The Princeton Blockchain Club is voting FOR the Kwenta x Perennial Onboarding Incentives at the Snapshot stage.
Although a one-off proposal, it’s a comprehensive plan and Jacob has been very willing to engage with us on questions / updates to the proposal. Could see a lot of loyal users come over to Arbitrum.
For tracking purposes, I’m copying the reasoning provided on the snapshot vote:
Reason: Good milestones, made adjustments (reduced the ask a lot) based on feedbacks, and it will be run as an LTIPP grantee.
Below are the opinions of the UADP:
We have chosen to abstain from voting on this proposal. While we recognize the potential benefits that Kwenta and Perennial could bring to the Arbitrum ecosystem, we don’t think that the go-to-market strategy for Kwenta launching on Arbitrum should be through this incentive grant. We’d rather have Kwenta show that they can compete in the highly competitive perps market on Arbitrum first–then apply for this type of grant once there’s an RFP process, like the STIP or LTIPP, that’s created to deliver what Kwenta is requesting. We’re also unsure that the migration from Base or Optimism would be seamlessly done. Sure, it worked well on Base, but it doesn’t guarantee success on Arbitrum as it’s more competitive. If Kwenta is trying to migrate its users to Arbitrum, and perhaps rinse and repeat that strategy with other L2s, it’s not favorable from the DAO’s end. Another reason why we’re being more critical with–but not explicitly against– this request is simply because it’s a one-off request–in rare cases do we believe that it’s prudent to grant funds to projects outside of the scope of a formal program like the STIP or LTIPP.
As 404 DAO wrote in our voting rationale here, we appreciate the very thorough application and the use of the LTIPP template for formality sake.
I just wanted to make a comment regarding the proposed multisig setup. The DAO has an existing initative in the works to create a multisig support signing service (MSS). Rather than creating a new 3/5 multisig for this grant, it would be worthwile to look into the MSS (if timing aligns, as the MSS is not live yet).
Michigan Blockchain is overall in favor of the proposal. While we see the proposal as a driver of capital and users to Arbitrum, we questioned if the deviation from already established incentive programs like STIP and LTIPP is necessary. We also agree with comments from @BlockworksResearch about Kwenta’s user migration strategy and how that could potentially conflict with Arbitrum’s interest when moving users to new blockchains.
Thanks for the feedback we reduced the fee rebate to 75% in line with other protocols!
Thanks for the feedback, we changed the wording to focus on sidelined Kwenta users and CEX traders
The below response portrays the views of the @AranaDigital governance team, represented by @farfel.eth.
We decided to abstain from this vote. Despite recognizing the potential benefits of Kwenta and Perennial, we believe that a formal incentive program like STIP or LTIPP should precede such grants. The competitive landscape on Arbitrum and the migration challenges from other platforms also raise concerns. We want to support the growth of Arbitrum protocols like Perennial and the deployment of prominent applications like Kwenta, but we prefer a structured RFP process, such as with the approved Synthetix grant that already serves to benefit Kwenta, over one-off requests for better transparency and alignment with the DAO’s strategic goals and efficient operation.
Viewing it as vital for Arbitrum’s growth, we approve the funding, akin to our stance on the Curve proposal. Efforts to incorporate delegate feedback are appreciated. Our concern lies in user retention post-incentive program, but we anticipate continued development of Arbitrum native products and ongoing multi-chain strategy improvements.
I am VOTING IN FAVOR of this proposal.
With a team that demonstrates a transparent track record of results and commitment, I believe the execution of this proposal makes perfect sense. Additionally, the ability to onboard people into the ecosystem is always an important aspect of the roadmap I envision for the future of Arbitrum.
I agree with my colleagues that instead of focusing on “stealing users” from other networks, we should emphasize showcasing the properties of Arbitrum within the current scope, which can be more appealing.
I will closely follow the development of this proposal leading up to the on-chain vote.
This proposal is a strategic initiative to onboard and retain high-value users for Kwenta on the Arbitrum ecosystem through a targeted incentive program. By leveraging 1.9 million ARB, the plan aims to attract new users, particularly those from Optimism and other DeFi ecosystems, and retain power users with a robust reward system. The proposal highlights a meticulous approach, including quest-style onboarding incentives, fee rebates, and liquidity bootstrapping incentives. The execution strategy is well-defined, ensuring a seamless user migration experience and utilizing Kwenta’s active user base for effective conversion. The outlined KPIs and grant timeline demonstrate clear objectives and milestones, with a commitment to transparency and accountability through regular updates and detailed reporting. This proposal promises significant growth and sustained engagement for Arbitrum, making it a valuable investment for the DAO. I fully support this initiative as it aligns with Arbitrum’s goals of expanding its ecosystem and driving substantial user and volume growth.
I voted “FOR” on the proposal. As someone who earns a living through derivatives, I appreciate good incentives. Kwenta has proven its effectiveness. Let’s allow them to continue building.
We’ll vote against for the same reasons as previously stated there Kwenta x Perennial: Arbitrum Onboarding Incentives (UPDATED) - #29 by mcfly
I voted FOR this proposal on Tally because I think it’s a strong incentives grant proposal that will onboard a strong DeFi protocol to Arbitrum. I appreciate the team’s willingness to work within the format of LTIPP as much as possible.
After reviewing the discussions on the Arbitrum forum regarding the Kwenta x Perennial onboarding incentives proposal, our team has decided to vote FOR the proposal.
We believe that the proposal effectively aligns with our goal of fostering growth and innovation within the Arbitrum ecosystem.
The proposal’s emphasis on strong incentives for derivatives trading, combined with Kwenta’s proven track record, offers a strategic opportunity to enhance user engagement and platform development. This alignment with our strategic priorities and confidence in the proposal’s potential impact are the primary reasons behind our decision.
We support this proposal because:
On Tally I am in favor of the implementation for the same reasons that I mentioned in the previous post. I also appreciate that the concerns over the fee rebate rate were taken into consideration in the updated version of the proposal.
Kwenta is a great product, it is one of the few defi dapps I use on Optimism, bringing Kwenta users to Arbitrum could be huge, and I think the grant request is reasonable.
Voting for this proposal on Tally, as I did on Snapshot. The potential for user acquisition via scaled incentives and the partnership with Perennial is attractive, and the team’s willingness to engage and adapt to questions and objectives are reassuring, especially for a one-off request of this size.
With that said, it would be great if we could slow the rate of spending on future big tickets like this until the DAO has a handle on its budgeting.
I voted FOR this proposal.
I stand by my reasoning from the temperature check:
I voted for on Tally for the reasons stated above.