Arbitrum

Link to Application

https://forum.arbitrum.foundation/t/factor-ltipp-application-draft/21922

Council - 3/3 Yes Votes

Feedback

404 DAO Feedback) Factor scored well across a majority of the rubric. We appreciate the team’s commitment to Arbitrum and their continued Arbitrum native roadmap. Additionally, the product has started to catch some traction with their recent incentives mechanism. While their grant ask is a little high for their current usage, we believe the incentives can compliment their recent traction and support further protocol growth benefits. However, their incentive design(bribe mechanism based on veFCTR) does lead to the potential of weak distribution, mainly whales and OGs receiving the majority of rewards. Overall, we feel the benefits outweigh the costs and we support this application.

GMX Feedback) We are generally supportive of Factor’s grant application. They have been present in the space for a while with a provable track record and the grant ask seems responsible, along with their proposed plan of action for the grants. Considering Factor is currently in the rollout stage of the product they have spent a long time building, I expect the grant to strengthen this process and be quite cost-effective and based on Factor’s incentive strategy outlined in their proposal, We would be inclined to accept the proposal. The strategy demonstrates a clear understanding of how to incentivize user adoption and liquidity depth within the Factor ecosystem on Arbitrum. By leveraging dynamic reward allocation, targeted boost incentives, and enhanced rewards for veFCTR holders, Factor aims to create stickiness among users and ensure sustained engagement over time. The proposed KPIs are well-defined and directly align with the grant objectives, providing clear metrics for evaluating success. Additionally, the milestones set forth are ambitious yet realistic, with a clear roadmap for achieving them over the 12-week grant period. Overall, Factor’s incentive strategy appears robust and well-thought-out, making it a compelling proposal for acceptance. *GFX Feedback) * Our main concern with this grant plan is requesting an amount that is nearly as much as the entire protocol’s TVL. The applicant scored highly in other areas, like composability, and solidly in most areas, which managed to offset the penalty to their score from the grant size. We recommend this grant be approved.