Link to Application
https://forum.arbitrum.foundation/t/mountain-protocol-ltipp-application-draft/22064
Council - 3/5 Yes Votes
Feedback
Wintermute Feedback)
Mountain Protocol’s grant request was rather large given the adoption of USDM. While the protocol has strong TVL on Ethereum mainnet, there is very little traction on other chain deployments. This is further confirmed by daily transfers, daily volume, and total USDM holders. Thus, given the lack of holders on Ethereum and other chains, we also expect incentives to land in a concentrated number of wallets.
Goals, milestones, and KPIs were rather clear for the most part, however, there was little detail about the execution strategy and goals for ‘DeFi Partner Integrations’. The large focus on pure liquidity mining efforts without additional mechanisms does not provide a compelling case for such the size of the grant request.
Unfortunately, we will not be supporting this proposal.
404 Feedback)
While we gave this application an average score, we still support it on the basis that we believe incentivizing liquidity for a yield-bearing asset pair is important. Deep liquidity in yield-bearing stablecoin / LST pairs will be a strong competitive advantage for Arbitrum. However, this application was lacking in a few areas such as incentive distribution, as traditional liquidity incentives will likely result in incentives landing in the hands of whales, and the execution strategy regarding DeFi Partner Integrations lacked clear details. But overall, Mountain Protocol has a good team and decent traction on mainnet which make for nice additions to our main reasonings for support.
Karel Feedback)
"Vote AGAINST Mountain Protocol's proposal.
Well-written proposal that ranked decently on the rubric and impressive adoption to-date from a market share perspective re: yield-bearing stablecoin backed by T-bills. While Mountain has seen strong adoption on Ethereum Mainnet, this is very limited in other ecosystems including Arbitrum. The current traction and execution plan to bring TVL into the Arbitrum ecosystem is lacking and may lead to concentrated number of wallets. The execution strategy to build stickiness is limited and centered around institutional players. Need more information and pserspective on composability / integration with other DeFi partners on Arbitrum to paint a better picture to pass this through to the DAO."
GFX Feedback)
We generally thought this grant plan was well constructed, but was expensive relative to the existing Arbitrum footprint of USDM. Other areas of the rubric were able to overcome this penalty in score, however. We recommend approving this grant.
GMX Feedback)
The proposal outlines a comprehensive strategy to introduce and bootstrap USDM, a leading yield-bearing stablecoin, into the Arbitrum ecosystem. By incentivizing liquidity provision and fostering partnerships with DeFi protocols, the initiative aims to drive significant TVL growth on Arbitrum, ultimately strengthening both USDM and Arbitrum within the DeFi landscape. The requested grant size is justified based on projected TVL acquisition costs, offering a cost-effective approach compared to previous rounds. The execution plan is well-defined, with clear objectives, milestones, and KPIs to track success. The inclusion of specific KPIs related to USDM TVL, usage in DeFi protocols, and volume transacted with USDM provides a robust framework for measuring the effectiveness of the grant. Additionally, the proposal demonstrates a commitment to sustainability, aiming to establish use cases that are self-sustaining once bootstrapped. Overall, accepting this proposal would ramp-up the growth and innovation within the Arbitrum ecosystem, solidifying its position as a leader in DeFi.
