What is this about?

Cryptex Finance, a DeFi protocol on the Arbitrum network, has applied for a grant of 1.3M ARB to incentivize Coinbase users to bridge USDC to Arbitrum and interact with the Cryptex protocol. The team, led by co-founders Joe Sticco and Thomas Matzner, and including Blockchain Lead Crisgarner, aims to create, deploy, and scale perpetual markets for Arbitrum users. They have been working on Cryptex V2 since its deployment on June 6, 2023, and have recently launched it on Arbitrum, starting with Total Crypto Market Cap Perpetuals. The goal is to bridge 70,000-140,000 users to Arbitrum, creating a win-win scenario for Cryptex and the ecosystem. The campaign will be accessible to millions of Coinbase Wallet users and tens of millions of Exchange users as CTX is currently a listed asset on the Coinbase Exchange¹.

How is the community reacting?

The community has shown mixed reactions to the proposal. MotusCM asked for clarification on the team's ability to provide data and reporting on grant distribution, to which CryptexFinance confirmed their readiness to create Dune Dashboards for their incentive program and provide bi-weekly program updates on the Arbitrum Forum thread¹. Jerame20 criticized an unhelpful comment from another user³, and Matt_StableLab confirmed that CryptexFinance's application meets all requirements for a snapshot vote⁴. He also informed CryptexFinance of the remaining steps in the application process⁵. Griff expressed mixed feelings about the proposal, liking the idea of incentivizing Coinbase earn users with ARB, but was less excited about TCAP as their first entry point to the ecosystem⁹. ITUblockchain criticized the proposal for directing almost the entire incentive valued at 1.3M dollars solely to Coinbase users, deviating from the core values of decentralized finance¹⁰.

Why this is positive?

The proposal is positive as it aims to incentivize a large number of Coinbase users to bridge USDC to Arbitrum and interact with the Cryptex protocol. This could potentially bring a significant number of new users to the Arbitrum ecosystem, benefiting both Cryptex and the wider community. The Cryptex team has also demonstrated their readiness to provide data and reporting on grant distribution, ensuring transparency in the process¹.

Why this is negative?

Some community members have expressed concerns about the proposal. Griff was less excited about TCAP as the first entry point to the ecosystem, suggesting that the proposal could be revised for round 2⁹. ITUblockchain criticized the proposal for directing almost the entire incentive valued at 1.3M dollars solely to Coinbase users, arguing that this deviates from the core values of decentralized finance¹⁰. These concerns suggest that the proposal may need to be revised to better align with the values and interests of the wider community.