Exchange liquidity pool Curve Finance has submitted a governance proposal on Optimism for a 1 million OP token grant.Â
The grant proposal suggests that $850,000 worth of OP tokens (that is 1 million tokens) will be distrubed on Curve over a time period of 20 weeks.
Thus, if the proposal passes, 50,000 OP tokens will be distributed per week to Curve pools.
These tokens will be offered as incentives to liquidity providers (LPs) on gauged Curve pools on Optimism. Gauged pools receive token emissions on a weekly basis, and are decided by a weekly on-chain DAO vote on Curve.
The proposal states that there are currently three such pools on Optimism: sUSD, sETH, and sBTC. The proposal also promises that the number of pools will increase with time.
Curve believes that this proposal will help to incentivize liquidity on Optimism via Curve-based emissions. The rewards would attract more LPs to seed their liquidity to Optimism pools thus expanding the Layer 2 network’s decentralized finance footprint.
Read Also: Curve Finance Founder Hints at a Stablecoin Launch
Optimism is an Ethereum Layer 2 protocol. Curve has a weekly trading volume of $3.4 million in Curve pools on Optimism and its total value locked on Optimism is $17.4 million.
