[ACryptoS] LTIPP Application - FINAL


Applicant Name: BKT, Head of Growth

Project Name: ACryptoS

Project Description:

ACryptoS, established in 2020, pioneered yield optimizing and liquidity managing strategies. The team first brought automated strategies to Arbitrum in Nov 2022, achieving a milestone of $1.4M in TVL.

Our strategies are built on top of lending protocols, ve(3,3) DEXs, and V3 CL DEXs, producing highly efficient swaps and generating better yields for DeFi users.

Team Members and Roles:

  • Axe of ACryptoS, Founder & Lead Dev
  • HM, Core DAO, Senior Dev
  • Blight Night, Core DAO, Strategy
  • Mitch, Core DAO, Dev
  • Mik Ro, Core DAO, UI/UX
  • Wei, Core DAO, Research
  • Abdul, Core DAO, Marketing
  • BKT, Head of Growth/BD
  • Realdo, Research & Community
  • Stryfe, Research & Community
  • Social team, Documentation, Community Managers

Project Links:

Contact Information

TG: Telegram: Contact @beekaytea

Twitter: https://twitter.com/cryptoBKT

Email: hello@acryptos.com

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:



Team experience:

Our founder Axe started mining Bitcoin in 2012 and later ventured into developing arbitrage bots. His deep dive into DeFi started with BSC at the end of 2020, initially focusing on yield farming bots for PancakeSwap. This further evolved into the development of Yield Optimizer Vaults and the innovative UniswapV3 strategies.

Since ACryptoS’s launch in 2020, we have achieved significant milestones over the past few years:

  • First Venus.io leveraged strategies (higher yields and lower gas fees compared to other similar platforms)
  • First Balancer V2 fork on BSC
  • Top StableSwap on BSC, with stablecoin daily volume > $25 Million
  • First Fantom validator liquid vault
  • First native on-chain BNB staking vault
  • Zero security exploits on our contracts

What novelty or innovation does your product bring to Arbitrum?

Our latest innovation is the Automated Concentrated Liquidity Manager (ACLM), using different strategies to streamline the liquidity provision process, and improve liquidity efficiency on Conc. Liquidity DEXs.

Key features of our ACLM include:

  • Dynamic setting of positions and ranges.
  • Automated rebalancing for optimal yields.
  • Simplified single-token deposit system.

Our ACLM distinguishes itself from other liquidity managers by maintaining a dynamic range on V3 positions, adjusting to be narrower or wider depending on price fluctuation and volatility trends. This approach ensures that we consistently manage to host active liquidity, leading to more efficient swap volumes across essential token pairs like USDC, ARB, WETH, and WBTC.

Our strategies have resulted in a rapid organic growth to over $1M TVL for our ACLM on Arbitrum over the past few months. It is currently the top performing chain in TVL across our deployed strategies in various chains. We aim to further grow and develop these strategies with the support of Arbitrum.

For an in-depth understanding of how our ACLM operates, here are some of our detailed resources:

Arbitrum Dapp Link: ACryptoS

Is your project composable with other projects on Arbitrum? If so, please explain:

Yes, our core offering of liquidity management is that we collaborate with other V3 DEXs on Arbitrum by providing automated strategies.

  • helps protocols concentrate their liquidity/POL, resulting in significantly more efficient swaps
  • helps onboard more users to V3 LPs from V2

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?

Our ACLM shares some functionalities with protocols like Arrakis Finance, Gamma Strategies or Range Protocol, but our approach and performance set us apart.

Particularly for stable pairs, we have unique strategies that consistently delivered great results, offering users a compelling alternative for maximizing their liquidity provision. This competitive advantage allows us to attract and retain users to Arbitrum.

How do you measure and think about retention internally?

We have always been focused on attracting long term sustainable TVL. Starting from our launch in 2020, our approach has been to carefully test and deploy products, without overselling hype to users, and instead focusing on generating long term value and yields.

We generally collaborate with established projects with strong teams, instead of offering our users degen yields by risky projects. This has attracted and retained users who are interested in earning yields for the long term, on a safe and sustainable platform.

Here are some metrics where we use to analyze and make decisions from:

  1. Users
  • New users
  1. Liquidity
  • TVL
  • number of deposits / withdrawals
  1. Performance
  • % of Active Liquidity hosted for each LP
  • Swap Volume facilitated
  • Fees generated for protocol

Relevant usage metrics:

  • Daily Active Users
  • Daily User Growth
  • Daily Transaction Count
  • Daily Protocol Fee: Vault performance fees, withdrawal fees
  • Daily Transaction Fee
  • Daily ARB Expenditure and User Claims
  • Incentivized User List & Gini
  • TVL
  • Trading Volume

Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan:


Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal?



Is the protocol native to Arbitrum?:

No. We launched on BNB Chain in 2020 before expanding to other blockchains in 2022. We brought our single-token vault strategies to Arbitrum in Nov 2022, initially collaborating with Radiant Finance and dForce Network.

Similarly, our successful ACLM strategies, first developed on our native chain, was ported to Arbitrum once it achieved stability, bringing over TVL and users with our ease of usage and attractive yields.

On what other networks is the protocol deployed?:

Our ACLM strategies are on 5 chains: Arbitrum, BSC, Optimism, Polygon, and Base.

Arbitrum ACLM vaults currently have the highest TVL at $1.05 Million, demonstrating strong user trust and adoption within the ecosystem.

What date did you deploy on Arbitrum mainnet?:

Sep-30-2022 (Arbitscan txn)

Do you have a native token?:

Yes, the $ACS token. Following the Multichain bridge incident, we migrated to a new token and eliminated further ACS emissions.

At the same time, we improved our tokenomics to ensure long-term sustainability. Revenue from our vaults is directed towards buybacks and burns, making the token deflationary.

Additionally, ACS holders retain voting rights and ownership within our DAO, enabling them to directly participate in shaping the future direction of the project.
(Link to tokenomics in docs.)

Past Incentivization:

For our earlier collaborations with various DEXs (Mdex, DSG Metaverse, Chronos, Equilibre, SolidLizard, Velocimeter, etc.), in exchange for building automated vaults for their platforms, they in turn offered mining incentives for our ACS pairs.

Also, our previous tokenomics included ACS emissions to our ACS Vault holders, but we’ve since removed emissions (as mentioned above).

Current Incentivization:

Our protocol currently incentivizes participation solely through sustainable mechanisms. Swap fees generated through ACLM vaults usage provide a natural incentive for users to stake their assets for the long term.

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?


Protocol Performance:

Performance highlights of our ACLM strategies on Arbitrum include:

  • Stable vaults delivering consistently strong yields over a number of months, eg.
    • USDC/DAI at 20-30+% APY
    • wstETH/ETH at 10+% APY
    • WBTC/BTC.b at 10+% APY
  • High-yield returns on volatile pairs, successfully countering impermanent losses, eg.
    • ARB/ETH at 101+% APY
    • BTC/ETH at 36+% APY
      *the above APY are all achieved purely via swap fees

Screenshot of managed USDT-USDC (Arbitrum) active liquidity %
*much under-utilized TVL that can be managed by our stable vault - 28 Feb '24

  • blue bar indicates managed liquidity on ACryptoS
  • grey bars indicate other providers
  • large amount of under-utilized liquidity can be seen from the grey bars

Comparative Performance on Other Chains:

Our strategies have also demonstrated significant success on other chains, such as OP Chain and Base Chain, indicating potential similar performance in Arbitrum:

  • Dominating over 90% of active liquidity in OP Chain’s USDT/DAI and USDC/USDT pools (link)

  • Hosted 20%+ of active liquidity in OP Chain’s wstETH/ETH pools

  • Hosted 50%+ of active liquidity in Base Chain’s USDC/USDbC pool

Screenshot of managed USDT-DAI (Optimism) active liquidity %

*managing 88.3% of active trading liquidity for USDT/DAI Uniswap V3 (Optimism) - 28 Feb '24

In comparison with other concentrated liquidity managers, our strategies have outperformed in yield generation for the exact same pools managed. Attached below is a historical chart for the yields generated by our managed USDC-DAI pool on UniswapV3 (Arbitrum) for the period of 18 Dec '23 to 18 Jan '24

  • 3.13% yield in 30 days

  • potentially extrapolated to 38.08% APR

Here are some stats collected from our dapp to indicate some of the performances of our ACLM vaults so far.

  • the Fees column show the the collected yields after factoring in the IL incurred from rebalancing.
  • the APR column shows the annualized APR based on the number of days these data are collected from
Pair Period (Days) TVL Fees (after IL) APR
WBTC-tBTC 63 $182K 2.78% 16.1%
WETH-ARB 22 $161K 4.77% 79.13%
BTC.b-WETH 59 $45K 5.05% 31.24%
USDC-USDC.e 64 $37K 2.73% 15.56%
USDC-DAI 62 $32K 3.56% 20.95%

We are confident that with increased exposure to Arbitrum’s user base and continued refinement of our strategies, there is much more room to grow in managed liquidity for our Arbitrum vaults.

Protocol Roadmap:

UI and Chart Statistics Improvement: Enhance user experience by advancing our UI. We have currently developed graphs to visualize distribution of liquidity across UniswapV3 pairs. We plan to further develop more detailed graphs to better visualize liquidity distribution, provide detailed yield history and establish accurate APY forecasts.

Our visualization chart serves as a useful tool to monitor the distribution of liquidity in various pools, identifying pools that have under-utilized liquidity being at out-of-range positions.
An example of USDT/USDC.e pool can be seen here.

Awareness and Engagement Campaigns: We intend to collaborate with platforms like Galxe to attract new users to ACLM vaults. We also plan to launch Learn&Earn campaigns for deeper user engagement and helping users in understanding of V3 CL liquidity provision.

Collaboration with Experts: We will be conducting in-depth analyses using advanced 3rd-party analytics to optimize our strategies, with the goal of improving vault yields and swap efficiency, while improving overall risk management. We are currently closely integrated with Chainlink for automated vault upkeep rebalancing and we are actively exploring further collaboration to develop more refined vault strategies.

Audit History & Security Vendors:

Our protocol has gone through a number of audits (Security & Risks | ACryptoS)

We also have an active bug bounty program (Bug Bounty | ACryptoS)

Security Incidents:

Our top priority is user safety. ACryptoS contracts have never been exploited.


Requested Grant Size:

80,000 ARB

Justification for the size of the grant:

ACryptoS has invested significant resources to integrate on Arbitrum. For deploying on Uniswap V3 Arbitrum, we tailored vault strategies based on individual pair volatility, volume, and TVL, maximizing user returns. Additionally, we integrated with Angle Merkl rewarder for seamless incentive distribution.

We actively engaged with Arbitrum protocols for vault integrations and co-marketing initiatives, and have achieved consistently good results in most of our vaults, especially the vaults utilizing our stable pair strategies.

Our focus lies on launching more vaults (currently at 23) for high-cap and high-volume pairs on Uniswap V3, with plans to implement on other CL DEXs. These strategic launches contribute to growing Arbitrum’s TVL.

At the current price of $2 per ARB, the grant request of 80,000 ARB will be $160,000 in $ value. Right now we are managing $1.05M TVL in our Arbitrum ACLM vaults.

  • During the first week, it would bring an additional average ~60+% APR to the incentivized vaults, attracting users to deposit in.
  • as TVL flows in and target TVL is achieved in 12 weeks, the average additional APR to each of the incentivized vaults would be ~15%.

Grant Matching: N/A. There is no long any $ACS emissions. Any additional incentives would be paid from our treasury, and we do not find it sustainable.

Grant Breakdown:

100% of the grant will be used to incentivize our ACLM products on Arbitrum. ACryptoS proposes a 12-week liquidity incentive program, offering a total of 80,000 ARB (distributed at approx 6666 ARB/week) to liquidity providers participating in qualified ACryptoS vaults built on V3 CL DEXs.

Targeted incentivization: We plan to incentivize 10-15 vaults (average of 400-700 ARB/week/vault) to bring in liquidity for under-capitalized pairs with high potential, and improve the overall liquidity distribution on the platform.

We plan to explore potential expansion to Sushiswap V3 and Pancakeswap V3 based on identified opportunities, and will distribute the incentives accordingly based on the metrics of these new vaults.

We will apply the following methodology when assessing pairs and their allocation of incentivization:
(examples shown are to illustrate the LP types, and do not indicate that these will be the ones incentivized)

  1. 60% to bluechips and stablecoin pairs
  • these are crucial to Arbitrum ecosystem, and used by most users
  • our stable LP vaults performance is one of our strengths, improving swap rates for key tokens)
  1. 20% to essential ARB pairs
  • improve liquidity efficiency for ARB pairs
  • at the same time generate higher swap yield for ARB LP providers
  • eg. ARB/WETH, ARB/USDC.e
  1. 20% to high swap volume, Arbitrum native pairs
  • enhance liquidity for native pairs, as they are the backbone of Arbitrum ecosystem


  • lower priority to pairs that are already incentivized by other recipients of LTIPP or other grants
  • lower priority to pairs with high TVL but low utilization
  • allocating incentives to a wider variety of pairs, rather than too similar pairs
  • ensuring incentivized pools do not conflict with each other when it comes to liquidity utilization

Funding Address: Treasury 0x5BD97307A40DfBFDBAEf4B3d997ADB816F2dadCC

Funding Address Characteristics:

The Treasury Multi-sig is a 2/3 Safe contract, managing our treasury and grant funds. Each signer is a unique Core DAO member, of which they have been voted in via Governance since 2020. The current 3 members of the Treasury Multi-sig are:

  • Axe
  • toortheroot
  • BlightNight

Treasury Address:

Contract Address: We will deploy contracts to disperse rewards, which we will publish in our docs before Week 1.



  • Expand our vault offerings: Deploy new vaults with customized strategies, catering to Arbitrum and user needs and maximizing their returns.
  • Incentivize key pairs: Implement targeted incentives for major and high-volume swap pairs, accelerating TVL growth to a sustainable level. This enhanced liquidity will attract aggregators and bridges, ultimately prioritizing our vaults for optimal swap routing.
  • Drive user adoption: Foster user base growth through strategic marketing and initiatives, doubling down on the added grant incentives
  • Deepen protocol integrations: Collaborate with key Arbitrum protocols, incentivizing their token pairs for better concentrated liquidity efficiency
  • Refine our CL Vault strategies: Continuously refine and optimize CL Vault strategies, enhancing their performance and overall risk management effectiveness.

Execution Strategy:

The entire grant amount (80,000 ARB) will be distributed as incentives across 10-15 selected vaults over a 12-week period. These incentives will directly reward liquidity providers, motivating them to contribute to the targeted pairs. This influx of liquidity will not only increase the TVL in these pairs but also facilitate much smoother swaps with lower slippage, ultimately benefiting users by reducing their transaction costs.

The incentives will be allocated to each qualified vault based on the following factors:

  • TVL in our managed vault
  • TVL in the underlying DEX
  • average trading volume in the underlying DEX
  • active liquidity % currently hosted by our vault
  • vault historical APR (based on past performance since vault launch)
  • prioritizing stable pairs, as our strategies have been performing well
  • prioritizing bluechips, major stablecoins, and ARB pairs

Adjustments to the incentives can be done every 2 weeks based on analytics of the past incentives effect on the above factors. We will provide bi-weekly updates on vaults, TVL, performance, and incentive distribution. Our team will be open to feedback throughout the process and will work towards better utilization of the grant incentives.

Incentive mechanisms to ensure “stickiness”:

Our ACLM strategy prioritizes sustainable yields through swap fees, encouraging long-term user participation beyond initial incentives. As TVL grows, swap fees alone become sufficient to retain users. We make sure to continuously maintain user trust and engagement by keeping them updated on the vault performance.

In line with our ethos since our launch in 2020, we have always encouraged long term staking in our products, via various methods such as launching products with sustainable yields, educating users on staking long term benefits, ensuring fund safety amidst various exploits and hacks etc. We have established ourselves as a trusted protocol, and our strategy of keeping users safe + providing sustainable yields, have retained many of our users, along with keeping TVL consistent throughout the bear market.

Key Performance Indicators (KPIs):

We’ll measure success through three key metrics:

  • Daily Active Users: Track the growth in unique users participating in incentivized vaults. This shows the program’s ability to attract and retain new users.
  • TVL: Monitor the combined value of assets deposited across these vaults. This indicates program success in attracting liquidity to targeted pairs, enhancing their depth and improving market efficiency.
  • Swap Volume Facilitated: Analyze the total amount of token swaps facilitated by the incentivized vaults. This demonstrates the program’s contribution to increased liquidity utilization and smoother swapping experiences for users.

These metrics directly align with the grant objectives of attracting users, enhancing liquidity, and improving swap efficiency. They are transparent and verifiable through readily available data sources, compiled on a verifiable dashboard, allowing the DAO to assess the program’s effectiveness.

Grant Timeline and Milestones:

This 12-week program will be measured against key milestones:

Preparation (Prior to Week 1) : Identify LPs based on abovementioned factors + allocation of % to each pair
Week 1 - 4 : Launch and incentivize 10-15 vaults (monitoring analytics weekly to optimize incentives).
Week 5 - 8 : Achieve a 2x TVL increase and 4x user growth, and 5x swap volume increase (moderate but achievable targets).
Week 9 - 12 : Achieve a 4x TVL increase, 8x user growth, and 10x swap volume increase (reflects cumulative impact and long-term potential).

*these milestones are decided based on our research on earlier similar grant incentives and the corresponding results

Time ARB Cumulative TVL DAU Volume
Preparation 0 0 1x 1x 1x
End of Week 4 26,666 26,666 2x 3x 4x
End of Week 8 26,666 53,333 3x 6x 8x
End of Week 12 26,666 80,000 4x 8x 10x
Post-Incentives 0 80,000 3x 6x 8x

We’ll use data from DeFi tracking platforms, block explorers, and DEX aggregators to verify progress. These milestones factor in our existing user base, targeted incentives, and market optimism. They demonstrate program effectiveness and build a foundation for long-term success.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:

Increased exposure through the grant, combined with our existing competitive APY and additional incentives, will attract new users and their assets (TVL) from other chains. Once TVL reaches a critical point, increased swap volume will generate higher swap fees for users, creating a sustainable APY even after the incentives end.

  • Proof of traction: We’ve already achieved over $1 million TVL in under a year through organic growth.

Along with the additional incentives to the vaults from the grant, we will scale marketing efforts and double down on attracting new users and TVL to Arbitrum.

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?



Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO?


Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?


Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program?


Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:



Hello @BKT,

Thank you for your application! Your advisor will be @JoJo.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.


Thanks @Matt_StableLab . Have joined in and connected with @JoJo on this. Thanks for the time and resources you guys put in!


I have been both, a user of the Acryptos platform and their partner on the Kava chain.

The team and community are among the top ones with whom I have come across since I started on Defi 2.5 years ago, and their vaults are probably one of the most efficient and productive products out there at the moment.

I support this proposal as it would undoubtedly add further value into Arbitrum in many ways.

1 Like

Thanks @Siur_Equilibre for the kind words!

We’ve gone through the proposal a number of times with our advisor @JoJo, revised and this should be our final draft. Appreciate additional feedback from the community before we lock it down.

We’re confident our ALM will bring much value to Arbitrum, streamlining the liquidity provision process for users, facilitating much more efficient swaps for tokens, while generating good sustainable yields for users at the same itme!

1 Like

At Okto, we’ve been leveraging Acrypto’s vaults within our Earn feature. We’re truly impressed by the team, their services, and their seamless integrations. Acrypto’s strategies have consistently outperformed those of other platforms we’ve used or integrated within our aggregation engine.

We congratulate and support the team on this proposal. This proposal execution strategy when met will bring significantly increase value to the entire ecosystem.

1 Like

Thanks @kushagra!

@cliffton.eth we’re good to go with the proposal. Could you please help edit the title to FINAL? Thank you!

1 Like

Hey there, I’ve amended the proposal to show that this is FINAL. All the best!

1 Like

Acrypto’s automated liquidity solution has helped us simplify operations and improve capital efficiency. We look forward to partnering and deepening our liquidity across the ecosystem

A big thank you to the council for the valuable feedback, and we appreciate the opportunity to address the concerns for another chance at the snapshot vote.

We believe that these concerns can be clarified in our reply below, and hope we can be part of the LTIPP recipients, contributing to the growth of the Arbitrum ecosystem.

Summary of feedback:

GMX Feedback:

  • no substantial traction despite being live on Arbitrum for a significant period
  • majority of protocol TVL comes from BSC, raising concerns about organic growth
  • team has a strong background, but lacks sticky liquidity post-incentives
  • needs innovative features that would ensure the longevity of these incentives
  • grant size is reasonable, but might just attract mercenary farming behavior

Wintermute Feedback:

  • application was solid and scored well across various criteria
  • provided a clear and concise execution plan, milestones, KPIs, and goals
  • requested grant size is justified
  • current metrics on Arbitrum is underwhelming given the age of the protocol
  • prefer to see more focus on encouraging stickiness and migrating their BSC users

GFX Feedback:

  • generally liked this grant – sized appropriately and had a simple, easily monitored plan of execution
  • would like to see a concerted effort to market these incentives to AcryptoS’ existing user base on BSC

The direct link to the council’s feedback can be found here.

Launch Date and Product Differentiation:

We noticed that the main concerns were regarding TVL growth not being proportionate to the period launched, seemingly indicating lack of interest and growth.

This is possibly due to a misunderstanding regarding our launch date for the ACLM product. We actually launched our ACLM vaults for Arbitrum on Aug 4th 2023 (txn), which is just slightly more than half a year ago. TVL growth has shown to be strong for a new product in this relatively short time period.

We apologize as our initial proposal might have caused confusion by mentioning a 2022 deployment on Arbitrum (in Section 2b above).

That deployment was for our other product (single-token vaults) which we did not include in this grant proposal. In our proposal, we put in the 2022 deployment txn as we weren’t sure if we were supposed to put in the ACLM deployment date, or the date we first launched any product on Arbitrum.

It’s also important to note that we do offer two main products, and they cater to two distinct user profiles with different risk preferences.

  1. single-token vaults, built on lending protocols
  • single token exposure, no IL risks
  1. ACLM vaults, built on V3 Conc Liquidity DEXs
  • two token exposure, high IL risk due to V3 CL mechanics

Due to the above factors, there’s minimal overlap between user bases for these products. Our single-token vaults have seen success on the BSC network, with DefiLlama stats showing a large portion of our current TVL coming from BSC. However, the main bulk of the TVL in BSC is from our single-token vaults.

As this proposal specifically focuses on our newer product - the ACLM vaults, attempting to migrate the BSC TVL (of a vastly different user profile) wouldn’t be relevant for the proposed grant. Therefore our proposal focuses more on trying to attract users that are currently:

  • already manually providing liquidity in V3 CL DEXs
  • using other liquidity managers but exploring better performing strategies
  • still providing liquidity in V2 DEXs, hesitant to move to V3 due to the hassle of V3 LP position setting, rebalancing etc.

Traction, TVL Stickiness, and Incentives:

We’d like to clarify that our ACLM product has actually seen positive traction. Notably, Arbitrum currently holds the highest TVL (~$1 Million) among our ACLM deployments across five chains. Since the launch in Aug 2023, we’ve observed organic growth in our ACLM TVL and user base, suggesting strong strategy performance. This has been achieved even without initial and ongoing incentives.

Stickiness of TVL on these vaults have been apparent, where users start exploring our new vaults organically, and decide to keep their TVL there over the months as APY for these vaults have been consistently good for them. These strategies have consistently outperformed similar LP pairs on other CL-managing platforms, especially on stable token pairs, as seen below.

  • Link to our dapp for live APY and TVL stats on Arbitrum:

  • Additional ACLM performance stats can be found in our original forum proposal above (Section 2)

We believe the proposed Arbitrum LTIPP grant would primarily serve as a way to gain valuable exposure, allowing our strategies to speak for themselves and attract users organically.

Fair Competition and BUIDLing focused on Arbitrum:

We understand the importance of a healthy competitive landscape, especially with other ALMs receiving grant support on Arbitrum. A similar incentive for our product would create a fairer environment for performance comparison. Our proven strategies consistently deliver strong results, and with a minimal grant request of 80,000 ARB, this proposal presents a cost-effective opportunity to evaluate how our ACLM fares against competitors in a similar incentivized setting.

We are firmly committed to developing on Arbitrum. This commitment is reflected in our continuous deployment of new vaults specifically on Arbitrum. In fact, our latest two vaults were just deployed two weeks ago, on April 6th. Our Arbitrum ACLM vaults are currently at one of the largest numbers (25 ACLM vaults) compared to the other chains we’re deployed on.


We believe this additional information addresses the feedback received from the Council and clarifies any potential misunderstandings. We remain confident that our proposal offers a valuable addition to the Arbitrum ecosystem and that our ACLM product has the potential to thrive with the requested support.

In light of these clarifications, we kindly request the DAO to consider taking a closer look at our proposal. Additionally, we would be grateful if a delegate could post a snapshot vote for the DAO to cast their votes on our proposal.

1 Like

As an Arbitrum delegate, we have decided to vote against this proposal from the ACryptoS team. Our primary reason is the lack of significant traction and adoption that ACryptoS has achieved since its launch on Arbitrum in 2022.

Despite being live on the Arbitrum network for over a year now, ACryptoS has struggled to gain a strong foothold and generate substantial usage and volume compared to other leading DeFi protocols on Arbitrum. This underwhelming performance suggests that there may be an issue with product-market fit between ACryptoS’s offerings and the demands and preferences of the Arbitrum user base.

Simply providing additional incentives or grants is unlikely to resolve this underlying problem. If the ACryptoS product suite, user experience, or value proposition are not resonating with Arbitrum users, then more funding alone will not drive a significant, sustainable increase in adoption. The ACryptoS team needs to take a hard look at their product, gather user feedback, and make the appropriate changes to better serve the Arbitrum community. Incentives can be a temporary boost but they cannot compensate for a persistent mismatch between what a product offers and what users are looking for.

Therefore, we believe it would be more prudent and responsible to vote against this proposal, and preserve the DAO’s funds for future products and initiatives that demonstrate stronger potential and market fit within the Arbitrum ecosystem. As an Arbitrum delegate, our priority is to support projects that have the best chance of driving long-term growth and adding value to the network.

We remain open to reconsidering our stance if ACryptoS is able to make meaningful improvements to their product and user experience that lead to increased organic usage and clear signs of product-market fit on Arbitrum. But at this stage, we do not believe additional incentives are the right solution, and we must vote based on the available data and the protocol’s results to date.

Acryptos considers the Council’s main concern to be the protocol’s lack of traction—a discrepancy between its deployment on Arbitrum in 2022 and the incentivization of the product they aim to promote in August 2023.

According to DeFiLlama, its current TVL is $1.04 million, identical to when the Council assessed the application one month ago and identical to when the applicant drafted the initial proposal two months ago. This demonstrates that traction has stalled.

Additionally, incentivizing pools with APRs above 60% initially and an additional 15%—to what they are actually paying—subsequently seems excessive and is not in line with market offerings. Such high APRs attract mercenary liquidity, which leaves the protocol once these elevated rates disappear.

On the other hand:

The applicant themselves states that their strategy does not aim to increase the TVL, volume, or number of users on Arbitrum, an aspect that the Council emphasized they would have liked to see addressed in this proposal.

For these reasons, we believe the proposal should not be accepted.

Thank you for the updated proposal from ACryptoS. First, we have some concerns that make us uncertain about the application—especially their current performance. ACryptoS should be more adequate regarding its current performance and potential in Arbitrum. For this reason, we, as ITU Blockchain, will vote abstain for this proposal.

Thank you for the comments on our proposal as well as our protocol. Through the LTIPP application process, we’ve gathered quality feedback and appreciate the insights on how we can better integrate with the Arbitrum community.

We’d like to address one of the feedback here for clarity:

To clarify on this, we would very much want to increase the TVL, volume and number of users on Arbitrum.

What we explained in our updated proposal was that some initial feedback mentioned that a larger portion of our dapp TVL is currently in BSC, and they would like to see initiatives on bringing more of that TVL over. We explained that our protocol has two main products with two different user profiles, where one of the user groups being more risk-averse and deposits in our single-token non-IL products.

Our ACLM vaults are relatively much higher in risks, and we wanted to attract users and TVL from other chains that were already open to exposing their holdings to V3 LP impermanent losses.

Quoted our reply below for reference:

We’ve been building vaults since our launch in 2020, and we’ve focused more and more on sustainable strategies for the past 2 years, without using farming tokens or degen yields to attract TVL. Hence, our protocol doesn’t attract much mercenary liquidity, with most users staying for long term yields.

Our goal for applying in the LTIPP, was to gain more exposure to users via the additional APY, letting users find out about our already strong strategies and sustainable yields, converting them to stay on for the long term.

We’ll still be BUIDLing here on Arbitrum. Try out our ACLM vaults if you havent yet!