In light of recent discussions and feedback from the community, we have revised our STIP request downwards from 2 million ARB to 1,250,000 ARB. While our platform metrics align with the initial $2 million proposal, we recognize and respect the broader community’s concerns regarding equitable distribution of funds to a diverse range of projects. By adjusting our request, we aim to strike a balance between our project’s potential impact and the overarching goal of nurturing emerging and smaller protocols. We remain committed to delivering impactful results, and we believe this recalibration underscores our dedication to the community’s collective growth.
Magpie is a unique and integral stakeholder to the Arbitrum ecosystem. We at Stella are launching leveraged strategies on top of Penpie this week, and have had the chance to work with their marketing and growth team. In our experience the team is quite helpful and easy to work with.
Their contribution in deepening the TVL on top protocols on Arbitrum like Radiant, Pendle has been undeniable. Given their contribution, their ask for 1.25M ARB sounds reasonable. As integration partners building on top of Penpie, we support this proposal!
All of the products on Magpie Subdao is built on top of Solid protocols like Pendle - Wombat - Radient , Camelot and and these yield aggregator protocols helps the expansion of these protocols on Arbitrum by boostraping liquidity.
The grant will help them to attract new users to Arbitrum and engage with other protocols as well. I support Magpie Subdao for grant.
you convinced me, take 2M
Magpie is a new role model for DAO & sub-DAO on-chain.
It would be wonderful for Arbi to support them and they benefit the Arbi ecosystem!
Magpie and its subDAOs have been innovating a new space with their products and It will be a whole chain reaction that boosts liquidity for a bunch of projects on arbitrum.
They deserve this grant.
Hello @Penpie,
Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:
Please complete the following steps required for your application to proceed to Snapshot:
To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.
Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.
Hello @stonecoldpat @cliffton.eth, the Magpie Ecosystem proposal is ready to proceed, thank you!
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Firstly, thank you for your proposal and keen interest in the Arbitrum ecosystem.
Introduction and Rationale
Magpie is proposing an enhancement to their suite of products by focusing on liquid staking conversions and liquidity provider incentives, requesting a 2M ARB grant, which is 4% of the total available program funds. Magpie’s initiatives serve as a significant boon for the ecosystem, allowing broader engagement through liquid staking options. Their multi-chain protocol, already well-established on Arbitrum, aims to democratize the incentive structure, akin to convex mechanics for Arb native projects. Despite these positive initiatives, we hold reservations about the disproportionate emphasis and the total grant size requested in the proposal.
Major Concerns
Concern on Distribution
- An 80/20 split between liquid staking conversions and liquidity provider incentives
- Potential that excessive ARB distribution to liquid staking conversions could be predatory, not balancing the required liquidity in the pools
- Our recommendation for change: Adjust the emphasis to favor liquidity provider incentives more, aligning with broader user and ecosystem needs.
Concern about Grant Size
- A substantial request of 4% of the total DAO allocation for the short-term
- Our recommendation for change: Reevaluate the requested amount
Summary
Castle Capital appreciates the efforts put forth by Magpie and the innovative products they aim to bolster within the Arbitrum ecosystem. However, in its current form, we do not support the proposal moving forward. Namely, we believe issues regarding the emphasis split and the total grant amount need reconsideration.
Our recommendations can be summarized as follows:
- Rebalance the focus between liquid staking conversions and liquidity provider incentives
- Reevaluate and possibly reduce the total grant amount requested for a more sustainable and aligned growth
We hope that our comments prove beneficial and contribute positively to the continuous enhancement of the broader Arbitrum ecosystem.
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Post has been changed to FINAL and locked.
We thank you for your time and insightful feedback on our proposal. We value your commitment towards enhancing the Arbitrum ecosystem. Prior to your comments, we had already revised our proposal, reducing the grant request from 2M ARB to 1.25M ARB to better align with the ecosystem’s needs. We would like to clarify that the 80% allocation encompasses liquidity for the liquid wrappers, ensuring a balanced and effective liquidity provision while the other 20% is shared by liquidity pools from other assets like stETH our USDT on our protocols.
This allocation majorly rewards long-term users who are ready to lock their token forever. Based on our previous experience, we are confident that this approach is more effective than directly incentivizing liquidity providers, as we have seen many times how mercenary capital undermines DeFi protocols. We believe that incentivizing users to make permanent commitments will create a lasting positive impact on the ecosystem, even after the ARB incentive period has concluded. For instance, post-Penpie integration, most PNP incentives were used to blackhole 8.3M PENDLE, neutralizing 60% of its annual inflation, significantly stabilizing the protocol and boosting Pendle’s TVL from 65M to a 160M ATH.
Given the experimental nature of this short-term incentive program, our distinctive grant allocation towards long-term users provides a valuable case study for future examination.
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We believe Magpie and all of its subDAOs’ have a great potential for boosting Arbitrum ecosystem liveness. Each subDAO supporting different protocols including Wombat, Radiant, Camelot and Pendle is a robust step in growth as it increases liquidity. Considering this, we are giving our vote in favor of this proposal.