1. Project Name

DynamicSwap

6. Atlas Profile

@goms.eth

7. Total OP Requested

35000

8. Grant L2 Delivery Address

0x22bc13d2936f738bc820A6934FA8eC60EA51a621

10. Project & Program Overview

Project & Program Overview DynamicSwap is a Uniswap V4 hook that protects liquidity providers from impermanent loss through real-time, volatility-based dynamic fee adjustment. Our hook automatically scales swap fees between 0.30% and 1.00% based on market conditions. Deployment Status: ✅ FULLY DEPLOYED AND VERIFIED ON OPTIMISM Chain Hook Address Status Optimism 0xb5E6D6cb548033dA8F18e7f177a9aE485d81a0c0. Deployed Base 0x2c80c5cd9fecc3e32dfaa654e022738480a4909a Deployed Celo 0x91f2c11dBa99F642470Dc548b566208bE2Ce48F6 Deployed Unichain 0xf67f15838B39c5c9CeB187f5e5Cae0a625F0Be35 Deployed Owner: 0x22bc13d2936f738bc820A6934FA8eC60EA51a621 Incentive Program: LP-focused incentive program to bootstrap sustainable liquidity on Optimism. RecipientAllocationLiquidity Providers90%Traders10%Protocol Development0% Website: https://dynamicswap.vercel.app

11. Target Liquidity Pairs & Pools

Target Liquidity Pairs & Pools Token Pair DEX Chain Pool Type Fee Tier PriorityStatus WETH/USDC Uniswap V4 + DynamicSwap Hook Optimism CLDynamic 0.30%-1.00% ✅ Season 9 wstETH/WETH Uniswap V4 + DynamicSwap Hook Optimism CLDynamic 0.30%-1.00%. ✅ Season 9 OP/WETH Uniswap V4 + DynamicSwap Hook. Optimism CLDynamic 0.30%-1.00%. ✅ Season 9 USDT/USDC Uniswap V4 + DynamicSwap Hook. Optimism CLDynamic 0.30%-1.00%. ✅ Season 9 WETH/USDT Uniswap V4 + DynamicSwap Hook Optimism CLDynamic 0.30%-1.00%. ✅ Supports Note: We removed OP/USDC as it is NOT on the Season 9 priority list. Hook Address (Optimism): 0x2c80C5CD9FeCc3e32Dfaa654e022738480a4909a Pool Manager (Optimism): 0x9a13F98Cb987694C9F086b1F5eB990EeA8264Ec3 Token Addresses (Optimism): TokenAddressWETH0x4200000000000000000000000000000000000006 USDC0x0b2C639c533813f4Aa9D7837CAf62653d097Ff85USDT0x94b008aA00579c1307B0EF2c499aD98a8ce58e58 wstETH0x1F32b1c2345538c0c6f582fCB022739c4A194Ebb OP0x4200000000000000000000000000000000000042

12. Lending Market Alignment

Lending Market Alignment: Collateral vs Borrow Usage Explicit confirmation of each asset on Optimism lending markets: Aave V3 on Optimism - Asset Availability Asset Aave V3 Optimism Can Use as Collateral Can Borrow LTVLiquidation Threshold WETH ✅ Listed ✅ Yes ✅ Yes 80% 82.5% USDC ✅ Listed ✅ Yes ✅ Yes 80% 85% USDT ✅ Listed ✅ Yes ✅ Yes 75% 80% wstETH ✅ Listed ✅ Yes ✅ Yes 71% 76% OP ✅ Listed ✅ Yes (Isolation Mode)No 50% 60% Source: https://app.aave.com/?marketName=proto_optimism_v3 Sonne Finance on Optimism - Asset Availability Asset Sonne Finance Can Use as Collateral Can Borrow WETH ✅ Listed ✅ Yes ✅ Yes USDC ✅ Listed ✅ Yes ✅ Yes USDT ✅ Listed ✅ Yes ✅ Yes wstETH ✅ Listed ✅ Yes ✅ Yes OP ✅ Listed ✅ Yes ✅ Yes Source: https://sonne.finance Exactly Protocol on Optimism - Asset Availability Asset Exactly Protocol Can Use as Collateral Can Borrow WETH ✅ Listed ✅ Yes ✅ Yes USDC ✅ Listed ✅ Yes ✅ Yes USDT ✅ Listed ✅ Yes ✅ Yes wstETH ✅ Listed ✅ Yes ✅ Yes OP ✅ Listed ✅ Yes ✅ Yes Source: https://exact.ly Collateral vs Borrow Mapping Per Pool Pool Collateral Asset Borrowed Asset Primary DeFi Strategy Lending Market WETH/USDC WETH USDC Deposit WETH on Aave → Borrow USDC → LP Aave V3 (80% LTV) wstETH/WETH wstETH WETH Leveraged staking loop Aave V3 E-Mode (90% LTV) OP/WETH WETH — Borrow against WETH to acquire OP Aave V3,Sonne USDT/USDC. USDC USDT Stablecoin arbitrage Aave V3 E-Mode (97% LTV) WETH/USDT WETH USDT Same as WETH/USDC Aave V3 (80% LTV) Confirmation: All 5 assets in our target pools (WETH, USDC, USDT, wstETH, OP) are available on at least 2 Optimism lending markets for collateral and/or borrowing strategies.

13. Current Baseline Metrics

Deployment Status: DynamicSwap hook is FULLY DEPLOYED on Optimism at 0xb5E6D6cb548033dA8F18e7f177a9aE485d81a0c0 Current Metrics (New Deployment): Metric Current Value TVL $0 (pools not yet created) 30-Day Volume $0 Volume/TVL N/A Pools Created 0 Context: Hook is deployed; pools will be created upon grant approval. This grant bootstraps our first Optimism liquidity. Benchmark Data (Comparable Uniswap V3 Pools on Optimism): Pair Typical TVL Typical 30-Day Volume Vol/TVL Ratio WETH/USDC ~$2.5M ~$45M 18x wstETH/WETH~$3.2M ~$25M 8x OP/WETH. ~$600K. ~$8M 13x USDT/USDC. ~$1.2M ~$15M 12x Target Metrics (3 months, with 35,000 OP incentives): Metric Target Total TVL. $350,000 30-Day Volume $3,500,000 Volume/TVL Ratio≥ 10x monthly Unique LPs100+Unique Traders 200+

14. Incentive Design

Incentive Design OP Request: 35,000 OP Allocation: 100% User Incentives Recipient Allocation OP Amount Liquidity Providers 90% 31,500 OP Traders 10% 3,500 OP Protocol Development 0% 0 OP TOTAL 100% 35,000 OP Exact Pool Weights & OP Distribution (35,000 OP Total) Program Duration: 12 weeks Pool Weight % of LP OP Total OP (12 wks) Weekly OP WETH/USDC 3.0x 30% 9,450 OP 788 OP wstETH/WETH 2.5x 25% 7,875 OP 656 OP OP/WETH 2.0x 20% 6,300 OP 525 OP USDT/USDC 1.5x 15% 4,725 OP 394 OP WETH/USDT 1.0x 10% 3,150 OP 263 OP LP Subtotal — 100% 31,500 OP 2,625 OP Trader Incentives— — 3,500 OP 292 OP GRAND TOTAL— — 35,000 OP 2,917 OP Anti-Wash Trading & Risk Mitigation LP Protections: Time-Weighted Average Liquidity (TWAL) — rewards based on average liquidity, not snapshots Vesting schedule: <7 days = 50% forfeited, >90 days = 25% bonus Minimum holding period prevents flash LP attacks Trader Protections: Volume tier system (NOT per-trade rebates) Minimum 10 unique trading days required for rewards 1-hour minimum between same-pair trades 30-day wallet age requirement Sybil detection via wallet clustering analysis Concrete Controls: Maximum 10 trades/day per pair eligible for rewards Quality score: trades with >2% slippage weighted higher (real trading signal) Manual review required for Platinum tier ($200K+ volume)

15. Milestones to unlock OP distribution

Milestones 1 to Unlock OP Distribution

Pending$14,000

Due: Mar 10, 2026

Milestones to Unlock OP Distribution Milestone 1 (40%): 14,000 OP Milestone 1: First 40% (14,000 OP) — Week 4 Deliverable Target Verification Hook deployed on Optimism ✅ COMPLETE 0xb5E6D6cb548033dA8F18e7f177a9aE485d81a0c0 Hook verified on Etherscan ✅ COMPLETE Optimistic Etherscan Priority pools created5 pools Pool IDs on-chain Total TVL≥ $140,000 DeFiLlama / On-chain Unique LPs≥ 40 Position Manager events 30-day volume ≥ $350,000 On-chain swap events Volume/TVL ratio ≥ 2.5x Calculated Per-Pool Targets (Week 4): Pool Target TVL Target Volume Vol/TVL WETH/USDC $45,000 $112,500 2.5x wstETH/WETH$35,000 $70,000 2.0x OP/WETH $25,000 $75,000 3.0x USDT/USDC $20,000 $50,000 2.5x WETH/USDT$15,000 $42,500 2.8x TOTAL$140,000$350,0002.5x

Completion Criteria:

Milestone 1 (40%): 14,000 OP — Week 4 Milestone 2 (60%): 21,000 OP — Week 12 Total: 35,000 OP

16. Final Milestone for Grant Completion

Milestone 2 (60%): 21,000 OP

Pending$21,000

Due: May 1, 2026

Milestone 2: Remaining 60% (21,000 OP) — Week 12 Deliverable Target Verification Total TVL ≥ $350,000 DeFiLlama / On-chain 30-day volume ≥ $3,500,000 On-chain Volume/TVL ratio ≥ 10x monthly Calculated: $3.5M / $350K = 10x Unique LPs ≥ 100 Position Manager events Unique traders ≥ 200 Swap events TVL retention ≥ 70% from Week 4 Comparison LP retention ≥ 60% from Week 4 Address comparison Per-Pool Targets (Week 12): Pool Target TVL Target Monthly VolumeVol/ TVL WETH/USDC $105,000 $1,260,000 12x wstETH/WETH$85,000 $680,000 8x OP/WETH $65,000 $845,000 13x USDT/USDC$55,000 $550,000 10x WETH/USDT$40,000 $165,000 4x TOTAL $350,000 $3,500,000 10x ROI Case (Based on 35,000 OP) Investment: 35,000 OP (~$35,000) Metric Value Ratio to OP Spent TVL created $350,000 10:1 Monthly volume. $3,500,000 100:1 Annual volume (projected) $42,000,000 1,200:1 Annual LP fees (0.45% avg) $189,000 5.4:1 Post-Incentive Sustainability Plan Why TVL and volume persist after OP emissions end: Dynamic Fee Advantage: LPs earn 0.30%-1.00% based on volatility. During volatile periods, LPs earn 2-3x more than static-fee pools, creating organic retention. Aggregator Routing: Once TVL reaches $50K+ per pool, aggregators (1inch, Paraswap, Uniswap router) include our pools permanently. Lending Market Integration: Users running leveraged strategies on Aave/Sonne need liquid swap venues — this is infrastructure utility, not yield farming. Protocol Revenue Reinvestment: DynamicSwap collects 10% protocol fee on dynamic spread. Post-grant, we reinvest into continued (smaller) LP incentives. Projected Post-Incentive Retention: MetricWeek 12Week 16 (+4 wks)Week 24 (+12 wks)TVL$350,000$280,000 (80%)$245,000 (70%)Monthly Volume$3,500,000$2,450,000 (70%)$2,100,000 (60%)

17. Additional information you consider relevant

Deployment Confirmation: Hook deployed on Optimism: 0xb5E6D6cb548033dA8F18e7f177a9aE485d81a0c0 Verified on Optimistic Etherscan Owner: 0x22bc13d2936f738bc820A6934FA8eC60EA51a621 Multi-Chain Presence: Also deployed on Base (same address), Celo, and Unichain. Uniswap Relationship: Completed meeting with Uniswap Product Manager. Open Source: All contracts verified and open source. Budget Consistency Confirmation: Total OP requested: 35,000 OP Milestone 1 (40%): 14,000 OP Milestone 2 (60%): 21,000 OP LP incentives: 31,500 OP (90%) Trader incentives: 3,500 OP (10%) Protocol development: 0 OP (0%)

18. I confirm that I have read and understand the Grant Policies

Yes

19. I understand that I will be required to provide additional KYC/KYB information to the Optimism Foundation to receive this grant

Yes

20. I confirm that my grant will be subject to clawback for failure to execute on Critical Milestones

Yes

Application for Optimism Season 9 - Growth Grants

Application details

Milestones 1 to Unlock OP Distribution

Milestone 2 (60%): 21,000 OP