Ethereum Customers Flock to Optimism for Aave Liquidity Mining Launch

Key Takeaways

  • OP token liquidity mining is now lively on the Optimism model of Aave.
  • For the reason that replace went dwell, deposits to Aave on Optimism have elevated 493%.
  • The liquidity mining program has additionally helped push Optimism’s whole worth locked as much as over $1.5 billion.

A brand new liquidity mining program on Aave has helped push the entire 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 introduced the beginning of its newest liquidity mining program Thursday, a part of what the chain is looking “OP Summer time.” The venture has allotted 5 million OP tokens to DeFi lending large Aave for distribution to its customers over the subsequent 90 days. 

For the reason that replace went dwell, customers have bridged tons of of hundreds of thousands of {dollars} of tokens to Optimism and deposited them into Aave to earn further OP tokens. In line with knowledge 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 slightly below $420 million value of property locked in its good contracts. 

Whereas the Aave liquidity mining program is the most important on Optimism up to now, it’s not the primary. For the reason that 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 Time beyond regulation Markets. 

Because of its OP token incentives, Optimism has considerably elevated its consumer base and the entire worth of property locked in good contracts on the chain. In line with L2Beat knowledge, the community’s whole worth locked, excluding its native OP token, has elevated 63% because the OP token launched on Might 31. Extra not too long ago, the beginning of Aave liquidity mining has pushed the entire worth locked up an extra 27%. Optimism at present holds roughly $1.51 billion in whole worth locked, trailing solely Arbitrum’s $2.48 billion within the Layer 2 race. 

Optimism whole worth locked (Supply: L2Beat)

Optimism is among the main Layer 2 tasks 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 provide customers substantial gasoline financial savings in comparison with transacting on mainnet. For instance, L2 Charges knowledge exhibits 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 creator owned ETH and several other different cryptocurrencies. 

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