What is this about?

KyberSwap, a multi-chain DEX aggregator and DEX that is part of the Kyber Network, has applied for a grant under the Lighthouse Grant category. They are requesting 1.5 million ARB tokens to fund liquidity mining incentives on Arbitrum, with the goal of doubling their TVL and increasing their trading volume. KyberSwap has been live on Arbitrum for over 9 months, with a TVL greater than $17M and a 30-day cumulative volume exceeding $120M. They propose to match the grant with 150,000 KNC and have outlined a detailed execution strategy for distributing the incentives across various liquidity pools over a three-month period.

How is the community reacting?

The community's reaction is mixed. Some members, like Jonezee and EynSoph, support KyberSwap's commitment to Arbitrum and the potential positive impact on the ecosystem. Others, such as Flindy and Thatgovernanceguy64, express skepticism about the grant request, questioning the strategy and the benefit to the ARB ecosystem. Concerns were also raised about KyberSwap's long-term commitment to Arbitrum and the issue of "mercenary capital." Sasha_mai has responded to various concerns, offering a compromise on the grant amount and emphasizing KyberSwap's sustainability. The proposal has been updated to request 1.5M ARB and has been marked FINAL by [Cliffton.eth.

##](https://forum.arbitrum.foundation/u/cliffton.eth.

##) Why this is positive?

• KyberSwap has a track record of over $3 billion in volume on Arbitrum and aims to significantly boost liquidity and trading volume.
• The grant aims to establish at least five liquidity partnerships within three months.
• KyberSwap's strategy includes optimizing liquidity pools to maximize volume and LP fees, contributing to total APR.
• The proposal includes clear KPIs and metrics, and KyberSwap has a large community, especially in Southeast Asia, which could benefit Arbitrum.

Why this is negative?

• Some community members believe the grant favors major pairs and does not sufficiently support native builders on Arbitrum.
• Concerns were raised about the allocation of the grant towards pairs with Kyber's native token KNC and the potential issue with the grant duration.
• The focus on low fee tier core pools is seen as not beneficial to Arbitrum by some members.
• There is a perception that the proposal may be funding a predatory market participant.

Next actions

• The proposal has been updated to request 1.5M ARB and is now in the FINAL status.
• A Snapshot vote is expected to take place, as indicated by [Matt_StableLab. -](https://forum.arbitrum.foundation/u/Matt_StableLab. -) KyberSwap has provided updates on the funding address, switching to a Gnosis Safe multisig, and the incentivized pool pairs, fee tiers, and allocations.
• The STIP grant recipients' distribution schedule has been shared, with claimable disbursements on specific dates, and the initial farms have been started on KyberSwap.