0.12% of total token supply is quite a lot for a single dex for 6 months of incentives. Not a huge amount of time in the grand scheme of things.
Long-time Arb native. I am invested exclusively in ARB projects. Was an early individual recipient of a generous ARB allocation via the airdrop. I retained the rights to vote for myself, so I post for myself.
I support this proposal. While I am sure there are ways to improve upon it with informed feedback, seems most of the negative feedback thus far appears to be resistance related to the recipient being a DEX, or the overall size of the grant request.
Bottom line: in a foundational sense, we need deep liquidity, we need greater provisioning, we need growth of unique users, and we are going to need to invest to make this happen. This should be one of the primary missions/concerns of the Arbitrum DAO.
A native DEX makes the most sense to be a facilitator in this process and a serve as a recipient of such a sizable grant. To claim “they benefit” is not only an obvious statement of fact, but frankly an irrelevant one. Every recipient would “benefit” from a DAO grant, in some way shape or form – however, can a recipient provide the necessary arterial “blood flow” to make a difference in the ecosystem to be sufficiently worthy of the grant?
As such, I think a good % of the resources offered by any grant funding process should in fact be focused on the underpinnings of the ecosystem, the plumbing, as it were.
One suggestion could be looking at different ways to phase in the grant monies over a longer period of time with additional accountability measures (should the community feel they need them).
For those of you who resist solely bc of some negativity towards “Camelot” … I would say, then find another DEX with their track record, partnerships, and activity flow – or build it – and then apply for a similar grant. I would support that one, as well.
Your(s) friendly neighborhood
You mean everyone but $ARB holders right?
Reserved for future comment
I am honestly in awe of how selfless this proposal is. 100% of the ARB requested is to be given to liquidity providers across arbitrum ecosystem tokens and products. To reiterate, all the ARB is going straight to genuine Arbitrum users. No incentives to GRAIL or the Camelot team. Perfectly illustrates the positive-sum thinking and long term attitude of the folks behind Camelot.
This is a great way to kick off a virtuous cycle for arbitrum as a whole, with these Camelot incentives poised to create explosive growth in Arbitrum ecosystem usage and TVL. In contrast to other platforms, there’s a few reasons why Camelot is the perfect platform for these incentives:
• Nitro Pools tech as well as vested rewards are inhospitable for mercenary capital. The TVL growth caused by these incentives would be far stickier than we’ve seen across other L2 incentive programs, thanks to Camelot’s design.
• Camelot has done more for Arbitrum than any other DEX. Round table partners (the most prolific protocols on Arbitrum) have been able to incentivise their liquidity with GRAIL and xGRAIL in lieu of their own incentives, enabling more bullish and sustainable tokenomics for their protocols. For example, JonesDAO has been able to get their LP emissions to ZERO, and 25+ other protocols have experienced massive savings too.
• Camelot has always been Arbitrum first, and is most aligned with Arbitrum. They’re the native dex because they were chosen by Arbitrum’s users as such. For the first ARB grant, Camelot is possibly the most deserving protocol as it’s aligned perfectly and wholly with Arbitrum, not to mention that ARB incentives would go directly to Arbitrum users.
Some ways to supercharge this proposal further:
• Direct kickback to ARB holders. While this proposal will boost TVL, volumes, and usage across Arbitrum, DAO participants can be more directly rewarded by directing a portion of fees earned by Camelot during the incentive campaign, to the ARB-ETH LP. Therefore, ARB holders would directly benefit, earning BOTH incentives from this grant as well as some of the fees generated by Camelot as a result of this grant.
• Greater incentives for LPs with ARB, or projects pairing their token against ARB. Again, boost rewards for those with exposure to the Arbitrum DAO’s token.
• Create an xARB token similar to xGRAIL to vest ARB incentives, to further encourage long-term growth. We’ve seen the success of the xGRAIL model in creating long term liquidity and sustainable growth as the antidote to mercenary capital — An xARB token that can fully vest the underlying ARB over 6 months or vest it sooner with a haircut would smooth ARB’s supply curve as well as create long term Arbitrum and Camelot usage. Forfeited tokens can then be recycled.
I commend the thoroughness of this proposal, as well as the honesty of the Camelot team in creating milestones and pledging their own ARB tokens in a separate grant multisig. Not many teams would think of going that extra step, and that speaks volumes about Camelot.
I see some salty comments about the size of the grant, but it seems like some fellow arbinauts are missing the main points. I believe the proposal is a positive step towards the entire ecosystem growth. With a proven track record, Camelot has been supporting Arbitrum builders since its inception and this proposal would extend their reach and support key builders on the chain, thereby invigorating the entire ecosystem.
While 12M arb may seem like a large sum initially, I think the key point is that it will be distributed among many protocols that are supposed to drive the entire ecosystem. While I believe there is room for some minor adjustments, when spread across 30+ protocols, imo it’s pretty evident that the impact will be fairly balanced.
When we talk about the Arb treasury, 12M is still a very small amount compared to the whole picture. If distributed properly, it will attract more users to the ecosystem without negatively affecting the price of arb, creating a win-win situation for everyone.
I fully support accelerating Arbitrum, it’s a much-needed move!
These guys are smoking too much hopium asking Arbitrum for 12M. If you want to fund projects you can use your own token liquidity or search for investors but don’t dump on $ARB. I hope Arbitrum team will be responsible enough to protect $ARB holders liquidity from that robbery. When your proposal involves bringing money to Arbitrum from outside, then you might have my vote.
This proposal is a joke. Throwing raw incentives at LP pools is not a sustainable strategy and NOT an efficient use of ARB. This is spitting in the face of every DAO who received an allocation and put in work to distribute it in the most positive sum way possible. This is way more than any other DAO received.
This grant would represent over 1/8th of their TVL, which we all know is fleeting when the incentives run out. Making users lock up temporarily does not change that. This proposal should be in line with what other DAO’s received and a more cohesive plan than “We will give away all the arb to supplant our TVL”.
If this proposal goes through, it will set precedent for the optimal way of operating on Arbitrum to be grifting the grants program. Additionally if this does go through, I would recommend all DEX’s that received an allocation to dump it for their own good. There is no competing when a new project can come and get 10x the allocation you did despite your project supporting Arbitrum since it launched.
Just a reminder, this person clearly has substantial GRAIL bags and has been pumping them for months. Of course you want this grant to happen. You should be more professional in your disclosures.
As a grail holder, I agree that it would greatly benefit the protocol. But, you’re missing the main point my friend - the ecosystem requires a boost. Without incentives, people won’t simply come to the chain out of nowhere. It’s no secret that interest in the chain has been declining ever since the airdrop happened. The move is good for the entire ecosystem not just Camelot
Incredibly based Grandma.
Robbery? 12m is hardly anything for the dao. I suggest that you check the current size of the treasury Arbitrum Foundation: DAO Treasury | Address 0xF3FC178157fb3c87548bAA86F9d24BA38E649B58 | Arbiscan
Created an account to share my thoughts on this proposal.
The amount isn’t too much, if anything it’s not enough given the potential benefits. It’s a minuscule expenditure compared to current Arb marketcap, much less the value of the chain as a whole. A lot of the objections I see here are just general arguments against grants as a concept, not anything that can be applied specifically to the terms laid out here.
Now is a critical time to spur ecosystem growth to compete with other chains, delaying until all the formalized grant framework is developed and implemented is self-handicapping. Waiting until so-called ‘perfect’ circumstances appear to act means in practice never acting.
This isn’t ‘picking winners’, future grants like this to similarly positioned native infra are both probable and necessary. This shouldn’t be viewed as a special, singular occurrence but as the first step in a coherent strategy of incentivizing aligned players to contribute long-term value.
With that said, Camelot’s stellar history in Arbitrum, deep bench of partnerships and commitment of their full Arb grant as ‘collateral’ mean that the risks of misuse here are minimal. It’s pretty noticeable that a lot of the most negative comments here seem to have personal animus against the Camelot platform and team, but objective observers understand the unique role the Round Table plays on Arbitrum and why it’s the perfect place to begin driving on-chain activity and liquidity with grants.
If Camelot does well, Arbitrum does well. I think this proposal stands on its own merits as-is, but I am going to propose an addition. A sizable partnership grant of xGrail to the Arbitrum DAO would align interests even further, give everyone involved some more skin in the game and make the immediate benefits to ecosystem participants more concrete. It would likely be less in monetary value than the Arb grant, but it would represent a larger proportion of platform ownership - everyone gains. And because xGrail is yield-bearing the DAO would start seeing positive returns immediately.
None of this is going to persuade the people who are letting petty personal grudges get in the way of clear thinking, but I’m confident that those who care about the long-term health of the ecosystem and are invested in its success will understand how advantageous this proposal will be for everyone here.
25% of this going to other partner protocols is great but the incentivization of pairs on their dex is the best part about this. Boosting liquidity on all these pairs only benefits the ecosystem as a whole as deeper liquidity allows for newer entrants. Besides it benefiting ecosystem projects, incentives like these will bring others from other chains. I farmed velo due to OP. Didn’t like the experience so i didn’t last long but they had my money there for a few months providing liquidity. Yields attract crowds and Arbitrum is good enough to get them to stay once involved. Those are my Camelot specific thoughts.
On a broader side, this proposal can kick off something much greater. ARB grant season. By initializing a grant in this way, they will be bypassing the lengthy process that is forming a grants committee. As seen mention by “DisruptionJoe” an active participant in the grant committee formation, they are yet to achieve step 1 of 3 steps needed to form this. Having the first grant pass, will open doors for more to follow. Grants following in the steps of Camelot will not only create an “Arbitrum Season” of sorts, but will be the first introduction of value behind the ARB token. There’s speculation on what other means for value Arbitrum will introduce but governance in action is a good one on highly debated topics as this.
It is ultimately up to the delegates to decide on how this will play out. I think it is a net benefit to the ecosystem and opens the doors for something greater than what Camelot is
Right back atcha, sire.
$15M USD over 6 months for a $15M capitalized project that does only 5% of Arbitrum’s DEX volume ?
And over 6 months only ?
This is ridiculous. Come again with a reasonable grant
Instead of answering with “this is a joke” or other dismissal, how about outlining HOW it might be improved… ?
Should we (the DAO) be giving away funds to brand new protocols with no track record or no use case for the funds other than their own perpetuity?
We need a conversation about what constitutes “giving away” funds then… and what is an incentive.
It feels well-reasoned to me. Camelot has been a vital protocol for Arbitrum’s development, so I do believe they’re a worthwhile recipient to consider for a grant that further boosts the Arbi ecosystem.
The exact amount, and grant runtime, I have to think about a bit more. Those can fairly be debated. But overall, definitely leaning positive.
Very funny watching all these new 30 minute old accounts coming in talking positively about this proposal. In fact I looked and every positive comment is from an account under a day old.
SmallCapScience (although he is known on twitter… to shill grail)
(can only tag 2 people per post)
All the above accounts were made within 24 hours. And it just happens to list everyone who explicitly were for this proposal thus far.
“But woo-woo! Your account is an hour old”
I’m not asking for $12m.
Reminder that this grant would consist of almost the entire GRAIL market cap. Ignore the shills in this thread.
Nothing new. $GRAIL holders review bombing the proposal. They are even planning it open-air on Camelot’s discord. Many bots are coming up.