Proposal #65
Uniswap did not apply to the first two rounds of Arbitrum incentives (STIP 1 & 2). This was for two reasons:
Since many native DEXs–and non-native ones–have already had the chance to apply for ARB incentives throughout the past year across multiple incentive distribution initiatives, the UADP decided that it’s now the right time for Uniswap to also partake in these programs, especially since other blue-chip protocols also applied for these incentives. Plus, the establishment of this committee has allowed Uniswap DAO to further mature its relationship with Arbitrum DAO. We’ve partaken in multiple discourses, participating in all of the votes taking place on Arbitrum since November 2023.
The LTIPP pilot program is a 3-month long incentive program, with 45M worth of ARB to be distributed among an elected group of protocols. A total of 174 applications were vetted by the LTIPP Advisors, with whom we interacted and obtained feedback during the month of March. One of the primary sticking points was the amount of capital that we initially requested, along with clarifications around some of the target KPIs behind our request.
After some deliberation, in line with many other projects, we ended up lowering our ARB ask from 2.5M to 1M, which increased our chances of being admitted into the program by the Advisors and ARB delegates. Uniswap was able to attain the largest amount of incentives from the cohort of DEX applicants:.
Below is a breakdown of how the LTIPP funds will be used:
In order for us to accept this grant, we had to elect three signers onto a Gnosis Safe, and each member had to follow Arbitrum Foundation’s KYC process.
Multisig Address: 0x1026D3D219098D7b1B0A180F7E557DEeA7DA82C1 (⅔ Signers)
All performance reporting will be conducted by Gauntlet, just as they have been providing analytics regarding their previous Arb-Uniswap incentive program.
It’s clear that Uniswap has a steeped history with Arbitrum. We are currently the dominant DEX by TVL and volume on the L2. After ETH L1, Arbitrum is where Uniswap has the largest stronghold. It is therefore important for delegates to potentially consider doubling down on this ecosystem.
Uniswap DAO and Arbitrum DAO have also conducted themselves symbiotically ever since Uniswap launched on the L2 in August, 2021. Below are some contributions that Uniswap has made to the Arbitrum ecosystem in the past year alone:
As mentioned, it is up to Uniswap delegates to decide whether or not matching is favorable. Doing so would signify to the Arbitrum community our continued support, and in the UADP’s opinion, allow for further collaboration and grants in the future. If any funds are approved, they will follow a similar distribution structure and execution as above and be grouped together in Gauntlet’s incentives allocation.
We recently ran a snapshot where the options were: $1m, $750k, $500k, $250k, Do Not Fund
The snapshot finished with the winner being $750k, hence we will move forward with this being the amount proposed. We will use the price of $9.74 per UNI for calculations. The snapshot can be found here: https://snapshot.org/#/uniswapgovernance.eth/proposal/0x82c77c3a10bc17ce65c3fa2fd553d224e00ccaa012ea5c203024fa3695acb7d0
I think this is a reasonable use of the funds. Excited to see Uniswap partaking more in the ARB ecosystem!
The Event Horizon Community Voted to Support this Proposal ehUNI-29: EventHorizon.vote/vote/uniswap/ehUNI-29
SEEDGov backed the 1M option in the Snapshot voting, believing it was beneficial to aim for the higher amount. Following that reasoning, we are now voting FOR the 750K option, considering that a substantial amount can positively impact the DAO with minimal risk, and help strengthen our relationship with Arbitrum.