Hey @Jadmat ! Nice to see the LatAm community getting involved. Let me elaborate.
The Beefy Boosts are great because of a few reasons. Our app is multi-chain, meaning that users from every other blockchain that connects to Beefy will see the boosts on Arbitrum at the top of the app, basically attracting TVL from other chains. This is a engineering challenge since we need to get information from many different blockchains and display it extremely quickly. Just as a comparison, other protocols choose to add a sub-domain like ftm.xxx.fi or optimism.xxx.fi, effectively isolating the farming opportunities. In Beefy you see all of the vaults and boosts directly from beefy.com (or beefy.finance).
How it works basically its a reward contract, where users stake their mooToken (interest bearing token) and they earn extra ARB rewards for doing so, during 4 weeks. We are aiming to boost vaults of ecosystem protocols, like MAGIC-ETH, RDPX-ETH, RDNT-ETH, tBTC-wBTC, aurBAL-wstETH, wstETH-ETH, rETH-ETH, and more. All of those will be followed by marketing and communication initiatives, explaining to our multi-chain audience what are those protocols about.
In terms of the bribes, we aim to use the ARB to bribe Aura/Balancer, Chronos (and other AMMs that support this format) to have liquidity for BIFI-ETH. We are also discussing to bribe ARB LPs given that it can give users a nice place to put their earned ARB that the grants will be distributing.
Finally in terms of the period, we reduced the duration to fit the grant standards, and made the plan more fast-paced. We still believe the impact will be comparable. The difference is mostly that with this format, the boosts will be back-to-back, while the other format had a lot of months without boosts.
Thank you for taking the time of reading the proposal and giving feedback.
How does this benefit ARB though? Can you contribute your own token as well? Sorry not familiar with your platform. I just dont think using ARB to incentivize your own liquidity is a good thing.
I personally don’t see any sense on a protocol like Beefy to get any grants.
Beefy is by definition a product that extracts value from other protocols to give to their own stakers. It’s quite literally a dumping machine at scale. Let’s not even mention that it’s currently present in 17+ chains so alignment with Arbitrum is very low. Let’s also not mention that Beefy already received a fat ARB airdrop which they dumped for their treasury.
Nothing inherently wrong with this though! Im an avid user for years, and it’s a public service for optimizing your yields, with the tax paid to their stakers. Fair business model that works perfectly for what it does.
That said, there’s literally 0 arguments to be made of why a protocol with this mechanism would be positive for the ecosystem. Same goes for any protocol that builds on top of others, including ALMs and farm optimizers (Tarot, DefiEdge, Gamma, Arrakis… list goes on).
There’s also the problem of “double-dip” grants on top of AMMs. You would be already extracting money from granted projects even if you get no grants whatsoever. Beefy TVL will surely increase thanks to the grants even if you get none.
This is a clear no for me – as someone who loves Beefy for what it does, this is clearly doesn’t add value to Arbitrum ecosystem.
Beefy is large protocol that brought 60M+ of TVL to Arbitrum at its peak, and still maintains 25M+ of Arbitrum TVL. People move their liquidity from other chains when there are boosts, which increases Arbitrum TVL and swap volume. You can see that same effect from Optimism grants, where disbursements of grants attracted both TVL and swap volume to the chain, which attracts more and more users and adds value to the Arbitrum ecosystem.
The grant would be incentivizing users and contributors to Arbitrum TVL and activity and not just be given to holders/stakers/lockers of a protocol’s token like many of the other grant applications.
Thank you to everyone who commented. Based on the feedback, and seeing that so many other good protocols are applying to get funding, the proposal just got modified to request 55% less tokens. We will also add links in our app to delegate the ARB people just earned.
@Matt_StableLab based on your last comment I believe the proposal is ok to turn to READY. Let me know if this is the case.
Tbh makes no sence beefy asking for a grant that size since the platforms they built autocompounders on top off are already doing it. would end up in double incentivizing the same pool by increasing rewards in native platform and on beefy also.
Beefy owns no liquidity and doesn’t incentivize any pool natively and has a nice mercenary history of extorting protocols to get pools listed.
Would just be another feast of free tokens given by a foundation.
Beefy is DeFi, they’ve been contributing for years to the growth of the ecosystems where they’re deployed and its impact onboarding users and connecting protocols is undeniable, one of the best builders on the space. The adjusted proposal is well reasoned, strongly support it.
Beefy Finance has established itself as a cornerstone in the DeFi sector, and I endorse their grant proposal.
Beefy are trailblazers in terms of security and composability. Whether one is a user, a developer, or a marketer, the experience with Beefy’s protocol is smooth and user-friendly. At Savvy, we hold the Beefy team (especially Weso and TBC) in high regard, are grateful for their support during our protocol’s launch, and back their grant, particularly in light of their considerate revision of the proposal.
We look forward to finally getting a chance to integrate with Beefy.
What did Beefy do with the original ARB endowment? This info should be mandatory on these applications as it says a lot about a protocol’s commitment to Arbitrum’s long-term success. Especially for protocols who didn’t absolutely have to sell it to survive (like a successful omni-chain protocol like Beefy).
I rather this grant go to a native protocol building something useful on Arbitrum than a non native auto compounder that jeeted it’s Arb allocation.
Feel free to use that amount to boost/bribe.
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Firstly, thank you for your proposal and for showing such keen interest in the Arbitrum ecosystem.
Introduction and Rationale
Beefy has requested a grant of 2M ARB, distributed over four months, with 85% allocated for Beefy Boosts on Arbitrum vaults and 15% for bribes for Beefy tokens on ecosystem protocols. As the largest yield optimizer on Arbitrum One, with a proven record in simplifying yield products, Beefy’s proposal has the potential to attract a wide range of liquidity and expand the ecosystem. However, we have a few concerns that need addressing before we can fully support the initiative.
Major Concerns
Alignment with Arbitrum Ecosystem
Beefy is present on 22 chains, and Arbitrum is only the 3rd by TVL.
Research indicates Beefy sold its Arb airdrop.
Our recommendation for change: A clarification on how committed Beefy is to the Arbitrum ecosystem would strengthen the proposal.
Minor Concerns
Potential Overlap with Other Grants
Beefy may already benefit from other Arbitrum grants that incentivize LP pools of other protocols.
Our recommendation for change: Collaborate with other protocols to launch more Arbitrum vaults, optimizing the use of grant funds across the ecosystem.
Summary
Castle Capital appreciates the efforts put forth by Beefy and the value it brings in optimizing yields. However, in its current form, we do not support the proposal moving forward. Specifically, we believe issues regarding Beefy’s alignment with the Arbitrum ecosystem and the potential overlap with other grants need to be addressed.
Our recommendations can be summarized as follows:
Clarify alignment with the Arbitrum ecosystem.
Provide information on the potential match of the grant with BIFI tokens.
Collaborate with other protocols to optimize the use of grant funds.
We hope our feedback is seen as constructive and beneficial for the broader ecosystem. Thank you for your continued commitment to innovation.
From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:
Meets the requirements, metrics, and experience that the program’s design requests.
Value proposition: Beefy attracts inexperienced users to the chain and also retains some more experienced ones. Many Latam users use this protocol
Beefy reduced its request from 2 million ARB to 900,000 ARB.
We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord.
I like the Beefy product and think incentives here will help to migrate users, so I will vote yes, tho I am not super stoked with 15% of the rewards going to incentivize the beefy token.
If the grant goes through, please consider avoiding any incentives towards wstETH and double up the incentives for LST alternatives. Thx!
Hello @CastleCapital . You have made a very thorough analysis. Another point that is worth mentioning, is that given the multichain nature of our app, its much easier to capture TVL from other chains since our users are already in familiar with the protocol. Also we have reduced the ask from 2M to 900k to be aligned with the rest of the protocols.
