Our delegation decided to vote against this proposal.
After receiving feedback from the council, CVI has halved the requested amount (50%) and refined milestones. From the new ask, the vast majority is allocated to incentivize liquidity and trading competitions.
According to Dune Analytics data, their TVL has stagnated between $600K and $700K in recent months. Moreover, 85% of the TVL is concentrated in 3 wallets, with one holding 50%.
Their trading volume was influenced by a trading competition that took place between January and February, along with ongoing fee rebates. Therefore, there are no statistics on protocol usage without incentives.
The requested amount represents 25% of their current TVL, which seems somewhat high and insufficiently justified. The protocol needs to demonstrate traction and user engagement before requesting the grant.