Space Summary
The Twitter Space Optimism #SuperFest Halftime Show hosted by VelodromeFi. The #SuperFest Halftime Show delved into the vital role @optimism plays as a central trading and liquidity platform in the crypto space. Discussions revolved around the significance of liquidity, trading efficiency, and the impact of showcasing trading innovations. Traders gained valuable insights into optimizing their trading experiences within the dynamic world of cryptocurrency trading. The event highlighted how #SuperFest serves as a valuable platform for industry advancement and innovation, emphasizing the importance of platforms like @optimism in fostering a healthy and active trading ecosystem.
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Questions
Q: What is the role of @optimism in the crypto trading ecosystem?
A: @optimism serves as a central trading and liquidity marketplace, optimizing efficiency and user experience.
Q: Why is liquidity important in the crypto space?
A: Liquidity is vital for smooth trading operations, price stability, and market health in the crypto realm.
Q: How does #SuperFest contribute to showcasing trading innovations?
A: #SuperFest provides a platform to highlight new trading features and advancements, fostering industry growth.
Q: What benefits does @optimism bring to traders?
A: @optimism enhances trading efficiency, liquidity access, and overall user experience for traders in the crypto space.
Highlights
Time: 00:15:42
Exploring @optimism's Role in Trading Insights on how @optimism functions as a central trading hub and its impact on the crypto ecosystem.
Time: 00:25:18
The Significance of Liquidity in Trading Understanding the importance of liquidity in maintaining vibrant trading environments.
Time: 00:35:56
Innovations Showcased at #SuperFest Highlighting the trading innovations and features exhibited during #SuperFest.
Key Takeaways
- The importance of understanding central trading and liquidity platforms in the crypto space.
- Insights on how @optimism plays a crucial role in the crypto trading ecosystem.
- The significance of liquidity in maintaining a healthy and active trading environment.
- Discussion on the impact of #SuperFest as a platform for showcasing trading innovations.
- Exploring how @optimism enhances trading efficiency and user experience.
Behind the Mic
Opening Remarks
It GMGM. Hope everyone's doing well. Good morning. Yeah, good evening, everybody. This is a late one. Should all have a nice talk sale, right? Yes, exactly. I've got my. In front of me. No, I wish I did, though. So why don't we give this another minute? I'm going to grab some water, I mean, a cocktail, and. Yeah, we can get started very shortly. Allow people to filter in a bit of. Yep. So I'll be back in a sec.
Discussion on Participation
So I was hoping Mark could join us from optimism. I know it's pretty late for him. I think he's on the east coast. I think he said he has a dinner, that he's Athenae. so I told him, you know, maybe someone else from optimism could. Could join us, even as. As just a listener, but, not sure how much progress he made there. So, regardless. Regardless, we'll. We'll chop it up. Have a good time. Talk about some yields. Talk about some. Some op yields. Yeah. How are you guys feeling? Do you want to kick this off? Ready?
Welcoming Participants
Great. If Mark didn't join, that's just a bonus. Sweet. All right, well, welcome, everybody. Thanks for coming. I'm Charles I from an organization called Conclave, and we don't have a Twitter account, a conclave Twitter account, unfortunately. But we helped to design and have been executing the superfest incentive program. So really excited to sit down with these chads and talk about growth on optimism, growth on the super chain, and some yields that can be taken advantage of. So, yeah, I guess I'll play the host for today. I guess it's smart just to go around, have everybody give a brief introduction of themselves and who they represent. Yeah. Ace, you want to kick it off?
Participants Introductions
Yeah. Hey, guys. Thanks, Charles, for emceeing, and thank you for taking the initiative to put this together. I think it's great that we can do a half time before everything that's going on. The people that are on chain right now are probably the most hardcore. It's kind of grim, like, liquidity wise on chain. And fortunately, optimism has a pretty good pulse and some cool stuff that you can try to play with in DeFi. And our role, obviously spans a couple of the super chains. I'm wearing both hats tonight, both for velodrome and Aerodrome. I've maxed out the number of devices I can join from, so the Aerodrome account isn't able to join the spaces. But I'm happy to kind of talk about the ways that we're involved with the Superfest. And, yeah, everyone probably knows Velodrome it's one of the first big DeFi protocols that launched on optimism in the middle of 2022.
Velodrome and Aerodrome Insight
And we sort of helped bootstrap the op mainnet DeFi ecosystem through our V 33 incentives design. That protocol has been running for just over two years and we're now almost a year into the base adventure with Aerodrome. Aerodrome has probably one of the most well known success stories in all of Defi. Just be looking at it from up here, numbers point of view, and we're happy to kind of play the heartbeat of the base ecosystem role. We're essentially the like de facto bootstrapping protocol for any new token or DeFi app that's looking to get liquidity for their project. And we work really closely with most of the participants across the base ecosystem. So happy to be here and chat with some. Some partners. Nice. Likewise. Kenneth, do you want to take the reins?
Introduction of Kenneth
Yeah, sure. So everyone, I'm Kenneth. I am a DeFi protocol relations contributor at Lido Dell. So essentially my role is protocol relations because we're a DAO. But basically what it means is pretty much growth and bd for the DeFi side of things. And that includes working with partners like those in the space right now. So I think we've been working with both silo velodrome as well as aerodrome for quite a while already. Actually, I think Velo and Aero was literally since about a year ago from. From this state. So we've been building liquidity on velodrome since last year. And when we launched on base, I think it was sometime late last year, were also just using aerodrome as our main source of liquidity for rap stake eth.
Great Results from Lido
And I think the results have thus far been great. I think it's got at least like ten m or something worth of WSD TVL on aerodrome. So, yeah, I. As for us, I think rubstick east growth, especially on the super chain, has been pretty decent, especially on base. So literally, I just. Right before I came on this basis, was just checking through like some dashboards and some stats I could bring up. And I didn't realize this, but I think WSC TV all on base has literally five x since April. So absolutely happy to be here to chat with you guys. Especially since we are all building and trying to grow on that same ecosystem. Hell yeah. Crazy stat.
Discussion on Silo Finance
Yeah. Awesome. I am. I hope I'm not. You're not, you're not. Struggled not to say. Aham. AJ. What's up, man? How's it going? Appreciate it. Thank you so much for putting together this. And hi, everyone. Hi from beautiful Austin. It's about 95 degrees, like about 36 celsius here. So it's a. That's quite beautiful, though. So appreciate it. So, yeah, about myself, I'm one of the founding contributors of Silo finance. We actually launched recently on optimism. It's a risk isolated lending protocol. If you haven't given it a shot, please do. We're currently, we have, of course, we're part of Superfest initiative, and we're also distributing hefty op rewards, part of the grant that we've received from.
How Silo Works
From the Optimism foundation. And so silo, in a very brief, it's a lending protocol, but each market isolated from each other, so user can choose the risk. So each time you deposit in one market, you're completely isolated from other markets. So this means you can better manage risk. So if you don't want to lend to a market that you receive or to an asset you receive risky, you can simply ignore that market and move on to a market or markets you're comfortable with. Silo, we've launched it during the bear market in August 2021. So it's been about two years now on Mainnet. Arbitrary optimism, and soon on base, while we're preparing our v two.
Market Risk Isolation
So back then, everyone asked us, why do you need risk isolated markets? And we told them, well, once new assets come to existence into existence, you definitely need to segregate risk, because some assets are going to be more riskier than others. Silos. Until recently, were the biggest lending market for curve. Unfortunately, that ended up in a massive liquidation. But that actually signified the importance of risk isolation. We've seen curve booted out of AAVE and then moved to silo, and then no one wanted to. Aave did not want Michael to be part of the shared pool risk, because it posed risk to an entire assets and all lenders in the protocol. While in silo, you've deposited, you've loaned your money only to curve. So you've known your risk upfront, and that market grew to almost 100 million.
The Impact of Risk Isolation
Actually, peak probably was 150 million until it got liquidated. But at least that gave everyone the importance of I can choose my market, I can choose my risk. Risk is not obfuscated. So that's a little bit about silo. I'm super happy to be here. Amazing. Amazing. Yeah. Silo has been an absolute star of the. Of the program.
Emerging on Optimism
I mean, you guys only recently made your way onto optimism. Mainnet. I think it was right around the start of the program. It was beginning of the summer and you reached over 30 mil in a very short amount of time. Super, super bullish. And yeah, I mean, some other really nice stats to see as part of this program is the fact that TVL on the super chain networks is up, especially when you factor in the price of factoring the market going down. I mean, if you control for the price of ETH, base, Fraxel mode and op Mainet are up collectively about 12% in Tbl and against a lot of the other networks. Maybe with the exception of arbitrum, most networks are down even when controlling for the price of ETH. So it's really nice to see a lot of capital moving over. And with the size of this program, it wasn't huge, it was one and a half million op, really, not like a ton when you consider some other previous incentive programs.
Capital Movement and Future Programs
But to be able to move the needle by just effectively allocating those is really nice to see. And I'm hoping that optimism takes that to heart and looks at that as an opportunity to do more of these kinds of programs. Yeah, other stats. I wanted to turn to ace a bit and talk about some of the velodrome and aerodrome growth, because I think you shared some stats in our chat kind of recently. Do you have any metrics, specific metrics you want to shout out? Because the growth has been pretty nutty. Yeah. So we've been working with, you know, the optimism foundation and op grants since, you know, the, I'd say the very beginning of kind of op as a decentralized, as a DAO. And so we understand the value of like a well designed incentives program and how they help bootstrap ecosystems. One of the things that we realized was really valuable in kind of getting velodrome up and off the ground back in 2022 was, I guess, educating people how v 33 dexs work through a well designed incentives program.
Incentives Education and Engagement
So we essentially gave op bonuses to new lockers and I think lockers and weekly voters that actually direct incentives to different liquidity pools are probably some of the most educated users in all of Defi know, you have to look at all the different liquidity pools. You have to look into who's working with the various dexes, like what their project's all about. It kind of inspires curiosity and we've actually noticed how sticky it is to become like a ve locker and voter on a weekly basis. It just creates this like consistent engagement and, you know, a weekly need to come back and play around in Defi. So all of us on this space is obviously, you know, we probably do this day and night, but it actually can be a really great onboarding mechanism for someone who's sort of less involved, more casual. Maybe they've just traded a couple meme forms and, you know, I think this is, this locking and voting process is awesome.
Designing Incentive Programs
So we took the learnings from the velodrome initial ip grant and worked with you guys at conclave and optimism to kind of design a similar program for aerodrome. And aerodrome has had a, like I said, like a really unique kind of meteoric rise from in under a year to like the largest protocol on base and one of the largest layer two native dapps. And a lot of that has been like really good luck and hard work. And I think the thing that were missing was any kind of a real grants program. And we had the same chance to reproduce this lock initiative where we can give out op bonuses to new lockers. So base is a very kind of, I would say, new retail onboarding chain. We've seen a lot of meme coin traders, a lot of artists, a lot of like, you know, mobile first users coming through Coinbase.
Onboarding Casual Users
And we've utilized this super fast opportunity to kind of convert a lot of those casual users into more engaged defi users through this lock bonus. So I think the most amazing stat is we've seen a rise in lockers of 30% overall. Lockshell. It's hard for me to tell you if those were second or third locks from a single user or they're all new users. But a general increase in the lock from 15,000 to over 20,000 individual ve arrow holders is pretty remarkable. So we're very satisfied. I guess the downside of that is the actual lock bonus in terms of APR is pretty low. I'm talking about single digit APR in OP, but that just means the program's working. And I think the long term benefits will be far better than just getting an op token that you can sell or being involved with op governance.
Results on Aerodrome
So we're really happy with the results on aerodrome so far. Velodrome. We've also seen an increase in 500 new velo holders. And as velodrome kind of expands across the super chain, those votes will be valuable in directing emissions to new layer twos such as mode and fractal. We're live on mode as well, and we've been helping a lot of the core pools on melodrome on mode get dual rewards. So we've seen an increase in about 30% of the TVL over there too. So that's great to see. Obviously we're still working and we want to see kind of the final Velodrome super chain 1.0 product, which will include Velo gauges and Velo emissions on other layer twos outside of op mainnet, but kind of as a way to bootstrap the chain, like I said, in a fairly quiet period here in the summer.
Growth in On-Chain Activity
And when it comes to on chain activity, it's just great to see growth. And I'm happy to hear that there's a 12% increase in ETH because when we're all focused on growing the ethereum ecosystem, that's what we should be denominating. Our success is just the growth of ETH. Yeah, 100%. I mean, that's what I denominate my bankroll in. So that's the new us dollar, folks. ETH get on board. Yeah, really great to see the, great to see the voter, the locking yield get diluted. I know that's not typically what users like. The standpoint of the users, they want the highest APR possible. But as someone who's running a program and as you're tracking the progress of it, when you see aprs that are way above the market rate, that's a signal that it's not quite, it's a signal that you don't really want to get.
User Perspectives on APR
You want the positions that you're incentivizing to get diluted, you want people to enter the positions, you want it to work, you want people to go. That's extremely worth it. And I should enter until it finds some parity with the rest of the market. Really great to see. Speaking of the voters, you covered the user end of things. I wanted to, turn to Kenneth with sort of lido's experience with building up a voter position themselves. Because not only is it a great user onboarding tool and a great way to get some real yield by directing emissions, but for protocols, being able to build up voting positions and vote on your own pools can be extremely cost effective. so Kenneth, do you have anything to say about lot of his experience with ve arrow and being able to build liquidity on base for cheap?
Building Liquidity Efficiently
Yep. Yeah. So I think we have a pretty decent amount of ve value and ve aero lock. I think it's somewhere between like probably at one point something million velo and like I think 800 kv. Just a fair bit of locked tokens that can help us to basically channel the incentives over to the pools. But I would say like, although Ace mentioned that it's a good user experience to be able to get engaged and vote on a pool. It is a pain in the ass for like a multi sigdaos because essentially, you would have to do it weekly. And I think, like, in terms of Dao ops, that's really painful to do. But thankfully, we work closely with the velodrome and aerodrome team to help us deal with all the pains of having to lock and vote and all that kind of stuff.
Effectiveness and Liquidity Strategy
So, yeah, it's been a pleasure to basically work with you guys. So, in terms of effectiveness, I think, it's shown in the TVL. So basically, I think when we started expanding on base, right, were. It's usually part of like, our liquidity strategy to incentivize on multiple dexes. But right now, I think we have seen, like, which one is the one that actually evidently showed success in terms of helping us build the necessary liquidity requirements we need. Which you aerodrome, of course. And which is why we've completely just been flat out just incentivizing aerodrome ever since. And at the moment, I think it's pretty much the amount that we're doing. It's pretty much just a constant amount. We don't really have to increase it, but somehow the tvl just keeps going up since we are just accumulating.
Comparative Liquidity Success
Vaehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehehe all this time. And at the same time, I think it's. I would say it's relatively successful because essentially, I think we pretty much have comparable liquidity to Cbe on base, which is a huge win for us. Nice. I got a question for you, kenneth. You guys were like part of the locking, like the protocols who received a big op bonus for locking. You talk about that a little bit and like, what are you guys going to do with the op that you received? Oh, yeah, it's essentially you're just going to go back into the ecosystem. That's always been our mandate. Awesome.
Reinvestment into the Ecosystem
Awesome. Yeah. For anyone who might be not as familiar, essentially, when we talk about effectiveness and building liquidity for cheap, if you grow a pool on. We'll take uniswap as a really basic example. And you want to grow that pool, you have to spend sort of one to one incentives and pay for that yield. If you want to grow the pool to some certain number. And as the pool grows, you have to spend more. And, yeah, like I said, each dollar that you put in as incentives is $1 that the LP's are receiving with velodrome or aerodrome. When you lock up velo or ve arrow and you vote on a pool, essentially the amount that you are incentivizing with, you're able to direct a greater dollar amount of emissions to that pool.
Effectiveness of the Process
So it's really effective for protocols to buy arrow or buy velo, lock it, and then constantly, just every week, be able to vote and direct an amount of emissions that is greater than what they spent. I hope that makes sense. Yeah. Kenneth, I got one more for you. So I wanted to ask about your experience with scaling Rafsake D on l two s. I mean, you mentioned a five x tv all on base since April, which is really awesome. This program was really focused on lsts and lrTs. Are there any lessons you've learned scaling rap stake DTh on l two s on optimism on base in terms of roadblocks challenges, why it might be harder to scale a stake derivative versus onboarding an asset like ETH or something similar?
Scaling Challenges on L2s
Yeah. Any thoughts though? So, yeah, I guess one of the challenges when it comes to, like, scaling lses would be that it's pretty hard for people to, it's hard for us to transfer liquidity, especially from like the typical non LSD pairs. Like, let's say, for example, if USDC. So so far, we've not actually have like a good answer for how do we actually start vampiring the more commonly traded pairs like efusDC? For some reason, it usually turns out to not be sticky. But what I realized when it comes to growing lsts on l two s is that it's probably better just like focus on the stable pair, because it's usually the one that's the most sticky, regardless of whether or not incentives are going to stay.
Priorities for LST Growth
Because eventually the goal of all protocols, all LST LRT protocols, would be to run the incentives program such that you can eventually just allow it to survive on just volume alone and have the liquidity stick there. So I think one of the main priorities we have now when it comes to growing lsts, I guess, and SD on l two s is essentially being able to find the right Dex to work with. So what I mean by the right Dex is usually we tend to look for things like, does it have concentrated liquidity? Because ultimately, at the end of the day, we're just trying to build enough debt so that our tokens get used as collar roll. Because that in itself is probably the biggest use case for why would anybody prefer, like an LST over eve, for example?
Associated Growth on Aerodrome
So, yeah, I think we only really did see a lot of, a lot more growth and traction in terms of TVL on aerodrome, especially after the slipstream update so when that happened, I think essentially our TVL did probably almost a two x from there. So, yeah, kind of. In terms of priorities, we always look for concentrated liquidity as well as efficiency in terms of rewards. So those are pretty much very high on our priorities when we go to new chains. So, for example, I think we'll be launching on BSc sometime this week. So that's what we also looked out for when. When we chose the Dexs that we want to build our liquidity on.
Future Plans on New Chains
On BSC. So, yeah, pretty much just that. Cool. Well said. Damn, BSc. I actually wasn't, wasn't aware of that. That's cool. Is that alpha?
Discussion of Information Gaps
Is that just information that I totally missed? Yeah, I mean, it's. It's alpha, but if I. It's on snapshot, it's on governance, foreign. So I guess it's alpha because nobody would read them. Yeah. Nice. Yeah. I guess I can speak a bit as to why LSTs and LRT's were, like, such a big focus of this program. The most popular positions in defi involve arbitraging rates between state derivative providers and their underlying, especially with leverage. If you look at Pendle, for example, perfect example of what people want and why they grew so quickly is because they give people the tools to be able to arb these rates and lock in fixed rates with leverage. LRT tokens, and Eigen layer speculation have directed billions of liquidity this year, and we wanted to capitalize on a lot of that speculation and capitalize on Lido's dominance in the LST space. So trying to bring a lot more of these positions to the surface on super chain networks was a big goal for us.
Liquidity and Positioning in the DeFi Ecosystem
I believe we've done that pretty effectively, given the amount of op that we had to incentivize with. But that is also, you can't onboard LSTs, LRTs, especially just straight, without deep Dex liquidity, that's the first thing that needs to happen. And also a good amount of eth liquidity to complement velodrome and aerodrome were huge parts of trying to onboard, trying to deepen liquidity across these different tokens so that protocols, like lending protocols and other protocols that can build on top of them for finance, like gearbox, things like this, can do their magic and leverage the yield that these pools are generating. So, yeah, I mean, exchanges, lending markets are the backbone of any defi ecosystem, and trying to position different super chain networks well enough so they can really, I guess, invite a lot more interesting yield bearing tokens, interesting positions. That leverage these tokens was a big goal for us. Yeah, I hope that made sense.
Building on Optimism and Long-Tail Assets
Speaking of lending protocols, silo, how has it been building on optimism so far? Amen. I, you guys have gone from zero to 100, and I wanted to ask you about your architecture and why you're so well suited to handle these sort of more long tail assets, interest bearing assets like the derivatives I'm talking about. You kind of alluded to it a bit in your intro, but. Yeah, please take it away. Yeah, absolutely. And we have an example on optimism like easy Eve is recently. It's a recent asset on optimism, and we've seen that market grow to about 15 million. It's just a great way for users to leverage, so they deposit easy ETH, borrow ETH and loop it. And of course you can leverage that through apps like Contango, for instance. So the why we're positioned for that, because it's risk isolated. So, so technically speaking, and you've mentioned that how lending protocols work in tandem with liquidity layer like Villadrom and the rest of them.
Risk Isolation and Specific Interest Curves
But at times when a new asset is launched, typically they don't find their ways to lending protocols because liquidity is not yet established to the level that you want. But in risk isolated markets, it is possible to do that. So why? Because you can, we can isolate them from the rest of the protocol. And technically, a user depositing ETH, or lending ETH to someone holding easy ETH, they know they're taking the risk of easy ETH, and maybe they're comfortable with that and wouldn't see liquidation events unless some abnormal deep events happen. So that one of the reason, risk isolation. So that's number one. Number two, which is most important reason, is the fact that risk isolated markets can apply specific interest curves for each market. So technically on AAvE, if you are a USDC depositor, you're earning unified. There is one interest rate curve for all USDC, regardless of how this USDC is borrowed, whether it's borrowed with, let's say, ETH or staked ETH or whatever.
Market Growth and Incentives
But risk isolated markets, let's take for example, easy ETH market, we can apply a specific interest rate interest curve for the ETH in that specific market, regardless of how ETH is being borrowed in other markets. So this means you can always adjust, you can manage rates better, usually go in tandem with the yield expected from the underlying. And of course, a big part of it is in this case is the speculating on points. So now, because we can apply a steeper interest curve for the ETH inside that specific interest, that specific market, you usually see like an increase in the ETH deposits. And of course, that kind of affects the looping. And you can, users deposit more to loop, more ethnic, to look more easy ETH through by borrowing ETH. And that's the second reason. So technically, like, in a nutshell, the lending markets, isolated lending markets, you can manage risk better, but you can also earn better as a depositor, because each market has its own interest rate curve.
The Attraction of The Silo and ETH Rates
So that's why the reason we see easy ETH has grown, of course, superfest. The initiative has given the market a massive push. In addition to the, that we see. In addition to the ETH rates that we see today, which is, technically speaking, it's an, it's, you can't find it anywhere, actually, in markets. So today, a depositor in, a depositor of ETH in the market earns about, like, 6% just from interest, 6.4% from interest, which is way higher than the Eve earns in, like, depositing ETH and other lending protocols. Plus about 1.1% and so professed rewards, plus about 1% in the op rewards from us. So, technically speaking, you're actually earning about 8.4% as of today, which is really high considering the ETH deposit rates today. So that's really the reason why we see silo is perfect for such NASA assets and derivatives, such as PT tokens, that we've seen it somewhere else.
Pendle and the Optimism Ecosystem
And every, any new asset or the derivatives. Yeah. Nice. I would really like to see Pendle make a push on optimism. I know I said this, you know. I've been really talking to them. Yeah, we've done it. Ease off about it, because I think it's just perfect. And especially for optimism, it's perfect. It's a fantastic community and ecosystem. I think it's a really logical move for them. Hopefully, we'll see it soon. Yeah, totally. I think they're annoyed with me. I keep peeing them in the chat, like, please, come on, come to optimism. Like, all right, yeah, but you guys have crushed it with PT markets on arbitrum and ETH as well, so, yeah, really cool. I'll pat myself on the back for setting you up, describing some of the problems that the original pool model for lending protocols runs into.
Constraints of Traditional Lending Protocols
Which, for example, I know Etherfi has been trying to scale on base, and there's a ton of demand for weth on AAVE on base, but they have to set caps. And then every once in a while, when the caps get hit, they have to revisit, try and build more liquidity, because there needs to be a certain amount of ETH liquidity on AAVE and weth liquidity on dexs to be able to service all the demand to borrow it, you know, supply it and borrow it. So silo is able to scale without these. These constraints we can't scale. And to tell you the two reasons, caps usually are kind of very difficult to. They don't work in lending to that extent. Well, number one, if you have high demand for borrowing eth, for instance, in on like, and let's say you have huge influx of we to borrow Eth, you are increasing the borrowing interest rate for all eTH borrowers, regardless of the asset or the collateral used.
Impact on Borrowing in Shared Pool Models
So maybe it works to pay for you if you're depositing, let's say, easy ETH, or we've. It works for you to pay 6% on Ethan, but not might not work if you are depositing staked ETH and borrowing Eve. So, technically, you're impacting everyone in the pool. So they have to factor that in as well, because. Because there's a unif. There is one interest curve for all ETH in the protocol, unlike isolated markets, where each isolated market can set its own. That's number one. Number two, absolutely. We've lending protocols, especially shared pool lending protocol, like AAVE and compound the rest of them. The caps are important liquidity issues. We've seen that with curve. When curve got illiquid in comparison to the sizable borrows on AAVE, that posed risk to all depositors in the protocol.
Safety of Isolated Markets
Not just the curve, for example, not just USDC depositor to the entire protocol, because it's a shared pool model. So they have to make sure that they can liquidate in case there is a deep event. And we've seen deepg events can happen. We've seen it with certain LRT at one point, because users just panicked. So then that could leave, could actually end up in a shortfall event, and then leaving the protocol in bad date and all depositor and the protocol will actually suffer from that. So that's why isolated markets can, although it's difficult to scale them, but they're definitely much safer to users.
Highlighting Attractive Positions
100%. Well said. Yeah, I did want to highlight some of the positions that I found really attractive through this program. One of them, I think you mentioned, is the easy Ethan market on silo that has been really popping off, and also the rap state deeth market on silo. So, guys, if you're not in the know and I've said this before, but you should be following silo intern. Your intern account is amazing, and there's a lot of alpha there. So follow silo intern and. And go to the superfest homepage to check out some of these positions. Yeah, and some of them there, I think they're on the homepage. But some of the pools on velodrome and on Aerodrome, I guess just velodrome, are being incentivized.
Opportunities for Users
Like the votes are being incentivized. So there's bribes being sent out each week. I think the rapstake teeth easy eth pool on velodrome is getting a hefty bribe each week. And there's a couple there. So there's multiple places to earn, if anyone's wondering why there's a main claim page. First of all, it's really nice to have everything in one place. I'm really proud of this homepage that jumper has put together as users can kind of have one hub to go from. But also, Op is not interoperable between different l two s. So that is why we have to use Merkle and track these positions across different chains. Because op lives on op mainnet.
Future Opportunities and Engagement
Yeah. Okay. Anything else? Any other positions you guys want to highlight before we move on? I do want to ask you guys what you're working on currently, and maybe there's something that users can look forward to for the last quarter of this year. But any other positions you guys want to highlight quickly, before we wrap up? Yeah, I mean, it's worth mentioning that the op superfast is only, I guess, one aspect of all the different opportunities that Belladrome, aerodrome and the partners up here are offering. It's almost like icing on the cake, right? Because on optimism, we're also. We've just launched like this gov NFT initiative where new velocs earn. Essentially, it's a ve NFT designed after kind of v bello that has op that can be vested over time for governance participants.
Governance Engagement and Incentives
So it's like this really cool initiative to get people to be more involved with governance. And I actually think optimism governance is sort of the setting the bar for how it should work in terms of the number of participants and, you know, the productive and thoughtful discussion. So, you know, I'm hoping that it kind of gets people more engaged and excited just at the optimism foundation level. The other thing on airdrome, obviously, like the lock bonuses from flight school, kind of amplify the superfast rewards. So there's a lot happening at the incentives level. I think you just mentioned, like, one of the LST pools in Belladron was getting additional op bribes. And it's like, yeah, that's another program we have going on. So it's like, it's worth going into the discord and understanding all the different opportunities concurrently.
Final Thoughts and Overall Strategy
Running for most of our protocols. 100%. Really, really good call out. Yeah, yeah. I mean, another really important goal of the program is to kind of set these up, turn some, like, at the very least, just turn some eyes towards all the different opportunities there are and incentivize positions that can scale with yield, like the yield can scale with TVO, and have those positions kind of carry forward long term after the program ends, have that yield be sustainable and be sustained by just general an increase in activity across all these chains.
Silo Growth and Initiatives
Yeah, really good call out there. Yeah, Charles. I think it's been really success, at least the way to look at it, at silo. I hope that we can come up, guys, with a much bigger initiative, because, for example, for us, it's definitely helped us propel the growth of silo. We've also seen users using optimism for the first time because they just needed that nudge, that extra incentive. I think it's sometimes just because if it's a larger initiative with a lot of projects behind it's well organized, and user experience has been really fantastic. I think that itself brings a lot of benefits to the entire ecosystem. So I hope that you guys will think of a much larger program going forward.
Future Collaborations and Initiatives
Yeah, 100%. I wish it was my decision. I would love to just lock it in, but, yeah, I have the same hope, for sure. Yeah, I guess I wanted to start closing it out. I know we're getting on a bit in time and everyone's busy, but I did want to ask what other things you might want to call out for the rest of this year. What users should keep an eye on and what you're working on, what you're looking forward to. Kenneth, do you want to start there? yeah. I think it, like I mentioned earlier, look forward to WSE on BSC. Well, I know this is a super chain space, but, yeah, that's what we're currently. That's what I'm at least currently, like, really busy with at the moment.
Focus on Steve and its Usability
I think in terms of, like, push for Steve in general, we're trying to push hard to get it used as a collateral on a bunch of different dexs, and some of them you might even see on base. So essentially, our focus is really to continue growing Steve as, like, a prime collar asset in defi space, in terms of usability and liquidity. So pretty much look forward to that growth in those regards. And, you know, if you have eth, take it with Lidar and you can use it easily in all these ecosystems, think eventually, maybe next, early next year, you might be able to expect to see a staking immediately from l two s.
Anticipation for Upcoming Features
So, yeah, that's something to look forward to. Whoa. Whoa. Big alpha draw. That's awesome. I'm not committing any timelines, but I would say conservatively early next year. Wow. Awesome. Just in case. Yeah, well, I'm going to have to start denominating my net worth in rev state Deeth now. It's just going to keep getting layers removed. That's awesome. Really, really cool. Yeah. Sweet ace. What are you guys working on now? I know you mentioned sort of the meta Dex vision starting to come to life with some gauges for directing emissions on different chains.
Development of Velodrome Super Chain
Yeah. Anything you want to speak on there or other stuff you guys are working on currently. Yep. Dev team is heads down deep in the code for velodrome super chain 1.0. I think our pinned tweet talks about what that actually means. It's sort of this early interoperability vision that we have for velodrome as the meta Dex of the op super chain. So, yeah, like you said, having velo emissions going cross chain is sort of step one. People can bribe from other chains, users can claim rewards from other chains. Velo will be streamed tools and other chains, which is really cool.
Enhancements through Mellow Protocol
And the other thing our devs are working on with mellow protocol is our automated liquidity manager, and it's going to be built right into the UX or the UI. So we're going to hopefully streamline some of the pain points of providing concentrated liquidity. It's not for everybody, obviously. Make sure you guys know what you're doing, what getting into before you decide to ape into a pool with crazy ApR. Understand the numbers you're looking at, understand the risks of, like, impermanent loss. But ALM will at least, like, help make the liquidity in the pools more efficient if you opt into the mellow protocols feature.
Boosting Volume and New Opportunities
So that should just create deeper liquidity around the current price, which is awesome. It helps kind of boost volume for pools on both Dexs and on the BD front, you know, it's all about pushing the super chain narrative. So we're talking to lots of new l two s, launching app chains, and general purpose defi chains and entertainment chains. I mean, it's crazy. I think there's plenty of public l two s that are, you know, talking about their ideas. So it's worth like looking into what's in the pipe from op stack chains.
Active Developments in Ethereum Ecosystem
And obviously like base is really kind of the most active ethereum l two. I'd say it's neck and neck with like arbitrum and it's competing with Solana as far as like, you know, where the meme coin traders are. So plenty of new protocols to onboard. Yeah, we're having a good time and staying very busy. Hell yeah. I'm personally excited for the ALM integration. I am a very poor concentrated liquidity provider. I try and it usually doesn't work out. So that's good to know.
Upcoming Market Launches
Yeah. You want to cap it off? What are you guys working on? What are you excited about? Well, we continue to bring new markets next week. We're excited to launch USDM wrapped USDM on optimism. It's going to be the first really real world asset stablecoin launched on Saddler protocol. And specifically it's going to be the first on optimism. So we're super excited about that. But the almost 90% of our resources going into v two.
Innovative Lending Protocols
So being the first risk isolated market, we want our v two to be the most flexible and advanced risk isolated lending protocol in Defi. So we're definitely building that. So you'll be able to create really the most customized lending protocol. We also introduced the concept of hooks similar to uniswap V three hooks to lending. So that's going to make markets interoperable with a lot of lending apps. So super excited about that. And Vsilo is definitely coming soon.
Launching New Compliant Lending Markets
So that's also excited about that. The third thing I'm going to drop on Alpha, we're actually dedicating launching a lending protocol focused on compliant reward assets targeting institutional borrowers. So all these securities backed assets, including stable coins backed by t bills or really any other securities, you know, they're bound by specific compliance processes and we're actually creating lending markets for those assets. And of course it's going to be for a specific set of users, including institutional and other accredited holders.
Transitioning Silo into the Future
So yeah, Silo is definitely moving into being part of the what some people say, the next tokenizing the next trillion dollar on chain. Wow. Insanely cool. Thank you for the alpha. That's awesome. Wow, that's really cool. I'm excited to see that. Yeah, that's insane. That just reminded me of, I think redacted is doing something similar for a stake derivative, but lending protocol makes a ton of sense for targeting institutional investors. Really cool. Okay.
Closing Remarks and Thank You
Wow. Thanks a m. Yeah. Okay, guys, that's all the stuff I wanted to cover. I do have to run to another meeting, unfortunately. But I will say if you haven't got involved yet, if you're not quite sure what we're talking about, go to jumper exchange superfest. Just go to the jumper website, and you will see a bunch of positions you can take advantage of and earn. Yield from or no p from. The program is ending on September 3, so a few more weeks left, and the last couple weeks are going to pop off, so still lots of time to get involved.
Engaging with the Community
And Mark would kill me if I didn't mention the NFT wristbands that you can earn. So essentially, any chain that you earn rewards from, you can claim this. Nft. So, like, if you're farming, you know, a rap state position on, let's say you're on velodrome, you're in the rap stake d three pool on velodrome, or you're in the rap steak teeth market on silo, you can claim a little optimism. Nft. And so if you do that for all four of the chains, you'll be able to collect this kind of mystery.
Closing Thoughts and Encouragement
Nft. And I can't say too much. All I would say is maybe it's a good idea to mint this mystery. Nft. Yeah. I can't give away anything, but I will be doing this personally. So, yeah, if you haven't gotten involved, get involved. There's a lot of opportunities available. And, yeah, just want to thank you guys, for coming on stage with me. Thank you, everyone, for listening. Yeah, great space. Really enjoyed it, and I hope you all have a wonderful rest of your week.
Conclusion and Appreciation
Any final thoughts, anyone? Thank you so much, Charles, and to speakers and listeners, appreciate it. Likewise. Thanks, Charles, for putting this together, and happy to do it again if you want to have a third quarter update. Thanks for having me. And thanks, everyone, for tuning in. Well, it's great. Speaking of you guys as well. Hell, yeah. Thanks, guys. Always down. All right, talk to you later. Bye, everyone. Bye.
