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OmniBTC, a decentralized cross-chain swap and lend/borrow platform, seeks a 200,000 ARB grant to incentivize users and aims to significantly contribute to the Arbitrum ecosystem's growth. However, the community reaction is mixed, with some questioning the need for the grant and arguing that it may only benefit existing users.
The discussion revolves around a project named OmniBTC, a decentralized cross-chain swap and lend/borrow platform built across multi-VM ecosystems. The project aims to connect and unify all on-chain liquidity for seamless and low-cost cross-chain transactions. The team behind OmniBTC has requested a grant of 200,000 ARB to incentivize users who deposit/borrow assets on Arbitrum, bridge assets from/to Arbitrum, and experience DEX aggregation function in OmniBTC on Arbitrum [[JJuuneez]1.
The) primary objectives of the OmniBTC project include reaching out to 5MM liquidity deposited into Arbitrum, 3MM borrowed on Arbitrum, 120MM total trading volume on Arbitrum, and attracting 30,000 new active addresses & 50,000 new transactions to OmniBTC on Arbitrum [[JJuuneez]1.
#) How is the community reacting?
The community reaction to the OmniBTC project and its grant proposal is mixed. Some members, like Cris and SEEDGov, have expressed support for the project, citing its potential to attract users from other chains to Arbitrum [[Cris]3[@SEEDGov]14.](https://forum.arbitrum.foundation/u/cris]3[@SEEDGov]14.) However, others like Flindy and ITUblockchain have expressed skepticism and opposition, questioning the need for the DAO to provide a grant and arguing that incentivizing users on bridges would only benefit existing users rather than attracting new ones [[Flindy]7[@ITUblockchain]19.
#) Why this is positive?
The OmniBTC project has the potential to foster growth and innovation within the Arbitrum ecosystem. By enhancing OmniBTC's reputation, increasing transactions and users, increasing Total Value Locked (TVL) in OmniLending on Arbitrum, and integrating with Decentralized Exchanges (DEXs) on Arbitrum, the project could significantly contribute to the ecosystem's development [[JJuuneez]1.](https://forum.arbitrum.foundation/u/JJuuneez]1.) The project has also outlined a comprehensive execution strategy and risk management measures, which include using 10% of protocol revenue and 5% of OmniBTC token as a risk fund [[JJuuneez]1.
#) Why this is negative?
Some community members have expressed concerns about the grant proposal. They question the need for the DAO to provide a grant and argue that incentivizing users on bridges would only benefit existing users rather than attracting new ones [[Flindy]7[@ITUblockchain]19.](https://forum.arbitrum.foundation/u/flindy]7[@ITUblockchain]19.) These concerns suggest that the project may not be as beneficial to the Arbitrum ecosystem as initially thought.
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 05/12 01:14