Category: End User Experience and Adoption

👉 Clipper’s Grant Profile

This guide is intended to give badgeholders a concise, metrics-focused overview of how Clipper’s contributions have supported the adoption of Optimism. Many of the metrics below are taken directly from the End User Experience and Adoption Metrics Garden.

<aside> 💡 Note: Metric numbers apply specifically to Clipper’s Optimism deployment and were measured several days ago on 12/1/23. That means they are updated since the 10/1/23 snapshot used for the original grant application.

</aside>

About Clipper

Clipper is not your normal DEX. It’s totally different.

• It’s novel “Formula Market Maker” architecture makes money for LPs by using the same arbitrage strategy used by professional market makers, except implemented in a permissionless and noncustodial manner. It does so by incorporating low-latency, offchain price feeds and calculates invariants offchain before proving and validating them onchain. Because yields come from arbitrage instead of from fees, they are typically 20x higher than normal CPMMs.
• Clipper’s design works best for the blue-chip assets which comprise 70% of all volume. On Optimism, Clipper’s pool combines OP, ETH, WBTC, LINK and USD Stablecoins into one LP index token. It’s base APY on Optimism is 60%. Over the past two years, these yields have attracted tens of thousands of new users who bridged to Optimism for the first time to access Clipper’s yields.
• Better yields also enables tighter spreads, which means better prices for traders.

In summary, Clipper is a shining star of sustainable DeFi on Optimism and has attracted tens of thousands of first-time users to Optimism.

Clipper’s Impact

Clipper’s unique impact is that it is the ONLY DEX on which LP returns beat HODLing. This is crucial because a sustainable DeFi is important to creating fundamental change. Put another way, when Optimism users are able to return a profit from investing in DeFi the whole pie grows.

Without an exchange like Clipper - one that is focused on LP profits rather than fees - liquidity flees the ecosystem as incentives expire and all projects build on Optimism lose out.

Clipper’s biggest impact is in the number of LPs who have onboarded to Optimism to access Clipper’s yields. That’s why we focus on # of LPs (see metrics below). Note that we DO NOT focus on TVL/Volume because that would bias toward whales/bots and away from real users/usage.

The Clipper team believes that one of the most important ways to empower individuals is to give them more control over their personal wealth. That’s why our north star is LP profits.

Track Record

Clipper received 300k OP in the Phase 0 grants and has a verified track record of delivering on its commitments and using funds appropriately: https://gov.optimism.io/t/op-grants-through-season-2-where-has-the-op-gone/4025/15

Clipper Metrics Garden