Alpha-DAO Proposal #27

All research completed by Alpha-DAO to build out a thesis behind the following investment or any other market movements are explained below.

The report also includes the execution strategy, alongside the capital allocated and the fees paid to the blockchain once a proposal is passed.

Disclaimer: This is not investment nor investment advice. Only you are responsible for any capital-related decisions you make and only you are accountable for the results.

The information made available in this report is NOT for replication. The purpose is to share the thought process behind the DAO’s decision-making – additionally, this is a HIGH-RISK journey for the DAO which means capital has also been allocated in accordance with this. Once again, DO NOT REPLICATE.

Thesis

The market has been in a downtrend for the past 10 months and with the current macro situation (inflation, Europe energy crisis, rising Dollar), markets still have a long way to recover especially for risky assets (stocks & crypto). The best optimal scenario to make money in a condition like this is through trading or airdrop plays requiring less risk.

It is clear whatever Arbitrum is doing Optimism is proving it can do it better. Optimism has been able to catch up with Arbitrum and is now behind slightly in terms of TVL, revenue and active addresses.

Optimism wants to be number 1 in the Layer 2 sector. They launched a token, integrated many protocols, and launched an ecosystem fund that skyrocketed its TVL. And now, they are trying to replicate the Arbitrum Odyssey by having their own version of the Odyssey - Optimism Quests.

Optimism Quests is similar to the Arbitrum Odyssey, where users complete on-chain tasks using protocols on Optimism and earn an NFT as a reward for their completion of each quest.

Optimism did an airdrop recently in April, the question is do they do another airdrop soon? I am sceptic about this part because I think ideally saving the rest for the future is a better option as the protocol is still in its early days.

However, 19% of the initial OP token supply is allocated to airdrops. 5% was allocated to the first airdrop and 14% remains for the second.

In my perspective, I believe the motive behind Optimism Quests is either:

1. Expanding the Optimism ecosystem to more users to capture more liquidity.
2. To overshine Arbitrum. The Arbitrum Odyssey was paused in week 2 due to high gas fees and congestion. Optimism wants to demonstrate that it is a superior network that won't experience these problems, and reward those who participated with an airdrop. I am rooting for the 2nd option as it makes the most sense for Optimism to take advantage of.

Regardless of OP’s poor tokenomics (governance token), I still believe it can be an outperformer due to the intrinsic value of the network and the whole Layer 2 narrative. We have seen OP pull a remarkable 500% in return during the bear market. That is the narrative that I am betting against.

The first OP airdrop that we received was worth $1000 at least. The 2nd airdrop will be worth more tokens due to a higher allocation.

Proposal

We participate in Optimism Quests and complete all quests in anticipation of an airdrop.

I propose the following:

1. Load 2 wallets with $200. Some quests require at least $100. $200 will be enough to complete the quests and cover gas fees.

$400 represents 1.2% of our entire cash holdings ($33,000).

I will be happy to take action and be the execution wizard for both wallets.

The money we spend will be minimal and returned eventually. We will be mainly swapping assets, staking, liquidity providing (LP) and purchasing NFTs. We can lose money through expenditure, gas fees and losing value through staking or LP. But other than that, the amount will be too small to be noticeable - i.e. you can unstake, close a trade or swap back to the original asset after completing the quest.

Executed ✅

1. 200 USDC transferred from *alpha-dao.eth to 0xdce5f4ddedC5f15e0E7699DC23Cd41040A268C57 - wallet 1.
2. 200 USDC transferred from *alpha-dao.eth to 0xC9c7A22Fcf47dDD86bFbfe66d96E86D2BCc7Ee21 - wallet 2.

Video Tutorials

We published the Optimism Quests report to guide you step by step to complete all quests through video tutorials (one minute each).

Progress

So far, we've completed 13 out of 18 quests. We still need to complete QiDAO, Hop, Synthetix, Lyra and Polynomial to claim the remaining NFTs.

However, the quests are more expensive than we anticipated, so we will transfer further funds to complete the rest.