What is this about?

The discussion revolves around Vela Exchange, a decentralized perpetuals trading platform that aims to merge DeFi and centralized trading desk performance. The platform was introduced by Djinn¹ and offers a delta-neutral LP yield structure (VLP), expansive features similar to the best CEX experiences, and fluid trading across multiple markets and assets. The team behind Vela Exchange includes experienced professionals from the blockchain, finance, and engineering sectors.

Vela Exchange is requesting a grant of 1M for various purposes, including Multi-Chain / Fiat Onboarding, Social Features / Trading Leagues, Bot / Automated Trading Incentives, and VLP Vault Rewards. The platform has chosen Arbitrum as their home network due to its competitive and innovative nature. The grant will support Vela Exchange's vision of creating the next generation of trading experiences on Arbitrum, fostering substantial interest and growth on the network¹.

How is the community reacting?

The community reaction to Vela Exchange and its proposal has been largely positive. Members like Severus², DFI_or_Die³, Pioneer⁴, and Lewis⁵ have praised the project for its advanced features, potential for growth, and strong leadership. Others, like North⁶ and Kruztys⁷, have expressed support for the team's proposal and their adaptability in challenging market conditions.

However, some members have raised concerns and questions. Meyaf320219 questioned the distribution of the ARB and suggested that it should not be used to fund development¹⁰. Cryptoresearcher expressed mixed feelings about the proposed developments and suggested that the team should consider building new core web3 functionalities¹². Whereismymind expressed concerns about the trading bot and on-ramping incentives, calling for more information on these aspects¹³.

Why this is positive?

The positive aspects of the discussion revolve around the potential of Vela Exchange to boost reach and adoption, its advanced trading platform features, and the team's dedication to their users and investors. The community has also praised the team's openness to community input and their commitment to innovation. The proposal to use ARB to incentivize fiat onboarding and bridging, as well as trading competitions, has also been well-received.

Why this is negative?

The negative aspects of the discussion include concerns about the distribution of the ARB and the proposed developments, especially in a bear market. Some members have suggested that the ARB should not be used to fund development and that the team should consider building new core web3 functionalities. There have also been concerns about the trading bot and on-ramping incentives, with calls for more information on these aspects. Some members have also expressed concerns about the lack of a clear plan for token distribution and the absence of a system to measure the effectiveness of incentives.