[DIP] Establish and confirm Grants Distribution through Derive Governance

DIP
1

Optimism proposal: CharmVerse - The Network for Onchain Communities

Milestone:

1600×265 62.5 KB

https://forums.derive.xyz/

Simple Summary

Establish and confirm grants distribution through Derive Governance

Abstract

This is a formal proposal to establish and confirm Derive Grants through Derive Governance. Derive was awarded a large sum of $OP tokens to reward community contributions and builders.

Specification

This proposal sets in stone a governance mechanism that gives authority to the Derive Core team for decision-making on liquidity incentives, Builder Grants, and Protocol incentives until such time that Derive governance approves a body to administer the grants process. Intake of grants are done with Ksett and the Grant Ambassadors. (Your connected workspace for wiki, docs & projects | Notion)

Format for all Grant applications including allocation and evaluation criteria follows the current Optimism Grants program.

Formatting framework for Derive Grants can be found here: Your connected workspace for wiki, docs & projects | Notion

Rationale

Derive secured two grants through Optimism for a total of 1.5 million $OP (400k OP for Builders, and 1.1 million OP for Incentives)

Grant Allocation Categories and Distribution

  • Builders: 400,000 OP

  • Technical Integrations (33%): Support third-party technology vendors, such as SaaS providers and OEMS, that lower barriers to interaction with Derive and Optimism.

  • Infrastructure Providers (33%): Fund technical integrations and infrastructure development, including price oracles and volatility feeds.

  • Audits (33%): Ensure ongoing security and compliance through regular audits. This framework aims to attract market makers, flow providers, and infrastructure partners, driving growth and innovation within the Derive ecosystem.

  • Liquidity: 1,100,000 OP

  • Market Makers (50%): Incentivize liquidity provision on spot, options, perpetual futures to enhance market depth.

  • Protocol Activity (50%): Encourage trading and institutional flow providers to increase transaction volume. Promoting strategy deposits and lending activity.

Goals and Objectives of the Derive Grants:

  • Increased TVL

  • Increased number of unique users

  • Increase transaction volume and block space demand on Derive L2

  • Promote competitive liquidity vs centralized venues

  • Support integrations with protocols on OP mainnet and other OP stack chains

  • Strengthen technical support, connectivity, security, and robustness of Derive L2

Approved Derive Grants will be found here: Your connected workspace for wiki, docs & projects | Notion

Approved Optimism Grants: CharmVerse - The Network for Onchain Communities

Test Cases

n/a