Savvy DAO - Delegate Communication Thread

SavvyDAO · May 1, 2024, 11:07am

As originators of the STIP Bridge, Savvy DAO has voted for the STIP Bridge.

See Reasoning.

SavvyDAO · May 9, 2024, 4:31am

Voted FOR

SavvyDAO · May 27, 2024, 1:38pm

1.Savvy DAO has voted FOR the MUX challenge proposal.

FOR Voting Rationale on MUX’s STIP Bridge Challenge Proposal

We support MUX’s request for an additional 1.9M ARB as their response clearly addresses the initial concerns regarding sustainability and effectiveness. Since the end of the last STIP round, MUX has not only maintained but also grown their trading volume, launching two innovative products that have successfully redirected liquidity and sustained trader engagement beyond the incentivized period. Their proactive reduction of the grant request by 36%, paired with strategic adjustments inspired by prior learnings, showcases a thoughtful and calculated approach to utilizing the funds for long-term growth. These efforts illustrate MUX’s commitment to adapting and enhancing their ecosystem on Arbitrum, making them a deserving candidate for the bridge round funding.

See proposal here: [FINAL] MUX Protocol STIP Addendum - #7 by SavvyDAO

SavvyDAO · May 27, 2024, 1:54pm

2. Savvy DAO has voted FOR the Stargate STIP Bridge Addendum

We endorse the updated Stargate proposal as a vital initiative for enhancing the Arbitrum ecosystem’s functionality and user experience. Stargate’s strategic shift in incentive distribution, particularly the reduction in USDC liquidity incentives, is a tailored response to unique ecosystem needs, aiming to establish a significant $0 to $1 growth in native USDC. This pivot from rebating protocol fees to offering gas incentives for native asset bridging aligns perfectly with the community feedback, promising more direct benefits to users. Additionally, the introduction of clear, measurable KPIs demonstrates Stargate’s commitment to transparency and accountability. Considering Stargate’s critical role in the Arbitrum network and its proactive adjustments based on prior feedback, voting for this proposal is a strategic choice to drive meaningful cross-chain liquidity and enhance overall network utility.

SavvyDAO · May 27, 2024, 2:05pm

3. Savvy DAO has voted FOR the Solv Protocol proposal.

Solv Protocol’s continued engagement and innovative approaches have proven effective, as evidenced by their significant growth during the initial STIP phase. By efficiently utilizing the first 150K ARB incentive, Solv expanded its TVL from $3.3M to an impressive $107.5M, showcasing a remarkable ability to attract and retain capital on the Arbitrum platform. The proposal to equally split the renewed 150K ARB between the established vault strategies and the new SolvBTC product demonstrates a strategic balance between sustaining proven approaches and exploring promising new ventures. Additionally, Solv’s commitment to refining their tracking systems and distribution processes reflects a proactive stance toward improving operational efficiencies and user engagement. Given these factors, voting FOR this proposal supports not only the continuation of a successful growth strategy but also the broader development of the Arbitrum ecosystem.

SavvyDAO · May 27, 2024, 2:17pm

4. Savvy DAO has voted FOR the Sanko GameCorp’s Proposal

Sanko GameCorp’s approach to distributing STIP Bridge funds has proven both innovative and effective, marked by significant user engagement and growth in key performance indicators. The strategic use of seasonal distributions has not only minimized the risk of gaming the system but has also ensured that rewards are earned by genuinely engaged users, thereby fostering long-term platform loyalty. The impressive growth metrics, including a 253% increase in gift/pass volume and a 655% rise in streamer earnings, underscore the success of their initial funding utilization. Sanko’s proposal to continue this method with a reduced request of 250K ARB for the STIP bridge demonstrates fiscal prudence and a strong commitment to sustainable growth. Given these achievements and the strategic alignment with the broader goals of the Arbitrum ecosystem, supporting Sanko TV’s proposal to enhance its platform capabilities and user base is a prudent move.

SavvyDAO · May 27, 2024, 2:29pm

5. Savvy DAO has voted FOR the Tide Protocol Proposal

Tide Protocol’s initiative to expand its innovative “Cycles” feature and launch additional “Tide Tsunami” campaign series underscores its commitment to fostering sustained user engagement and growth within the Arbitrum ecosystem. The protocol’s previous success with “Tsunami” campaigns, which significantly increased user participation and engagement in a short period, demonstrates the effectiveness of its approach. The detailed plan to use the remaining ARB from the initial round, coupled with the new request for 100K ARB, reflects a strategic and measured approach to capital deployment. Furthermore, Tide’s continuous development of sybil resistance features and more efficient reward distributions promises to enhance the value of each campaign, making the funding request a sound investment to support innovative and engaging blockchain activities. The commitment to refine these processes and integrate feedback shows Tide’s proactive approach to improving its offerings and its potential to drive further adoption on Arbitrum.

SavvyDAO · May 27, 2024, 2:42pm

6. Savvy DAO has voted FOR the KyberSwap Proposal

KyberSwap has demonstrated significant resilience and responsibility following the exploit of their liquidity pools. The decision to return nearly 359K ARB unused from their initial grant reflects their commitment to the Arbitrum ecosystem and responsible management. Their proposal to refocus efforts on their core services, the DEX aggregator and limit-order operations, aligns with a strategic shift that prioritizes security and sustainability over expansion. The new grant request of 450K ARB aims to incentivize trading, enhance referral programs, and promote limit-order farming, which are poised to increase user engagement and volume on the platform. Given KyberSwap’s role as a top-tier aggregator and their proactive adjustments post-exploit, supporting this proposal could significantly benefit Arbitrum’s trading landscape and ecosystem growth.

SavvyDAO · May 27, 2024, 3:52pm

7. Savvy DAO votes FOR Gains Network STIP Addendum

We are following the ARDC’s updated recommendation from “challenge” to “for”.

Savvy DAO has voted FOR the Gains Network STIP Bridge Addendum

Savvy DAO supports the Gains Network STIP Bridge Addendum due to the substantial growth metrics achieved during the initial STIP period, including over 200% increases in daily trading volume and fees. The proactive steps taken by Gains Network, such as reducing gas costs and minimum position sizes, and introducing new collateral types, demonstrate their commitment to addressing previous challenges and enhancing the user experience. The measures implemented to mitigate Sybil attacks and refine the incentive structure further align with our goal of driving sustainable growth. We believe that the proposed allocation of funds will enable continued innovation and support within the Arbitrum ecosystem.

SavvyDAO · May 27, 2024, 4:04pm

8. Savvy DAO has voted FOR the Rabbit Hole Proposal

Rabbit Hole has acknowledged the challenges and criticisms from their previous STIP engagement and has proactively adapted their strategies to align with DAO preferences for better quality and efficacy. The introduction of a new distribution mechanism featuring Farcaster, and further sybil detection efforts, demonstrates a commitment to improving user engagement quality over mere quantity. By focusing on whitelisting users and employing stringent sybil detection methodologies, Rabbit Hole aims to reduce the high sybil ratio previously observed and ensure a more organic and beneficial interaction with the ecosystem. This intentional shift towards attracting higher-quality user engagement, along with their responsive adjustments to feedback, positions Rabbit Hole to more effectively utilize the renewed incentives and contribute positively to the Arbitrum ecosystem.

SavvyDAO · May 27, 2024, 6:46pm

Savvy DAO has voted for itself in the STIP Bridge.
Savvy DAO STIP Addendum

SavvyDAO · May 27, 2024, 7:07pm

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.

SavvyDAO · May 30, 2024, 12:08am

Savvy DAO voted FOR the “Grant Request - Curve Finance”

See original reasoning for the snapshot here: Savvy DAO - Delegate Communication Thread - #18 by SavvyDAO

because it aligns incentives by matching the founder’s personal contribution, thereby ensuring a significant commitment to the project’s success. Curve Finance’s innovative soft-liquidation feature offers a unique and capital-efficient solution that can significantly enhance liquidity for ARB tokens on Arbitrum. The detailed proposal and Curve’s strong track record in DeFi provide confidence in the project’s potential to attract new users and deepen the integration within the Arbitrum ecosystem. The matching contribution from Michael Egorov underscores a serious commitment to the initiative, further validating its value.

SavvyDAO · May 30, 2024, 12:08am

See Tally reasoning here: Savvy DAO - Delegate Communication Thread - #33 by SavvyDAO

SavvyDAO · May 30, 2024, 12:37am

Savvy DAO voted FOR the “Streamlining the LTIPP Bounties” proposal

REASONING:
to enhance efficiency and accountability in the bounty selection process. Allowing the LTIPP council more autonomy ensures a quicker and more informed decision-making process, reducing the burden of numerous DAO-wide votes. This streamlined approach encourages more qualified researchers to apply without the need for extensive lobbying. Additionally, the council’s expertise and focused oversight will lead to better outcomes and more meaningful insights for the DAO. This proposal aligns with the DAO’s objective to create a robust and efficient long-term incentive framework.

See proposal here: Streamlining the LTIPP Bounties - #23 by SavvyDAO

SavvyDAO · May 30, 2024, 1:18am

Savvy DAO has voted in Favor of the Proposal “Kwenta x Perennial: Arbitrum Onboarding Incentives (UPDATED)”

1. Significant User and Volume Growth Potential:

Kwenta’s Established User Base: Kwenta brings a proven track record of high trade volume and open interest, which can drive substantial new user acquisition and trading activity to Arbitrum.
Perennial’s Capital Efficiency: Partnering with Perennial, an Arbitrum-native protocol, ensures deep liquidity and high-quality AMM perps experience, enhancing the overall DeFi ecosystem.

2. Well-Designed and Accountable Incentive Mechanisms:

Quest-Style and Fee Rebate Incentives: The detailed onboarding incentives, including quest-style rewards and fee rebates, are structured to maximize user engagement and retention.
Oversight by Stable Lab: Accountability is ensured with Matt from Stable Lab and LTIPP multisig handling the distribution, aligning incentives with ecosystem growth.

3. Strong Community and Delegate Support:

Positive Delegate Feedback: The proposal has been refined based on constructive feedback, reducing the ask to 1.9M ARB and detailing specific incentive models.
Commitment to Arbitrum: Despite concerns about historical alignment with Optimism, the proposal demonstrates Kwenta’s commitment to Arbitrum, promising significant long-term ecosystem growth.

See proposal here: Kwenta x Perennial: Arbitrum Onboarding Incentives (UPDATED) - #31 by SavvyDAO

Please note this rationale includes both the Snapshot voting and the Tally voting.

SavvyDAO · May 30, 2024, 1:26am

Savvy DAO has voted to support the “Arbitrum Multi-sig Support Service (MSS)”

1. Cost Reduction and Efficiency:

Significant Savings: The MSS will save the DAO around $315,000 annually by reducing operational costs and streamlining multi-sig operations.
Streamlined Processes: A consistent team of signers will make the proposal process more efficient and reduce delays.

2. Enhanced Transparency and Accountability:

Token Flow Reporting: Monthly reports by r3gen will provide detailed financial insights, improving transparency and accountability.
Professional Signers: The MSS ensures competent and trusted signers through a rigorous election and KYC process.

3. Improved Governance and Security:

Reduced Fragmentation: Consolidating multi-sig signers reduces redundancy and operational costs.
Conflict of Interest Policy: Strict policies and removal mechanisms ensure decisions benefit the DAO.

See proposal: [RFC] Arbitrum Multi-sig Support Service (MSS) - #43 by SavvyDAO

SavvyDAO · May 30, 2024, 1:36am

Savvy DAO votes FOR the proposal by WakeUp Labs to develop a front-end interface for forcing transaction inclusion during Sequencer downtime.

Key Reasons:

Enhances Resilience and Decentralization:

Allows users to bypass Sequencer outages or censorship, ensuring continuous network operation.
Aligns with Arbitrum’s goal of progressive decentralization.

Improves Accessibility:

Provides a user-friendly interface for non-technical users to navigate Sequencer downtimes, increasing confidence and autonomy.

Open-Source and Community Involvement:

Open-source implementation allows other teams to deploy their instances, enhancing reliability and scalability.
WakeUp Labs commits to maintaining the service for at least two years.

Conclusion:

This proposal addresses a critical need, offering a practical solution that enhances network resilience, accessibility, and decentralization. Therefore, we support its implementation.

SavvyDAO · May 30, 2024, 1:48am

Savvy DAO Votes In Favor of the Non-Constitutional (Pilot Phase: M&A for Arbitrum DAO)

Savvy DAO votes in favor of the 8-week pilot phase to establish an M&A Unit for Arbitrum DAO. This pilot aims to evaluate the potential for using mergers and acquisitions as a key growth driver for the ecosystem. The initiative, led by Areta, will provide strategic analysis, align key stakeholders, and deliver comprehensive insights through detailed reports. The pilot phase ensures the DAO can make an informed decision on the operationalization of the M&A unit. The budget is set at $52k ARB for this phase, covering operational costs and access to research platforms.

By supporting this proposal, we believe the DAO will gain critical knowledge to strategically expand and enhance its capital allocation methods.

SavvyDAO · May 30, 2024, 1:59am

Savvy DAO votes FOR the proposal to launch the Gaming Catalyst Program (GCP) on Arbitrum.