Gyroscope LTIPP Council Recommended Proposal

Link to Application

https://forum.arbitrum.foundation/t/gyroscope-ltipp-application-draft/21692

Council - 3/4 Yes Votes

Feedback

GFX Feedback) We appreciated that the applicant cited a grant and its results on Optimism. The reward for the incentives was not compelling in that example, however. Also, funding support for as-yet-to-be-determined integration partners is hard to sign off on, since as reviewers, we need to know where the ARB funds will end up. Finally, Gyroscope has almost no presence on Arbitrum according to DeFi Llama, which makes a large grant request difficult to support.

404 DAO Feedback) Gyroscope presented a very thorough application. One that scored very well across most of the rubric. Specifically, they excelled in justifying their KPIs and objectives as it relates to expanding their E-CLPs and expanding their stablecoin integrations. The main concerns were centered around where the majority of their usage has been (Polygon and Optimism) and some lack of clarity around their milestones. Overall, we will be suppporting Gyroscope on the basis of expanding stablecoin innovation and adoption on Arbitrum for what we feel as a very reasonable grant ask.

GMX Feedback) The protocol may not have high numbers on the Arbitrum network currently, but they have demonstrated decent traction on other Layer 2 solutions. GYD stablecoin stands out by implementing a basket of assets for backing, along with automated risk diversification rules. Integration with Frax and Balancer enhances its composability with other ecosystem projects. The proposed $10 million TVL target appears reasonable given their grant ask. The team boasts a solid background, with one founder having published work on Google Scholar. Their effective use of incentives in the past, particularly with Optimism, bodes well for their ability to drive adoption. Leveraging their points system to attract more users seems like a sound strategy, although safeguards against Sybil attacks should be clarified. Overall, Gryoscope aims to introduce a decentralized stablecoin backed by various assets to the Arbitrum ecosystem. With clear KPIs and milestones, they aim to utilize the $100k grant to incentivize and bootstrap their stablecoin for adoption. If they can achieve a $10 million liquidity target, they believe they can kickstart adoption. While Arbitrum lacks decentralized stable value options, Gryoscope has the potential to fill that gap if they can gain traction. The proposal is well-written and outlines their objectives very well.

Wintermute Feedback) Gyroscope’s application was very good, they provided very thorough details and justifications of their KPIs, milestones, goals, and objectives. They provided a clear vision of how they impact the DeFi landscape and how they will benefit the Arbitrum ecosystem. Their product is unique and they bring some interesting infrastructure to Arbitrum. Their demonstrated ability to successfully work with previous incentives is a plus. Their requested grant size is sufficiently justified and they have a solid execution strategy, however, we would’ve liked to have seen some more variety in the pool selection. Lastly, their project is highly composable and the product has demonstrated its ability to capture a significant amount of 1inch flow and transactions. We will be supporting this application.