Currently, the rETH token is strongly adopted on arbitrum as one of the top 10 most liquid tokens on Unsiwap. Optimism has been lagging behind in adoption. A recent Lido proposal (hyperlink) requested 1M tokens for enhancing liquidity.
I believe it is reasonable given the dearth of L2 adoption for any staking token for Rocket Pool to request an equal number of tokens. Liquidity demands for L2 dApps will depend on L2 adoption and so a new environment is being established.
It would be prudent to move quickly before this vacancy is filled. One of the requests in the Lido proposal was for a curve pool. It may be a good opportunity to suggest a shared rETH/wstETH/ETH pool with combined incentives to establish a new kind of 3pool like what exists on Arbitrum between USDC+USDT without DAI since DAI was late to be onboarded.
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Hmmm… Given the pushback on the Lido proposal, would we be better off just asking for incentives on ETH/rETH?
Regardless I am very in favor of getting something posted soon. Missing all boats is worse than a suboptimal boat here.
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I think it’s worth pursuing and we should note that rETH was the first (and currently only?) liquid staking derivative bridged to OP.
I dislike that we keep pairing our liquidity with stETH however. I understand we’re trying to take advantage of their current dominance, but I would prefer either a solo proposal or to potentially collaborate with other minority LSDs. Do we know if other LSDs have a value accrual token or “wrapped” variant that could feasibly bridge to OP as well?
(Edit - Further comments) Here’s OP’s guidelines for proposals for reference: Governance Fund Phase 1: How to Create a Proposal - Governance Fund: Phase 1 - Optimism Collective
Also it appears Lido is offering to match incentives in their proposal. Is this something we think we should also consider once pDAO voting is enabled?
Overall, I am in favor of proposing to request OP to incentivize just Curve for rETH/ETH as to not spread liquidity too thin across different protocols. As for how much OP to request, if I did the napkin math right, to provide ~5% APR on 1000 rETH matched with it’s equivalent ETH and assuming ETH and OP move similarly, we’d need >225,000 OP. This sounds reasonable to me given RP’s size and the 1.3k rETH already on OP.
One other thing I think may help here is if we can “partner” with other protocols coming to OP and requesting tokens; help’s us make the case of rETH staying on OP and provides more chances of increasing rETH integrations. I’m not sure if there are any good fits right now (will have to look into these some), but you can see other protocols’ proposals for OP here to see if there are any possible fits: 📜 Proposal Discussion - Optimism Collective and some apps listed on OP’s site here: Optimism Apps
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I completely agree we should pursue this. I think it would be beneficial to distance ourselves from Lido, and incentivise rETH/ETH liquidity (and any other major trading pairs that the community feels will be beneficial), rather than tying ourselves to the risk of further stETH depegging events.
I have written a draft of the proposal based off Lido’s proposal, and I am happy to share this and for anyone to edit or build on it. Let me know if anyone has any suggestions on the best way to share this?