What is Optimism (OP)?
Optimism is a layer-2 scaling solution for the Ethereum network. By leveraging Optimistic Rollup technology, Optimism is designed to be a fast, simple, and secure way to bundle transactions, saving users from the often high and volatile fees associated with the Ethereum network.
Optimism benefits from the security of the Ethereum mainnet and helps scale the Ethereum ecosystem by using optimistic rollups. That means transactions are trustlessly recorded on Optimism but ultimately secured on Ethereum.
It is home to 35 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a Decentralized Exchange, and Velodrome (VELO), an Automated Market Maker.
What is OP token?
OP is a governance token that allows holders to vote on issues pertaining to the Optimism network. There are two streams of governance related to the OP token, the Citizens’ House and the Token House. The Citizens’ House will aim to facilitate and govern a process to distribute retroactive public goods funding via revenues collected by the network, while the Token House will aim to facilitate protocol upgrades and project incentives. By design, there is a maximum supply of 4,294,967,296 OP units.
Risk statement
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether OP can be supported by Wealthsimple’s platform, including whether OP is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated OP based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of OP, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created OP;
- The supply, demand, maturity, utility and liquidity of OP;
- Material technical risks associated with OP, including any code defects, security breaches and other threats concerning OP and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
- Legal and regulatory risks associated with OP, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of OP; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether OP, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to OP may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support OP.
Like all other crypto assets, there are some general risks to investing in OP. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading OP. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: January 1, 2024
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