[Poolside] LTIPP Application - FINAL

Application Template

SECTION 1: APPLICANT INFORMATION

Applicant Name: Poolside Core team

Project Name: Poolside

Project Description:

Poolside is a liquidity clearinghouse that facilitates the integration of yield-bearing assets across DeFi and protects liquidity providers from predictable losses. Poolside’s inventory management system enables accurate accounting in liquidity pools for yield-bearing assets including liquid staking and restaking tokens, yield-bearing stablecoins, and other assets. It solves how rebase, cToken, LST and other similar type receipt tokens (i.e. the liquid representation of your deposit on DeFi platforms) accrue value inside liquidity pools. Poolside mitigates the constant downward pressure that currently occurs, thereby stopping the losses liquidity providers face which has made maintaining liquidity so expensive to protocols and users.

Poolside provides the liquidity needed to underpin liquidations for LSTs and LRTs, providing fast unstaking as a service for liquidators. This makes LSTs, LRTs, and other yield-bearing assets more useful as collateral for lending markets, stablecoins, and other DeFi protocols.

While Poolside solves for tokens that have appreciating exchange rates (cTokens), Poolside is in a league of its own when it comes to rebasing tokens. While many platforms use rebasing tokens, none of them accurately price them, others list them but lose the rebase to arbitrage, and others don’t support them at all.

Most AMMs do not support rebasing tokens properly. Current AMM smart contracts don’t understand that the additional supply generated from a rebase is through yield, rather than a change in the ratio of the tokens in the pool (demand). This diagram shows that the AMM thinks prETH (ex: stETH) is getting cheaper relative to ETH.

Result: Liquidity providers lose staking yield – traders take advantage of this mispricing and arbitrage the fresh tokens out of the pool. We call this “permanent” loss because these tokens leave the pool forever.

Solution: Whereas the marginal price changes on other AMMs, on Poolside, 1 ETH will always equal 1 prETH. The new tokens flow into what we call a “reservoir”, which serves as an inactive liquidity pool.

Result: LPs take their yield with them. When LPs redeem their LP tokens, they receive a proportion of the active liquidity and a proportion of the inactive liquidity.

Poolside is the best place to store your staked and unstaked token pairs. And the best thing is, you get a more efficient token to take anywhere else in DeFi!

Team Members and Roles:

  • Manny Rincon-Cruz (Founder/Protocol Design),
  • Matthew Fisher (Business Development)
  • Yissey (Design/Marketing)
  • Socks&Flops (Head of Engineering)
  • Fiddlekins (Full-stack Engineer)

Project Links:

Contact Information

Point of Contact: Matthew Fisher

Point of Contact’s TG handle: @matthewfisher

Twitter: https://twitter.com/web3__

Email: matthew@prl.one

Do you acknowledge that your team will be subject to a KYC requirement?: Yes

SECTION 2a: Team and Product Information

Team experience: Each member of the team has been building together for 20 months or more.

Our founder, Manny Rincon-Cruz, is a financial historian and served as the Executive Director of the Hoover Institution’s History Working Group at Stanford until January 2024. He is an advisor to Blocktower Capital, Eco, DYAD, and Ampleforth. He co-wrote the whitepaper for the first rebasing asset, Ampleforth ($223M market cap), which was #2 in volume on Uniswap for several weeks during “DeFi summer” in 2020. Additionally, he wrote the whitepaper for SPOT, which was built on our smart contracts (Button Tranche) and has $28M in TVL, along with whitepapers for Button Zero and Button Swap (Poolside). His writing on stablecoins has been published in The Wall Street Journal, Cointelegraph, The Atlantic, among others. Along with the preeminent historian Niall Ferguson, he is a co-founder of FourWinds Research, a crypto-focused advisory and investment firm. His essays can be found at thinking.farm.

Our engineering lead, Socks&Flops, is a former YC-backed founder for a fintech and payments startup, and was previously an early engineer at Airbnb.

Our other engineer, Fiddlekins, has been in DeFi for years, and previously spent six years designing digital gambling platforms.

Our designer, Yissey, was a founder of several mobile apps and has over a decade of experience working at a neobank, Fortune 500 companies, and other top agencies.

Our business development lead, Matthew Fisher, joined Libra (Facebook’s stablecoin project) in 2020, where he spent time on the policy team before leading research for the business development team. He also advises Covenant.

What novelty or innovation does your product bring to Arbitrum?
Elimination of “permanent loss” for yield-bearing asset pairs. Currently, ALL LST and receipt tokens receive constant downward pressure due to inaccurate inventory management at the LP level for receipt token / peg pairs. In simple terms, current liquidity pools misinterpret rebases as extra supply or ignore cToken value accrual entirely, and inaccurately the pool rebalances as if it was sell pressure. This is happening constantly. Poolside is the only player that solves this specific challenge, allowing for these tokens to actually accrue value while in liquidity.

Is your project composable with other projects on Arbitrum? If so, please explain:

Yes, Poolside’s value proposition applies to all yield-bearing tokens. Our ERC20 wrapper enhances efficiency and can be deployed across various DeFi platforms. It accurately captures the value of receipt tokens (such as from liquid staking or cTokens) and allows users to earn swap fees while maintaining the peg. We call these our Button Wrappers which can transform any token into a rebasing token, and vice versa. This can make yield-bearing assets more useful for novel applications, like Morpheus’s launchpad protocol.

Overall lending protocols, CDPs, and yield optimizers are the best vertical integrations. These integrations increase yield and utility for LP tokens which will make providing liquidity on Poolside more attractive and competitive. Other natural plug-ins include wallets and DEX aggregators.

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?

Curve is somewhat comparable, but we solve a very specific and unique problem in the market serving as an optimal liquidity clearinghouse. We likely classify in the AMM product cluster, but we are not competing with any of them on 95% of the pairs. Instead, we focus on accurate inventory management for this specific problem the industry has around receipt token LP accounting. For this reason we see AMM’s as a complimentary business instead of a competitive one.

How do you measure and think about retention internally? (metrics, target KPIs)

We believe if we continue to work on our framing and messaging along with adding co-incentivized pools, we will attract first-time LPs. This approach will lead to educating users on the value proposition of Poolside’s design, and lead to strong retention of LPs long after the ARB incentives are over.
We are an LP-focused product and focus on the supply side, total value locked (TVL). We believe we can grow TVL to roughly $10M on Arbitrum by the end of the incentive program, which would make us a top 10 Arbitrum DEX by TVL.
Further growth will be driven by the fastest-growing token category in crypto, liquid restaking tokens. Through recent discussions, we believe several LRTs will be live on Arbitrum by the end of the incentivization program. In terms of volume metrics, this will be partially contingent on how quickly we get the top aggregators integrated.
Poolside currently is integrated into Odos and Yield Yak, and based on our current discussions, a successful Arbitrum rollout will expedite integrations with leading aggregators like 1inch, Paraswap, Kyber, and Matcha.

Relevant usage metrics - Please refer to the OBL relevant metrics chart 9. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

Category List of Metrics
General Metrics (Applies to all) Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts.
Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts.
Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts.
Daily Protocol Fee: Fee switch off for now, so not applicable
Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts.
Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.
DEXs / LST (we feel we need to use a mix of DEX metrics and LST metrics, so we added some of those in – will be interested to hear what the advisors have to say on this!) For each asset/trading pair:
TVL: A daily time series expressed in USD.
Trading Volume: A daily time series, also measured in USD.
List of Liquidity Providers: A compiled list of current and past participants per pool who have provided liquidity during the incentivized period of the protocol. The list should include LP addresses, their current liquidity in USD, time-weighted liquidity in USD, and the duration of liquidity provision.
Total Circulating LST Tokens: A daily time series tracking of the circulating amount of the LST token.
List of Traders: A comprehensive record of individuals or entities that have engaged in trading activities. This list should include trader addresses and the volume of trades executed.
Staker Retention Rate: Measures the percentage of stakers who continue to stake tokens beyond the initial period, assessing long-term engagement.
Price Impact: Did not feel as relevant given our pairs should be viewed in the market as essentially 1:1, but can include if wanted!

Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: Yes

Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):

We have an advisory relationship with the following people / groups, we of course leveraged our network for the refinement of this application!

Daniel Dizon (Swell), Nic Carter (CIV), Hansen (Benqi), Joey Roth (DYAD), Evan Kuo, Brandon Iles, Zach Krasner (Cozy), Tony Sheng (Cozy), Bobby Ong (Coingecko), Joon Wong, Henry Child (Bitfinex), Serious People

None of these groups will receive ANY of the incentives in this proposal, and therefore have no conflicts of interest.

SECTION 2b: PROTOCOL DETAILS

Is the protocol native to Arbitrum?: No

On what other networks is the protocol deployed?: Ethereum, Avalanche and Base

What date did you deploy on Arbitrum mainnet?: February 28th. Arbitrum has been the next chain on our roadmap before we even learned about LTIPP. We already have partnership conversations going (which Arbitrum helped facilitate, thank you!) to collaborate with current LST & receipt token projects on Arbitrum and have been gearing up to launch.

Our launch timeline will start right after ETH Denver, we will have live pools by the application deadline, and will be ramping up marketing and collaboration efforts with partners in the next two weeks.

Do you have a native token?: Not at the moment.

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
N/A

Current Incentivization: How are you currently incentivizing your protocol?

Poolside launched a Points incentive program for liquidity providers in late December of 2023.

Points on Poolside are earned exclusively by Liquidity Providers. Points track user participation in a fully transparent and on-chain manner.

To earn Party Points, users:

  1. Add liquidity to a pair, receive LP tokens
  2. “Join the Party” by depositing LP tokens into a non-custodial Universal Vault NFT
  3. Receive Poolside Points and third-party incentives from partners

An example of this is the co-incentivized sAVAX-AVAX pool with our partner Benqi, who is the largest LST on Avalanche. Each month, Benqi has provided 1,400,000 $Qi tokens (~$25,000 USD) to Poolside LPs.

In order to incentivize larger deposits, Poolside Points have a multiplier that scales based on the amount of liquidity deposited. For example, $100 of liquidity would earn 1x, while $1,000,000 of liquidity could earn up to 4x Points.

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? [yes/no, please provide any details around how the funds were allocated and any relevant results/learnings (Note: this does NOT disqualify an applicant)]:
No

Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

Poolside has amassed ~$3M+ TVL since launching at the end of last year [DeFiLlama]. Our volumes have been low, partially due to lack of internal bandwidth needed to facilitate DEX Aggregators integrations until this past month. Since then, we’ve been integrated to Odos and Yield Yak, and are in discussions with others.

In terms of existing Arbitrum partnerships, Poolside reached agreements with KelpDAO, Bedrock, Mountain, and Origin. These pairs and the relevant incentive programs will be live in the next few days, if not already. Poolside is partnering with Redacted Cartel (pxETH), T Protocol (rUSTP), Origin (OUSD), and Reserve Protocol (TBD) – these pools are on hold due to external technical blockers, but will be live in April. Additional partnerships are at various stages with some waiting for Poolside v2. Some partners will prefer v1, while others will prefer v2.

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]

In terms of Poolside v1, we will be releasing a router that abstracts away the rebasing aspect for end users, which we think is key to mitigate confusion within the DEX. We also are working on DEX Aggregator integrations and will be launching additional pools with partners.

Our current roadmap also includes Poolside V2, which will have two phases. The first phase includes a new AMM design that will introduce LiquidSwaps. A hyper-focused curve designed for LSTs, LRTs, and yield-bearing receipt tokens. This new AMM should concentrate liquidity and increase trading volume, while still preserving yield for LPs. This AMM should also work for stablecoins and RWAs. Poolside v2 should be live in early Q2. The second phase will center around veTokenomics, gauges, and emissions to prepare us for a DAO transition.

Tangentially, we’ll be working on a tranche-based Stablecoin and Poolside will be where the majority of DEX liquidity will live.

  • Based on “ButtonStable” design from a white paper Manny wrote in 2021: Link
  • At the core are Buttonwood’s Tranche contracts, which create fixed funding claims collateralized by any on-chain collateral (meaning fixed term and fixed rate)
  • CASH design has two main advantages: 1) is robust against volatility, which has broken variable funding designs, such as CDP-based stablecoin, 2) can scale to larger size given fixed-term collateral

Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]

Core protocol (August 2023): Audit by Statemind

Button Wrappers (2021): Audit by CertiK

Immuneifi Bounty: Link

Hexagate: Contract signed, integration in progress – proactive security and risk analytics

Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]

No

SECTION 3: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 150,000 ARB

Justification for the size of the grant 17: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]

We arrived at the requested amount based on evaluating the only incentivized pool we’ve deployed so far (listed in Section 2), which accounts for almost all of our TVL. Benqi provided ~$25,000-35,000 worth of $Qi tokens to LPs per month. The sAVAX pool grew to ~$2.5m in several weeks and has stayed there. With 150,000 ARB we would provide ~16,666 $ARB per pool (3) per month. At $2 per ARB, that would be close to the same dollar amount as the $Qi tokens provided in the sAVAX pool. The goal here would be to get $2.5M to $5M in TVL per pool by the end of the period.

The Challenge

The current liquidity pool structures on various platforms inaccurately manage inventory at the LP level for receipt token/peg pairs. This results in two primary issues:

  1. Misinterpretation of rebases as an increase in supply, leading to unnecessary and detrimental rebalancing of assets.
  2. Ignoring the intrinsic value accrual of cTokens, which contributes to the erosion of asset value over time.

This constant mismanagement exerts perpetual sell pressure on LST and receipt tokens, deterring their value accrual and discouraging participation in liquidity provisioning.

The Poolside Solution

Poolside is engineered to eliminate the “permanent loss” by introducing a revolutionary approach to liquidity pool management that:

  • Accurately interprets rebases, ensuring they are not misconstrued as sell pressure.
  • Recognizes and accounts for the value accrual in cTokens, aligning asset rebalancing with actual market conditions.

By rectifying these issues, Poolside not only protects the value of yield-bearing assets in liquidity pools but also enhances their potential for value accrual, thereby making liquidity provision a more attractive and lucrative venture for investors.

Request for Grant: 150,000 $ARB from LTIPP

We are seeking a grant of 150,000 $ARB to incentivize participation in three targeted LST pools. Despite the efficiency and innovation Poolside brings to the DeFi space, attracting substantial TVL through pool efficiency alone has been challenging. This grant will enable us to boost the APRs of these pools, making them competitive and attractive to liquidity providers. The enhanced APRs are expected to:

  1. Attract more TVL, creating a positive feedback loop that further enhances the efficiency and attractiveness of Poolside pools.
  2. Kickstart the “token LP efficiency flywheel”, ensuring sustainable growth and stability in the value of participating assets.

Impact and Benefits

Implementing Poolside’s solution with the support of the Arbitrum DAO’s LTIPP grant will deliver several key benefits to the Arbitrum ecosystem and the broader DeFi community:

Enhanced Stability and Efficiency: By accurately managing yield-bearing assets in liquidity pools, Poolside will mitigate unnecessary sell pressures and value erosion, contributing to a more stable and efficient DeFi ecosystem.

Increased Attractiveness for Liquidity Providers: Competitive APRs, bolstered by the LTIPP grant, will draw more investors to Poolside pools, enhancing liquidity and facilitating smoother trading experiences.

Innovation and Growth: Poolside’s solution represents a significant innovation in DeFi liquidity pool management. Supporting this initiative can position Arbitrum as a leader in fostering cutting-edge solutions that address critical challenges in the DeFi space.

In conclusion, the grant of 150,000 $ARB from the Arbitrum DAO’s LTIPP will be a catalyst for Poolside, enabling us to overcome current challenges in attracting TVL and setting the stage for a revolution in liquidity pool efficiency and asset value accrual. We believe this initiative will bring substantial benefits to the Arbitrum ecosystem, liquidity providers, and the DeFi community at large.

Grant Matching: Poolside does not have a token and is unable to match, although Poolside will be providing points.

Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]

We want to use the grant to help attract users and deposits onto the poolside platform. We feel that we are struggling with distribution of our product, and if we can get partner protocols and their users to realize our platform is categorically better for all parties involved, they will naturally spread the word and stay on Poolside.

There’s an intrinsic cohesion with these protocols, because on a macro level these protocol’s tokens are getting ‘dumped’ on constantly because current DeFi infrastructure can’t handle the accounting and manage the inventory correctly. This is going to constantly work against maintaining the correct peg for the token, a simple switch in deposits solves this entirely for the partner protocol’s ecosystem.

Additionally, those receipt tokens can then be taken anywhere else in DeFi, so we see our product as very complimentary to the ecosystem as a whole!

We are thinking the following allocations and buckets could be powerful use cases of the ARB token to assist us in increasing liquidity efficiency on ARB, and attract the users of these protocols to migrate their liquidity to a more efficient place, bootstrapping the Poolside ecosystem on Arbitrum.

Arbitrum Allocation Use case
60,000 $ARB Enhance the on-chain liquidity depth for $rsETH by ~53% over the course of three months through traditional liquidity mining. This increase in TVL will not only enhance the efficacy of the trading environment for $rsETH but it will also attract holders of $rsETH for long enough to see the numerous benefits that Poolside LPs bring to the table in comparison to our competitors.
40,000 $ARB Enhance the on-chain liquidity depth for $uniETH by ~68% over the course of three months through traditional liquidity mining. This increase in TVL will not only enhance the efficacy of the trading environment for $uniETH but it will also attract holders of $uniETH for long enough to see the numerous benefits that Poolside LPs bring to the table in comparison to our competitors.
50,000 $ARB Enhance the on-chain liquidity depth for $USDM by ~22% over the course of three months through traditional liquidity mining. This increase in TVL will not only enhance the efficacy of the trading environment for $USDM but it will also attract holders of $USD for long enough to see the numerous benefits that Poolside LPs bring to the table in comparison to our competitors.

Funding Address: 0x5f30365069a67f66f9DC5a303F69a30f442F71c9

Funding Address Characteristics: Gnosis Safe ⅔ Multisig

Treasury Address: N/A Our DAO is not live yet, so there is no Treasury

Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]

There will be three contract addresses used to distribute ARB directly to LPs, one for each incentivized pair. We utilize Reward Geysers to distribute incentives to liquidity providers, proportional to time and value staked. LPs deposit their tokens into a universal vault which allows them to participate in multiple programs for each LP-token provided. An example can be found with our sAVAX pool, where Benqi provided Qi tokens: Example of Contract Address

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

Objectives:

The primary objective is twofold.

  • First, secure a foundation of liquidity for the product on Arbitrum, therefore enabling us to kickstart our flywheel.
  • Second, generate awareness on how our product is categorically better for these specific tokens/pairs.

We will do this by strategically allocating $ARB incentives to attract additional TVL in three specific liquidity pools. These pools will focus on $rsETH, $uniETH, and $USDM.

Our goal is to bootstrap $9,159,091 of total liquidity over the lifecycle of the program.

Execution Strategy:

After a thorough market analysis of the specific tokens we are looking to incentivize we have come up with a comprehensive token distribution plan that is aimed at increasing the total on-chain liquidity for these three tokens by attracting new LPs that will provide liquidity on Poolside equal to:

  • $rsETH: 35% market share
  • $uniETH: 40% market share
  • $USDM: 18% market share

Market analysis/comparables:

$rsETH

$uniETH

$USDM

With these market comparables in mind we have designed the following execution strategy using the requested $ARB grant.

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? [Provide relevant design and implementation details]

The core stickiness stems from education. We believe the incentives force prospective LPs and communities to educate themselves on Poolside. Poolside saves liquidity providers from predictable losses for our target market. We would like to start tracking the dollar value of the assets saved by Poolside to showcase effectiveness of the product and how much value it can add if communities migrate their liquidity. The data we will get from this program will enable us to produce persuasive data-driven content and convert first-time users to long-time LPs.

Overall we believe this campaign will help people get in the door, and the efficiency will keep people providing liquidity.

Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]

TVL in the picked tokens

  1. $rsETH: + ~52.82%
  2. $uniETH: + ~67.63%
  3. $USDM: + ~22.06%

Volume in the picked tokens

  1. $rsETH: + $3,145,104/month
  2. $uniETH: + $859,091/month
  3. $USDM: + $738,033/month

Market share for the picked tokens

  1. $rsETH: 35%
  2. $uniETH: 40%
  3. $USDM: 18%

Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]

Milestone 1 - Weeks 1-4: Initial bootstrapping

Objective: The goal is to increase the TVL across $rsETH, $uniETH, and $USDM LPs on Poolside by distributing 150,000 $ARB across the three pools over 90 days.

Activities:

  1. Deploy traditional liquidity mining farm(s) for:

  2. $rsETH/$wETH - 60,000 ARB over 90 days

  3. $uniETH/$wETH - 40,000 ARB over 90 days

  4. $USDM/$USDT - 50,000 ARB over 90 days

  5. Distribute incentives to users who deposit LPs for the three incentivized pairs into their respective farms

Expected Outcome: grow the overall depth of liquidity for these three pairs respectively by:

  • $rsETH: ~34.56%
  • $uniETH: ~40.34%
  • $USDM: ~18.07%

Milestone 2 - Weeks 5-8: Sustained growth & LP education

Objective: Continue to grow the overall liquidity depth of $rsETH, $uniETH, and $USDM and increase the efficacy of the trading environment/liquidity provisioning environment for each asset.

Activities:

  1. Analyze data from the first phase to refine the liquidity mining program if needed.
  2. Distribute incentives to users who deposit LPs for the three incentivized pairs into their respective farms.
  3. Kickstart education campaign focused on showcasing Poolside’s innovative solution to IL on LST pairs

Expected Outcome: maintain the overall depth of liquidity for these three respective pairs. Farming programs typically find equilibrium quickly and maintain those liquidity levels over the course of the program.

Milestone 3 - Weeks 9-12: Showcase Poolside efficiency/innovation to ensure sustainability

Objective: Showcase to LPers that Poolside’s innovative solutions have saved them capital in the form of impermanent loss prevention

Activities:

  1. Analyze data from milestone 2 and adjust the liquidity mining program if needed.
  2. Distribute incentives to users who deposit LPs for the three incentivized pairs into their respective farms.
  3. Continue education campaign to show LPers that Poolside has solved one of their largest headaches, thus helping to ensure they will remain loyal to the platform

Expected Outcome: the growth to $rsETH: 35%, $uniETH: 40%, $USDM: 18% market share across all each incentivized pair as well as an engaged LST centric community that is loyal to the platform due to the solutions it has brought to the market.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? [Clearly explain how the inputs of your program justify the expected benefits to the DAO. Be very clear and tangible, and you must back up your claims with data]

Receiving a grant will spur initial growth across user base, liquidity, and overall excitement for innovations we are continuing to build. It will be impactful in generating brand awareness among the ecosystem, and foster stronger partnerships with other projects and communities.

The assets we are looking to grow the TVL for on our platform typically suffer from a type of loss that LPs incur due to fundamental flaws and mismanagement in the way protocols are designed. The problem our protocol solves should fundamentally change the way users evaluate risk when LPing these assets. Distributing our grant effectively should significantly raise awareness of our solution, thus catalyzing a swift increase in the TVL and trading volume of the types of assets we support. Arbitrum, as the primary catalyst for introducing this innovation to a broader audience, would be strategically positioning itself as the preferred platform for these assets. This could result in a TVL surge by tens of millions of dollars. This grant would help us have a successful entry to the Arbitrum ecosystem, which we plan to double-down on with v2 and a stablecoin as we believe Arbitrum is proving to be the major home for DeFi.

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes

SECTION 5: Data and Reporting

OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 12. Along with this list, please answer the following:

Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered? Yes

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? Yes, we will work with OBL to implement all dashboarding requirements and can publish biweekly reports to the forum to report out on the success. We are excited to track the progress of this program!

First Offense: *In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.

Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.

Third Offense: Funding is halted permanently

Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.) Yes.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes

2 Likes

Hello @mfisher

Thank you for your application! We can confirm your application has been submitted and you will be assigned an advisor shortly.

Great, we will stand by. Thank you.

Hello @mfisher ,

Thank you for your application! Your advisor will be @JoJo.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

1 Like

@cliffton.eth @Matt_StableLab can you please mark this as FINAL? Thank you.

Hey there this proposal has been updated to show that it is FINAL. All the best!

Thanks for the proposal. Poolside offers a solid application that aims to solve an important problem faced by liquidity providers in the DeFi ecosystem, but we believe that the incentive mechanisms are not sufficient. Despite everything, we support this proposal because we find the grant amount and KPIs sufficient and reasonable.