To black hole a few tokens on certain selected protocols, this is not something in such size that should be supported, given the scope of grant applications and diversity that could be supported by the DAO.
Unless significantly reduced in size, this is simply an outlier that is double dipping grants on certain protocols.
Magpie has been contributing significantly to the arbitrum ecosystem by building liquid wrappers on top of key protocols on arbitrum. They have also attracted over $25m in TVL to Arbitrum (Magpie $2m, Penpie $22m, Radpie $2m and growing) and have been working well to keep the peg on their liquid wrappers. Think that this incentives will be extremely beneficial to arbitrum overall
Magpie eco contributed to Arbitrum ecosystem in valuable way.
They are building various liquid wrappers for most important projects like Pendle, Radiant and Camelot.
Team is also heavily focused on security and audits.
This grant would only boost their results.
Liquid wrappers for ve had always been highly requested by the Pendle community, and the Magpie team was able to step in and fill this with the launch of Penpie. They have definitely helped grow the Pendle ecosystem. Would love to support this proposal move forward in some form.
The Magpie ecosystem has been one of the strongest builders in the arbitrum space. Increasing the liquidity of the ecosystem by over $50m at the time of this writing. Their expansion into both Pendle and Radiant has served to bring a wide variety of users with different investing profiles. A grant from the Arbitrum foundation would be well placed in this team who has shown time and time again to have a long term commitment to the growth and prosperity of the ecosystem.
I agree with this, their âTVLâ is simply wrapped liquidity from another platform as a service. And theyâre dedicating 80% of the grant to other projects also likely receiving grants? Quite the funnel. Not totally against it, as it is a value-add, but 2M seems like 3x-4x too much in the context of the current round.
Itâs a yield aggregator double dipping with protocols that will likely get a grant. I canât see the value return for a grant this size on top of those protocols. Needs to be reduced significantly, aligned with your thoughts as well.
Whatâs off putting now is either fake influencer accounts being created and making their first post on this proposal, or actual known influencers being paid to come here and post to try and influence opinion.
One thing I am hearing over and over in each proposal is that all the positive comments are made by bots or are paid for or smth in this manner. I think this is not very productive.
Regarding the proposal and value of yield aggregator protocols, I think that it has been proven on the example of Yearn/Beefy/Convex that they bring additional value to the users and ecosystem overall.
There is a valid concern that grants for both original yield aggregator protocols might be counted as a double incentive, but with the same logic giving a 14M Arb grant to GMX and the rest 36M to the protocols built on top of GMX wouldnât be very productive for the Arbitrum ecosystem.
The solution for this is to distribute and allocate grants in such a way that double dipping between the correlated protocols is avoided.
Hello @Smith we appreciate your time. To provide some context: the suggested grant amount for a protocol with 6 months on Arbitrum and 15m TVL falls under the lighthouse incentive, amounting to 2,000,000 ARB. The Magpie ecosystem will mark 6 months on Arbitrum before the end of the first week of October. Currently, our Arbitrum TVL significantly exceeds the 15 million proposed by the lighthouse grant, as we have over 26 million in TVL on our platforms within Arbitrum. In essence, we have an excess of 11 million beyond the suggested 15 million, and based on these metrics, we have decided to request the incentive. We dedicate 80% of the incentive to support long-term users. Users who are willing to lock their PENDLE/GRAIL/dLP/WOM forever. We think this is far more effective than direclty incentivize liquidity providers as we have seen many times how mercenary capital destroy DeFi protocols.
The Magpie Ecosystem is designed to lock governance tokens of top-tier platforms within Arbitrum, offering services that benefit top-tier Arbitrum protocols directly and also introduce new opportunities for users in the ecosystem. This approach aids in fostering sustainable growth on Arbitrum. Users can tap into governance power efficiently and get real yield opportunities via Magpie, Penpie, Radpie, and Campie. We promote user participation and provide a sustainable revenue stream for them. Since its deployment on Arbitrum, Penpie alone has generated over $850,000 in PENDLE, ETH tokens, and more, distributing the earnings to participants on its platform.
Itâs worth noting that we intend to distribute our incentive across four distinct platforms within the Magpie ecosystem and it is purposefully designed to bolster the long-term sustainable growth of eight protocols on Arbitrum.
Thanks, @EynSoph! We appreciate your time and feedback and look forward to continuing to build the Pendle Ecosystem on Arbitrum!
We think itâs simple, Magpie is the layer2 of Dapps, itâs layer2^2 for Arbitrum
What give ETH a significant moat compared to other L1s - L2s, such as Arbitrum
Today, when mainstream dapps are becoming homogeneous
what will make the dapps ecosystem on Arbitrum stand out? - L2^2s, such as Magpie
So grants from L2 to its L2^2 looks make sense to our community
Comments from CapitalismLab, weâre the organizer of Pendle war so weâre familiar with penpie, we also believe that L2^2 already been proven to benefit pendle also would benefit arbitrum
2 million ARB tokens for the entire Magpie Ecosystem does not seem too big at all when you split it across each SubDAO
Each subsequent subDAOâs governance aggregation benefit more than just its own project, the liquidity, and the peg benefits the longevity & sustainability of the top Defi protocols â Wombat (Top StableSwap DEX), Pendle (Top Yield Marketplace), Radiant (Top Omnichain Money Market), and Camelot (#1 Liquidity Hub of Arbitrum)
Magpie team has shown themselves to be fully aligned with the mission by having the team token allocation only in $MGP from the Magpie Token Supply. In order to make this a success, they need to continue growing each of the existing subDAOs and continue partnering with top protocols that brings net positive EV to the entire Defi sector (which theyâve done an amazing job so far with the current lineup of top Defi projects)
2 million grant well-deserved!
We dedicate 80% of the incentive to support long-term users. Users who are willing to lock their PENDLE/GRAIL/dLP/WOM forever. We think this is far more effective than direclty incentivize liquidity providers as we have seen many times how mercenary capital destroy DeFi protocols.
I completely agree. Itâs only the amount that I struggle with, specifically within this round.
I fully support this Grant, Magpie and Penpie have contributed hugely to the Arbitrum ecosystem, Radpie and Campie will continue to draw more users to the chain.
I want to highlight the others comment the Magpie family is the " layer2^2 for Arbitrum", and each SubDAO is a boost to the top Arbitrum star dApps (including Pendle + Radiant + Camelot + Wombat).
Think of Curve and Convex on Eth mainnet, and Penpie has already shown to be successfully bringing the PendleWars to Arbitrum, allowing liquid lockers for vePENDLE on L2. And of course Wombatâs liquid lockers with Magpie too.
The team and the projects are all native to Arbitrum and deserves a major boost.
Thanks for your feedback @flindy
We adhere to the grant framework suggested by Arbitrum when defining our incentive amounts. The guidelines provided by this framework donât differentiate TVL originating directly or routed through another protocol. Users choose to deposit their funds on our platform, indicating their significant trust in our services. The added benefits we provide are a strong pull factor for them. Whether funds are directly deposited or funneled through another protocol, the TVL on our platform can be considered as a testament to our contribution to the Arbitrum ecosystem.
Multi-Protocol Support: Our platforms provide support to four distinct protocols: Radiant, Pendle, Camelot, and Wombat. Combined, they account for an impressive 278M TVL on Arbitrum. This support amplifies the versatility and diversity we bring to the ecosystem.
Many protocols, like ours, employ strategies that might be classified as âdouble dipping.â Itâs also noteworthy that protocols built on top of GLP have requested grants close to 10M. In the context of our support to these 4 protocols with a combined 278M TVL on Arbitrum, a request for 2M is quite modest. And we believe for protocols that are composable and support other protocols building on top of them, itâs logical that they receive greater rewards within their ecosystem. This is because they have invested significant effort to support DeFi legos on Arbitrum, enhancing capital efficiency for users. This, in turn, makes users more loyal to Arbitrum. If the community still want a reduction in the funding request for protocols perceived as âdouble dippingâ, we should address the concern uniformly and equitably, it would be prudent for the community to have clear guidelines or a framework for such protocols. This would ensure transparency and fairness in grant allocations. However, as of now, since thereâs no such existing guideline and considering the experimental nature of this Arbitrum grant, adhering to the current framework seems most appropriate. Future iterations can certainly incorporate feedback and lessons learned.
Mega supportive of the team, and they have shown again that they are strong builders who want to expand the ecosystems they are building upon. Being a project that builds on top of projects that focus on arbitrum is mega important as they simplify how users interact with the base protocol.
The vision is super clear for the team â They have supported all the necessary DeFi legos that has been in line with what Arbitrum has been focusing on:
Wombat - Stableswap
Camelot - V3-style DEX
Pendle - Yield-bearing products
Radiant - Borrowing and Lending
There is absolutely no reason for this team not to support the team where their clear vision is apparent.
Keep on rocking!
I align with the idea that was vocalized here before: Honestly, when I first heard about the 2M ARB allocation for Magpie, it felt a bit much (in fact thatâs what pendle is requestiong). Donât get me wrong, Magpieâs doing some good stuff by building on top of existing protocols, but itâs like giving a supporting actor the same spotlight as the lead. It just doesnât quite fit. Magpieâs role, as valuable as it is, remains secondary in the grand scheme of things. So, I was thinking something around 500k ARB might be more in line with their contribution. Plus, they arenât an arbitrum only project, which should be also taken into consideration. Just my two cents.
Thank you for your feedback.
Firstly, we wish to emphasize that our grant request is entirely based on the Arbitrum grant framework, similar to other applicants. We understand the intricacies surrounding âdouble dippingâ protocols and the absence of a specific grant suggestion guideline this round. Given this scenario, it seemed most equitable to adhere to the existing framework, ensuring a level playing field for all.
Regarding the 2M ARB, weâd like to clarify that this is not an allocation to a single project. This grant request is spread across four distinct projects within the Magpie Ecosystem: Penpie, Radpie, Campie, and Magpie. Specifically, our allocation comprises 600,000 ARB for Penpie supporting Pendle Finance, 600,000 ARB for Radpie backing Radiant Capital, 600,000 ARB for Campie supporting Camelot, and 200,000 ARB for Magpie in support of Wombat Exchange.
Itâs vital to understand that Penpie, Radpie, and Campie are all native to Arbitrum. This solidifies our stance as an Arbitrum native project, emphasizing our commitment and dedication to the network. Comparing our ARB amount request to any other singular protocol may misconstrue our unique proposition. Weâre not merely backing one platform but are supporting four distinct ones on Arbitrum through a single STIP application.
A breakdown of our contributions shows that we hold the leading position in both the Pendle Finance Ecosystem with over 8 million vePENDLE and the Wombat Ecosystem with more than 5 million veWOM on Arbitrum. Further, weâve accumulated over 740,000 dLP from Radiant Capital, and weâre eagerly anticipating the rollout of Campie to enhance the Camelot Dex ecosystem on Arbitrum. Currently, the Magpie ecosystem holds more than 26 million in TVL within Arbitrum.
Our request is in line with the metrics Arbitrum outlined during the STIP announcement. When considering the impact and reach of our ecosystem, a 2M ARB request becomes entirely justified, especially when you consider that Magpie and Penpie alone could justify this request as per the STIP application metrics. Yet, weâre channeling our resources to benefit four diverse protocols.
We remain dedicated to fortifying and optimizing some of the premier Arbitrum DeFi platforms. We hope this sheds more light on our intentions and the reasoning behind our grant request.
a projert. adng a good team.
