Arbitrum

Link to Application

https://forum.arbitrum.foundation/t/prime-protocol-ltipp-application-draft/21680

Council - 3/3 Yes Votes

Feedback

Wintermute Feedback) Prime’s application was good and scored well across various criteria. Their product is relatively unique with a wide variety of assets, allowing Arbitrum to tap into their existing user base across multiple chains. Their KPIs, goals, and milestones were clearly displayed with a good amount of justification. They have a solid execution strategy with experience in distributing grants previously, although they could’ve been a bit more innovative in rewarding existing users to move capital or take out loans on Arbitrum. Their requested grant size is well justified and inline with their current TVL. Our main concern is that there hasn’t been a huge amount of growth or adoption of the protocol. We will be supporting this application.

GFX Feedback) Normally this request would be on the large side for the grant plan, but Prime’s cross-chain deployments and stated intention to introduce users on other chains to Arbitrum allow it to score highly enough that we recommend this grant be approved.

GMX Feedback) We would be supporting the proposal. The protocol demonstrates extensive experience in utilizing incentives, as evidenced by their successful implementation with Moonbeam. Their goal of achieving a TVL of $10 million aligns well with their proposed grant amount and appears to be quite feasible. Of particular significance is their strategy to attract users from other ecosystems to Arbitrum, leveraging the same approach that proved effective with Moonbeam. Additionally, they plan to utilize the Prime Points community program to efficiently distribute incentives, further bolstering user adoption on Arbitrum.

The Prime Protocol introduces a compelling concept whereby users can borrow against their liquidity on any chain, facilitating cross-chain liquidity utilization. For instance, users could borrow against their BNB holdings on a different network and access USDC on Arbitrum. This design has the potential to broaden Arbitrum’s liquidity base by tapping into external ecosystems while providing users with exposure to Arbitrum’s low-cost environment. However, there is a need for more detailed information in the KPI and milestones section, particularly regarding the planned “ramping up” process, which requires clarification to ensure transparency and accountability in project execution.