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XY Finance, a Cross-Chain Bridge Aggregator, has applied for a 500,000 ARB grant to subsidize bridge fees and increase user participation on Arbitrum, with mixed community reactions. The proposal could potentially boost liquidity migration up to $911 million and expand the Arbitrum user base, but concerns have been raised about the grant size being excessive for the project scope.
XY Finance, a Cross-Chain Bridge Aggregator, has applied for a grant of 500,000 ARB to increase user participation and community engagement on Arbitrum. The grant will be used to subsidize bridge fees incurred during transfers and migrations to Arbitrum, thereby reducing the net cost for users to onboard to Arbitrum. The team behind XY Finance includes Wilson Huang, Leo Wu, Phiz Chang, and Rudolph Hsieh. They have integrated Synapse, cBridge, Circle CCTP, and their own bridge Y Pool to facilitate easy and fast token transfers. They currently support 19 chains and have 70K MAU with over 100 onboarded partners. The grant aims to tackle two major problems for users: high onboarding cost and the friction associated with the multi-step onboarding process. The objective is to make cross-chain easier and encourage user onboarding on Arbitrum.
The community reaction to the proposal is mixed. Leowu from XY Finance has provided detailed information about the grant and its intended use. Matt_StableLab confirmed that XY Finance's application meets all requirements to be considered for a snapshot vote. Michigan_Blockchain expressed support for the proposal, stating that the requested amount is justified given the sustainable benefits to the Arbitrum ecosystem. However, ITUblockchain expressed their 'Against' vote for the proposal, stating that the requested grant size is excessive given the scope of the project.
The grant proposal by XY Finance is positive as it aims to tackle the high onboarding cost and the friction associated with the multi-step onboarding process. By subsidizing 90% of the bridge cost for each transfer to Arbitrum, it makes Arbitrum a cheaper option than other ecosystems. This could potentially boost the liquidity migration up to $911 million. The grant also aims to expand the Arbitrum user base, which could lead to increased activity and growth in the ecosystem.
The negative aspect of the proposal is the concern raised by ITUblockchain about the size of the requested grant. They believe that the requested grant size is excessive given the scope of the project. This suggests that there may be concerns about the efficient use of resources and the potential return on investment from the grant.
Posted 2 months ago
Last reply 2 months ago
Summary updated a month ago
Last updated 06/12 00:44