What is this about?

The discussion primarily focuses on a proposal by Corey for a grant application for Dolomite, a DeFi protocol that combines the features of a DEX and a lending platform. The grant, amounting to 1,000,000 ARB, is intended to stimulate TVL growth through a liquidity mining program. The proposal also includes a staking system for oARB tokens, represented as unique NFT locks. The Dolomite team plans to divide the funding into three tranches, each separated into 8-week campaigns to measure the success and effectiveness of the campaign in increasing and retaining TVL and users. The team is also working on creating safer oracles for ERC4626 Vault tokens using Chainlink Automation. Additionally, Corey proposed a model that encourages users to become $ARB holders to prevent price dumping and create a financial bottleneck for whales.

How is the community reacting?

The community has given mixed feedback on the proposal. Some members expressed concerns about the project's development and compared it unfavorably to other projects. There were also questions and suggestions about the timeline, mechanics, and funding tranches of the liquidity mining program. However, the community has shown overwhelming support for the proposal that encourages users to become $ARB holders, with many praising Dolomite's innovative approach.

Why this is positive?

The proposed system is expected to improve user experience on Dolomite, allowing for more complex looping and hedging strategies. The plan aims to increase Total Value Locked (TVL) on Dolomite to $15M, making it the third largest lending protocol on Arbitrum. The proposed liquidity mining program is expected to net users 4% APR, assuming $10M in deposits and $400,000 in annualized returns for those deposits. The Dolomite team's proposal is seen as a positive development by some community members due to its focus on security, user experience, and thorough development. The team's innovative mindset and the proposal's ability to encourage users to learn more about their product through usage were highlighted.

Why this is negative?

There is a risk that if the ARB rewards pool is depleted, all remaining oARB tokens will expire worthless. Staked ARB will be deposited in Dolomite to boost liquidity and TVL. Users will receive their exercised oARB as ARB tokens in their Dolomite Balance. Some community members expressed concerns about the project's development and compared it unfavorably to other projects. There were also questions and suggestions about the timeline, mechanics, and funding tranches of the liquidity mining program. The initial concern was that the proposal might not be eligible for the incentives program because it involves selling ARB and using the profits for protocol-owned liquidity and other activities, which is not allowed. However, this issue was resolved after a discussion and clarification from Corey.