Last stretch for Optimism Quest – Ethereum’s second-layer solution Optimism has recently launched a program called Optimism Quest. This one aims to familiarize users with its ecosystem through a series of quests.
Optimism Quest: NFTs galore
Optimism is Ethereum’s second layer solution in terms of TVL. This one aims to improve network scalability by leveraging Optimistic Rollups.
In order to attract new users, the Optimism teams have launched a program called Optimism Quest. Thus, this one aims to accompany users in the discovery of the network by interacting with several protocols of the ecosystem.
All in all, the program presents three sets of quests. In the past weeks, we have completed the first two sets of quests:
- New To Optimism, which introduced us to the Stargate, PoolTogether, Uniswap, and Quix protocols;
- Dive Deeper into Defi, which introduced us to the Velodrome Finance, Synapse, QiDAO, Rubicon, Hop Protocol, Clipper, Beethoven, and The Granary protocols.
Each quest allows us to obtain an exclusive NFT. In addition, these will allow us maybe to be eligible for the upcoming OP token airdrop announced by the protocol. Finally, some explored protocols do not have tokens yet. Therefore, these quests may allow you to access possible airdrop from these protocols.
We strongly recommend that you complete the previous two sets of quests before embarking on the third and final set of quests.
Master options, perps and more: the third and last round of quest
Congratulations, you have completed the first two quest series and are about to complete the third and last series of the Optimism Quest program.
As the name suggests, this final series will introduce us to the Optimism protocols that offer financial tools such as options and perpetual contracts.
For this final episode of the series, we’ll explore the following protocols:
- Synthetix;
- Lyra;
- Kwenta;
- Perpetual Protocol;
- Pika;
- Polynomial.
Synthetix: Stake and claim the staking rewards
For the first quest in this series, we will explore the Synthetix protocol.
Understand Synthetix: the quiz
Synthetix is a protocol for issuing synthetic assets on the Ethereum ecosystem. These synthetic assets are collateralized by Synthetix’s own token, the SNX.
Synthetic assets, also known as Synths on Synthetix, are assets that will track the performance of an underlying asset without having to hold the asset in question. For example, this allows for the issuance of assets that are not native to blockchains like stocks. In addition, Synthetix offers a futures market.
Synthetix is a protocol that can be integrated with other protocols. Therefore, it is possible to trade synthetic assets on other protocols such as Kwenta, Lyra or even Polynomial to name a few.
Take the quiz to move on to the next part of the quest.
Stake funds on Synthetix and claim the staking rewards
For this quest, we will need to stake more than 100 SNX on the Synthetix protocol and claim the staking rewards for at least two weeks.
First, you will need to purchase 100 SNX. To do this, go to your favorite exchange platform to swap chips into SNX. In our case, we will turn to DEX aggregator 1inch, to get the best rate. Convert any assets to SNX, for this example we will convert USDC to SNX.
Once we have the 100 SNXs in our possession, we will go to the Synthetix protocol website.
On the home page, click on the “Stake” button to go to the Staking page.
Once on this page, click on “Mint Max” which will allow you to stake your SNX in exchange for generating sUSD.
Click “Mint sUSD” to stake your SNX and get your sUSDs. Note that your SNX will be locked for a period of 7 days. However, this is not a big deal in the context of this quest.
In fact, to complete this quest, you will need to return to the Synthetix protocol for two weeks in a row to claim your staking rewards.
To do this, you’ll need to go to the main page of the site and click on “Claim SNX”.
Once the two weeks are up and the rewards are claimed, you will be able to retrieve your reward NFT.
Lyra: trading options on Optimism
For the second quest in this series, we will explore the Lyra protocol.
Understand Lyra: The Quiz
Lyra is a decentralized trading platform that allows trading options on Optimism.
This one allows the buying and selling of options that are priced using a skew adjusted pricing model or skew adjusted pricing model”.
In addition, Lyra allows for the quantification and adjustment of risk for liquidity providers by hedging positions. Obviously, liquidity providers get a return on deposited funds.
Take the quiz in order to move on to the next part of the quest.
Trader on Lyra
The first step of this quest is simple, just follow Lyra’s Twitter account. Once this step is completed, we can get down to business.
To do this, we will go to Lyra’s website and connect our wallet. After that, we will need to get 100 USD in a stablecoin (sUSD, DAI, USDC or USDT) to buy options.
In our case, we will put a call option (long) on ETH with a break even at $1378.
Authorize the expenditure and sign the transaction to purchase the option. Beware, options have significant liquidation risks, so we advise you to quickly close your long once it is taken by Lyra and you can validate the quest. Sure, it will cost you a few dollars in fees, but it will mostly prevent you from playing with financial products that you may not be comfortable with.
First, collect your reward NFT, then we can move on to closing the position.
To do this, click on “Close position” and follow the steps to validate the transactions.
Kwenta: trading futures
For the third step of this quest, we will explore the Kwenta protocol.
Understand Kwenta: the quiz
Kwenta is a decentralized trading platform specializing in perpetual and futures contracts. This one is based on various other protocols. Thus, it is built on top of the 1inch infrastructure and uses cash as well as Synthetix’s sUSD. In addition, this one obtains the prices of different assets using Chainlink’s oracles.
Finally, this one allows for leveraged trading, with leverage up to x25.
You can now take the quiz using the information just presented to you.
Trader of futures on Kwenta
This quest begins with several actions to be performed on social networks:
For the second step of the quest, we will have to trade the equivalent of at least 100 USD of futures on Kwenta.
To do this, we will go to the official Kwenta website. Once on the futures markets page, we will choose a market to trade on. In our case, we will turn to the ETH-PERP market. In order to interact with the Kwenta markets, we’re going to need to get sUSD. Do you trade sUSD on the decentralized exchange of your choice.
In order to validate the quest, we will open a Long equivalent to at least 100 USD.
First, we will need to deposit funds on the platform. To do this, click on the “Deposit” button at the top right of the screen and add 100 sUSD.
Once the funds are deposited we will be able to open our “long” position. Note that in order to do this we will need to provide the same amount in ETH.
You can now validate your position by clicking on “Open Position”. Once again, this type of financial instrument can be risky. We advise you to close the position right away in order to avoid exposing yourself to losses.
It will, however, take waiting a period of 24-48 hours for Kwenta’s teams to update the tracking and for you to get your reward NFT back.
Don’t forget to also withdraw the funds you deposited on the platform by clicking Withdraw.
Perpetual Protocol: trading perpetual contracts
For the fourth quest in this series, we will explore Perpetual Protocol.
Understand Perpetual Protocol: the quiz
Perpetual Protocol is a decentralized perpetual term contract exchange platform.
The platform relies on Uniswap V3’s smart contracts to create the futures contracts by using Uniswap’s concentrated liquidity. In addition, Perpetual allows the use of leverage up to x10 for trading and adding liquidity.
Take the quiz to be able to continue the quest.
Trade on Perpetual Protocol
For this quest, we will need to trade at least 100 USDC on the protocol. Thus, we will go to the trade section of the official Perpetual Protocol website.
If you don’t have USDC, get some on your favorite decentralized trading platform.
In order to trade on the protocol, we will once again need to deposit assets on the platform. On the main page of the site, click on the Deposit button on the USDC line.
Then select the amount to deposit and validate the transaction.
A list of assets that can be traded is available on the left side of the Perpetual Protocol site. Select the asset you want to trade, in our case it will be ETH.
Once again, we are going to open a long position in this market. As before, we will need to provide the same amount of ETH as the amount of USDC committed to the position.
Enter the amount and open the position by signing the transaction.
Once again with products of this type, feel free to directly close the position to limit the risk of loss.
You will then be able to collect your reward NFT. You may have to wait a few moments for the system to take into account your participation.
Positive point, the protocol has announced that it is issuing a second exclusive NFT to all users who successfully complete the quest.
Don’t forget to withdraw your deposited USDCs by going back to the app’s main page and clicking “Withdraw.”
Pika: deposit cash and trade on the platform
For the fifth and penultimate quest in this series, we will explore the Pika protocol.
Understand Pika: the quiz
Pika is a perpetual decentralized exchange platform. This one has the particularity to support leverage on a large number of assets.
In addition, the platform offers long or short positions and this with nearly no fees or slippage.
Take the quiz to move on to the next part of the quest.
Deposit cash on Pika
This quest will take place in two stages. In the first step, we will need to deposit at least $30 in Pika’s pools for at least three days.
To do this, we will go to the Vault section of the official Pika website. Connect your wallet and then click on the Stake button and insert the amount in USDC to deposit. To successfully complete this quest, we need to deposit at least 30 USDC.
Insert the amount and approve the transaction. Remember, you will need to leave your funds at least 3 days to be eligible for the quest reward. This won’t be difficult, the protocol automatically blocks the funds for 3 days.
Trader on Pika
For the second step of this quest we will need to trade the equivalent of at least 30 USDC on Pika.
To do this, go to the “Trade” section of the Pika website. Once again, we will open a “long” position on the ETH-USD market.
Enter the amount to be traded, add leverage if you wish and approve then sign the trade to open your position.
As before, don’t forget to close your position so you don’t risk getting liquidated. Who knows, you may even make a (meager) profit?
You have now completed all of the actions required for the quest. Come back in three days to collect your reward NFT, once the drop deadline has passed.
Polynomial: deposit funds on protocol
For the final quest of this program, we will explore the Polynomial protocol.
Understand Polynomial: the quiz
Polynomial presents itself as a platform for automating strategies on derivative financial assets. Positions created on the platform generate returns on various assets.
The vaults offered by the platform generate a return on deposits via an automated option writing mechanism. What’s more, returns are automatically compounded over time.
Everything happens on-chain and allows the creation of effective strategies during bear markets.
Take the quiz to move on to the next part of the quest.
Post funds on Polynomial
Before anything else, we will need to perform some actions on social networks:
Once both actions are done, go to the official Polynomial website and connect your wallet.
For this quest, we will need to deposit the equivalent of at least $50 into one of the protocol’s vaults. In our case, we will deposit this amount in the Put Selling USD vault.
Enter the amount, approve the expense and make the deposit.
Here you go! You can now retrieve your reward NFT. Note that this may not be available until a few hours after the deposit, while the system is updated. Indeed, the deposit may take up to four hours to be effective. The Polynomial teams advise keeping the repository active until the NFT has been retrieved.
End of Optimism Quest
Congratulations, you have reached the end of the Optimism Quest set! You should have all 18 NFTs exclusive to this program in your possession. With a few exceptions for quests that require you to raise the funds for several days or even months.
So, we advise you to keep this in the back of your mind so that you can go out and claim the missing NFTs over the next few weeks.
