Title: RFC: Deploy Euler on Optimism
Author: Matt, SNX Ambassador and Optimism Delegate
Related Discussions: N/A
Submission Date: Feb 20th, 2023
The Euler community should consider supporting the deployment of the project on Optimism, a layer two scaling solution built on top of Ethereum Mainnet. Optimism’s focus on scalability and decentralization aligns with the ethos of DeFi, and the platform provides a great testing ground for lending markets. In this proposal, we will develop the rationale by which we believe this to be true.
Optimism is a Layer 2 scaling solution that enables fast and low-cost transactions on the Ethereum Mainnet. It is based on Optimistic Rollup, a scaling technique that allows for thousands of transactions per second while maintaining the security of the underlying Ethereum network. Optimism’s design aligns with the goals of DeFi, which emphasize speed, security, and decentralization.
Optimism has a vibrant DeFi ecosystem and is the 7th largest chain by TVL (at the time of writing) with $858M in TVL with $672M of that being in stables. Optimism features may DeFi protocols that those in Ethereum mainnet know and love, like - Synthetix, Curve, AAVE, Uniswap, Pool Together, new protocols like Velodrome, and an entire ecosystem surrounding Synthetix - Kwenta, Lyra, dHEDGE/Toros, Polynomial, Decentrex, and so on.
Optimism’s biggest strength is its dedication to building on top of Ethereum and enabling scaling while still maintaining the security of the Ethereum network. It also heavily aligns with the ethos of Ethereum by having a strong commitment to retroactive public goods, to which it has donated millions of dollars to, and a great grants program that has incentivized countless projects to build.
Optimism has seen rapid growth over the past year, with TVL on the platform increasing from less than $20 million in September 2021 to over $2.5 billion in January 2023. The platform is well-capitalized and has attracted investment from top-tier venture capital firms.
Regarding on-chain metrics for Optimism, everything below has been sourced from the Optimism Community Dune (Optimism Protocol Metrics 🔴✨) and DefiLlama. Here are some metrics I’ve pulled from that to support Euler deploying onto Optimism:
Average TX per day for last 30 days - 200k
Average transacting accounts per day for last 30 days - 32k
Transacting addresses per month - 328k
AVG L1 Gas Savings: 158x
Optimism TVL: $858M
Optimism 24 hour volume: $40m
Comparable lending markets:
AAVE TVL : $90m
SONNE Finance TVL: $24M
Optimism is EVM compatible and is supported by top infrastructure/data providers that DeFi developers know and love. This includes, but is not limited to: Chainlink, The Graph, Pyth and so on. RPC providers can be found at Optimism RPC and Chain settings | Chainlist but include ankr, alchemy, and so on.
Deploying Euler on Optimism would provide significant benefits to both the Euler community and the broader DeFi ecosystem. It would enable the protocol to scale to meet the demands of a growing user base while maintaining the security and decentralization that are critical to the success of DeFi. Additionally, it would provide a unique opportunity for the Euler community to collaborate with other top DeFi projects and developers, which can help to further refine and improve the protocol.
The Euler deployment on Optimism would be a full deployment of all Euler functionalities. It is up to DAO to propose which assets would be the first to be used in the lending market.
I’m more than happy to connect Euler contributors with Synthetix’s extensive contacts at Optimism to help collaborate with Optimism on a potential launch. There’s a great opportunity here to promote Euler in front of a wide audience of users that haven’t found their ideal lending market yet through various mediums – Twitter spaces, co-marketing tweets, discord calls, and so on.
In conclusion, the Euler community should strongly consider supporting the deployment of the project on Optimism. The platform’s focus on scalability and decentralization aligns with the ethos of DeFi, and the platform provides a great testing ground for lending markets. By deploying on Optimism, Euler can continue to grow and innovate while maintaining the highest standards of security and reliability.
Should this proposal pass the temperature check, we suggest voting in two ways:
Yes: Deploy Euler to Optimism
No: Make no change