Request for Comments: Liquidity Pillar for the Arbitrum Grant
This Request for Comments (RFC) document seeks to gather feedback on the proposed prerequisites for eligibility for the Arbitrum Grant under the Liquidity pillar. The prerequisites are designed to ensure that only projects that align with Arbitrum's focus and contribute to the growth and development of the Arbitrum ecosystem are eligible for support[1].
Liquidity Pillar
The Liquidity pillar focuses on ensuring liquidity. This includes working with market makers, venture capital, liquidity hubs/networks, and creating incentives[1].
Background
The Liquidity pillar is crucial for the success of the Arbitrum Grant. It ensures that the projects supported by the grant contribute to the growth and development of the Arbitrum ecosystem. The pillar focuses on ensuring liquidity, which is key to the success of any project in the DeFi space[1].
Proposal
The proposal for the Liquidity pillar includes the following prerequisites for eligibility:
- Partnerships: Projects should establish partnerships with reputable market makers, venture capital firms, and liquidity hubs/networks to ensure liquidity in their markets[1].
- Transparency: Projects should provide regular updates on their liquidity initiatives and be transparent in their dealings with stakeholders[1].
- Incentive Programs: Projects should develop and implement effective incentive programs to attract liquidity providers and ensure a healthy liquidity ecosystem[1].
Accountability
Projects should be accountable for their liquidity initiatives. They should provide regular updates on their progress and be transparent in their dealings[1].
We invite all stakeholders to provide their comments, suggestions, and feedback on these proposed prerequisites for eligibility under the Liquidity pillar. Your input is invaluable in ensuring that the Arbitrum Grant supports the most deserving and impactful projects in the Arbitrum ecosystem.
Benefits
For projects that meet these eligibility requirements, the benefits are that the Arbitrum DAO will bear the costs of retainer model Token Market Makers like FlowDesk. This support from the Arbitrum DAO can significantly reduce the financial burden on projects and help them ensure liquidity in their markets[1]. Projects that meet the criteria Arbitrum DAO will also make introductions with interested venture capital parties.