tarot has commenced weekly TAROT-based incentives for liquidity on Velodrome, and ~$ 300 K of proto…
Tarot has commenced weekly TAROT-based incentives for liquidity on Velodrome, and ~$ 300 K of protocol owned TAROT/USDC liquidity has been migrated to Optimism.
Tarot’s proposal has been updated based on the Grant Proposal Template v 2 6 by @ben-chain.
Tarot’s proposal has been updated based on the Grant Proposal Template v 2 6 by @ben-chain.
Moving this proposal to REVIEW status ahead of Voting Cycle # 6 , Week 2 , as per OPerating Manual…
Moving this proposal to REVIEW status ahead of Voting Cycle # 6 , Week 2 , as per OPerating Manual v 0 . 2 . 0 2 . Summary of Incorporated Feedback Since the introduction of this proposal in July, the following updates have been incorporated in response to community feedback: Matching TAROT Co-Incentives: A Tarot DAO governance proposal, TIP- 018 : Tarot Co-Incentivization on Optimism, was adopted to allocate 3 , 000 , 000 TAROT over a 12 -month period towards Optimism incentives. Expanded Distribution: The distribution of OP token incentives for liquidity providers was expanded to include all TAROT-based pairs, over a longer period ( 12 - 16 months). Initial OP-TAROT Liquidity: A portion of the OP incentives ( 60 , 000 OP) will be paired with team-held TAROT and provided as initial liquidity on Optimism for a period of at least 12 months. Optimism Metrics: Usage metrics have been expanded to include transaction counts for Tarot’s router and vault contracts on Optimism. Updated V 2 Template: The proposal has been updated to conform with the updated V 2 proposal template. Further details provided include: distribution milestones, an explanation for how Tarot will incentivize usage and liquidity on Optimism, and how the development of future products and yield opportunities on Optimism will continue after incentives have concluded.
I am an Optimism delegate [Delegate Commitments - # 136 by jackanorak 3 ] with sufficient voting …
I am an Optimism delegate [Delegate Commitments - # 136 by jackanorak 3 ] with sufficient voting power and I believe this proposal is ready to move to a vote.
I am an Optimism delegate [Delegate Commitments - # 42 by solarcurve 2 ] with sufficient voting …
I am an Optimism delegate [Delegate Commitments - # 42 by solarcurve 2 ] with sufficient voting power and I believe this proposal is ready to move to a vote.
As an Optimism delegate with voting power above the required threshold I believe this proposal is r…
As an Optimism delegate with voting power above the required threshold I believe this proposal is ready. Delegate Commitments - # 71 by MoneyManDoug 3
Imo Tarot is degen enough as it is. No need to attract more people (who are often unaware of the ri…
Imo Tarot is degen enough as it is. No need to attract more people (who are often unaware of the risks (liquidation looms)) with juicy OP rewards.
JohnnyF: Nobody has to use Tarot for levered farming. People also can just single-sided lend their tokens to any of the pools and will earn a return on that, with zero IL. Using Tarot that way is less risky than even providing liquidity to DEXs like Uniswap or Sushi.
There’s other use cases as well(auto-compounder like Beefy, for example, with near-zero fees). Nobody has to use the leverage part, and it still would be a big plus to the Optimism ecosystem.
Subli_Defi: And what if i told you tarot is also an auto-compounder ?
I’m a bit confused of such comment as it’s very pretentious to think about risk management on behalf of others, and neglecting leverage farming on Defi is a simple non sense and shows a clear lack of understanding on the basics of Finance.
Nobody has to use Tarot for levered farming. People also can just single-sided lend their tokens to…
Nobody has to use Tarot for levered farming. People also can just single-sided lend their tokens to any of the pools and will earn a return on that, with zero IL. Using Tarot that way is less risky than even providing liquidity to DEXs like Uniswap or Sushi. There’s other use cases as well(auto-compounder like Beefy, for example, with near-zero fees). Nobody has to use the leverage part, and it still would be a big plus to the Optimism ecosystem.
OPUser: Voted : Against
After reading comments in past few days I see many argument on both side but I will go with content mentioned in the proposal.
Suggestion:-
remove uncertainties. This mean there is no limit on pair.
TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT).
Avoid your native project pair or match 1:1 in co-incentives. This user has good suggestion, why not reward for single side LP then the responsibility will on user.
JohnnyF:
People also can just single-sided lend their tokens to any of the pools and will earn a return on that, with zero IL
Co-incentive are case dependent but good to see that you are matching $500K in OP to $140K in Tarot.
And what if i told you tarot is also an auto-compounder ? I’m a bit confused of such comment as it’…
And what if i told you tarot is also an auto-compounder ? I’m a bit confused of such comment as it’s very pretentious to think about risk management on behalf of others, and neglecting leverage farming on Defi is a simple non sense and shows a clear lack of understanding on the basics of Finance.
Voted : Against After reading comments in past few days I see many argument on both side but I will…
Voted : Against After reading comments in past few days I see many argument on both side but I will go with content mentioned in the proposal. Suggestion:- remove uncertainties. This mean there is no limit on pair. TAROT-based liquidity (e.g., USDC/TAROT, TAROT/ETH, OP/TAROT). Avoid your native project pair or match 1 : 1 in co-incentives. This user has good suggestion, why not reward for single side LP then the responsibility will on user. JohnnyF: People also can just single-sided lend their tokens to any of the pools and will earn a return on that, with zero IL Co-incentive are case dependent but good to see that you are matching $ 500 K in OP to $ 140 K in Tarot.
Defi Committee A Recommendation Voting recommendation: No Rationale: All of tokens are being used…
Defi Committee A Recommendation Voting recommendation: No Rationale: All of tokens are being used to bootstrap Tarot’s own token; the use of the tokens being distributed to the core team for operational costs is unclear in terms of breakdown of resources, and there is a long distribution period. Next Steps: Our recommendation is to focus on Optimism pairs and add transparency around the use of funds for operational costs.
So the committee won’t revisit or even address its misunderstanding of the role of liquidity incent…
So the committee won’t revisit or even address its misunderstanding of the role of liquidity incentives in Tarot’s proposal? How is this not a snub of a respected dev in @TigrisOfGaul?
Hello Op Gov Watch, we have clarified our position here 14 and here 7 and we standby our decisi…
Hello Op Gov Watch, we have clarified our position here 14 and here 7 and we standby our decision as a committee. However, delegates are free to vote on any proposal as they wish. As a committee, we will not be approving every proposal that comes our way which is in no way a “snub” to the project itself or the people involved. Additionally, any project is free to submit the proposal again in future voting cycles.
OPGovWatch: Katie,
The risk of this feeling like a snub doesn’t come from the committee’s rejection of the proposal. That is your committee’s right. It is that the committee’s rejection seems to be born a misunderstanding of the nature of Tarot and the role that LP incentives will play in driving protocol activity, even after it has been clarified by @TigrisOfGaul and @jackanorak.
Statements like “all of tokens are being used to bootstrap Tarot’s own token” doesn’t acknowledge that doing so is a more capital efficient way to incentivize Tarot usage then direct protocol incentives and “our recommendation is to focus on Optimism pairs” seems like you’ve entirely missed the point of the incentives. Why would a lending and borrowing protocol looking to grow on Optimism ask for a grant to incentivize OP pairs?
If this is where you all choose leave things, I see two risks:
Tarot doesn’t have specific and actionable feedback to submit an improved proposal, maybe doesn’t even try
Builders develop a perception that they can’t trust governance to understand or engage with nuanced proposals resulting worse outcomes for the ecosystem
If the committee is going to stick to it’s no recommendation, I would like to see them at the very least demonstrate they understood and remain unpersuaded by the thoughtful clarifications offered below.
From Jack:
Tarot, an incentivized leveraged yield protocol, is unlike many projects in that it can (and would) directly incentivize general use selectively with token emissions. Borrow and lend on the protocol, get TAROT in addition to your compounded yield.
Because of this, using OP to incentivize liquidity on TAROT is more or less tantamount to directly incentivizing borrowing and lending activity. More liquidity → more capacity to issue TAROT → more users of the protocol.
In this way, Tarot would have the flexibility to juice certain types of activity it wants to promote without having to redirect OP to farmers looking to dump it. Pairing TAROT with OP isn’t necessary but does offer a marginal liquidity backstop for OP.
From Tigris:
We view the OP incentives program through the lens of efficient capital allocation , and structured our proposal to align the long-term success of Tarot on Optimism with that of the Optimism network.
Currently, the direct incentivization of DEX liquidity is 30-50x more capital efficient than incentivizing borrow activity in Tarot. For example, $1 of OP bribes results in $2-3 of DEX rewards almost immediately, compared to $1 of OP borrow incentives resulting in ~$1 of borrow activity over one year. From the protocol’s point-of-view, it makes no sense to bribe non-TAROT pairs on DEXs, as the impact of bribing other pairs does not flow to Tarot directly.
The defi shadow committee 3 – which is not an official committee – supports this proposal in pri…
The defi shadow committee 3 – which is not an official committee – supports this proposal in principle 2 . We think this proposal is promising as a catalyst for substantial growth in use and economic multipliers for neighboring protocols, and we believe the emphasis on providing LP support for TAROT is a clever, cost-efficient means of incentivizing non-LP yield generation and potentially introducing new connections to other financial activities. We believe that @katie and DeFi committee A rejecting this proposal because it deals with a native token is missing the forest for the trees. It is also puzzling that the same committee supported without reservation Kromatika’s own proposal, which does the same thing—uses both protocol-owned-liquidity and liquidity incentivization of its native token $KROM—with less justification. We will publish our own review of this other proposal shortly. Would still like to see a breakdown of Tarot’s intended dev activities, though, and we agree that the term of the distribution is far too long.
Katie, The risk of this feeling like a snub doesn’t come from the committee’s rejection of the prop…
Katie, The risk of this feeling like a snub doesn’t come from the committee’s rejection of the proposal. That is your committee’s right. It is that the committee’s rejection seems to be born a misunderstanding of the nature of Tarot and the role that LP incentives will play in driving protocol activity, even after it has been clarified by @TigrisOfGaul and @jackanorak. Statements like “all of tokens are being used to bootstrap Tarot’s own token” doesn’t acknowledge that doing so is a more capital efficient way to incentivize Tarot usage then direct protocol incentives and “our recommendation is to focus on Optimism pairs” seems like you’ve entirely missed the point of the incentives. Why would a lending and borrowing protocol looking to grow on Optimism ask for a grant to incentivize OP pairs? If this is where you all choose leave things, I see two risks: Tarot doesn’t have specific and actionable feedback to submit an improved proposal, maybe doesn’t even try Builders develop a perception that they can’t trust governance to understand or engage with nuanced proposals resulting worse outcomes for the ecosystem If the committee is going to stick to it’s no recommendation, I would like to see them at the very least demonstrate they understood and remain unpersuaded by the thoughtful clarifications offered below. From Jack: Tarot, an incentivized leveraged yield protocol, is unlike many projects in that it can (and would) directly incentivize general use selectively with token emissions. Borrow and lend on the protocol, get TAROT in addition to your compounded yield. Because of this, using OP to incentivize liquidity on TAROT is more or less tantamount to directly incentivizing borrowing and lending activity. More liquidity → more capacity to issue TAROT → more users of the protocol. In this way, Tarot would have the flexibility to juice certain types of activity it wants to promote without having to redirect OP to farmers looking to dump it. Pairing TAROT with OP isn’t necessary but does offer a marginal liquidity backstop for OP. From Tigris: We view the OP incentives program through the lens of efficient capital allocation , and structured our proposal to align the long-term success of Tarot on Optimism with that of the Optimism network. Currently, the direct incentivization of DEX liquidity is 30 - 50 x more capital efficient than incentivizing borrow activity in Tarot. For example, $ 1 of OP bribes results in $ 2 - 3 of DEX rewards almost immediately, compared to $ 1 of OP borrow incentives resulting in ~$ 1 of borrow activity over one year. From the protocol’s point-of-view, it makes no sense to bribe non-TAROT pairs on DEXs, as the impact of bribing other pairs does not flow to Tarot directly.
Voting against the proposal following the DeFi committee’s A recommendation.
Voting against the proposal following the DeFi committee’s A recommendation.
Vote: No Rationale: Following the recommendation we made in DeFi committee A 2 . Implement a reduc…
Vote: No Rationale: Following the recommendation we made in DeFi committee A 2 . Implement a reduced token distribution period along with the other comments made in our rec.
