Here is what I am doing in a similar situation (DS is in 2nd grade, 7 yo):
1) Pushing the school for differentiation, especially for math since they already do a pretty good job differentiating in literacy. I volunteer at least once a week to help the teacher in the classroom so that it is easier for that to happen.
2) Sign DS up for activities outside school that are more open ended and feed his interests. Right now he is taking a Legos Gears class, joined chess club, and Cub Scouts (working on belt loops and achievement pins gives him new topics to explore).
3) Encourage him to take part in the Science, Art, and Culture Fair at school. Right now he has developed a strong interest and great eye for nature photography so he has started working on a portfolio of photos that he is organizing in a scrapbook. He plans to do a photography project for the Fair.
4) If the challenges don't improve in math, I am considering asking the school to allow him to take the Stanford EPGY online classes in math as a substitute for his current curriculum. It is self-paced. My main complaint with his current math is that he doesn't need the repetition they provide and there are few opportunities to work ahead in an organized fashion.
5) Or if #3 won't fly, I will partially homeschool.
The word potential is an interesting one and can be a dangerous one. But I think when kids are young (especially elementary age) is the time to instill a sense of enjoying a challenge. At the start of the year he was "happy" to just do the really basic assignments given. He resisted when the teacher started providing 3rd grade level work for him (upon my request). But after trying some, he realized they were much more interesting. Now he dives into his math homework. Last night he was laughing and saying, "Ooh tricky! They almost tricked me, but I figured it out!"
One thing I am always cautious about watching...I don't want to give him extra work because he is gifted. I want him to have deeper level work, not more work. At this age (and really every age), making him feel loaded down with quantity rather than having quality will only make him resentful rather than curious and excited.