On October 26, phase 1 of the Optimism-Uniswap Liquidity Mining Program started.

For this phase a total of 50K OP in Incentives were deployed on the following pools :

• WETH/USDC - 0.05%
• WETH/DAI - 0.3%
• USDC/DAI - 0.01%

At completion, after a retrospective of the campaign results, two new phases (100K and 650K OP) will be deployed.

> Data Source: Dune Analytics

The is following the joint proposal by xToken Terminal & Gamma Strategies to outline a path forward for OP liquidity incentives on Uniswap V3.

This is both a governance proposal and a partnership proposal. We are putting forward our capital markets platforms, as two service providers for OP liquidity incentivization.

> Terminal’s out-of-the-box solution allows projects to deploy a highly configurable Uni V3 liquidity mining (LM) program in a matter of minutes, no dev work or technical expertise required. Terminal is live on Ethereum mainnet, Optimism, Arbitrum and Polygon. Gamma Strategies has been actively managing liquidity on Uniswap V3 since March 2021 and prides itself on optimal LP strategies using its machine learning algorithms and automated strategies. Gamma is currently live on Ethereum mainnet, Optimism, and Polygon.

Investigating Arrakis Managed Uniswap V3 Liquidity Pool Positions

After the announcement of the OP token incentive till date, it was observed that the there was a total user of 1,935 users that contributed to more than 5,000 transactions with the highest weekly participation being the 7th of November 2022.

It was also observed that there was a heavy inflow of liquidity at the launch of the incentive program which greatly impacted the TVL with the USDC/DAI 0.01% pool getting the highest TVL and it was observed that LP users tend to withdraw their positions after a short period.

It was also observed that the number of user interaction reduced from the 3rd week and with the pools were greatly affected by the FTX saga as we noticed a significant decrease in the number of users and as well as the TVL which could be probably because of the panic caused by the FTX crash.

Investigating Gamma Managed Uniswap V3 Liquidity Pool Positions

A total of 2,410 transactions happened after the announcement of OP token incentive for liquidity mining on Uniswap pools with 576 users that participated.

The majority of the transaction occurred in the second week after the incentive announcement and it was predicted to be greatly impacted by the FTX saga because we see the number of transactions and user participation greatly decreased.

The USDC-DAI 0.01% pool received the highest liquidity deposit

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Investigating Xtoken Terminal Managed Uniswap V3 Liquidity Pool Positions

After the announcement of the OP token incentive till date, it was observed that only 216 users that contributed to more than 455 transactions.

It was also observed that there was a heavy inflow of liquidity at the launch of the incentive program which greatly impacted the TVL, transactions and new users received in the first three weeks.with the USDC/DAI 0.01% pool getting the highest TVL and it was observed that LP users tend to withdraw their position after the incentive period.

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