Questbook DDA Program Report

Questbook’s Domain Allocator program is an ongoing initiative by the DAO that enables DAO-elected Domain Allocators to distribute grants (up to $50k) to projects in four different vectors: New Protocols and Ideas, Gaming, Dev Tooling on One and Nova, and Education, Community Growth and Events. Since this program has been live for over a year, and roughly $4m has already been allocated, we felt it necessary to dig deeper into some of the initiatives it supported and assess their impact. To do this, we requested the DAs to provide their top 5 grantees, which we then looked into. We also reached out to them and asked them for feedback on the program, which can be found at the end of this post. Note that the third season of Questbook domain allocators is live on Snapshot as of December 11, 2025.

New Protocols and Ideas

This domain supported a wide array of projects, including protocols starting from scratch, teams developing infrastructure to enhance the UX, projects adding new functionalities to existing products on Arbitrum, and protocols migrated from other chains to Arbitrum. So far, this domain has accepted 48 proposals and spent around $615k.

  1. Pear Protocol

Pear Protocol is a decentralized trading platform specially designed for pairs trading on Arbitrum One. For example, this protocol allows users to long $BTC while simultaneously shorting $ETH, but this is only one of the >30,000 possible pairs that users can trade on their platform. They requested a total of $15,000 from this domain, of which $7,500 was destined to fund their deployment on Arbitrum Mainnet, including an initial audit, and $7,500 was used to develop an RFQ-API, which basically allows market makers to access the protocol through advanced features and their internal engines.

At the time of their application, Pear was in private beta with 100 users, but after they went public, the total number of addresses traded increased to ~1,930—nearly a year after they applied to the domain. Apart from this, and more importantly, the protocol has generated ~$390k in fees and ~$286M in volume traded since November 2023.

  1. USDM (Mountain Protocol)

USDM is a permissionless and regulated yield-bearing stablecoin, fully backed by US Treasuries with a daily rebase mechanism. They requested $25,000 from this domain, with $10,000 allocated for their native deployment on Arbitrum and $15,000 for reaching a minimum AMM pool size of $250,000. Beyond just being a stablecoin, USDM enables builders to use it as a building block for financial products, payments, and more.

Roughly one year after Mountain was deployed on Arbitrum, it sits at around 1800 holders, 890 weekly active users, and has a TVL of $9m (second only to their TVL on mainnet compared to the other chains it was deployed to). Their partnership with Wintermute has enabled large-scale, 24/7 redemptions, and they’ve maintained their peg consistently at $1 through their primary market arbitrage mechanism. Additionally, they participated in Arbitrum’s Long Term Incentives Pilot Program, receiving 295,000 ARB.

  1. Walletlabels.xyz

Walletlabels.xyz offers a comprehensive labeling system for smart contracts and addresses on Arbitrum One, combining manual and automatic labeling engines. They requested $23,700, with $2500 allocated for infrastructure costs over 6 months, $19,200 for two part-time data engineers over 3 months, and $2,000 for miscellaneous expenses. The system plans to label various entities, including exchanges, protocols, scammers, phishing addresses, bots, airdrop farmers, etc. All of this is accessible through an API endpoint.

Even though there isn’t much information publicly available, according to their Gitcoin application, they are currently processing over 250,000 monthly API requests and have more than 200 projects registered for API access. They also mentioned that 20+ companies are using it since it helps them reduce compliance costs by helping them quickly identify flagged wallets, although they don’t mention any companies specifically. Another metric we can look into is their social media presence, which seems healthy, even though they haven’t tweeted since the end of October. This frequency seems on-brand, and they have around 1400 followers on Twitter plus 160 members on their telegram.

  1. FairAI

FairAI is a decentralized marketplace for plug-and-play AI solutions. In this proposal, they requested funding to help improve the discoverability of projects receiving incentives from the LTIPP/STIP programs by leveraging AI. The team requested $20,000, with $8,000 allocated towards fine-tuning their AI model, $8,500 for front-end and back-end development, $1,500 for deployment and operator setup, and $2,000 for marketing.

Currently, there are three tabs related to Arbitrum’s liquidity incentive programs on their site. Two aim to improve the discoverability of LTIPP and STIP projects, and one is meant to provide an “instant retrospective analysis” of the LTIPP. Even though the idea of using AI for this seems pretty interesting, we struggle to see how this can improve said projects’ discoverability when it’s unclear if members of the DAO or Arbitrum’s community engage with it. Based on social media metrics, they have only 1.1k followers on Twitter, and very few are members of the DAO or foundation. It would be nice to see some solid data on how many daily active users the site has and how it’s helping improve the discoverability of said projects.

  1. DexPal

DexPal is a perpetual trading aggregator that aims to provide a CEX-like experience for DEX users. They received $25,000 through QuestBook, structured in three milestones: $5,000 for infrastructure, $10,000 for DEX integrations, and $10,000 for front-end development. The platform has secured additional funding through Arbitrum’s ecosystem, including a grant from Gains through their LTIPP/STIP program.

DexPal is still in closed beta, but they have already integrated with Vela. At the time of the proposal, they were in talks with protocols such as Gains, GMX, Vertex, Aark Digital, and Aevo. Their platform allows users to aggregate and manage positions across multiple DEXs and wallets in a single interface. Since they are currently in private beta, we don’t have any data to determine the product’s success beyond positive feedback from the project manager after a demo. They also don’t seem to have any social media presence, so it’s hard to tell if they have an active user base that engages with their product.

Gaming

This domain is focused on Arbitrum’s broad web3 gaming ecosystem, from supporting indie games to funding agencies and content creators that bring more attention and engagement to Arbitrum’s gaming ecosystem. While the first iteration of this domain focused a bit more on directly funding indie games, we noticed that the second iteration was more skewed toward supporting content creators/agencies.

  1. Socials Rising

Socials Rising is a gamified incubator community and creative agency focused on supporting game studios on Arbitrum. They requested $18,000, with $15,000 allocated for team operations and $3,000 for creator and community member support. Their program aimed to help 12 Arbitrum gaming teams over 12 weeks, structured through three milestone-based payments.

At the time of their application in May 2025, SocialsRising had been operating for 7 months, demonstrating success through campaigns like LowLifeForms Reaction Videos (85k+ impressions) and Duskbreakers Alpha Launch (72k+ impressions). The project has reached a significant reach, with 935,000 impressions across their creator guild initiatives. Their approach differs from traditional marketing agencies by focusing on organic, grassroots content creation and long-term community engagement rather than short-term hype. It seems like it has been very useful for projects in Arbitrum, considering the engagement provided by Socials Rising.

  1. New Game+

New Game+ is a marketing agency specializing in influencer campaigns, live experiences, and creative direction for web3 gaming. They requested $37,500, divided across three milestones of $12,500 each, to execute and manage $300,000 worth of marketing campaigns. Each milestone required managing $100,000 in campaign budgets (provided by projects or other grants) and achieving specific click-through targets: 15k for milestone 1, 30k for milestone 2, and 45k for milestone 3. The team includes industry veterans such as Josh Flores (Treasure and Ready Player DAO, Miles Lozano ( 28th Ave Management), and content creators such as Mystic (2.2M YouTube subs) and Alle (23k Twitch followers). Some of the services they provide are Campaign strategy development and execution, Influencer negotiation and contracting, analytics and ROI reporting, live production, event management, AR/VR/XR media integration, etc.

Based on the two milestones they presented (it’s still an ongoing initiative), they have exceeded their expectations. For milestone 1, they achieved 28k click-throughs (vs. 15k target), +211k impressions, +17k engaged players, $97k in campaign spending, generated +110 pieces of content/events, and worked with 12 gaming teams. Then, for milestone 2, they achieved +50k click-throughs, +180k impressions, +26k engaged players, $88k in campaign spending, generated +65 of content/events, and expanded to 15 gaming teams.

  1. P2E Crew

P2E Crew is a leading LATAM gaming community focused on promoting and educating about web3 gaming in the Arbitrum Ecosystem. They requested $18,000 divided into three milestones of $6,000 each, with specific creation and engagement targets. At the time of their application, P2E crew had a substantial social media presence across multiple platforms, which they then leveraged to ensure the success of their proposal, with 229k Twitter followers, 32k Instagram followers, 8k YouTube subscribers, 7k TikTok followers, 2.5k Discord members, and 1.4k WhatsApp group members. Matheus Celtic, a former professional Hearthstone player with an MBA in marketing and management, leads their team.

The proposal proved highly successful, significantly exceeding all target metrics in their final report: they achieved a total of 630k views on their videos (vs. 240k target), they live streamed for 140 hours (vs. 60-hour target), 6.5k clicks (vs. 4.1k target,) and they organized 12 Game Nights events with +45 participants on average.

  1. Fatal Gaming (Still in progress)

Fatal is a highly sought-after content creator with an established following across multiple platforms: 19.5k Twitch followers, 23k Twitter followers, 12k YouTube subscribers, and 14k Discord members. They requested $18,000, divided into four monthly milestones of $4,500 each to create content around Arbitrum games. They would deliver four gameplay videos, four live streams, and four Twitter threads each month, targeting 50k monthly impressions and 4k monthly streaming views.

Through their first three milestones, they have consistently exceeded their targets, generating over 250,000 total impressions. Their monthly reports show strong performance:

  • Month 1: 93,132 impressions, 6,307 live stream views
  • Month 2: 95,717 impressions, 5,830 live stream views
  • Month 3: 91,000 impressions, 5,000+ live stream views

Besides meeting their content KPIs, they also organized successful community events, including a Pirate Nation tournament, with over 120 sign-ups.

  1. Drops (Still in progress)

Drops is a platform that creates gamified user-generated content (UGC) campaigns to drive growth for web3 projects. They requested $19,000, divided into three 2-month milestones ($6k, $6k, $7k), and are planning to contribute $1,900 to each prize pool for 10 Arbitrum projects. Each milestone targeted at least 300-400k impressions and $33k in transactional volume. The team includes former Ripple, Consensys, and Instagram engineers with experience scaling products to millions of users. Its main competitors are Boost and Galxe.

At the time of their application, Drops had already generated +2M Twitter impressions across three campaigns, and they claim that their Wonder bot has onboarded over 2.5k projects and 200k users. Their first milestone report showed strong social media performance but mixed results on transaction volume:

  • Pirate Nation: 630k impressions, $10k in transactions.
  • The Beacon: 240k impressions, $6.9k in transactions.
  • Delabs: 1.4k impressions, $0.9k in transactions.

So, while they exceeded expectations on impressions, they fell short on transaction volume. This is still an ongoing initiative, so the final results might vary.

Dashboard:

https://analytics.revv.gg/dashboard/bgp9xDMl5W3X5BP31qGo/yjKp43m1w12y5Lo26DMv

Dev Tooling

This domain focuses on empowering developers and improving Arbitrum’s infrastructure by supporting tools for network interaction, documentation, and solutions to L2-specific challenges. Beyond funding, it helps prepare developer projects for long-term sustainability through business development and venture funding support.

  1. Laika

Laika is a Postman-like interface for web3 that allows developers to interact with smart contracts without writing code. They requested $12.5k divided into two milestones: MVP development and advanced features implementation. The budget allocated $10k for development and $2.5k for marketing, events, and infrastructure. As part of the proposal, they planned to rebuild their tool from the ground up and make it fully open source, targeting 800 monthly active users with an average weekly usage of 2+ hours per user by February 2024.

Although they did finish their product, it’s unclear if they managed to hit that target of monthly active users, and it’s even less evident how this project benefits Arbitrum in its current state. Regarding social media interactions, they haven’t tweeted anything since 2023, and their last message on Discord was also back then. Their last commit on GitHub was 10 months ago, so it’s unclear if they are still working on this project, which I assume is the case since they applied to the new Dev Tooling domain. From the publicly available information, our main concerns are that they requested funds for marketing but didn’t seem to do anything significant on that end and the lack of comms coming from their X/Discord accounts.

  1. Bonadocs

Bonadocs is a collaborative documentation platform that, similar to Laika, started as a Postman-like interface for web3 before evolving into a collaborative documentation platform for smart contracts. They requested $10,000, divided into three milestones: $3,000 for a smart contract search tool, $2,000 for simulation features, and $5,000 for widget development. The platform enables developers to search, read, deploy, and simulate smart contracts.

At the time of their application, Bonadocs had an alpha version used by less than 50 developers, allowing them to interact with verified contracts from different block explorers or simply by importing the contract’s ABIs. Essentially, the project aimed to enhance the dev experience beyond Ethereum’s limitations. The project seems to have been delivered, based on the demos they have on Twitter. Still, one thing to notice is that they’ve been engaging heavily with Base and participating in their onchain summer. This isn’t bad, but it would be good to understand what we could do to encourage them to continue building on Arbitrum. Apart from this, their social media engagement is a bit weak, so we should bring more attention to what they are building.

  1. Vyper Compiler

This project aims to improve compiler security through differential fuzzing and building an abstract analysis framework, with the goal of reducing audit costs and development time while increasing test coverage. For context, Vyper is a pythonic smart contract programming language that prioritizes security and readability. They requested $50k across six milestones to fund research on compiler verification methods. At the time of the application, Vyper secured over $100M TVL on Arbitrum and $2B across multiple chains, providing smaller binaries, lower gas costs, and cheaper audit costs than solidity contracts.

Their team consists of Charles Cooper, a long-time Vyper contributor and cyberthirst specializing in compiler security. Even though this is an ongoing project, it is worth supporting. Arbitrum is already supporting a vast array of programming languages through Stylus, and even though Arbitrum already supported Vyper pre-stylus, it’s still one of those languages that doesn’t receive enough support, considering how many Python developers are out there.

  1. Stylus AI Auditor

StylusSecure, which later on was rebranded as Geti SDK, is an AI-powered auditing tool for Stylus smart contracts on Arbitrum. They requested $25k, divided across four milestones: $7.5k for each core development and platform completion and $5k each for beta testing and full launch. The project aimed to provide pre-deployment security checks, performance optimizations, and adherence to best practices for Stylus contracts. By their final milestone report, they claimed that they had significantly exceeded their targets. They stated that they successfully developed and completed the foundational architecture for the first milestones. Then, they mentioned that they achieved 123 downloads (vs. 50 target) and completed three webinars, but there’s no evidence of the latter on the Questbook forum. For the final milestone, they stated that they achieved 695 downloads (vs. 100 targets), delivered five workshops and five webinars, and established a telegram group and a bi-monthly newsletter. However, they didn’t provide any evidence about these workshops or webinars on Questbook. But this isn’t the only concern we have.

If one looks at their Github repo, they have 0 stars or forks, which could indicate that there isn’t that much interest from users for their product or that it didn’t reach the right crowd. It’s also concerning that neither of the two founders of this project contributed to the Github repo (we found Zak’s Github but not Rapha’s). Then, if one looks at their Telegram, there’s no community, just accounts that reply in a bot-like manner. Then, one account under the name of Carlos Felici (@blockChainer404) added most of the members. They seem to be impersonating Carlos Vendrell Felici, who goes by bloqarl on Twitter, and their telegram handle is @vendrell46, according to their LinkedIn profile. Not only this but neither Zak nor Rapha can be found in that group chat. Apart from this, they only made one medium post for their bimonthly newsletter.

After digging deeper into this, we contacted Carlos Felici and Zak Micallef. Unfortunately, the grantees impersonated them. We reached this conclusion by, first of all, doing background research on Zak. Since the proposal mentioned that he worked at TheBit Research, we looked into their site, where his profile was displayed, including their Telegram account (@Zak_micallef). So we sent them a message to verify if it was them the ones behind the proposal, and they confirmed that they were not involved with this:

Then, as I mentioned previously, we assumed that there was an account impersonating Carlos Felici. As one can see in the following images, there was an account on their community Telegram under that name, adding multiple accounts to the group chat. Then the group admin (@Oxkk) thanked them for adding “all the contacts in the previous group”:

After seeing this, we reached out to Carlos Felici, their telegram handle mentioned previously, and they also confirmed that they were being impersonated.

So, everything points out the possibility that impersonators scammed the domain for $25,000. There has to be a higher level of scrutiny by the Domain Allocators when carrying out their due diligence and verifying that the grantees they are talking with are honest in regard to their identity. As demonstrated here, it can be verified by simply looking into their actual profiles on social media and verifying their identity. Both the Foundation and the Domain Allocator have been contacted about this.

One more thing to note is that whoever was pushing commits to their GitHub did so under the alias of oxnash:

After looking into the Domain’s recent proposals, they received a proposal called “Pasona: Revolutionizing Creator Monetization through Social Tokenization,” and the one that submitted said the proposal also goes by the same pseudonym, so the Domain allocator should double check their identity (which they should do anyways) since they might be associated, or it could be a coincidence (the Domain allocator was already notified about this).

Education, Community Growth & Events

This domain’s name is self-explanatory; it mainly focuses on supporting initiatives related to education, community growth, and events. However, within these categories, they prioritized events that hosted hackathons, initiatives for institutional community growth, educational materials and workshops, and IRL educational events. Apart from this, they also tried to ensure some degree of regional diversity to expand Arbitrum’s diversity and reach in regions that usually don’t get that much attention.

  1. DAO Tokyo 2024

DAO Tokyo is the first DAO-specific conference in Asia, set to be a two-day community-driven event in Tokyo, organized by Fracton Ventures in collaboration with the DAO NYC management team. They requested $8,000 for a BLANK ROOM tier sponsorship, divided across five milestones of $1,600 each, covering event promotion, ticket giveaways, material preparation, execution, and reporting.

The event successfully connected over 300 attendees, featuring workshops, panel discussions, and networking opportunities. Their Arbitrum workshop attracted over 40 participants at a time (capped due to room limit), resulting in 170 POAPs minted. However, this amount of POAPs seems to be for the event and not the Arbitrum workshop specifically.

Some key achievements include:

  • Panel discussions with industry leaders.
  • Four interactive workshop groups developing proposals for scaling Arbitrum DAO in Asia.
  • Coverage of Arbitrum grants mechanisms through Questbook, Plurality Labs, and Arbitrum DAO Direct.
  • Multilingual outreach initiatives in Japanese, Chinese, and Korean

Even though the workshop did seem successful in bringing together multiple potential contributors from Asia and getting them to engage in discussions related to the DAO, they did fall short on some metrics. For example, on the proposal, they claimed that they aimed to get +1000 attendees, yet they stated that this number was closer to ~300. Not only this, but their engagement on Twitter could be much higher. Even the tweet they made offering free tickets got only eight likes and two retweets. None of these came from any official Arbitrum account - which definitely should; we must boost these initiatives in order to maximize results from DAO spending. Overall, the event looks good; it’s very niche, so low attendance is understandable. However, we do have to put more effort into promoting these events and further expanding Arbitrum in Asia.

  1. Arbitrum as official sponsor and 2 workshops in Ethereum Argentina 2024

Ethereum Argentina is the largest Ethereum conference in Latin America. They requested $9,500 for Arbitrum sponsorship, divided across four milestones: $6,000 for sponsorship, $1,500 for social media and setup, $1,000 for conference day execution, and $1,000 for final reporting. The event aimed to showcase Arbitrum through workshops and brand presence to over 2,000 technical and non-technical attendees.

The team brought previous experience organizing successful events, including ETH Latam in Argentina in 2022, Colombia in 2023, and Honduras in 2024. The event historically outperformed other regional Ethereum conferences, with their 2023 edition drawing 3,000 attendees, compared to 1,100 in Honduras, 1,000 in Brazil, and 700 in Mexico.

The conference held in August 2024 demonstrated strong results, with over 2,000 attendees, 34 speakers, 11 workshops, and 20 conferences. They successfully delivered two Arbitrum-focused workshops, one about the technical aspects of sequencer operations by WakeUp Labs and the other about Orbit technology by Oscar from Ethereum Honduras. There was also a bonus talk by Ana Belen from the Arbitrum Foundation on some ecosystem updates, such as Stylus and Orbit chains. Another thing to highlight is that they did get support from official Arbitrum accounts on social media, which helped them promote the event to the wider crypto community.

  1. Arbitrum Dapps over Apps

Dapps over Apps is an educational initiative focused on training developers and establishing blockchain clubs across major universities in Nigeria. They requested $15,100, divided across six milestones to organize workshops, training sessions, and hackathons. Their program aimed to establish Arbitrum blockchain clubs in three major institutions: the University of Lagos, Yaba College of Technology, and Lagos State University.

The team, led by Abdulkareem Oyeneye (former Near developer), collaborated with Offchain Labs, the Arbitrum Foundation, and Superposition members for project review and mentorship. Their workshop covered various topics related to Arbitrum’s tech stack, including Stylus, BoLD, and Optimistic rollups. This resulted in the development of diverse applications like fundraising platforms, gaming apps, and voting systems.

The initiative significantly exceeded its initial targets. They trained +300 participants (vs. 150 target), generated +30 dApps (300% above target), attracted +89 hackathon participants with 22 project submissions, published a 352-page comprehensive Arbitrum guide, achieved +200k social media impressions, issued 238 POAPs, and grew their Telegram community from 280 to 608 members. Based on the metrics presented, the program was definitely a success, and it helped a lot to have people directly associated with Arbitrum involved in this process.

  1. Aleph - The Pop-up City that announces the beginning of Crecimiento

Aleph was a month-long pop-up city in Buenos Aires focused on catalyzing crypto innovation in Argentina. They requested $25,000, divided into two milestones: $12,500 for initial sponsorship and hackathon bounty announcement and $12,500 for event completion and final report. The event aimed to unite developers, investors, and regulators to transform Argentina into a leading crypto hub.

The team included notable leaders from the crypto space, such as Emi (Beefy Finance founder) and Martin (The Graph director), along with support from advisors like Diego (Secretary of Innovation, Buenos Aires Government) and Manu (OpenZeppelin founder). The event secured $625k in initial funding from Protocol Labs, 4Seas, and Juan Benet, marking the beginning of “Crecimiento” - a 3-year movement to drive crypto adoption in Argentina.

There were multiple events across different tracks, but related to arbitrum, they did a hackathon and hosted an Arbitrum Day event. For the hackathon, they distributed $3,000 in prizes across three different categories: Best Mobile App, Best DeFi & Payments, and Best Social App & Gaming. Then, regarding the Arbitrum Day event, they covered multiple topics such as DeFi on Arbitrum, crypto adoption in Argentina and Latam, an RWA panel, and more.

While they did deliver on their commitments, such as hosting the hackathon and Arbitrum Day, they didn’t seem to include metrics on these Arbitrum-specific events. We also received first-hand complaints about contributors to Crecimiento not getting paid for their work. This is not only related to Aleph, but also to other projects they carried out after Aleph, with some contributors not receiving their payment since August. We’re reaching out to the organizers to better understand their side of the story. We still have to dig further into this, but ideally, Crecimiento should make a public statement about this whole situation since they claimed that they had secured $625k in funding, plus we gave them a $25,000 grant.

  1. Modular Crypto: Education, Events & University Study Group

Modular Crypto is a Brazilian media and education company focused on blockchain education. They requested $18,500 divided into three milestones to deliver governance study groups, events, and educational content about Arbitrum in Portuguese. The team organized two major events in Brazil: Modular House RJ with 232 attendees and Modular House SP with 157 attendees, featuring Arbitrum-focused panels and workshops.

Their academic program partnered with CONDEB (Brazilian Debate Confederation) and major Brazilian universities to deliver a four-part Governance Study Group, progressing from Web3 fundamentals to Arbitrum DAO specifics. They complemented this with two technical workshops featuring Ricardo Gordon from Arbitrum Foundation and published three research articles on Arbitrum’s ecosystem, liquidity, and interoperability.

The initiative significantly strengthened Arbitrum’s presence in Brazil’s crypto ecosystem through Portuguese-language education and community building. They established a foundation for Arbitrum education in a previously underserved market through their events, academic partnerships, and content creation. Notable outputs included NFT certificates for participants, debate championships on blockchain governance, and comprehensive technical documentation in Portuguese.

Grantee Feedback

To better understand the program’s impact and areas for improvement, we reached out to grantees across different domains for their feedback on their experience, and several consistent themes emerged from their responses. In an effort to respect the anonymity of the feedback received, we have elected to not tie any comments to specific personnel.

Regarding the application process, it was generally viewed positively, with Domain Allocators receiving praise for their guidance and support. However, some grantees, especially those who applied early in the program, noted the need for clear guidelines and standardized requirements across similar projects. This was particularly emphasized for event sponsorships where clear funding tiers could help ensure consistency.

Technical and ecosystem support emerged as a key area where grantees sought more assistance from Arbitrum. Some expressed interest in receiving technical guidance while building their projects and requested better access to experts familiar with specific Arbitrum technologies like Orbit and Stylus. This was also the case for some educational initiatives, which would’ve benefited from having someone from Arbitrum assisting them. Grantees also mentioned the value of establishing stronger connections within the ecosystem, suggesting the creation of formal collaboration networks or structured communication channels to facilitate project partnerships.

Marketing and promotional support was frequently cited as an area needing improvement. While some projects, particularly larger events like Ethereum Argentina, received effective social media support from official Arbitrum accounts, this wasn’t the case for most projects, and many grantees said they would’ve benefited from more promotional assistance. Again, this could be solved by having structured communication channels between grantees, DAs, and members of the Foundation.

Of those interviewed, most maintained active engagement with the Arbitrum ecosystem after completing their grants, expressing interest in continuing their participation. However, lacking a formal collaboration network limits the potential for cross-project synergies that could amplify the program’s impact. Several grantees noted that while informal collaborations occur, more structured communication channels are needed to identify and pursue partnership opportunities with other projects in the ecosystem. Another suggestion was the potential for assisting grantees in receiving further funding, either by connecting them with VCs or through other grant programs, since these grants are rather limited in size.

These insights indicate that while the Questbook DDA program successfully distributed funding, it could better leverage its position to create a more integrated and supportive ecosystem. Based on the feedback and research carried out, we suggest that future improvements should focus on:

  1. Implementing standardized evaluation frameworks based on tiers within each domain.
  2. Developing technical support channels.
  3. Creating structured promotional mechanisms.
  4. Enhancing post-grant ecosystem integration through formal networks and funding connections.
  5. Implementing a comprehensive Due Diligence checklist for DAs.
8 Likes

Thank you for sharing this update—excited to see the continued impact of the DDA Program in driving innovation and growth within the Arbitrum ecosystem!

wait what?

Did they passed KYC? And doesn’t Questbook check for the a match between who signs the docs and who they said they were on the application? Was it some Raphael that signed the agreement with Questbook? cc/ @Srijith-Questbook

1 Like

Thank you very much @entropy for sharing this information. We are aware of the concerns raised and have already contacted the proponents to better understand their side of the story. As those responsible for the Education, community growth and events domain, we will be available for anything that will be needed.

4 Likes

First, I want to thank @Entropy for the detailed report. It can be quite painful to look for this information, and they did something that is, in every DAO program, always painful: verification and follow-up on the work done.

One thing that is not apparent is the amount of scams and frauds that were detected and avoided by DAs. Especially in the domains “Education, Community Growth and Events” and in “Dev Tooling” there have been several attempts with impersonators; luckily the experience of DAs has allowed to identify several of such cases.

That said, for sure mistakes were made, like the case above that could have been either avoided or mitigated; knowing that there is always margin for improvement, to address this broader risk Entropy has suggested and started to work upon a due diligence process/framework to which I will contribute as well. DAs will be able to follow it for their activities, to mitigate risks of frauds to the program.

Thanks again for the contribution.

5 Likes

Hi, I’m Luís, CTO @ FairAI.

FairAI is a decentralized marketplace for plug-and-play AI solutions. In this proposal, they requested funding to help improve the discoverability of projects receiving incentives from the LTIPP/STIP programs by leveraging AI. The team requested $20,000, with $8,000 allocated towards fine-tuning their AI model, $8,500 for front-end and back-end development, $1,500 for deployment and operator setup, and $2,000 for marketing.

Currently, there are three tabs related to Arbitrum’s liquidity incentive programs on their site. Two aim to improve the discoverability of LTIPP and STIP projects, and one is meant to provide an “instant retrospective analysis” of the LTIPP. Even though the idea of using AI for this seems pretty interesting, we struggle to see how this can improve said projects’ discoverability when it’s unclear if members of the DAO or Arbitrum’s community engage with it. Based on social media metrics, they have only 1.1k followers on Twitter, and very few are members of the DAO or foundation. It would be nice to see some solid data on how many daily active users the site has and how it’s helping improve the discoverability of said projects.

@Entropy Thank you for your feedback!
We have our KPIs page here if you are interested in checking it.
It’s important to highlight that we started building this tool later in the incentives program, which, unfortunately, limited its immediate impact on project discoverability. Our marketing strategy fell short of expectations due to issues connecting with DeFi projects and the program’s timing, making it challenging to drive initial adoption.

However, the good news is that the solutions we developed are fully live and operational, serving as a solid foundation for future growth. From the outset, it was always our goal to create tools that would have lasting value, and our follow-up proposals demonstrated this vision (Entry for Arbitrum CollabTech Hackathon contest on JokeRace , Improve the submission and review of any grant proposal on Arbitrum using FairAI). This was discussed during the proposal review process, and was a meaningful part of why we were approved. We are excited about the potential for future growth and the impact our project can have.

This process has also been an invaluable learning experience. It led us to a significant positive outcome: Arbitrum has become our go-to network for development. After completing Techstars Web3 '24, we continue refining our approach and navigating the typical Product-Market Fit challenges many teams face.

We’ve gained a deeper understanding of the Arbitrum ecosystem and its potential, strengthening our commitment to building and growing within it.

To begin, thank you @Entropy for the detailed report and findings, we definitely want to make sure we fund the right people, and this is a mistake we will learn from.

Adding the overall incident report below, in how it happened and how we will avoid it in the future:

  1. Their team submitted a proposal posing as a Raphael and Zak from Metaverse Architects, putting up a solid proposal for an AI Stylus Auditor that @juandi as the Dev Tooling DA accepted.

  2. During the DD process of the DA side, there was an initial call setup to understand their technical competence and previous experience, in the call a Raphael showed up, his technical soundness checked out, he knew what he was talking about, was able to answer technical questions and seemed competent to carry out the terms of the proposal.

  3. Post acceptance, the team actually did deliver on all the milestones that was mentioned, the code was and still is working, both the Questbook team and Juandi have delved into the code and it has delivered most of what the milestones requested, the growth metrics weren’t exactly accurate but technically everything was good to go.

  4. We find out from the Entropy report that neither Zak nor Raphael are actually the ones who made the proposal. To clarify here, an agreement was signed with a Raphael whose KYC details we have captured that matches, however this Raphael is not the same person as the Raphael that was mentioned in the proposal. We figured this out after having a call with Zak. Our mistake here was not knowing the original full name of the Raphael who had the experience as mentioned in the proposal.

  5. Who are the folks that impersonated them? From our findings so far, they were previously colleagues of Zak in the Metaverse Architect team. The impersonators currently run a product called Nexuspay (a Kenyan wallet on top of ETH infrastructure to pay and transfer in USDC and off-ramp to pay utilities in Kenya), and have previosuly tried applying to our grant program under New Protocol ideas, and have submitted more proposals under Dev Tooling too. As such, we can also confirm that the team from Nexus is behind the proposals because they have applied into other domains and proposals inside Dev Tooling. The impersonation team is already implementing better methods of diligence with now turning cameras and exposing their identities as different people while continuing to propose grants that are botched and turned off once delivery is completed.

  6. How do we prevent?

  • We will be implementing social media proofs as part of the application process once a proposal gets accepted as part of the due diligence, we will use Reclaim to verify that a user is the owner of the social media accounts they claim to be, X and LinkedIn and Github will be our first proofs requested.
  • From the Github repos submitted, we will fetch the contributors of the repo and keep it in a data base where we flag if a new proposal has a same contributor involved, so that the DA is aware that one contributor is part of multiple proposals. If found suspicious, we can withold any grant amount left to be disbursed immediately.
  • We will implement two member KYC for any proposal that has 2 or more members but no business registration. This will make it harder for the scammers to impersonate or falsify multiple identities.

In addition to the above methods, we’re constantly thinking of new ways to make sure the overall due diligence process is stringent. Would love any ideas from the community’s side too.

Thank you.

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good!

I think this verification should be requested to the multiple members quoted in an application. because if it’s only to one member, the one that submits the grant application and holds the questbook wallet, attackers can still impersonate other more credentialed people as part of their team. for example in this case, if only one member needs to verify their social media accounts, a Raphael could be verifying legit social media accounts, but a Zak wouldn’t. same thing for KYC which should be requested to all quoted members, as you mentioned.

Also, I need to point out that this is where I think the biggest mistake happened. The deliverables that the team produced on August 23rd, that unlocked the payment of all remaining milestones at once, were a mere chatGPT wrapper that sends the smart contract code to chatGPT with a prompt asking it to find vulnerabilities and returns the chatGPT output to the user. So yes, theoretically it worked, but is it really that valuable? Is this $25,000 USD worth of value?

I believe that at this point, the DA should have raised a flag and definitely not release the payment of the remaining milestones. If that would have happened, we would have saved $17,500 USD out of the $25,000 USD.

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Hey Paulo,

Just wanted to share some thoughts on the recent AI project in Developer Tooling.

Funding AI directly within DevTools is tricky. Building and maintaining those in-house models can get really expensive, and teams often end up going with existing solutions to keep costs down. (you can check the grant called open-source contribution dashboard to see how hard and expensive it is to keep these models ingesting data and lean – which tbh I think its an AI proposal you will love to see in action)

The project itself had some good technical starting points, but we had to do some workarounds to get the geti-sdk package fully running in the command prompt months after post-grant delivery (which is were Entropy got in touch w/ Questbook and DevTooling domain), and where most people would use it to validate their contracts.

Even with the challenges, this project gives us a great lesson. We got a good look at how these AI proposals are put together and what kind of roadblocks we might encounter in all steps of diligence. This will definitely help us figure out how to better support AI projects within DevTooling and across all domains in the future.

Overall, while I could justify not funding the other milestones, the project fell into the initial grant scope, and the investment in this grant gave us some really valuable insights. We now have a better understanding of the feasibility and potential of AI in this space, which will be super helpful for future funding decisions.