[Tender Finance] [Draft] [STIP - Round 2]

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Gemach DAO's project, Tender Finance, a DeFi offering focused on Arbitrum, is seeking a 750,000 $ARB grant from the Short-Term Incentive Program to boost activity in its money markets and lending platforms. Despite its innovative features and growth, the project has faced mixed community reactions due to concerns about its credibility, professionalism, and a recent exploit, leading to debates about its potential impact on the Arbitrum ecosystem.

What is this about?

This discussion revolves around a project named Tender Finance, developed by Gemach DAO, which is a decentralized finance (DeFi) offering focused on Arbitrum. The project includes a money market/borrowing and lending platform, loan application, index fund, and various Telegram bots. The team is requesting a grant of 750,000 $ARB tokens from the Short-Term Incentive Program to incentivize depositing and borrowing activity in the Money Markets and participation in their borrowing and lending markets1.

Tender Finance has shown steady growth and high user engagement since its launch in January 2023. It has introduced innovative features such as leveraged looping, auto-compounding money markets, and an open-source front end. The protocol has undergone rigorous security audits and bug bounties to ensure the safety of user funds and data1.

How is the community reacting?

The community reaction is mixed. Dr.Degen, a member of the Tender Finance team, has been actively promoting the project and its future plans, including the integration of GMX v2 for enhanced customizability, full integration into the Gemach DAO DeFi Legos ecosystem, and continuous improvement and community engagement1.

However, RugMeOnce raised concerns about Tender Finance's credibility, citing their recent rebranding to Glend and a blunder with the GMX oracle price that allowed a user to siphon off the entire protocol’s liquidity. They also accused Tender Finance of inflating APRs with fake incentives, requesting an excessive amount of ARB tokens, and having a lack of community engagement2.

In response, Dr.Degen clarified that he is part of the Gemach DAO team that merged with Tender Finance, and provided links to his credentials. He also mentioned that multiple audits have been conducted on Tender Finance3. Kingblueberry.eth defended Tender Finance, stating that the accusations were emotionally biased and untrue4.

Why this is positive?

The project has the potential to foster growth and innovation within the Arbitrum ecosystem by providing an alternative platform for tokenholders to utilize their native application tokens, maintaining a larger user base, easing supply-side pressure on their token, and creating a one-stop Telegram DeFi bot1.

The recent merger with Gemach DAO has allowed for growth within the Arbitrum ecosystem. The integration plans include the development of gBot Integration, user education and adoption initiatives, and the integration of the Gemach AI - Alpha Intelligence tooling onto Arbitrum1.

Why this is negative?

There are concerns about Tender Finance's credibility and professionalism. RugMeOnce criticized the Tender team for their lack of professionalism, pointing out that the exploit was due to a simple comma error in the oracle price. They also criticized the request for 750,000 ARB, calling it a "daylight heist" of the DAO's funds and the integrity of STIP round 2. They also questioned the inflated APR of the esTND token and called for the community to stop endorsing projects that have consistently faltered5.

Posted 2 months ago

Last reply a month ago

Summary updated a month ago

Last updated 09/12 13:53