[Premia] [FINAL] [STIP - Round 1]

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Premia Blue, a decentralized tokens options exchange, has proposed a grant application for 900,000 ARB to boost daily options trading volume, attract new users, and incentivize liquidity providers among other objectives. Despite initial non-compliance issues, the proposal has been amended and is now eligible for a snapshot vote, with the potential to make options pricing more competitive and attract centralized exchange traders to DeFi.

What is this about?

Premia Blue, a decentralized tokens options exchange, has proposed a short-term incentives program grant application. The team behind Premia Blue has a strong background in DeFi and financial products and has grown Premia to over $375M in Notional Volume. They are recognized for being the first DeFi Options Exchange to combine options products into a composable and fungible system. The grant request is for 900,000 ARB, with a matching grant of 550,000 PREMIA. The grant will be allocated from October 15, 2023, to January 15, 2024. The objectives of the grant include increasing daily options trading volume on the Arbitrum exclusive Premia Blue exchange by 500%, attracting 3000 new users, increasing the Total Value Locked (TVL) in Premia Blue, incentivizing LPs to provide 10mm options liquidity, promoting education on options trading through Premia Academy incentives, and fostering a robust community around the Premia Blue ecosystem.

How is the community reacting?

The proposal received support from several users, who praised the Premia team for their innovative protocol and comprehensive approach. Some users expressed their support on the condition that the requested amount is reduced. There were also questions about the data showing "changes" at 0% and whether it corresponds to the deployment of a new version or lack of previous data. After an amendment to the proposal, it was confirmed that the submission now meets all requirements to be considered for a snapshot vote.

Why this is positive?

The grant would enable Premia to provide incentives for liquidity providers, making the pricing of options more competitive and in alignment with centralized exchanges. This would help attract centralized exchange traders to DeFi. Premia also plans to continue working with other Options Protocols on Arbitrum to attract new informed & responsible vol traders. The proposal also includes fostering additional composability by integrating with lending protocols for margin trading and enabling third-party protocols to tap into Premia’s liquidity pools. The plan also involves expanding educational content and quests on Premia Academy to lower the barrier to entry for new options traders, launching mobile-friendly interfaces, and creating novel incentives like trading seasons and leaderboards to engage the growing Premia community.

Why this is negative?

A section of the proposal did not comply with the program rules as grant funds may only be used to incentivize Arbitrum contracts and cannot be used directly as liquidity. However, this issue was addressed, and the proposal was amended to meet all requirements.

Posted 2 months ago

Last reply a month ago

Summary updated a month ago

Last updated 05/12 01:14