In a change from stance of preferring to remain neutral on matters related to other futures / margin protocols, and possibly slowly a change in that position, I’m supporting this proposal.
The Synthetix team has updated their proposal hearing concerns from the council on both grant size and specific uses of funds. This application is still larger than any other recommended by the LTIPP council, that reflects the unique position perps have played in building DeFi on Arbitrum including being a key contributor to metrics such as TVL, transactions and volume, having Synthetix on Arbitrum further solidifies Arbitrum as the home of perps, and justifies this investment for the DAO.
My hope is that we create an environment that leading protocols that support the growth of Arbitrum are entrusted with grants that can be invested in growing this ecosystem. Synthetix as a leader in this space for years (but not on Arbitrum) has made a commitment to contribute to that effort, but any future grants that Synthetix, GMX and others get should be measured on their contribution and commitment to those goals.
I’m also glad to see that Synthetix has also now adopted the same 75% maximum fee rebate that GMX championed in STIP and hope that all other perp dexs follow the same during LTIPP, STIP.b or any other programs and that delegates seek the same. Incentives are a means to help drive growth, and while 100% rebates may not be sybilled they do end up being a race to the bottom, leaving ecosystems overspending on incentives and protocols struggling to know if they have achieved product market fit. We need to move over time to keep tightening up the metrics around such incentives.
People will rightly ask isn’t this bad for GMX? Not at all, any activity that brings more users and activity to our neighbourhood is good for us, and we are confident of getting a large share of that new activity. Please remember the mission for GMX, Synthetix and the rest of us shouldn’t be about competing with each other but bringing the remaining 98% of crypto futures and effectively 100% of non-crypto futures on-chain. We look forward to working with anyone who has the same vision.
ps. plus once our friends experience Arbitrum, you know the saying: Once you finally go Blue, you realize it was overdue. 