Use Curve on Optimism and Farm $OP Rewards
$OP Token rewards are now live to Lenders on Llamalend and selected crvUSD pools on Optimism 🦙
The Curve DAO passed a governance proposal to allocate 60,000 $OP (received from a previous grant from Optimism) from its Vault to bootstrap LlamaLend markets on Optimism. This initiative aims to kickstart lending activity and enhance crvUSD liquidity across key collateral markets.
This initial allocation will be followed by an additional 90,000 $OP grant directly from the Optimism Foundation, released upon reaching agreed-upon milestones and secured with the support of LlamaRisk, who played a key role in coordinating both funding efforts.
LlamaLend was soft-launched on Optimism in the past year. With incentives now in place, it’s positioned to grow and scale lending activity.
Bootstrapping Lending and Liquidity with 60,000 $OP
A total of 60,000 $OP will be distributed over a 7-week period to bootstrap both lending markets and on-chain liquidity for crvUSD on Optimism. The distribution is split evenly:
- 30,000 $OP will be directed to lending markets on LlamaLend.
- 30,000 $OP will go toward incentivizing key liquidity pools.
This dual-track strategy ensures that borrowers have access to capital, while also deepening liquidity for the stablecoin across major trading pairs.
Lending Incentives
Incentives will be distributed across the following collateral markets on LlamaLend:
Users who supply crvUSD to these markets will begin earning $OP rewards as soon as they deposit. Borrowers can take loans against these assets. Get started by selecting a market here.
To ensure optimal market conditions for both borrowers and lenders, interest rates are actively monitored and adjusted as needed. In fact, there’s currently a vote underway to lower rates for all LlamaLend markets on Optimism. You can view the proposal here and cast your vote here.
Rewards are front-loaded for the first 3 weeks to accelerate adoption, with a gradual taper over the 7-week period.
Full distribution breakdowns are available in the dashboard here.
Supporting On-Chain Liquidity
To ensure that borrowed crvUSD has deep and usable liquidity across Optimism, the proposal also includes sustained incentives for three Curve liquidity pools:
- 2,000 $OP/week to crvUSD/CRV/OP
- 1,428 $OP/week to crvUSD/WBTC/WETH
- 857 $OP/week to crvUSD/scrvUSD
These pools will receive incentives for a total of 23 weeks, including the initial 7-week bootstrapping period. Rewards will remain constant throughout the entire duration of the program.
Transparent & Secure Distribution
The distribution is fully automated via pre-programmed smart contracts, requiring no manual intervention. If needed, a governance mechanism allows the DAO to reclaim unspent funds and restart the program through a new vote.
An excellent dashboard tracking the full incentive distribution schedule and allocation can be found here:
View the Dashboard here: https://claude.site/artifacts/90030fd6-d1f6-4181-a542-968966e70e19