TL;DR:
PancakeSwap, a leading DeFi protocol, has proposed a grant from the Arbitrum ecosystem to boost its performance and user base, promising to match the grant amount over the next year. The community's reaction is mixed, with some expressing concerns about the grant size and PancakeSwap's commitment to Arbitrum, while others see it as a promising opportunity to accelerate Arbitrum's growth.
What is this about?
The discussion revolves around PancakeSwap's proposal for a grant from the Arbitrum ecosystem. PancakeSwap, a top DeFi protocol, has recently deployed on Arbitrum and has achieved a $45M 30D cumulative volume within 1.5 months of deployment with $2.5M TVL. The team has requested a grant to further their commitment to the Arbitrum ecosystem, promising to match the grant amount over the next year. The proposal includes distributing 200k ARB over 16 weeks, with 40% going to core pairs and 60% to non-core pairs and high-impact products. The aim is to increase Total Value Locked (TVL), volume, and Daily Active Users (DAU) on Arbitrum PancakeSwap. The proposal also includes weekly reviews and adjustments of the allocation based on performance, and bi-weekly reports to the Arbitrum community1.
How is the community reacting?
The community's reaction to the proposal is mixed. While some members expressed concerns about the grant size and PancakeSwap's commitment to Arbitrum, suggesting a reduction in the grant and a delay in the application until more data is available2,3,4,5, others confirmed that PancakeSwap's application meets all requirements for a snapshot vote6. In response to the feedback, PancakeSwap clarified their plans to drive volume, TVL, and DAU to Arbitrum7. The community is actively participating and expressing support for the proposal, particularly from Latin America, and sees it as a promising opportunity to bring more users into the Arbitrum ecosystem and to accelerate Arbitrum's growth.
Why this is positive?
The proposal, if successful, could significantly boost the performance of PancakeSwap on the Arbitrum chain, attracting more users and liquidity. The plan also includes regular updates to the community, ensuring transparency and accountability1. PancakeSwap's deployment on Arbitrum and their application for a Siren Grant could bring significant benefits to the Arbitrum ecosystem. PancakeSwap has already achieved impressive volume within a short period, and their commitment to match the grant amount over the next year could further incentivize usage and liquidity. Their extensive list of effective audits and long deployment history also suggest that their code is battle-tested [7[@8][@9][@14][@15][@17].
##](https://forum.arbitrum.foundation/u/7][@8][@9][@14][@15][@17].
##) Why this is negative?
Some community members have raised concerns about PancakeSwap's short duration on Arbitrum and the size of the requested grant. They argue that PancakeSwap, being a top DeFi protocol, should have enough resources to establish itself without external help. There are also concerns about PancakeSwap's commitment to the Arbitrum ecosystem, with some members suggesting that the project might leave once it no longer benefits [10[@11][@12][@16].](https://forum.arbitrum.foundation/u/10][@11][@12][@16].) There are also concerns about the grant size and its allocation, with some users suggesting that the incentives would be better spent on other DEXs [Flindy, 19].
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 08/12 04:40