The 🔴Optimist: OP Superchain News #22-1
DEFI on Layer 2, OP Stack, Optimism Superchain
First of all, i’d like to express my thanks to you readers, for your comments, support, likes on this Journey. Big 👏 to the team for making The Optimist the go-to Media for everything about DEFI on Layer 2 chains.
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————————————— KEY TAKEAWAYS ——————————
🔴1,000,000 OP Rewards : we ❤ the art contest
Submit your Art and be part of the 184 winners to share a 1,000,000 OP prize pool. If you wish to know how to submit your ART before 13th December, this article is for you.
🔵Projects Research : Synthetix revenue sharing to integrators
A new proposal on Synthetix Governance Forum has just been released asking for a 20% revenue sharing to Perps integrators like Kwenta & Polynomial. What does it mean, how to value the price of their tokens? Read this if interested.
🟠Podcast: Project interview (Updates & Roadmap)
The last 2 weeks, we were pleased to receive on Stage :
Clique: Onchain Identity, Identity oracles, Operation Red Wars with 100k OP to be distruted
Timeless: How to build liquidity with Bunny solution ,Timeless V2
GOVERNANCE & VOTE TIMELINE
If you wish to delegate your OP Tokens to Subli => Go to this page, and click on DELEGATE. Delegate Address: 0x3b128c6c1207d72092a8b3f6d651dfe54682a404
🔴1,000,000 OP Rewards : we ❤ the art contest
by Nataliii
So, it is very joyful to note that Optimism in particular and Superchain in general are not only about high technology, but also about ART.
Optimism announces a contest **«We ❤️ The Art»** 1 000 000 OP will be distributed among the best artists.
What is the essence of the contest?
Optimism encourages creativity in any of its manifestations and therefore strives to offer everyone to feel like an artist and create their own NFT.
Who can participate?
Everyone can take part in the competition. Why do I say that everyone? Because among the categories of the competition there are not only hand-drawn NFTs, which only professional artists can boast of, but also such categories as NFTs, created even with the help of artificial intelligence. Let's list the categories of the contest in which you can take part
Contest Categories
A.I Art - Art created through generative AI tools like Stable Diffusion.
Generative Art - Art created end-to-end with code.
Music - Musical creations of any genre.
1of1s - An open creator category which includes anything not covered in the other three categories above.
The first category is the simplest, so you can start practicing with it. Here are some useful links to AI, where you can start creating your own NFT:
1. Midjourney
2. Leonardo.AI
3. DALL-E
4. JasperArt
5. Deep AI
Prize
46 winners will be selected in each category, among which prizes will be distributed as follows:
1st tier: 50K OP prize (1 winner per category)
2nd tier: 20K OP prize (5 winners per category)
3rd tier: 7K OP prize (10 winners per category)
4th tier: 1K OP prize (30 winners per category)
In total, the total number of winners will be 184. An incredible number, isn't it?
Please note that each winner will need to pass KYC in order to receive their prize.
How to participate?
So, all you need to do to participate in the competition is to create your own NFT, deploy it on OP Mainnet and apply for participation.
In the picture below you can see all the platforms for mint oil that can be used to participate in the competition:
Let’s meet - The Love Cat
We also decided not to stay away and participate in this wonderful contest. Meet - The Love Cat by The Optimist. This NFT is a ART WORK made by combining talents of two team members of The Optimist, Pedro & Nataliii.
The Love Cat is more than just a piece of digital art, it's a declaration of love and optimism. Every detail of this artwork has been meticulously crafted to capture the warm and benevolent spirit of love. With vibrant colors and unique artistic strokes, this NFT embodies the beauty of sharing love with the world around us.
What makes The Love Cat even more special is that its minting is free and unlimited supply, mirroring the infinite potential of love we all have to offer. Every individual has the opportunity to own this digital masterpiece without financial barriers, thereby encouraging the spread of optimism on a global scale.
As a true public good, The Love Cat embodies the idea that love should have no bounds or restrictions. The owner of this NFT becomes a guardian of optimism, contributing to spreading joy and harmony through this accessible digital artwork for all.
Additionally, the owners of The Love Cat are invited to join an exclusive private Discord of The Optimist Newsletter team! This offers a unique opportunity to interact with the creative team behind these outstanding works, exchanging ideas and experiences within a community dedicated to positivity.
You can mint it here: https://app.manifold.xyz/c/thelovecat
Deadline to participate
And if you decide to take part in the contest yourself, then do not forget about these important dates:
Submission deadline: December 13th, 23:00 UTC
Judging period: Dec 14th to Dec 20th
You can make application here: We Love the Art
🟥Chart of the Week
🔵Projects Research : Synthetix revenue sharing to integrators
By Subli
For those unfamiliar with Synthetix, here's a quick rundown: Synthetix serves as a liquidity provider, enabling various integrators to tap into its liquidity pool. In early 2023, Synthetix unveiled its Perps V2 architecture, propelling platforms like Kwenta and subsequently Polynomial to significant heights, even outpacing giants like GMX and GNS. We delved deeper into Perps V2 in our February 2023 Newsletter #3, for those seeking more details.
Synthetix V3 - Base Launch
Now that Synthetix V3 together with Perps V3 is around the corner with a very soon & most anticipated launch on 🔵Base before the end of the year. If you want some info about Perps V3, here is the latest podcast with Synthetix Team, written available if you don’t want to listen to the whole live.
But here is a TL;DR of what new features will bring Perps V3:
Timeline
Following a successful testnet recently completed with 2b$+ trading volume, ANDROMEDA (being the code name for Perps V3 deployment on Synthetix V3) is scheduled to come on 🔵BASE before being deployed on other chains:
Revenue sharing
As of today 100% of the revenue made by Synthetix (trading fees) go to SNX stakers on Perps V2. Which is a bit unfair towards integrators, don’t you think?
Perps V3 is then coming with a new feature called Integrator Incentive.
The fees collected by Synthetix could be split as follows (DAO discussion still on-going):
40% to Liquidity Providers
40% used to buyback & burn SNX (Have you seen how much efficient this has been on ROLLBIT? 👀 → Check SIP-345 under DAO discussion)
20% to Integrators
So let’s make some maths now:
30-D average daily fees earned by Synthetix :
In October: 42m$
In November: 142m$ (x3)
So let’s assume, trading volume on perps V3 will take some time to ramp up, and will average November metrics for 1 year => this will be equal to 51m$ of fees generated on 1 year
100% of the fees come from Perps trading, & Kwenta represents very close to 100% of the generated fees:
So, KWENTA could receive about 20% of 51m$, so around 10m$/year.
How does it compare to GMX & other Perps?
I love simple metrics. In that case i’ll use the Price-to-Fees ratio (P/F), by dividing the market cap by the total fees accrued by the protocol.
Kwenta Market Cap: 113m$
Annual fees: 10m$
Kwenta P/S: x11
Other perps 30d average P/F ratio:
At a first glance, it’s not great for KWENTA. But there is a trick here. GMX fees are split in between Treasury DAO (10%) / Liquidity Providers (63%) / Token Holders (27%). On Kwenta side, Liquidity Providers are paid by Synthetix, and not by Kwenta.
To calculate the right P/F ratio, I should consider only 37% of total fees generated by GMX, resulting in a P/F = 7.8.
In that case, Kwenta is doing really great, sitting next-to-next with GMX.
How much goes to Token holders?
🔵GMX: 27% of total fees go to Token holders => GMX staking APR: 11% (without boost).
🟤Kwenta: I suggest you read this article who gives an overview of the different possibilities of Kwenta tokenomics. Between all discussed options, it seems that approx 50% of the fees accrued by the protocol (so 10% of total fees generated by the protocol) will be distributed to token holders, outside of the Treasury (which hold 43% of all staked kwenta).
Current REAL Yield APR = 5m$ fees going to Holders / 370k Kwenta staked at 170$ per token (price from 19/11/23) = 10% (without additional Kwenta rewards coming from token inflation).
Conclusion
🟤Kwenta VS 🔵GMX even lead by Sifu
The only thing i’m saying is that Kwenta volume = GMX volume, and i trully believe there is enough place to have 2 leaders next of each other.
For polynomial, i’m just very worried. Seems that they don’t manage to find their market share.
For Kwenta token evaluation, I’ll be keeping an eye on the trading volume & fees generated through Perps V3. If the flywheel spins off, we could see a very similar trading volume surge as in October-November 2023, where fees increased by 3x in one month from 42k$/day to 142k$/day (on the 30d average), which corresponds to an increase of daily volume from 77m$/day to 185m$/day (30d average volume).
Note: This period is outside the huge trading incentives initiated by Synthetix. The increase of trading volume is directly linked to the price increase of BTC.
If I see this trend continuing with Perps V3, then I would expect higher trading volume, increased fees and then KWENTA token price appreciation. My guess is that 10% to 15% real yield APR should be the targeted value. So if Kwenta volume does a x2 on Perps V3, then it’s very likely token price will follow.
Don’t take the above as financial advice, and be aware that i’ve a bag of KWENTA. However, i was starting this article in a negative way, and was very surprised after digging into the metrics. Chain never lies!
Kwenta referral link: Save 15% on your trading fees
If you wish to trade on Kwenta, you can use The Optimist referral link here: https://kwenta.eth.limo/market/?ref=save15trade
🟩Thread of the week
🟠Podcast:
Podcasts are the source of Alpha🔥. And what if you can transform 1h of listening into 5min of reading? The 🔴Optimist Podcast partnered with Revelo Intel to provide written notes of all podcasts for FREE.
Optimism Twitter accounts:
@OPLabsPBC for protocol development
@OptimismGov for governance
@OptimismGrants for Grant Council uipdates
Optimism Website:
Base Social links
Twitter: @BuildOnBase
The Optimist Social accounts:
Discord Handle: Subli#0257
Twitter: The Optimist
Farcaster: Subli_Defi
Notion (Research database): https://sublidefi.notion.site/sublidefi/Subli_Defi-c57a3141c983433ca74e785a0bf1bcd0
Youtube: https://www.youtube.com/c/Subli_Defi
Disclaimer: Nothing in this content is financial advice. We may have some positions on the presented projects, however these articles are written in a non biais way so that you can make you own opinion out of it.
Do your own research before investing, and remember that Crypto is extremely volatile and risky.