Firstly, thank you for your proposal and keen interest in the Arbitrum ecosystem.
Introduction and Rationale
D2.finance is seeking a grant to incentivize the initiation of their vaults and boost liquidity to their GMX/DSQ pair on Camelot with a request of 500k ARB. This project, a native Arbitrum application, holds the potential to tailor yields on underlying assets, accommodating investors with varying risk tolerances. Despite the promise, D2.finance has yet to establish a substantial presence within the Arbitrum ecosystem, reflected by the low DSQ TVL on Camelot. While the endeavor to enhance the composability of underlying assets and diversify risk for a broad investor base is commendable, the current stage and effectiveness of D2.finance in Arbitrum remain uncertain.
Major Concerns
Concern on Track Record and Benefit to Arbitrum
- D2.finance has yet to prove its effectiveness on the Arbitrum ecosystem
- Paused development and minimal liquidity and volume for GMX/DSQ pair on Camelot
- Our recommendation for change: Focus on product development and establish a solid footing within Arbitrum before seeking grant incentives.
Minor Concerns
- The project is not yet live with vaults, raising questions about its readiness for the requested grant
- Unresolved internal governance issues have previously halted development
Summary
Castle Capital appreciates the efforts put forth by D2.finance and the potential enhancements they could bring to the diverse investor community. However, in its current form, we do not support the proposal moving forward. Namely, we believe issues regarding D2.finance’s track record and its unproven benefit to the Arbitrum ecosystem need to be addressed.
Our recommendations can be summarised as follows:
- Concentrate on consistent product development
- Establish a solid presence and proven functionality within Arbitrum
We hope that our comments serve as constructive feedback for the continuous improvement and eventual success of D2.finance in contributing positively to the Arbitrum ecosystem.