hi @pedrob, please find here below some clarifications on your feedback.
1-Despite increasing the TVL cap to $3M on April 11th, the current TVL remains the same.
Please note that market performances influenced negatively our TVL. Even though we haven’t yet disclosed future incentives, our TVL increased by 18% in a period of market crash (data as of 21st of April). Below a detail:
source: https://defillama.com/protocol/smilee-finance#tvl-charts
It’s also worth noting that in the same period, Arbitrum TVL moved from $3.07bn+ to $2.69bn ( i.e. -12%).
2-The traction of unique users is quite limited, raising doubts about the effectiveness of distributing incentives to a few users.
We have done $13M+ in notional volumes with 164 unique traders, (excluding LPs). This has been achieved in less than one month, considering a week of paused trading due to contract migrations. Would you mind quantify what is considered “few” to help me to better understand your targets and benchmarks?
3-Given the young age of your protocol, it is likely that the liquidity of the pools you wish to incentivize is provided by your team. I would like to see a disclosure of this situation and a plan to prevent yourselves from farming the rewards.
The team has deployed ~$10K of liquidity, just to track TVL performances and PnL, and as agreed it will be excluded from the grant program scheme since it’s done via the disclosed wallets.
That said, as we stated multiple times in both the proposal and the public conversations with our advisor in the LTIPP Discord, all the TVL comes from our partners and community members that joined the Genesis Pool program. All this is verifiable on-chain:
4- I recommend publishing the proposal in an independent publication and setting new milestones according to the new amount requested.
Noted, thanks.
5- Regarding point 4, I recommend setting an APR cap (15% is mentioned in the form) and fixing the distribution of incentives with conditions for milestone compliance.
Noted. Setting the 15% APR implies changing the proposal with an ask amount to 143,800 ARB (arb price at 1.2$).