[Range Protocol] [FINAL] [STIP - Round 1]

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Range_Protocol has proposed a 450,000 ARB grant application to incentivize liquidity providers on Uniswap v3 and other AMMs, aiming to enhance liquidity and capital efficiency on the Arbitrum network. The community has shown mixed reactions, with some expressing concerns about the high grant amount for a protocol with small TVL and low vault performance, while others acknowledge the proposal's potential benefits for the Arbitrum ecosystem.

What is this about?

Range_Protocol has proposed a grant application for an Arbitrum Grant1. The project, led by Siddhanjay, Siddharth Lalwani, and Tony Sun, aims to provide non-custodial vaults for users to access automated strategies for managing liquidity on Dexes1. The grant requested is 450,000 ARB, which will be directed entirely towards liquidity providers on Uniswap v3 and other integrated AMMs who deploy liquidity through Range Protocol vaults on Arbitrum1. The grant aims to incentivize LPs to provide narrow range liquidity on concentrated liquidity Dexes, which will benefit the Arbitrum ecosystem by providing deeper liquidity depth for AMMs, enabling high levels of capital efficiency, and reducing capital requirements for project teams1.

How is the community reacting?

The community has shown mixed reactions to the proposal. Meyaf320219 expressed concerns about the high requested amount for a protocol with small TVL and low vault performance2. In response, Range_Protocol defended their vault performance and clarified that they are reducing their requested grant amount to 450K ARB based on community feedback3. Matt_StableLab confirmed that Range_Protocol's application meets all requirements for a snapshot vote4. Strategicreserve asked Range_Protocol to explain their calculations or predictions about the $43m volume through their vaults6, to which Range_Protocol clarified that the $43m figure was extrapolated from 5 days of vault data to a monthly figure using historical trading volumes on Arbitrum7. Jadmat asked Range_Protocol about the increase in the TVL of the protocol from 1.24M to 2.75M on the day of sending the proposal8, and Range_Protocol attributed the increase in TVL to the lucrative yields for the Arbitrum vaults due to increased on-chain activity and ongoing incentives by Uniswap Foundation9.

Why this is positive?

The grant proposal by Range_Protocol is positive as it aims to enhance liquidity across the Arbitrum network and attract liquidity from other networks1. The grant amount is intended to be directed entirely towards retail users, with the team not benefiting from it1. The incentive program will run on vaults deployed on Uniswap v3 and will continue to run and be actively managed after the grant duration ends1. The grant will be distributed equally across each month for the entirety of the grant period, with a total of 450,000 ARB to be distributed1.

Why this is negative?

Some community members have expressed concerns about the high requested amount for a protocol with small TVL and low vault performance2. They suggested that the team should focus on improving vault performance before adding more incentives, and criticized the limitation of Uniswap as the only DEX2. They also pointed out the lack of support for Arbitrum protocols2.

Posted 2 months ago

Last reply 2 months ago

Summary updated a month ago

Last updated 09/12 13:53