[Pendle][FINAL] [STIP - Round 1]

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The Pendle project, led by Anton Buenavista, has applied for a 2,000,000 ARB Lighthouse Grant to enhance yield trading volume, liquidity, and incentivize user activity on Arbitrum. Despite some concerns about the allocation of funds and measurement of effectiveness, the community generally supports the proposal, viewing it as a positive step towards integrating traditional finance interest derivative market into DeFi and boosting the Arbitrum ecosystem.

What is this about?

The discussion centers around a grant application for the Pendle project, a protocol that enables permissionless tokenization and trading of yield. The grant, requested by Anton Buenavista and his team, is for 2,000,000 ARB (Lighthouse Grants). The grant aims to increase yield trading volume, deepen liquidity on existing pools, and incentivize users to bootstrap liquidity for newly listed Pendle markets on Arbitrum. The grant also seeks to stimulate activity on protocols built on top of Pendle. The primary goal is to deepen liquidity, increase trading volume on Pendle, bolster the Arbitrum ecosystem, and highlight the yield-trading use case on Arbitrum moving forward.

How is the community reacting?

The community has shown a positive reaction to the proposal. There is interest in the project and its potential impact on the Arbitrum ecosystem. The community has expressed support for Pendle's proposal, with some concerns raised about the allocation of 100,000 ARB for ecosystem integrations. However, these concerns were addressed, and the community appreciates Pendle's commitment to providing bi-weekly program updates on the Arbitrum Forum thread.

Why this is positive?

The grant application by Pendle is seen as a positive development as it aims to bring the traditional finance interest derivative market into DeFi, positioning itself to become a core infrastructure for the next phase of DeFi. The grant is expected to increase awareness and usage of yield trading, increase yield trading volume and TVL, and encourage new integrations and DeFi strategies on top of Pendle. The allocation of the ARB grant to Pendle Pools, Pendle Campaigns, and Pendle Integrations is seen as a positive move as it encourages users to vote for the Arbitrum pools across different networks, increases activity and trading volume for the Pendle markets on Arbitrum, and rewards users who make further use of their Pendle assets on other Pendle integrations.

Why this is negative?

The only negative aspect raised was by Lewi, who expressed concern about the allocation of 100,000 ARB for ecosystem integrations, as the incentives program is meant for Arbitrum contracts and not discretionary grants. However, this concern was addressed by EynSoph, who clarified that the allocation is intended to reward users based on their activity on Pendle integrated protocols. Another concern raised was the lack of a detailed plan to measure the effectiveness of the grant against the chosen KPIs. There is also uncertainty over how the 55% allocation for incentivizing pools via vePENDLE will interact with other protocols. It is suggested that the proposal could be improved by providing a breakdown or case study demonstrating successful integration with other protocols.

Posted 2 months ago

Last reply 2 months ago

Summary updated 24 days ago

Last updated 03/12 08:01