DeFi

Trader Joe Proposes $1.8 Million Funding from Arbitrum

Web3 Station

Web3 Station

— 2 min read
Trader Joe Proposes $1.8 Million Funding from Arbitrum

Trader Joe, the largest DEX on Avalanche, has recently submitted a funding proposal worth $1.83 million in ARB to Arbitrum DAO. The proposal outlines the allocation of the grant for the following purposes:

  • Supporting Arbitrum developers
  • Supporting multi-chain developers compatible with Arbitrum
  • Attracting new developers to the Arbitrum ecosystem
  • Enhancing user utility on the Arbitrum protocol

The $1.8 million ARB funding will be distributed as shown in the image below.


Source: Trader Joe's Proposal (26/09/2023)

Allocation for Market Making Activities:

The highest portion of the grant (68.85%) is allocated for market making activities, divided into three phases, each lasting 28 days, and will be distributed among Arbitrum's native and multi-chain partners.


Source: Trader Joe's Proposal (26/09/2023)

Commitment to KPIs:

Trader Joe commits to implementing key performance indicators (KPIs) to evaluate liquidity groups, TVL rewards for LPs, and the number of new developers joining Arbitrum.

Trader Joe is an active AMM DEX on Arbitrum, having integrated with the platform since December 2022. The DEX reached a peak TVL of $59 million on Arbitrum and currently has a total of 473,000 wallets on the chain.

Recently, Arbitrum DAO reclaimed 69.4 million ARB (worth $56.5 million) into its reserve fund. This ARB represents unclaimed tokens from the March airdrop of the Layer-2 project.

The asset accumulation has increased Arbitrum DAO's budget to 3.59 billion ARB, valued at approximately $2.92 billion at the current exchange rate.

This article was updated on 26/09/2023 to reflect the latest funding proposal from Trader Joe to Arbitrum DAO.

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