Voting Rationale for remaining STIP Bridge challenge proposals.
9. Thales
Savvy DAO has voted FOR the Thales Proposal
Thales has demonstrated significant progress and strategic adaptability in response to the challenges and feedback from their initial STIP period. The program’s effectiveness is evident from the substantial increase in key metrics such as monthly notional volume, transactions, and unique user engagement, which continued to thrive even post-incentives. Their new proposal, requesting 200,000 ARB, reflects a focused approach on evolving successful strategies and introducing innovative mechanisms like gas sponsorships and ARB vouchers. These initiatives are designed to enhance user experience and deepen market engagement without fostering mercenary behavior. Thales’ commitment to refining their incentive distribution while substantially reducing their funding request shows a prudent and effective use of resources, warranting continued support to sustain their growth within the Arbitrum ecosystem.
11. StakeDAO
Savvy DAO has voted AGAINST Stake DAO’s Proposal
While Stake DAO’s has shown some promise in driving temporary growth, concerns persist regarding the efficiency and sustainability of the growth driven by the incentives provided. The fact that substantial portions of the allocated ARB remain undistributed due to operational delays introduces uncertainty about the program’s effectiveness and Stake DAO’s capacity to manage such programs. Further, the initiative’s focus has yet to demonstrate a significant long-term impact on the Arbitrum ecosystem, with key performance indicators (KPIs) showing that much of the activity could be attributed to short-lived incentives rather than genuine user engagement. Given these factors, it seems premature to allocate additional funding without more concrete results from the current deployment. It would be prudent to reassess Stake DAO’s request once they have effectively utilized their existing resources and provided clear evidence of sustainable growth and value addition to the Arbitrum ecosystem.
12. Furucombo
Savvy DAO has voted AGAINST the Furucombo STIP Bridge Addendum
Savvy DAO voted against the Furucombo STIP Bridge Addendum due to concerns about the effective use of funds and the prevalence of wash trading during the initial STIP period. While Furucombo achieved strong growth metrics, the increase in volume-based rewards attracted significant wash trading, raising doubts about the sustainability and quality of this growth. The proposed changes for the bridge round, including incentivizing developers through Protocolink and focusing on genuine user engagement, are promising but lack detailed execution plans and clear criteria. The request for a 6x increase in funding to 350K ARB is deemed premature without robust evidence of curbing wash trading and driving sustainable growth. A more measured approach is recommended until the new strategies prove effective.
13. Socket
Savvy DAO has voted FOR the Socket Bridge Proposal
Socket Bridge has demonstrated a strong commitment to enhancing the interoperability and liquidity of the Arbitrum ecosystem through its innovative protocol. The substantial volume of over $1 billion transferred into Arbitrum is a testament to the efficacy of their technology and strategic initiatives. In their new STIP Bridge proposal, Socket aims to refine their approach by allocating the entire 500,000 ARB to user rebates, specifically targeting those who use their API/SDK for bridging activities. This focus on reducing the economic barriers for users transitioning into Arbitrum is expected to boost user engagement and retention, which is crucial for sustaining growth and activity within the ecosystem.
The change in incentive distribution, moving from broad-based incentives to more targeted rebates for users of selected Socket partners, demonstrates a responsive and adaptive strategy. By covering 80% of bridging and gas fees, Socket is effectively lowering the entry barrier for new and existing users, which could lead to increased adoption and a more robust Arbitrum user base. This strategic shift, coupled with their proven track record and substantial prior volumes, provides a solid foundation for expecting continued positive outcomes from their initiatives.
With these considerations, supporting the Socket Bridge proposal is a strategic move to capitalize on their existing momentum and further enhance the interoperability and user accessibility of the Arbitrum ecosystem.
14. Angle DAO
Savvy DAO has voted FOR the Angle STIP Bridge Proposal
The Angle project has demonstrated considerable success in increasing the visibility and utility of the EURA stablecoin within the Arbitrum ecosystem, achieving remarkable growth in TVL, user count, and trading volume. Their efforts have significantly contributed to the diversification and resilience of the stablecoin options available on Arbitrum, particularly with the introduction of a Euro-based stablecoin, which offers a unique value proposition compared to the predominantly USD-centric stablecoin market.
In their STIP Bridge proposal, Angle plans to shift focus towards the newly launched USDA and the associated stUSD, aiming to replicate their successful strategy with a USD-denominated stablecoin. This move is strategically sound, given the broader market and deeper liquidity typically associated with USD assets. By allocating incentives towards enhancing single-sided liquidity on lending platforms and perpetual DEXes, Angle is targeting a sustainable increase in both TVL and user engagement.
The proposal’s emphasis on detailed and transparent reporting, coupled with a commitment to improving the utility and adoption of stablecoins through strategic partnerships and integrations, shows a mature approach to ecosystem development. The planned use of incentives to support the burgeoning DeFi scene on Arbitrum, particularly through innovative products like stUSD which offers a high yield, positions Angle to further solidify its role as a pivotal player in the stablecoin market.
Given these factors, supporting the Angle STIP Bridge proposal aligns with our goals of fostering innovation and supporting projects that bring long-term value to the Arbitrum ecosystem. We anticipate that Angle’s continued efforts will drive further growth and innovation, benefiting a wide range of users and enhancing the overall robustness of the DeFi landscape on Arbitrum.
15. OpenOcean
Savvy DAO voted in favor of the OpenOcean STIP Bridge Addendum due to the significant growth achieved during the initial STIP round, including a 222% increase in monthly trading volume and a 275% rise in monthly active users. OpenOcean’s refined incentive distribution strategy focuses on swap trading cost rebates, reducing cross-chain incentives, and maintaining the referral program. The strategic expansion of partnerships aims to onboard 5 to 10 new partners, enhancing ecosystem engagement. By allocating 250,000 ARB, Savvy DAO believes OpenOcean will continue to drive user growth and trading volume on Arbitrum.
16. Thetanuts
Savvy DAO has voted FOR the Thetanuts Finance STIP Bridge Addendum
Savvy DAO supports the Thetanuts Finance STIP Bridge Addendum due to their significant growth and retention of TVL achieved during the initial STIP period. The protocol demonstrated a 2,488% increase in Arbitrum-specific TVL, maintaining high levels even after incentives ended, indicating strong product-market fit. Thetanuts Finance has addressed concerns regarding protocol-owned liquidity (POL) by redistributing farmed ARB rewards into user incentives, showing their commitment to the Arbitrum ecosystem. The proposal to incentivize the new Pendle PT LRT Vaults on Arbitrum aligns with fostering innovation and growth within the DeFi space. Their clear targets for doubling growth rates across key metrics reflect a focused and strategic approach to driving further adoption.
17. Dolomite
Savvy DAO has voted FOR the Dolomite STIP Bridge Addendum
Savvy DAO supports the Dolomite STIP Bridge Addendum due to the exceptional growth and performance demonstrated during the initial STIP period. Dolomite achieved a 772% increase in TVL and a significant rise in unique wallets and transaction fees. The innovative oARB vesting mechanism effectively deterred extractive behavior and ensured long-term engagement with 723,004 ARB locked up for vesting. The proposal to continue using the proven incentive structure, including the potential addition of a $100K+ deposit threshold for high-net-worth users, shows a strong commitment to sustainable growth. We believe this addendum will further bolster Dolomite’s contributions to the Arbitrum ecosystem.
18. Umami
Savvy DAO has voted FOR the Umami Finance STIP Bridge Addendum
Savvy DAO supports the Umami Finance STIP Bridge Addendum due to the significant growth and strong product-market fit demonstrated during the initial STIP period. Umami Finance achieved a substantial increase in TVL, growing from $3M to over $10M, with the TVL remaining stable post-STIP, indicating user appreciation for their vaults. The shift from the oARB emissions mechanism to a direct ARB emissions model using a masterchef contract is a strategic move to enhance user experience and streamline the incentive process. This new approach aims to optimize vault performance and ensure efficient TVL distribution, aligning with community feedback and fostering sustainable growth within the Arbitrum ecosystem.