![]() The grants enable more people to build on top of Pika and Optimism, helping Optimism become a rich ecosystem. The liquidity backstop acts like a permanent safeguard to the Pika Protocol, which brings confidence for traders to use Pika on Optimism. The future LP and trader incentives will encourage a migration of liquidity from L1 and other chains to Optimism. Distributing tokens to these early users of the ecosystem is benneficial to the long term user engagement Optimism. # How will this distribution incentivize usage and liquidity on Optimism?Ī large number of liquidity providers and traders have used Pika since its launch without any token incentives, and many of these are first-time Optimism users. A number of volunteer community members have been building and creating with Pika for the past few months and with these grants, we look forward to having more people build with Pika. ![]() ![]() The grants will be rewarded for integrations(projects built on top of Pika), bug bounties, toolings(i.e: Dune Analytics, Zapper), content creations. $OP tokens will help us to achieve this goal initially and Pika has the plan to use its own tokens to further backstop the system after the token launch.Īmount: 50,000 $OP(15% for early builders and 85% for future rewards) This type of liquidity should be locked into the liquidity pool forever(unless there’s a migration), making sure the protocol has enough liquidity for traders under all circumstances. Pika has the plan of providing protocol owned liquidity to backstop the system under such events. Liquidity vault of Pika acts like a counterparty for all the traders, and has the risk of drawdown when some whale traders earn big profits in extreme market movements. It will allow Pika and Optimism to gain more TVL as well as traders. $OP tokens will be used to reward the previous liquidity providers(prioritize those with negative pnls) as well as future liquidity providers to bootstrap the Pika’s liquidity. To further grow the trading volume and open interest of the platform, Pika needs to grow its liquidity by offering token incentives at the early stage. Pika would not have such great adoption without the support from liquidity providers and will continue to be so moving forward. Thousands of unique users have provided liquidity to Pika since its launch without any token incentives, and many of these are first-time Optimism users. It also receives trading fees, interest and liquidation profit of trades. The liquidity vault pays for trader profits and receives trader losses. The liquidity provider takes the opposite position of all traders on the platform. Liquidity is the most important part of the Pika Protocol. **Amount**: 525,000 $OP(20% for early supporters and 80% for future users) The reward will be distributed as trading fee rebate. To bring more new traders to Pika and Optimism, Pika will use the $OP token to provide rewards to previous traders(prioritize those with negative pnls) as well as future traders. As a perpetual swap exchange, Pika’s growth is largely defined by the number of traders on the platform. Close to $400,000,000 has been transacted on the platform so far, with the current daily transaction count of over 1000. **Amount**: 125,000 $OP(30% for early supporters and 70% for future traders)Īmong the over 10,000 unique user addresses that have interacted with the protocol, the majority are traders. Tokens will be distributed to achieve these goals: Pika aims to distribute $OP governance fund tokens to not only grow its own user base, but also continue to drive the adoption of the Optimism ecosystem. It has brought a large number of users to Optimism and will continue to do so. Pika Protocol has achieved close to $400m trading volume with over 10k unique user addresses for the past 3 months. Pika Protocol is one of the earliest Optimism native projects launched since December 2021. ![]() **Proposal for token distribution** (under 1000 words): **Number of OP tokens to claim**: 900,000 # Pika Protocol $OP Token Phase 0 Distribution Proposal ![]()
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