What is this about?

Thales Protocol, represented by Padzank, has submitted a grant application to the Arbitrum community¹. The grant, amounting to 500,000 ARB with a matching grant of 200,000 THALES, is intended to incentivize the growth of Thales products on the Arbitrum Network¹. Thales Protocol is a fully on-chain and permissionless liquidity and AMM solution for any type of Exclusive Outcome Markets¹. The team has developed five novel Automated Market Makers (AMMs) that have driven a total buy volume of $39M across products and attracted approximately 24,000 unique users¹.

How is the community reacting?

The community's reaction to the proposal has been largely positive. Matt_StableLab confirmed that the revised submission now met all requirements for consideration in a snapshot vote⁶. Jayref, ArbUSER, Svenska, IZUMi_Finance, and SEEDGov have expressed their support for the proposal^5,7,8,15,16. MotusCM praised Thales' innovative AMM architecture and expressed support for their grant proposal, but requested more clarity on how decisions about specific product incentives would be made³. CastleCapital also supported the proposal, but suggested that it could be improved by providing more details on how the grant will be used among specific products and by providing performance metrics related to Arbitrum-specific activity¹². ITUblockchain, while acknowledging the uniqueness of Thales' AMM products, initially decided to abstain from voting due to concerns about the allocation of the grant and the perceived insufficient TVL created by the grant amount received in Optimism¹⁷. However, after a detailed explanation from Padzank, ITUblockchain thanked them for making the proposal clearer¹⁹.

Why this is positive?

The grant proposal is seen as a positive move as it aims to incentivize the growth of Thales products on the Arbitrum Network, potentially increasing the adoption of the network¹. Thales has shown stronger growth metrics on competing Layer 2 (L2) networks due to an early deployment and receiving network grants¹. The proposed Arbitrum (ARB) grant could incentivize better growth of the Arbitrum deployment, attracting unique users and showcasing superior growth metrics compared to other L2 deployments¹. Thales' innovative AMM architecture has also been praised by the community³.

Why this is negative?

Some community members have expressed concerns about the allocation of the grant and the perceived insufficient TVL created by the grant amount received in Optimism¹⁷. However, Padzank clarified that TVL growth is not a KPI that determines the success of Thales products due to their unique collateralization and AMM architecture¹⁸. They also highlighted that the performance of their products should be evaluated by onchain activity such as unique users, fee accrual, and volume¹⁸.