Ethereum Users Flock to Optimism for Aave Liquidity Mining Launch

A brand new liquidity mining program on Aave has helped push the overall 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 season.” The undertaking has allotted 5 million OP tokens to DeFi lending large Aave for distribution to its customers over the following 90 days. 

For the reason that replace went dwell, customers have bridged tons of of thousands and thousands of {dollars} of tokens to Optimism and deposited them into Aave to earn extra OP tokens. In line with information 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 price of property locked in its good contracts. 

Whereas the Aave liquidity mining program is the biggest on Optimism up to now, it isn’t 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 Additional time Markets. 

Because of its OP token incentives, Optimism has considerably elevated its consumer base and the overall worth of property locked in good contracts on the chain. In line with L2Beat information, the community’s whole worth locked, excluding its native OP token, has elevated 63% for the reason that OP token launched on Might 31. Extra not too long ago, the beginning of Aave liquidity mining has pushed the overall worth locked up a further 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 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 supply customers substantial fuel financial savings in comparison with transacting on mainnet. For instance, L2 Charges information 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 writer owned ETH and several other different cryptocurrencies.