What is this about?

This discussion revolves around a grant application submitted by Rhettshipp for the Gravita Protocol¹. Gravita is an Ethereum-centric lending protocol that uses ETH and LSTs as collateral to mint GRAI¹. The grant request is for 250k ARB, intended to incentivize liquidity between GRAI and stablecoins, as well as ETH and LSTs¹. The primary objectives of the grant are to increase GRAI liquidity on Arbitrum and attract ETH and LSTs to Arbitrum by increasing Gravita borrowing¹.

How is the community reacting?

The community has shown mixed reactions. While some members, like Whereismymind, have shown support and called for leniency regarding the late submission of the grant application⁴, others, like Matt_StableLab, have insisted on adhering to the rules and deadlines^3,5.

Why this is positive?

The grant application by Gravita Protocol could have a positive impact on the Arbitrum ecosystem. By increasing GRAI liquidity, Gravita aims to onboard more borrowers to Arbitrum, leading to an increase in migration of ETH and LSTs onto Arbitrum and growth in the CDP sector¹. The protocol has already shown positive performance, with Gravita Arbitrum's TVL growing by 43% over the last month¹.

Why this is negative?

The negative aspect of this discussion is the late submission of the grant application by Gravita Protocol. Despite the potential benefits of the project, the application was submitted after the deadline and will be moved to round 2 for review³. This has led to some disappointment in the community, as expressed by Whereismymind⁴. However, Rhettshipp has accepted this decision⁷.