What is this about?

The Deri Protocol Team has applied for a grant of 1,000,000 $ARB to expand the influence of Arbitrum and boost the adoption of their advanced i-chain and d-chain architecture, Deri v4¹. The team plans to use the majority of the grant to reduce trading fees and incentivize trading on Arbitrum, with a smaller portion allocated to increase yields for liquidity providers¹. The team's primary objectives include the adoption of Orbit Chain as the core of Deri v4's cross-chain Dapp (xDapp) model, extending Arbitrum's reach beyond its network, and pioneering innovation in cross-chain decentralized derivatives trading¹.

How is the community reacting?

The community has shown mixed reactions to the proposal. CryptoX expressed concerns about the timeline for delivery being too short for the size of the grant and suggested that the grant requested should be reduced due to the current metrics². In response, DeriProtocol clarified that the event times are preliminary and subject to change, and that rebates will be based only on the actual trading fees that traders incur³.

Why this is positive?

The grant, if approved, would enable the Deri Protocol Team to promote the adoption of Orbit Chain, expand Arbitrum's influence across other blockchain ecosystems, and incentivize participation¹. This could potentially lead to a significant increase in user adoption and trading demand, contributing to the growth and development of the Arbitrum ecosystem¹.

Why this is negative?

Some community members have expressed concerns about the size of the grant and the short timeline for delivery². There are also potential risks associated with the management of the grant funds, including the need to closely monitor and prevent wash trading and sybil-attack-related activities¹.