Jumper x Merkl // MAGA 2025 [Make-Arbitrum-Great-Again]

[jameskbh]

Hello! Thanks for your proposal.

It is a comprehensive one, congrats for that. We need more proposals like this.

Regarding the points below, I have a few questions:

Possible gameable metrics

• What prevents the user to bridge the funds out from Arbitrum and then bridge it back using your program? Is there any interest to prevent this type of situation?
• Will the users that are already LPing on those pools not be rewarded?

@0xluude

Attracting new liquidity and avoiding internal recycling: The MAGA incentive distribution contracts will be created in a way that requires users to bridge new liquidity into Arbitrum and deposit it into incentivised pools, with incentives following a time weighted linear distribution model. By utilising a 2-step incentivisation flow, the bridge requirement results in fresh TVL being onboarded into the ecosystem, and the deposit results in this TVL becoming useful within DeFi — with both being required to earn rewards.

Regarding committee election

I echo the previous comment. You mentioned at the beginning of the text that the committee would be elected by the DAO, but in this section you already provide its composition.

@0xluude

Membership: Members of the MAGA success committee who will be considered ratified by the Arbitrum DAO if this proposal is approved are:

1. Offchain Labs
2. Blockworks
3. Gauntlet
4. Arbitrum Foundation
5. Entropy advisers

It is not a good practice to tie 2 different things (the program itself and the committee election) in the same proposal. Now, if you are open to propose actual elections, please edit the text.

Dedicated multisig

@0xluude

MAGA success committee Accountability: The multi-sig that has permission distribute any funds for the program have 4/5 signers from the success committee.

It is practice to use MSS services for any DAO-led program. It would be interesting to keep this for yours too.

small typos

@0xluude

. The DSC has two opportunities to cancel the Ignite Program:

@0xluude

The DeFi Ignite Program will be administered

About the fees

Can you provide a proper calculation of the total fees?

@0xluude

Compensation:

Fixed fee

• Merkl and Jumper fixed fee (combined): $400,000 in ARB at a 7-day TWAP prior to the payment due date

Reward calculation & Distribution fee

Merkl charges a 1.15% fee on the amount of tokens distributed to account for the complex reward calculation/distribution coupled with the important operational costs involved in powering such programs.

@0xluude

KPI bonuses

Season 1 to 3 (KPIs restart each season):

The way I see it, it is

Jumper: $200,000
Merkl: $200,000 + 1.15% * up to 60m ARB = $200,000 + up to 690,000 ARB.
KPI bonus: Up to 500,000 ARB

Is that correct?

I have nothing against the number itself, but want to have clarity on those. As feedback, I would suggest reducing a lot the 1.15% merkl fee.

Total cost of the program

Can you add a table with the total cost of it? The information is scattered around the proposal, so it is difficult to have a proper understanding. IIUC, it is:

Incentives: up to 60m ARB
Marketing: $350,000
Jumper: $200,000
Merkl: $200,000 + 1.15% * up to 60m ARB = $200,000 + up to 690,000 ARB.

Is that correct or did I miss something?

About whitelisting protocols

Here you provide eligibility criteria:

@0xluude

To participate in the MAGA campaign, all DeFi protocols must:

• Complete and submit the application form
• Be live on Arbitrum One mainnet
• Must have a minimum $5MM DeFi TVL (as measured by DeFi Llama) at the time of the application submission
• Must have sufficient space to grow TVL before any caps are reached
• Be integrated into DeFi Llama
• Fully cooperate and integrate relevant APIs, data streams, and platforms with the program providers: Jumper Exchange & Merkl
• Must not encourage or participate (directly or indirectly) in sybil farming, spoofing metrics (such as TVL, users, etc), or other activities that are abusive or inconsistent with the purposes of the program
• Actively assist in the administration of the program where necessary or advisable, for instance by helping with co-marketing and collaboration for the program

Failure to comply with the above guidelines may result in the DeFi protocols being removed from subsequent incentive rounds/seasons of the MAGA campaign.

And then you provide a list of protocols:

@0xluude

Merkl and Jumper protocol participants recommendations:

• Money Market: Aave, Fluid, Silo, Dolomite
• DEX: Uniswap, Camelot, Curve
• Perps: GMX, ****Vertex
• Yield: Pendle

I fail to understand why you provided this initial list, as it is not a fair competition for the other protocols. Why not having Balancer as a DEX, for example?

Thanks in advance!