Optimism Prime’s Monument: Rebuilding the Cybertron Plan
The following idealizes the ambitions and goals of the Optimism Prime token (ticker: $OPP) on Optimism and lays down its plans in enabling the Autobots to thrive on the chain.
Chapter I — Bringing Memes to Optimism
The first part of our battle plan is to position ourselves as the first Meme Token on Optimism. No VCs, no presale, no team tokens — 100% stealth launch. Through this approach, we aim to build a heterogeneous, fair user base.
Memes don’t just bring insane volume, great volatility, extreme profits, and lots of fun. With the right approach, memes can be the perfect foundation for a strong community and multi-faceted project.
Optimism Prime has landed, and part 1 of the plan is executed and working according to plan.
Chapter II — Bringing DeFi to Memes
With the community behind us as equal holders, we want to bring DeFi and Meme together in part 2 of the plan.
Through massive bribes on Velodrome and subsequent farming with the LP token, we want to build up voting power to eventually be able to actively influence the liquidity on Velodrome and receive massive bribes. This concept has already proven to be very successful on other chains.
The income from the bribes allows us to let our community participate in the progress of the project.
Chapter III — Autobots unite!
Once we have built up enough voting power, we will share the profits from the project’s activities.
Those who attract their $OPP will share in the profits from bribes, farming, and trading fees.
This way we make sure that all Autobots get a fair share and together we can recreate Cybertron.
Chapter IV — The Autobots take over Optimism
To further expand the power of the Autobots, we will introduce Staking and Locking for $OPP and other assets.
Those who lock $OPP will receive shares of the revenue we generate through bribes and trading fees.
In addition, we will launch a second farming token: Energon ($ENG).
To farm $ENG, users can stake $OPP, $VELO, or $OP and expect a hefty APY. We will introduce a small deposit and withdrawal fee to build even larger positions in $OP and $VELO.
We will use the collected $OP to burn on Velo and lure the $VELO to further expand our voting power.
Chapter V — OPP for OPP Staking with the Autobots
Optimism Prime will be turning to locked single-staking mechanisms. The ideals for such a move are to reduce circulating supply and incentivize the community.
$OPP token holders would lock their tokens for a maximum of 1 month to earn their share of 20M $OPP tokens — this would be financed from the treasury. No greater than 100M $OPP tokens can be staked to prevent excessive dilution of APRs and thereby enforce a TVL cap.
This brings an innovative staking mechanism to the Optimism chain unlike what we’ve seen so far and guarantees a minimum of 240% fixed APR even if the staking reaches its cap.
Chapter VI — Optimism Prime Commences the Governance Metawars with DeFi mechanisms
Following suit from Liquid Driver, Convex, and other prominent DeFi protocols, it is quintessential that the Autobots acquire subsequent voting powers to defeat Megatron. In doing so, we’ll be using novel DeFi & NFT products to acquire increased veVELO positions.
Optimism Prime will be exchanging their Energon, $OPP, in exchange for $VELO. This exchange would be carried out by a “Bonding Mechanism” initially brought to life by Olympus Dao. $OPP would be sold for a linearly vested bond of 7 days in exchange for a fixed discounted percentage (TBA) whereas the user initiating the bond would buy the said bond with $VELO.
We realize that governance tokens are the key to the prosperity of the Autobots and the above would achieve exactly this purpose. All subsequent VELO positions would ultimately be locked for the max period and used to drive increased votes towards the $WETH/$OPP pair.
This creates a unique spin-off that not even prominent DeFi protocols can match. In doing so, we would be creating “Real-Yield” with no inflation, just pure rewards. We believe that inflation is an unnecessary evil orchestrated by Megatron himself in a bid to promote counter-productive practices such as dilution, tokens being printed out of thin air, etc.
Chapter VII — Optimism Prime Commences the Governance Metawars with NFT mechanisms
To further accelerate our efforts, we shall turn to NFTs to increase our $veVELO positions. Optimism Prime himself has volunteered for this purpose to spread the joy and charm of the Autobots to a multitude of wallet addresses across Optimism.
Optimism Prime resents useless NFTs and perceives them to hold real utility to help the Autobots grow. In accordance, we will be having a mint in $OP using the proceeds from the NFT collection and using that to buy VELO — locking it for its max period. The bribe and trading revenue from veVELO would be used for value accrual to both OPP token holders as well as NFT holders. The following is the ratio for the distribution of fees generated from veVELO using the NFT mint:
Mint Cost & Proceeds
Mint cost: Expected to be $5K
Team=$5K
Mint revenue: Expected to be $35K–40K in OP (assuming 3,333 at 10 OP each, $39,000)
Profit from Mint Revenue (revenue-cost): Used to buy VELO and locked for its max period
Value Accrual from veVELO
A veVELO (locked VELO) position generates the holder Trading Fees, Bribes and positive rebases — more info on this can be read here. The following is the break-up for value accrual from the above-mentioned sources:
37.5% of veVELO Value Accrual: Used to buy $OPP off of secondary and sent to treasury. This in part could be used for purposes such as bribes or whatever the community so decides.
37.5% of veVELO Value Accrual: Used to buy the NFTs off of secondary and burnt thereby creating a deflationary NFT supply unlike no other.
25% of veVELO Value Accrual: Sent to the team to cover development, support, and other miscellaneous costs so incurred.
