Alchemix LTIPP Council Recommended Proposal
AI summary
This proposal asks the Arbitrum DAO to approve a grant for Alchemix, a decentralized finance (DeFi) protocol, as part of the Long-Term Incentive Pilot Program (LTIPP). Alchemix wants to use these incentives to grow its presence and user base on the Arbitrum network. The grant aims to bootstrap Alchemix's ecosystem on Arbitrum by providing liquidity and attracting users to its self-repaying loan product.
If approved, Alchemix will receive an unspecified amount of ARB tokens from the Arbitrum treasury to incentivize its users. This could increase activity and liquidity on Arbitrum, benefiting Alchemix and potentially the Arbitrum ecosystem. However, some council members expressed concerns about the long-term stickiness of users and the modest targets for user adoption, suggesting the lasting impact might be limited.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Link to Application
https://forum.arbitrum.foundation/t/alchemix-ltipp-application-draft/21395
Council - 3/5 Yes Votes
Feedback
404 DAO Feedback Alchemix presented a strong application scored well due to their prior history on Ethereum mainnet and thorough application. Their incentive design causes some concern due to how they plan to melt the ARB as repayment for the end-users loan. While we are normally against directly selling the ARB incentives as part of LTIPP, we believe in this case it is justified with how their users interact with their product. Overall, Alchemix justi…