Following the initial feedback of LTIPP Council, Connext would like to re-submit its LTIPP application.
The full proposal can be found here: https://forum.arbitrum.foundation/t/connext-ltipp-application-final/21579/8
The council feedback could be summarized as:
Connext wants Arbitrum to succeed, and their priority remains to attract more users to bridge into Arbitrum and Restake ETH on the L2.
Increase ETH TVL in the pools to provide better pricing for its integrated apps and their users
How (new strategy post feedback): incentivizing users who bridge into Arbitrum by subsidizing part of the bridging fees. This will further boost the utilization of the pools which will attract more liquidity. Higher TVL enables the best pricing when the Restaking module is used.
Incentivizing users to bridge into Arbitrum has 2 benefits:
The estimate (according to the average of the last 7 days at the time of writing the original proposal) is for users to bridge 137k ETH during the pilot program.
Bridging fee rebate: 137,000 * 0.0013 (max fee) * 0.95 = 169 ETH
Tot ask: 446,472 ARB (1 ETH = 2,646.75 ARB at the time of writing)
Note: pricing the ask in ARB vs ETH as the pair is less volatile
Month 1: 45k ETH bridged into Arbitrum (30% of ARB distributed)
Month 2: 90k ETH bridged (60% of ARB)
Month 3: 137k ETH bridged ($100% of ARB)
The Connext team agrees to return to the Arbitrum DAO any unused ARB funds once the 12-week LTIPP program is concluded.