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Optimism might see OP go high after these developments

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Optimism, the Layer-2 scaling solution, is one that was hit by a massive bear wave over the last weekend. However, that’s not all there may be in store.

Optimism may be on the verge of a breakthrough after the release of some major updates. As per a tweet published by OP Labs, the organization introduced its transaction system called Drippie.

With the launch of Drippie, Optimism aims to address automation problems with on-chain activity. Drippie is a “trust-minimised Ethereum-native conditional transaction system” as per the organization.

It is also similar to a Web2.0 service called “If This Then That” (ITTT) which allows executing transactions under certain conditions. Interestingly, the latest integration with Chainlink is also expected to aid the Drippie mechanism.

It’s a ‘Curve’ball

In fact, Curve Finance has also submitted a grant proposal to Optimism according to an Optimism update sent out on 24 July. The proposal, which is yet to be approved by Optimism, aims to increase liquidity. This will effectively increase the value of the Optimism network and consequently affect the OP token.

According to the proposal, one million OP tokens worth roughly $850,000 will be distributed over 20 weeks on the Curve pool.

The OP tokens will act as incentives to liquidity providers (LPs) on Curve’s gauged pools on Optimism.

Optimism can expect to see an increase in bridged assets, largely stablecoins, to the network as LPs seek superior yield opportunities on Curve.

Additionally, the increasing incentives are expected to attract LPs on Optimism. This will, in turn, stimulate the utility of Optimism pools.

The utility will then incentivize veCRV tokens more “heavily wight these pools.” Finally, with these increasing incentives, Curve expects a growing interest of LPs in Optimism.

Meanwhile, the OP token continues to go under as the crypto relief rally takes a major blow.

Where’s the token?

Optimism’s native OP token stood at $0.77 at press time. The token was the recipient of a big blow during the weekend sell-off and took an 11.3% drop since 25 July.

Whether the proposal is accepted or not, the token still holds a position in the list of badly-performing tokens, especially in the current market condition.

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Kanav is a journalist at AMBCrypto. He has a Masters in Media and International Conflict and is interested in areas of digital society, crypto developments in the political sphere and the socio-cultural impact of a crypto-society.

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