RFC: Gyroscope LTIPP Grant Extension Request

Proposals
1

Abstract

Applying on behalf of Gyroscope for an extension of its LTIPP Grant, in order to be able to distribute the remaining ARB.

This extension will run from September 2nd 2024 until 2nd October 2024, ensuring Gyroscope has enough time to distribute the allocated ARB in the most efficient manner.

Motivation

Gyroscope was granted a total of 100K ARB, of which around 80K ARB have been distributed so far.

In order to gather data and make informed decisions, Gyroscope deliberately used few of its grant funds in the beginning, but has been recently ramped up its ARB distribution. Each allocation is carefully crafted for maximum impact, always taking into account available co-incentive schemes and experimenting with different distribution methods and target APYs.

The delay can be attributed to two factors:
(1) some ARB was earmarked for integrations with Silo, Spectra, and CreditGuild, which are only now ready to start. And additionally for a further integration with Aave GHO, who is requesting a similar extension.

(2) Similarly, in addition to the rollout of the yield-bearing version, sGYD, a dedicated staking infrastructure was developed that only went live last week.

Rationale

Generally, the LTIPP grant has been a great success for Gyroscope. ARB is being used to incentivize the use of the GYD meta-stablecoin and to encourage the adoption of Gyroscope’s concentrated liquidity AMMs.

  • Gyroscope pools saw a large capital inflow. In the latest period from Aug-26-to-date, the average TVL of Gyroscope pools with ARB incentives was 11m USD. Gyroscope’s TVL on Arbitrum grew from 1.48m to 16.7m over the course of LTIPP so far.
  • The stablecoin GYD has also seen a lot of adoption on Arbitrum due to ARB incentives. The newly launched yield-bearing version, sGYD, has 70% of its entire supply on Arbitrum, with the remaining 30% being on Ethereum.

The remaining 20274.4285716 ARB are planned to be used to bootstrap additional use-cases of sGYD on Arbitrum (via, for example, a Spectra yield-market), generally encourage (s)GYD adoption, and further incentivize Gyroscope AMMs that are coming to market now. Gyroscope plans to match incentives on Arbitrum after LTIPP through sGYD yield sharing mechanisms, SPIN points, and SPIN for Balancer incentive votes.

Key Terms

  • Grant an extension on deadline to allocate remaining ARB from LTIPP Grant for Gyroscope to allocate.

Specifications

The extension will utilize the remaining ARB tokens from our original proposal for liquidity mining on Gyroscope.

Steps to Implement

  1. The last, missing integrations with other Arbitrum DeFi participants are very close to being concluded. Even if they were to fail, key infrastructure is in place and existing incentive channels are showing great success.
  2. Additional time to allow the last integrations to come in and continue to carefully allocate incentives for maximum impact is all that is needed.

Timeline

  • Start Date: September 2nd 2024
  • End Date: October 2nd 2024

Overall Cost

The extension utilizes the remaining ARB tokens from the originally approved 100k ARB grant. Over the 4 week period, this amount will be fully distributed as per our original LTIPP grant.

No additional funds are being requested beyond the original grant allocation.

5 Likes
2

We came to the conclusion that there would be no harm from extending the time for this grant.

However, our committees will not be able to fully verify the evaluation of the LTIPP program as a whole during the Detox period.

We have the same opinion on other applications for extension

1 Like
3

I’m on board with this proposal. It’s similar to other LTIPP extensions I’ve supported (Pyth, SNX and AAVE), and I appreciate that it stays within the original budget. Gyroscope has been smart about how they’re using the funds, so giving them an extra month to finish up makes sense.

1 Like
4

One of the key factors for me in approving grants funding, and in this case the extension, is the product itself and how the solution might help Arbitrum users. I believe that Gyroscope fits this criterion perfectly. Its unique advantages are not easily found in other projects, as Gyroscope is neither another perpetual DEX nor another money market. Gyroscope Pools benefit from a unique AMM design for swapping stable-like assets, including stablecoins, LSTs, LRTs, and more, in the most efficient way. Think of it as an improved version of Curve Finance.

As more stablecoin projects launch on Arbitrum, along with the rise of LRTs and the upcoming launch of restaking protocols such as Eigenlayer and Symbiotic—which will increase interest in LRTs—promoting Gyroscope on Arbitrum will directly improve user experiences and swap efficiencies. Users will be able to swap their tokens with minimal slippage, low swap fees, and sufficient liquidity.

Therefore, I fully support the Gyroscope team in extending their incentive program.

1 Like
5

We support the extension of the Gyroscope LTIPP Grant. It’s clear that the strategic allocation of ARB tokens could significantly boost the adoption.

1 Like
6

While we appreciate Gyroscope and recognize their efforts and successes during the LTIPP, we will be voting against the extension in this scenario.

It is unfortunate, but we believe it is important to abide by the incentives detox. However, we will endeavour to ensure that future programs are designed to overcome the challenges associated with extensions. A well-considered, forward-looking program will address these issues, along with other design considerations that promote long-term success.

We commend the contributions made under the current LTIPP but will maintain our position against any further extensions.

7

I support this proposal since LTIPP has shown good results. As long as Gyroscope stays within budget, I see no reason not to back this initiative. I just have one question… What happens if some integrations fail to complete during this extension?

1 Like
8

In light of the feedback on extension proposals, I’d like to highlight what I think is a key difference between Gyroscope’s extension proposal and most other extension proposals.

Gyroscope’s proposal is to be able to spend a relatively small amount of remaining grant funds in a short period of time. I.e., in September as opposed to most other proposals that seek 3 month extensions (and on large amounts).

This timeline wouldn’t overlap with the detox proposal in the same way as other extension proposals and is also not much different from the STIP.B timeline, which continues through mid September anyway.

2 Likes