Hop LTIPP Council Recommended Proposal

Link to Application

https://forum.arbitrum.foundation/t/hop-protocol-ltipp-application-draft/21830

Council - 3/4 Yes Votes

Feedback

Wintermute Feedback)

Hop’s application was great and scored well across a range of criteria. They have an excellent reputation and strong usage statistics. They provided clear milestones, KPIs, and goals, and provided sufficient justification for their grant size. Our main concern is with the overall distribution mechanism and cost to the DAO. We would’ve liked to see a justification of TVL target based on user cohort trade size which would inform how much TVL is required to reduce slippage and attract larger bridging volume. Or even begin bootstrapping in-demand assets to Arbitrum. Furthermore, we don’t think spending money on bridge rebates is the best use of DAO funds as it doesn’t actively target increasing user base and activity but mostly reduces the burden for users who were already looking to bridge. Unfortunately, due to the reasons above we will not be supporting this application.

GFX Feedback) The primary weakness of this grant plan is the sheer size. Given clear execution plan, walking through how the applicant arrived at the requested amount, and milestones, the application overcomes the penalty for the large request. We recommend approving this grant.

GMX Feedback)

We are generally supportive of approving Hop’s grant. Hop Protocol is a substantial player in the bridge sector and has huge potential to help Arbitrum grow generally. Bridges are also sites of high crosschain traffic, so this provides an opportunity to put Artbiutrm in front of new users. The detailed breakdown of how the grant will be utilized, including specific percentages allocated to different aspects such as liquidity mining incentives, gas fee subsidies, and bonder fee subsidies, demonstrates a clear understanding of the challenges and opportunities within the Arbitrum ecosystem. The plan to incentivize user "stickiness" by subsidizing onboarding fees while ensuring a stake in the network through ARB token rebates is particularly innovative and likely to achieve long-term engagement. They, are also open to match the grants funds with the HOP protocol DAO treasury funds which is a good sign.

404 DAO Feedback) Hop presented a strong application that scored well on most sections in this rubric. In addition to being a long time supporter of Arbitrum, they provided detailed justifications for their KPIs, milestones, and overall execution strategy. We appreciated the sub-focus on Arbitrum Nova within their execution strategy and believe Hop plays an important role in driving further adoption and discovery for this chain. Overall, due to the robust nature of Hop’s application, their past success and impact to driving users to transact on Arbitrum native chains we will be supporting this grant proposal.