[DIP] Establish and confirm Grants Distribution through Derive Governance

DIP
1

Optimism proposal: CharmVerse - The Network for Onchain Communities

Milestone:

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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. (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: 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: Notion

Approved Optimism Grants: CharmVerse - The Network for Onchain Communities

Test Cases

n/a