Alchemix LTIPP Council Recommended 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 justified their grant ask and provided a thorough execution strategy and fair success metrics. We will be supporting this application.

GMX Feedback The project has been in the space for a long time and has seen significant growth. However, there is a lack of details on how the project has performed on Arbitrum. The numbers mentioned regarding the size of the grant are conservative, and we doubt whether the protocol would be able to maintain liquidity post-incentives. The purpose of this grant is to bootstrap the AL (alchemist) ecosystem. While the overall grant is not large, which is a positive, I am unsure about the lasting impact of temporary boosts to the AL (assets). The protocol has been live on multiple chains, creating a significant impact in the DeFi ecosystem. The KPIs and milestones also seem quite low. For example, Milestone 3 aims for 50 addresses with open positions two-thirds of the way into grant distribution, and Milestone 4 targets 100 addresses with open positions at completion of grant distribution. This doesn’t demonstrate a wide enough impact to enhance the ecosystem. Unfortunately we won't be supporting the proposal.

GFX Feedback This was a reasonably sized grant request for a protocol established on Ethereum and newly launching on Arbitrum. The grant plan was straightforward in goals and execution plan. Only major improvement we would have suggested would be a marketing element to Alchemix’s established Ethereum user base to come try the product on Arbitrum as well. We recommend this grant be approved.

Karel Feedback Vote AGAINST Alchemix's proposal.

Good proposal that scored well across the rubric criteria that has been able to show resilience on ETH L1 throughout the bear keeping in mind exploits and other events that affected the protocol. The requested grant size is not crazy with sufficient justification and matching, however unable to endorse for the following reasons: (i) inconsistencies in target TVL (5M vs. 20M; presumably from the reduction in grant size); (ii) more detail behind stickiness and the migration strategy to drive L1 TVL into Arbitrum (difficult to form a reference and see if milestones are obtainable); (iii) would like to see greater adoption on Arbitrum first to showcase initial Arbitrum market demand; (iv) would have liked to see all milestones mapped against the KPIs with more robustness (against TVL and users).

Wintermute Feedback

Alchemix’s application was very solid with thorough justifications of their requested grant size, KPIs, milestones, and goals. The product itself is unique infrastructure that Arbitrum can benefit from and has proven demand. Furthermore, the team has shown their ability to work with previous incentive programs, manage their own incentives, and focus on building out protocol relationships. We will be supporting this application.