[ApeSwap] [DRAFT] [STIP - Round 1]

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ApeSwap has proposed a project to the community to address decentralized liquidity issues and diversify treasury assets, requesting a grant of 1,250,000 ARB tokens to fund ARB bond sales and grow Arbitrum's Protocol-Owned Liquidity (POL). The proposal has received mixed reactions from the community, with some praising ApeSwap's reputation and expertise, while others express concerns about the grant request, potential misuse of funds, and the application for a Lighthouse Grant despite not meeting certain criteria.

What is this about?

The ApeSwap team has proposed a project to the community, aiming to solve the issues of sourcing sustainable decentralized liquidity and diversifying treasury assets sustainably. They have requested a grant of 1,250,000 ARB tokens, which will be used to fund the sale of ARB bonds to grow Arbitrum's Protocol-Owned Liquidity (POL). The initiative is structured as a pilot study with a detailed timeline of milestones, including the launch of two Bond Sale Phases, each selling 625,000 ARB, and regular status updates and reports shared on the Arbitrum DAO forums. The ultimate goal is to submit a proposal to continue Bonding and Building Permanent Liquidity for the Arbitrum DAO, thereby eliminating the ARB liquidity debt.

How is the community reacting?

The community has mixed reactions to the proposal. Some members, like Husk, Yfarm, and Flindy, have raised concerns about the proposal, questioning the resolution of a previous conversation, the request for a grant, and the application for a Lighthouse Grant. Others, like SeriousTaylor, SIG, Home, Proff, and Zero0, have shown support for ApeSwap, praising the project's reputation and team, and expressing trust in ApeSwap's expertise, particularly in relation to bonds. BRA expressed enthusiasm for ApeSwap and its bond system, likening the combination of ApeSwap and Arbitrum to a rocket and fuel.

Why this is positive?

The proposal by ApeSwap is seen as a positive initiative as it aims to bolster the Arbitrum ecosystem through the integration of ApeSwap’s Bond technology. The benefits of this initiative are spread across the ecosystem, including diversifying ARB holdings and strengthening ARB liquidity for the Arbitrum DAO, acquiring ARB at a discount and enhancing ARB liquidity for token holders, and increasing awareness and access to bond programs and enhancing liquidity in ARB pools for protocols on Arbitrum.

Why this is negative?

However, there are concerns about the proposal. Some community members have questioned ApeSwap's request for a grant, implying that they might be asking for 1.25m ARB to sell at a discount and pocket around 1m USD, and taking a 5% fee despite the grant outline advising against it. Others have questioned why ApeSwap, which doesn't meet the TVL or Volume criteria, has applied for a Lighthouse Grant. There are also concerns about the 5% initiation fee on the net bonded value, suggesting that it should be removed or passed onto the end user.

Posted 2 months ago

Last reply 2 months ago

Summary updated a month ago

Last updated 06/12 00:44