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The Magpie XYZ project by Magpiexyz Ltd, a protocol ecosystem aimed at boosting yield and veTokenomics for DeFi platforms, has requested a 1,250,000 $ARB grant to increase user participation and community engagement on Arbitrum. While the project has potential to enhance the Arbitrum DeFi ecosystem and attract conservative users through token conversion rewards, concerns have been raised about the size of the grant, the proposed 80/20 split, potential liquidity issues, and the controversial 'blackholing' of tokens.
The discussion revolves around the Magpie XYZ project, an ecosystem of protocols proposed by Magpiexyz Ltd, aimed at providing yield and veTokenomics boosting services for other platforms across the DeFi space. The project includes several SubDAOs, including Penpie, Radpie, and Campie, which are designed to support various platforms such as Wombat Exchange, Pendle Finance, Radiant Capital, and Camelot DEX. The team has requested a grant of 1,250,000 $ARB, which will be used to increase user participation and community engagement on Arbitrum through the various SubDAOs. The project also involves the conversion of various tokens into their modified versions within the Arbitrum ecosystem, with users who convert their tokens being eligible for $ARB rewards.
The community reaction is mixed. While some users have expressed support for the grant and the project's potential to attract new users and support the sustainable growth of the underlying protocols, others have raised concerns about the size of the grant and the proposed 80/20 split between liquid staking conversions and liquidity provider incentives. Some users have also expressed concerns about the concept of 'blackholing' key ecosystem tokens, suggesting it could cause liquidity issues and is akin to double dipping.
The project has the potential to increase user participation on the network and support the broader Arbitrum DeFi ecosystem. The grant will be used to reward users who contribute to the core functionalities of Magpie, Penpie, Radpie, and Campie, and support the development of Wombat Exchange, Pendle Finance, Radiant Capital, and Camelot DEX. This could potentially amplify user engagement and fortify the central features of the Magpie XYZ ecosystem, thus enriching the overarching DeFi landscape of Arbitrum via 8 distinct protocols. The conversion of tokens and the subsequent rewards system is also seen as beneficial as it could attract more conservative users and provide a steady revenue flow.
The project's success is dependent on the community's participation and engagement. If the community does not actively participate in the token conversion and staking events, the project may not achieve its desired outcomes. Additionally, the project's plans to control token inflation by locking dLP and GRAIL tokens within Radiant and Camelot respectively could potentially lead to a decrease in the liquidity of these tokens. Concerns have also been raised about the size of the grant and the proposed 80/20 split, with some users suggesting it could cause liquidity issues and is akin to double dipping. The proposal for 'blackholing' tokens has also been criticized as an outlier that is double dipping grants on certain protocols.
Posted 3 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 08/12 04:40