Key Takeaways
- OP token liquidity mining is now lively on the Optimism model of Aave.
- Because the replace went dwell, deposits to Aave on Optimism have elevated 493%.
- The liquidity mining program has additionally helped push Optimism’s complete worth locked as much as over $1.5 billion.
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A brand new liquidity mining program on Aave has helped push the whole worth locked in Optimism above $1.5 billion.
Optimism Launches Liquidity Mining on Aave
Optimism has launched one other spherical of token rewards.
The Ethereum Layer 2 community announced the beginning of its newest liquidity mining program Thursday, a part of what the chain is looking “OP Summer time.” The challenge has allotted 5 million OP tokens to DeFi lending large Aave for distribution to its customers over the subsequent 90 days.
Because the replace went dwell, customers have bridged lots of of tens of millions of {dollars} of tokens to Optimism and deposited them into Aave to earn further OP tokens. Based on data from Defi Llama, Aave deposits on the Layer 2 community have elevated 493% over the previous 24 hours. At press time, Aave V3 on Optimism has just below $420 million value of belongings locked in its good contracts.
Whereas the Aave liquidity mining program is the biggest on Optimism to this point, it isn’t the primary. Because the Ethereum rollup launched its native OP governance token in Might, a number of different protocols have begun distributing incentives. Amongst them are the automated market maker Velodrome, the decentralized swaps app Perpetual Protocol, and the sports activities betting app Additional time Markets.
Because of its OP token incentives, Optimism has considerably elevated its person base and the whole worth of belongings locked in good contracts on the chain. Based on L2Beat data, the community’s complete worth locked, excluding its native OP token, has increased 63% for the reason that OP token launched on Might 31. Extra just lately, the beginning of Aave liquidity mining has pushed the whole worth locked up an extra 27%. Optimism at the moment holds roughly $1.51 billion in complete worth locked, trailing solely Arbitrum’s $2.48 billion within the Layer 2 race.
Optimism is among the main Layer 2 initiatives working to scale Ethereum. It makes use of Optimistic Rollups to bundle transactions collectively and ship them again to Ethereum mainnet for affirmation. Rollups like Optimism supply customers substantial fuel financial savings in comparison with transacting on mainnet. For instance, L2 Fees data reveals that the present price to swap tokens on Optimism prices $0.36 in comparison with $6.49 on Ethereum.
Disclosure: On the time of scripting this piece, the writer owned ETH and a number of other different cryptocurrencies.
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