AIP-5
On July 19th we had our 6th governance call at SEED Latam in collaboration with L2 en Español where we discussed this proposal with our community.
Participants: 31 attendees
Duration: 35 minutes
If you missed our governance call you can watch it here
Accelerating Arbitrum - leveraging Camelot as an ecosystem hub to support native builders
We voted Against
To learn about the voting procedure of SEEDLatam and L2 en Español, you can read it here.
Rationale
The main issue with this proposal is the precedent it would create, if the DAO feels like Arbitrum needs to introduce liquidity incentive programs it should be done through a generalized program enabling any DEX to participate - there isn’t really a reason as to why we should pick a winner.
We don’t think that Arbitrum needs liquidity incentives at the moment, it’s current situation isn’t really comparable to Optimism’s when they decided to provide liquidity incentives through Velodrome. Which in turn didn’t result in sticky TVL and mostly resulted in short term mercenary capital - which could be the case if this proposal was to be approved.
We believe that it would make more sense to use the DAOs treasury to support the ecosystem’s development and its builders than simply using funds to support a proposal that would benefit a single protocol and not provide much to the whole ecosystem.
Conclusion
- Liquidity incentives shouldn’t be a priority right now.
- If the DAO wants to support them, it should do so in a generalized + meritocratic way.
- We don’t see how this proposal would benefit the ecosystem.