This Week’s Forum Threads (April 26th)

1Inches ARB Airdrop

1inch, the popular dex aggregator, received 2.6M ARB tokens from Arbitrums airdrop. This proposal outlines a plan for how 1inch can use them for governance and to incentive 1inch users on Arbitrum.

The proposal recommends splitting the ARB tokens into two equal tranches of 1.3M ARB each. 1inch will use one half for participating in governance and the other as incentives. The plan calls for distributing 100K ARB monthly to 1inch users proportional to their volume. It looks like 1inch received the airdrop yesterday – it can be viewed here.

The proposal has no responses, so gauging temperament is impossible. But my guess is that discussion is ongoing in the discord, and we may see this move to a snapshot vote sooner rather than later now that the tokens have been received.

Euler Finance Rises from the Ashes…Maybe

As readers know, Euler was the victim of a large hack last month. Thankfully, the funds were eventually returned to Euler Finance, which distributed them to affected parties. However, Euler Finance is now debating if/how they should re-launch the protocol and what the next version of Euler will look like. As such, Euler has asked the community to jot down some responses to the following questions:

This forum thread will not contain any binding votes or proposals. It is just for the community to signal how they want Euler to move forward. Some have proposed that Euler should dissolve, but that proposal seems to have little traction so far.

I recommend following this thread, as Euler was growing in popularity before the hack. If they decided to relaunch, Euler could experience a resurgence.

HOP’s Liquidity Debate

Hop Protocol, a bridging platform, is debating how to deepen liquidity for its governance token HOP. According to the proposal, HOP liquidity is terrible. The submission points out that HOP has shallow liquidity on a handful of Dex’s and across chains, meaning that a 1 ETH HOP buy has 2.3% slippage.

The proposal recommends directing a portion of Hop’s 826K OP and 1.67M ARB treasury to a single HOP/rETH pool as incentives. Additionally, the proposer has a soft commitment from the Rocket Pool team to provide a small RPL incentive to the pool. Additionally, if Hop Protocol adds support for rETH, they could recoup some of the lost treasury emissions through fees if rETH becomes more popular.

Liquidity is always a tense topic for protocols and token holders. Some respondents in the forum see this more as a token holder seeking to deepen liquidity so they can exit. However, others are more supportive. Regardless, I recommend watching how this plays out, as it’s a good barometer for attitudes toward LP incentives.

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