Application for Optimism Season 9 - Growth Grants

LiquidityPilot — PriorityPair Pilot

@optimist-c86f0cb6

240000

0xAC62FF91cd4Fe86C329D5B463D81d95fD3916f62

LiquidityPilot is a non-custodial liquidity campaign and reporting layer. PriorityPair Pilot is its first OP Mainnet campaign, focused on activating liquidity for a Season 9 priority pair. The pilot targets the WETH/USDC 0.30% Uniswap V3 pool on OP Mainnet. LPs will provide liquidity directly through Uniswap V3. We will not custody user funds, deploy a new DEX, or ask LPs to deposit into a team-controlled liquidity contract. The requested 240,000 OP will be used for LP/user incentives: - 205,000 OP for active LP incentives; - 35,000 OP for retention incentives. The campaign is designed to measure whether targeted OP incentives can increase useful liquidity in the selected pool, support trading activity, and retain liquidity after rewards reduce. We have completed a pre-submission MVP that includes: - public campaign page; - selected OP Mainnet pool; - non-custodial LP onboarding flow; - incentive allocation page; - pool metrics dashboard structure; - report export structure; - LP soft-interest capture flow. The MVP is live at: Web app: https://www.liquiditypilot.app Github repo: https://github.com/steven3002/priority-pair-pilot

**Primary Target Pair** WETH / USDC **Chain** OP Mainnet **DEX Venue** Uniswap V3 **Fee Tier** 0.30% **Pool Address** 0xc1738D90E2E26C35784A0d3E3d8A9f795074bcA4 **Why This Pool Was Selected** WETH/USDC was selected because it is a widely used DeFi pair, avoids long-tail token risk, and has clearer trading demand than an experimental or new-token pair. The pilot focuses on one pool first so impact can be measured cleanly. We will not claim existing pool liquidity as campaign impact. Impact will be measured as the difference between pre-campaign baseline performance and campaign-period performance. The selected pool allows us to track: - TVL before, during, and after the campaign; - trading volume; - estimated fees; - OP distributed; - volume/TVL; - retained liquidity after incentives reduce. Expansion to another pair will only be considered after this first campaign has measurable results.

The campaign is currently in pre-launch baseline mode. No OP incentives have been distributed yet, and no campaign impact is being claimed before launch. The current baseline will be taken from the selected Uniswap V3 WETH/USDC pool before the reward period starts. The baseline will be used as the starting point for all campaign reporting. Baseline tracking will include: - pool TVL; - 24-hour volume; - 7-day volume; - estimated fees; - volume/TVL; - LP participation where available. Impact will be measured against this baseline using: **ΔPairTVL = average campaign TVL − average baseline TVL** **ΔPairFees = campaign-period fees − baseline-period fees** The MVP dashboard and reporting structure are already live at: https://www.liquiditypilot.app

The campaign will run through four workstreams. **1. Campaign Setup** We will finalize: baseline snapshot; active reward period; retention reward period; LP eligibility rules; reporting cadence; incentive distribution route. The MVP already includes the selected pool, campaign interface, onboarding flow, and reporting structure. **2. LP Acquisition** TVL will come from external LP capital. LPs will not deposit into a new contract controlled by our team. LP participation will be pursued through: direct outreach to OP Mainnet LPs; outreach to DeFi users already holding WETH and USDC; public display of reward terms; non-custodial onboarding instructions; soft-interest collection through the MVP; clear reporting on campaign status and rewards. The campaign will only claim incremental liquidity above baseline as its impact. **3. Incentive Distribution** The OP allocation will be used for LP/user incentives. Rewards will be distributed to eligible LPs participating in the selected pool. The final reward distribution route will use a suitable DEX-native or third-party incentive mechanism where possible, rather than a custom custody layer. **4. Reporting** Reports will compare baseline data against campaign-period performance. Reporting will include: - TVL before, during, and after the campaign; - volume before, during, and after the campaign; - estimated fees before, during, and after the campaign; - OP distributed; - retained liquidity after rewards reduce; - recommendation on whether the campaign should scale, change, or stop.

The campaign will use a phased incentive structure. **Phase 1 — Baseline and Launch** **Timeline**: Weeks 1–2 Activities: - confirm final pool; - publish baseline snapshot; - publish reward rules; - publish LP participation guide; - activate public campaign tracking. **Phase 2 — Active LP Incentive Period** **Timeline:** Weeks 3–7 Activities: - distribute OP rewards to eligible LPs; - track TVL, volume, fees, and LP participation; - publish campaign updates; - compare campaign data against baseline. ** Phase 3 — Retention Period** Timeline: Weeks 8–10 Activities: - reduce main incentives; - distribute retention rewards to LPs who continue providing liquidity; - measure retained liquidity; - publish final impact report. **Reward Allocation** Use OP Active LP incentives 205,000 OP Retention incentives 35,000 OP Total 240,000 OP The incentive design is focused on measuring useful liquidity and retention, not only peak TVL.

**MVP Status** The MVP is complete and public. **Webapp:** https://www.liquiditypilot.app **GitHub Repository:** https://github.com/steven3002/priority-pair-pilot **The MVP includes:** selected OP Mainnet WETH/USDC pool; non-custodial LP onboarding; incentive allocation page; dashboard/reporting structure; campaign status page; LP soft-interest capture flow; report export structure. Risk: LPs participate only for short-term rewards **Mitigation:** The campaign includes a retention phase and measures retained liquidity after the main reward period reduces. **Risk:** TVL increases but fees do not **Mitigation:** The dashboard tracks volume/TVL and estimated fee generation. If added liquidity does not support trading activity, we will not recommend expanding the campaign. **Risk:** Low LP participation **Mitigation:** The campaign uses a familiar WETH/USDC pair, a known DEX venue, clear reward rules, and non-custodial onboarding. LP soft-interest will be collected before and during launch. **Risk:** Additional custody or contract risk **Mitigation:** LPs interact directly with Uniswap V3 on OP Mainnet. The campaign does not custody user funds or require deposits into a team-controlled liquidity contract. **Risk:** Overclaiming impact **Mitigation:** We will only report incremental impact above baseline. Existing pool liquidity will not be claimed as campaign-created liquidity.

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