LOS ANGELES--(BUSINESS WIRE)--Starting on Monday, May 1st, Ethos Reserve, in collaboration with the Optimism Foundation, will be distributing up to $4.4 million worth of OP and OATH tokens to liquidity providers of $ERN, a next-generation stablecoin built on Optimism, as part of a 12-month long program to incentivize DeFi adoption on the layer 2 network.
Ethos Reserve is an OP-native, permissionless collateralized debt position (CDP)-backed stablecoin platform. Users are able to use the platform to take out interest free loans denominated in $ERN (Ethos Reserve Notes), with each $ERN token representing $1 in collateral value. Through the use of its novel multi-collateral debt management system & managed CDP vaults, Ethos Reserve is able to deliver a high degree of capital efficiency, without sacrificing security or stability.
“We’re excited to give Ethos Reserve a chance to bring new incentives to users in the Optimism ecosystem,” said Ben Jones, director at the Optimism Foundation. “We’ve seen significant growth in decentralized finance within our own community and in L2s more broadly, and we’re proud to see Ethos continuing that trend on Optimism.”
Incentives will be distributed to $ERN liquidity providers through platforms such as Digit.xyz, BeethovenX, and Velodrome. Follow Ethos Reserve on Twitter for more updates as the incentives program rolls out.
About Ethos Reserve:
Ethos Reserve is a non-profit initiative by the Oath Foundation to create a fully decentralized, community-governed stable asset protocol. Users can use the protocol to take out interest-free loans against premium collateral such as BTC and ETH, denominated in ERN, a stable asset pegged to the US Dollar. This protocol is designed to provide a new decentralized base-layer for financial applications to be built upon which is underpinned by fair and sustainable mechanisms.
About Optimism:
Optimism is a project dedicated to scaling Ethereum's technology and expanding its ability to coordinate people from across the world to build effective decentralized power structures. The Optimism Collective builds best-in-class software for running L2 blockchains and aims to address key governance and economic challenges in the wider cryptocurrency ecosystem. The Optimism Collective is also committed to building a sustainable ecosystem through Retroactive Public Goods Funding. By rewarding the impactful projects, Optimism is scaling Ethereum’s present to provide funding for its future.
