[Umami Finance] [FINAL] [STIP - Round 1]

Archive Incentive Framework (Round 1)
21

Are you willing to modify the proposal to stick adherence to the STIP recommendations?
Following Defillama data it would mean UMAMI TVL at 4M, it would enable a grant up to 750k ARB

2 Likes
22

Yes. We are willing to modify if that is what is needed.

23

Hello @Neotokyocat ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

24

@Neotokyocat Here is the updated process for changing your title.

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

1 Like
25

Hey @SEEDGov, it’s important to remember that the recommendations are just that, recommendations. We believe that 1M is grantable in our case for a few reasons:

  1. Our unique incentivisation mechanism with oARB means that our grant is less likely to be dumped or go to mercenary capital. The mechanism is designed to foster more positive effects for Arbitrum by aligning the incentives of the depositors farming oARB and Arbitrum.
  2. Our TVL shouldn’t be viewed in a vacuum. Due to the nature of our protocol building vaults on other protocols on Arbitrum, our TVL flows through the ecosystem not only benefitting us.
  3. In addition, our TVL is more sticky than the average protocol, once again due to the nature of the protocol as a “lazy” or “set-and-forget” style vault strategy, and that’s reflected in our historical TVL.
  4. We have a Treasury of roughly 4-5M$ in non-native assets on top of the 4M in TVL, providing liquidity again to the ecosystem. Together this amounts at least 8M at any one time.
  5. Our OG status on Arbitrum, and dedication to Arbitrum from our very inception.

I hope after considering these points, it becomes clear why our ask is the size it is. Of course, we are still open to feedback but I just thought it would be important to point these things out to help understand our motivation.

26

Firstly, thank you for your proposal and your active participation in the Arbitrum ecosystem.

Introduction and Rationale

Umami Finance seeks to enhance the Arbitrum ecosystem by offering yield-generating vault products built on foundational protocols like GMX. Your proposal centers around users staking their Umami vault receipt tokens for oARB emissions, which can be vested and eventually staked with ARB for discounts. The grant request of 1M ARB, which is 2% of the total 50M ARB available, is aimed at facilitating this. Umami’s specialty in low-risk, high-sharpe ratio strategies and steady growth in TVL demonstrates its effectiveness. We appreciate the built-in commitment through the oARB mechanism and see real potential for it to benefit the Arbitrum ecosystem.

Major Concerns

Grant Size vs TVL and Product Range

  • The requested 1M ARB for a TVL of $4M seems quite high
  • Offering only GLP products, which are mostly capped at Umami
  • Our recommendation for change: Lower the requested ARB in line with your current TVL caps and consider expanding the range of your GLP products and their caps

Minor Concerns

  • Incentivising GLP (v1) based pools when GMX are attempting to migrate capital to V2 (but this means there will not be 2 layers of yield on these GLP vaults.

Summary

Castle Capital values the innovative contributions by Umami Finance to the Arbitrum ecosystem. We are inclined to support the proposal if a reduced grant size is considered. This, coupled with an expansion in your product range, could make for a more balanced and promising initiative.

Our recommendations can be summed up as follows:

  • Lower the requested grant size to better match your current TVL caps and product offerings

We hope our feedback serves as constructive input, aiding in the refinement of your proposal for the benefit of the broader ecosystem. Your proactive approach to enhancing Arbitrum is commendable, and we look forward to seeing how Umami Finance evolves.

27

Regarding caps, of course we are planning to lift those and fairly soon at that. It will be required to reach our goal. Also, the use of these incentives will be focused key vaults which are relatively underallocated allowing the entire underlying strategy to actually function MORE efficiency at higher TVLs due to even lower fees and more investment to the strategy. Also, as mentioned before we are of course planning to expand our product offerings, and the grant will extend to the other vaults we may release during the duration of the STIP.

1 Like
28

We have edited the proposal.

Cc. @CastleCapital @SEEDGov

1 Like
29

@stonecoldpat Our proposal is ready to be in finalized status. Can you change the title to Final please. Thank You

30

Umami has been one of core Arbitrum native protocols with an even stronger community, we’ve had the pleasure to work with their team in the past and they’ve been professional and very collaborative. They have repeatedly demonstrated strong track record for churning out #RealYield by employing various strategies and more importantly they’ve showcased many innovative strategies not seen anywhere else in the market. The revised grant request is also very reasonable given their vintage and the value they bring to end users in Arbitrum, we at Timeswap strongly support this proposal.

2 Likes
32

In the Arbitrum DeFi scene, Umami is well known and also represents an important lego building block in the Arbitrum ecosystem. Happy to support their further endeavors on Arbitrum.

1 Like
33

We fully support this proposal aiming to bolster both the Arbitrum and Umami ecosystems.

Coupled with a strong educational outreach via social media, this proposal holds significant promise for expanding user bases and enhancing financial efficiency on both platforms.

BR,
IZUMI Team

34

Umami Finance: @Neotokyocat

From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:

  • Umami has innovative products
  • The proposal is highly aligned with Arbitrum and creates interesting synergies

We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord.

35

Firstly, thank you for the detailed proposal. Although we find the ARB amount Umami Finance desires according to the TVL rate high, we think they will contribute to the growth of Arbitrum with this widely used incentive model. Despite having native protocol tokens, we appreciate the use of the incentive for the benefit of the Arbitrum ecosystem.

For all these reasons, we, as ITU Blockchain, support this proposal. We are voting “For” in the ballot.

36

UPDATE The Umami Finance wallet that will be used to accept ARB incentives is a 3/5 multi-sig.

37

Great progress has been made in a short period of time, congratulations