Smilee Finance - LTIPP [Post Council Feedback]

Following the feedback from the LTIPP Council, Smilee is submitting an amended proposal as per Clarified Process for Non-Council Recommended Applications.

Summary of Council feedback received (excluding who voted yes):

• GMX: Expresses reservations regarding the proposal due project maturity, performance metrics, and grant size relative to current status.
• KAREL: Suggests resubmitting the proposal in a later grants window with a reduced ask after demonstrating greater traction.
• GFX: Argues against financing fee subsidies to a grantee, citing the finite nature of grants funding.

Smilee Protocol launched shortly before the LTIPP application program deadline, but lacked proper tracking tools to demonstrate performance and traction. Given that Smilee launched on March 15th, as of today, Smilee has been live for slightly more than 5 weeks, (with one week of trading paused for redeploying new smart contracts) and has achieved the following performances:

• Total Value Locked (TVL): $2M (increased cap from $2M to $3M on April 11, 2024)
• Trading Volumes: $13.7M
• Premium: ~$67K for Liquidity Providers (LPs)
• Unique Traders: 166

Even though Smilee has not disclosed any incentives, their TVL increased by more than 15% in a period of market downtrend.

Full details here: https://docs.google.com/spreadsheets/d/1kcWjdr5TIO6WJceUE5eQJXcPtCUnHWgD/edit#gid=1980618672

Source: https://defillama.com/protocol/smilee-finance#tvl-charts

Detailed performance metrics can be viewed at:

• https://dune.com/0xpibs/smilee-dashboard - https://defillama.com/protocol/smilee-finance#options-volume (Please note that volume tracking commenced on April 4th, and thus does not include the initial $4.5M traded before redeployment.)

In response to feedback from the Council and recent performance trends, they propose resubmitting the application with a reduced grant amount by eliminating the fee rebate component.

Setting the new grant request at 140K ARB, Smilee will implement the following incentive scheme:

• Grow Smilee TVL from $2M to $5M.
  • Incentives APR = ~14%, less than 15% as suggested;
  • USD Equivalent of Earn Incentives = ~165K USD (Assuming ARB Price of 1.18$)
  • ARB Equivalent of Earn Incentives = 140K ARB

Final LTIPP request: 140,000 ARB