What is this about?

The discussion revolves around a grant proposal by Stella, a leveraged yield farming protocol on Arbitrum. Stella is requesting a grant of 186k ARB, which will be distributed between Stella Strategies and Stella Lend. The primary objectives of the project are to attract more DeFi users to Arbitrum by offering leverage on real yields, bring access to leveraged yields on various assets with unique integrations, and strengthen liquidity pools for innovative protocols. Stella aims to make Arbitrum the main L2 to access leveraged LP strategies and increase liquidity in DEXs. The project is expected to benefit the Arbitrum ecosystem by becoming the go-to yield source on Arbitrum and bootstrapping liquidity for innovative Arbitrum Native protocol tokens¹.

How is the community reacting?

The community has largely reacted positively to the proposal. Matt_StableLab confirmed that the submission meets all requirements to be considered for a snapshot vote². Lunaman, RogerRadiant, Jonezee, EynSoph, Shutsuwei, and Traderjoe all expressed support for the proposal, praising the Stella team's innovative approach, reasonable grant request, and commitment to the Arbitrum ecosystem^3,4,5,6,7,8. However, SEEDGov raised concerns about the Stella team's previous issues with user funds being "stuck" under their former name, Alpha Venture DAO⁹. In response, Apoorv9 clarified that Stella is a separate product from Alpha Homora and that user funds on Stella are not affected by the actions taken by Iron Bank, an integrating partner on Alpha Homora¹⁰.

Why this is positive?

The proposal is positive as it aims to attract more DeFi users to Arbitrum, strengthen liquidity pools for innovative protocols, and make Arbitrum the main L2 to access leveraged LP strategies. The project is expected to benefit the Arbitrum ecosystem by becoming the go-to yield source on Arbitrum and bootstrapping liquidity for innovative Arbitrum Native protocol tokens. The community's support for the proposal also indicates its potential benefits to the Arbitrum ecosystem.

Why this is negative?

The only negative aspect raised was the concern about the Stella team's previous issues with user funds being "stuck" under their former name, Alpha Venture DAO. However, Apoorv9 clarified that Stella is a separate product from Alpha Homora and that user funds on Stella are not affected by the actions taken by Iron Bank, an integrating partner on Alpha Homora¹⁰.