Blockworks Research will be voting FOR this proposal on Snapshot.
This one-off application is one of the most comprehensive we have seen. The requested amount of incentives has been rigorously justified both qualitatively and quantitatively. Although some of the stated goals seem ambitious, they are supported by historical performance. Overall, as stated in our earlier comment, we believe that receiving a one-off incentive allocation should be more challenging than going through the dedicated programs and should be reserved for unique opportunities. The thoroughness of the updated application as well as the strong focus on and opportunity to onboard users from other ecosystems meet these conditions, in our opinion.
Our only remaining concern is the 80% fee rebate rate. As @JoJo points out, a rebate rate of 75% has become the standard across perpetual DEXs following GMX’s and Vertex’s STIP incentive mechanisms. This rate appears sufficient to entice significant platform usage. Theoretically, if all perpetual DEXs on Arbitrum offer the same rebate rate, it should ensure that protocols within the ecosystem do not capture traders from each other purely based on reduced fees through incentives.
Edit (June 19, 2024): As the fee rebate rate has been decreased to 75%, we are voting FOR this proposal on Tally, based on the reasoning presented above.