What is this about?

This discussion revolves around a grant application submitted by Neotokyocat on behalf of Umami DAO, a project operating within the Arbitrum ecosystem. The grant request is for 750,000 ARB, which will be used to incentivize their GLP Vault products. The team plans to use an incentivisation mechanism inspired by Dolomite’s oARB mechanism, which allows users to stake their Umami vault receipt tokens for oARB emissions. The grant will be used to increase the Arbitrum and Umami user base, improve Umami Vaults' TVL efficiency, increase liquidity for GMX traders, boost vault performance and yields, and educate users on Umami product offerings. The team also plans to launch GMX v2 vaults, which they believe will offer a compelling value proposition for prospective GMX v2 LPs.

How is the community reacting?

The community has shown a positive reaction to the proposal. Users such as DarkLord_gr, Folektoras, DanDeFiEd, Corey, Shreddy, 0x_ultra, and Romy have expressed support for the proposal and excitement about the adoption of the oARB LM program. Matt_StableLab confirmed that the application meets all requirements for a snapshot vote. Users are also curious about the potential inclusion of new v2 GM vaults and the innovative oARB emissions mechanism. AlexLumley praised Umami's strategic approach and their adoption of the oARB mechanism, which benefits the entire Arbitrum ecosystem.

Why this is positive?

The proposal is seen as a positive development for the Arbitrum ecosystem. The grant will help bring more liquidity to GMX and bring more "real yield" to Arbitrum. The team's execution strategy includes allocating the 750,000 ARB to incentivize their GLP vaults on Arbitrum, strategically weighing incentives to maximize TVL, adjusting the weights to optimize deposits, mitigating risks associated with smart contracts and fund management, monitoring KPIs, and adhering to the grant timeline. The program is designed to be lucrative for farmers, with a potential max reward APR of 8% based on certain conditions.

Why this is negative?

Some concerns were raised about the high grant request in relation to the TVL and the limited range of GLP products. CastleCapital recommended lowering the requested ARB and expanding the range of GLP products. However, 0xWenMoon responded that they are planning to lift the caps and focus the incentives on key vaults that are underallocated. They also mentioned that they are planning to expand their product offerings and the grant will extend to other vaults they may release during the STIP.