Arbitrum STIP: 29 projects received nearly 50 million ARB in funding

话李话外 · 2023-10-13T09:03:00.000Z

In articles a few days ago, we mentioned Arbitrum Grants and introduced some of the projects on the STIP list. At present, the first round of funding applications for Arbitrum Grants has officially closed, and a total of 29 projects have received a total of 49.6 million ARB in funding from the foundation. As shown below. Of these grants, 44% of the funds were allocated to projects in the perps category, with the projects that benefited the most being GMX, MUX Protocol, Vertex and Perennial. 15% of the funds were allocated to projects in the DEX category, including Camelot, Kyber Network, Trader Joe, and Balancer. As shown below.

In the article a few days ago, we mentioned Arbitrum Grants and introduced some projects on the STIP list. Currently, the first round of funding applications for Arbitrum Grants has officially ended, and a total of 29 projects have received a total of 49.6 million ARBs from the foundation. As shown in the figure below.
Of these grants, 44% of the funds were allocated to projects in the perps category, with GMX, MUX Protocol, Vertex, and Perennial being the biggest beneficiaries. 15% of the funds were allocated to projects in the DEX category, including Camelot, Kyber Network, Trader Joe, and Balancer. See the figure below.
In addition, outside the confirmed list of projects that can receive funding, there are 28 projects that have also received more than 50% of the votes and the legal number of voters, but they have not reached the cut-off standard of 50 million ARB, as shown in the figure below. We have already explained this issue in the previous article, because this donation is deferred according to the number of votes + amount. The top five projects are WINR, WOOFi, Gains Network, DefiEdge and Synapse Protocol, which is a bit of a pity, as they almost got funding from the foundation.
Moreover, as the total of 50 million ARB in the first round has been allocated, it means that there will be no second round of donations. It is a pity that some projects, such as PlutusDAO, seem to have been waiting for the second round of applications, and Aave missed the deadline for the first round. As shown in the figure below.
Therefore, the Arbitrum community has launched a new proposal and is discussing some expansion support by approving more ARBs for STIP, the main purpose of which is to provide fair opportunities for more projects and increase the diversity of funding. As shown in the figure below.
With the end of this round of STIP, many people have begun to focus on projects that have received large amounts of funding, because this funding will play a very important role in the subsequent development of the project. Therefore, we must have a deeper understanding of the specific allocation of these funds and whether the corresponding projects can benefit from allowing their partners to also benefit.
For example, let’s take Umami as an example. After they get funding from the foundation, users will benefit from:
1. Umami will provide ARB incentives through grants
2. Umami will increase the GLP rewards
In order to compete, Umami will certainly increase incentives for users, and their actual profit rate of return (compared to the current rate) is likely to be higher than 60.44%, which is definitely good for users.
We can give another example, such as Timeswap. The funding they received is said to be concentrated in the ARB and ETH markets (so the allocated donations should not be distributed proportionally to the entire TVL), and will exist in multiple pools, so the yield of each pool should be different. Here is also a reminder that if we take into account the different uses of funding for different projects, we should be reserved about the donation amount/TVL ratio (currently many people on the Internet use this ratio to calculate and compare the potential of different projects).
In short, most Perp projects that receive foundation funding should allocate rewards to traders and LPs. In addition to the incentive use of allocating rewards, they may also need to calculate and model how much additional trading volume (i.e., Fees) will be generated, so as to reward those LPs accordingly.
Well, that’s all I shared today through “Talking about Li and Beyond”. Let’s summarize and review it together. This article is a supplement to the previous article on Arbitrum Grants. It mainly briefly sorts out some results of the STIP plan. In general, the STIP plan will promote the development of the Arbitrum ecosystem to a certain extent, and at the same time, it will also drive the subsequent development and growth of some projects.
Special thanks to: 0xRamenUmai, 0xTHades
Disclaimer: The above content is only a personal point of view and analysis, and is only for the purpose of popular science learning and communication among the majority of enthusiasts. It does not constitute any investment advice. Investing in the crypto market is extremely risky. Please treat it rationally, improve risk prevention awareness, and abide by the relevant laws and regulations of the country and region where you are located!