{"round": {"tags": ["karma-gap", "grant-program-registry"], "type": "program", "asset": "", "title": "Optimism - Cycle 14 grant", "status": "Inactive", "networks": ["EVM"], "bugBounty": "", "createdAt": 1725476581991, "startDate": "", "categories": [], "ecosystems": [], "grantTypes": ["Direct Grants"], "description": "How do you justify the size of the grant? (higher grant size requests will receive greater scrutiny):\\n\\nThe size of the grant is weighted to facilitate and drive growth to a multitude of ecosystem partners, in particular:\\n\\nNetwork effect with ecosystem partners: This proposal is designed to include, by default, a network effect across five main initiatives: \\n\\nRisk management and hedging strategies: We aim to bring to Optimism the next DeFi primitive currently missing in the market to make yields more resilient to risks. Yield Tranches create risk-adjusted access to potentially any DeFi yield source on Optimism – we are going to focus on institutional lending (borrower default), leverage (liquidation risk), and options strategies (drawdown) areas, as YTs’ effectiveness is enhanced where there is a tangible risk for liquidity providers. YTs use a factory pattern that simplifies the integration of ERC-4626 tokens, allowing the development of a suite of tranched products focused on the aforementioned verticals.\\n\\nMore scalable user onboarding: Currently, all users LPing in a pool share the same risks and returns. Yield Tranches break this condition letting users tailor their investment to their individual risk appetite: Senior offers built-in protection features in case of underlying losses, while Junior offers enhanced yields in exchange for providing fund protection.\\n\\nMade for composability: Yield Tranches have been designed around ERC4626 standard and either if we need to build on top of other protocols, or other integration partners need to integrate YTs into their protocol architecture, the development process is utterly simplified. Our goal is to leverage this feature to bring to Optimism additional integrations like fixed-yield protocols, lending markets and stablecoin issuers using Senior Tranches as collateral.\\n\\nSustainability and long-term value: The use of OP rewards will help bootstrap initial liquidity on the Idle Boosted pool, provide an adequate opportunity-cost ratio for liquidity providers migrating from Ethereum layer 1, and speed up its growth. Idle Boosted pool’s performances can remain unaltered up to $40m, which corresponds to the maximum borrower capacity of current borrowers according to Credora. With the onboarding of additional institutional borrowers, yields are maintained competitive with a larger liquidity size.\\n\\nOnboard institutional entities in the Optimism ecosystem. The main partners on Ethereum are Portofino and Fasanara, and two more are in the pipeline.\\n\\nOnboard an institutional on-chain lending protocol, i.e. Clearpool.\\n\\nRelease Yield Tranches (YTs) to offer risk-adjusted solutions to Optimism liquidity providers.\\n\\nIntegrate YTs as underlying yield source of Beethoven X and Aura, in the form of a Boosted Stable Pool. This pool can then be paired with other ecosystem tokens (stablecoins, LST), helping projects increase base pool yields and save on liquidity incentives.\\n\\nRoute OP rewards to vlAURA/maBEETS holders, maximizing rewards’ efficiency and empowering other communities to participate in the overall Optimism ecosystem. Roadmap and Distribution Plan\\n\\nDescribe in discrete steps how you will successfully implement your grant plan:\\n\\nThe grant will be managed via the Treasury League multisig, composed of core contributors elected by Idle DAO. The go-to-market plan to maximize the impact of the grant consists of the following passages:\\n\\nThe identification of the underlying yield source compatible with Yield Tranches infrastructure has been completed. Clearpool, who built a long-lasting relationship with Idle, represents the technical and business partner to bring a new industry (on-chain institutional lending) into the Optimism ecosystem.\\n\\nAfter the grant approval, Idle Leagues contributors will launch a proposal for the Idle DAO community to officialize the Optimism release. This passage will determine the prioritization of strategies’ deployment on Optimism.\\n\\nIn parallel, Idle Leagues and Clearpool will identify institutional entities fitting the borrower role and complete the legal and technical onboarding.\\n\\nWith the release of Clearpool pools, Clearpool launches Optimism support on the UI.\\n\\nIdle Leagues deploy Yield Tranches infrastructure on Optimism, launch Optimism support on the UI, and integrate targeted pools into Yield Tranches.\\n\\nIn coordination with Beethoven X and Aura teams, the Idle Boosted pool is launched.\\n\\nIncentives are recurrently allocated to vlAURA/maBEETS.\\n\\nOn the business side, the team connects the existing institutional network with the opportunities coming from Senior Tranches, Junior Tranches, and Boosted pool. Furthermore, marketing activities through media channels (Twitter, Discord, Medium, newsletter etc.) enhance product visibility to reach a wider audience.", "socialLinks": {"blog": "", "forum": "", "discord": "", "twitter": "", "website": "", "grantsSite": "https://app.charmverse.io/op-grants", "orgWebsite": ""}, "organizations": ["Optimism Foundation"], "totalAwardedUsdValue": "", "totalAwardedSubmissions": ""}, "application": {"version": "1.0.0", "lastUpdatedOn": 1725476694066, "applicationSchema": {"questions": [{"id": 0, "info": "Email Address", "type": "email", "title": "Email Address", "hidden": false, "required": false, "encrypted": false}], "requirements": {"github": {"required": false, "verification": false}, "twitter": {"required": false, "verification": false}}}}}