Ethereum Users Flock to Optimism for Aave Liquidity Mining Launch

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 announced the beginning of its newest liquidity mining program Thursday, a part of what the chain is asking “OP Summer season.” The challenge has allotted 5 million OP tokens to DeFi lending big Aave for distribution to its customers over the subsequent 90 days. 

Because the replace went stay, customers have bridged a whole bunch of hundreds of thousands of {dollars} of tokens to Optimism and deposited them into Aave to earn further OP tokens. In response to data 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 just below $420 million value of belongings locked in its sensible contracts. 

Whereas the Aave liquidity mining program is the most important on Optimism up to now, it’s not the primary. Because the Ethereum rollup launched its native OP governance token in Could, 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. 

Due to its OP token incentives, Optimism has considerably elevated its person base and the entire worth of belongings locked in sensible contracts on the chain. In response to L2Beat data, the community’s complete worth locked, excluding its native OP token, has increased 63% for the reason that OP token launched on Could 31. Extra just lately, the beginning of Aave liquidity mining has pushed the entire worth locked up an extra 27%. Optimism at the moment holds roughly $1.51 billion in complete worth locked, trailing solely Arbitrum’s $2.48 billion within the Layer 2 race. 

Optimism is likely one of 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 fuel financial savings in comparison with transacting on mainnet. For instance, L2 Fees data exhibits that the present value to swap tokens on Optimism prices $0.36 in comparison with $6.49 on Ethereum. 

Disclosure: On the time of penning this piece, the creator owned ETH and a number of other different cryptocurrencies.