What is this about?

Solv Protocol, a project aiming to bridge liquidity across DeFi, CeFi, and TradFi, has submitted a grant application for 150k ARB. The grant will be used to incentivize fund products issued on Solv Arbitrum over a period of 4 months. The team also plans to match the grant with their not-yet-live Solv token ($fvSolv). The primary objectives of the project include user/business growth, bootstrapping new liquidity pools for Solv V3, and driving TVL and volume growth. The KPIs to measure success are TVL (Product side) and new fund issuance volume. The grant will enable Solv Protocol to issue multiple DEFI market making funds, make their yield returns more attractive, and bootstrap the Token Governance. By Q4 2023, they plan to deploy a liquidity pool starting from $10,000,000 AUM for the Solv FOF(Fund of Funds).

How is the community reacting?

The community has mixed reactions to the proposal. Ray, the BD Lead for Solv Protocol, has been actively explaining the project's goals and responding to queries. He clarified that the estimated new volume includes new tokens to purchase the funds on Solv crossing chain to Arbitrum. He also mentioned that the return of the funds on Solv are 4~15%, plus the matching grant of $fvSOLV, which will make the ROI attractive for users. However, Meyaf320219 expressed concern that the amount requested is too high compared to Solv’s TVL and suggested that Solv should focus on reducing the amount and providing more value to other ecosystem protocols. ITUblockchain also expressed concerns about Solv's proposal, stating that it lacks a definitive roadmap and voted against the proposal. On the other hand, Holod expressed support for Solv and hoped for Arbitrum's support.

Why this is positive?

The grant application by Solv Protocol is a positive development as it aims to enhance the product growth by making the yield strategies on Solv more appealing. They aim to reach a new high AUM of $30m to $60m by the end of March 2024. The grant will be distributed in four equal parts from October 2023 to January 2024, with 50% allocated for Offchain/RWA funds and 50% for Onchain Delta Neutral Strategy funds. The protocol roadmap includes originating LSD funds and RWA funds on Solv’s platform in Q3 2023, thereby expanding asset classes.

Why this is negative?

Some community members have expressed concerns about the grant application. Meyaf320219 believes that the amount requested is too high compared to Solv’s TVL and suggested that Solv should focus on reducing the amount and providing more value to other ecosystem protocols. ITUblockchain also expressed concerns about Solv's proposal, stating that it lacks a definitive roadmap and voted against the proposal. These concerns highlight the need for Solv Protocol to provide more clarity and assurance about their plans and the use of the grant.