Thanks to everyone who has taken the time to read and help iterate our proposal for the UNI-ARB Grant Program (UAGP) and Protocol Delegate Program! Talking with you all has made us even more excited about how the Uniswap DAO can strengthen both the Uniswap / Arbitrum ecosystems.
As outlined in the temperature check, the proposal suggests the creation of the UAGP and Protocol Delegate Program, utilizing a significant allocation of 2.2m $ARB tokens to enhance the Uniswap ecosystem on the Arbitrum Protocol.
After an 8-week research sprint and iterations with delegates in our capacity as Working Group Zero (WG0), we've fine-tuned the structure for both the UAGP and Protocol Delegate Program.
Now it is time to vote on the funding of both of these programs with parts of the received $ARB airdrop. Following a successful onchain proposal, WG0 will lead a nomination and election process to fill the UAGP and Protocol Delegate Program with more members. As initiators of the programs, we have an ambition to be part of the mentioned programs and would feel privileged to help drive these forward.
Working Group Zero (WG0) members:
Helpful links for context: Temp Check, Snapshot vote, RFC, UAGP Research, Delegate Program Research
The ARB airdrop provides the Uniswap community with an opportunity to enhance its presence within the Arbitrum ecosystem, thus nurturing growth.
The UNI-ARB Working Group Zero aims to unify various governance initiatives into a single, coherent system. This helps us align with Uniswap's vision and positions us to take advantage of future allocation opportunities.
Therefore, we proposed the establishment of a Working Group 0 that had the task to structure the UNI-ARB Grant Program and Protocol Delegate Program and get to an on-chain vote:
After an extensive 8-week research phase with the WG0–researching leading Grant Programs, expert interviews, and iterations with Uni delegates–we're excited to introduce a best-in-class Grant Program designed to become a pacesetter for future Uniswap grant initiatives.
The UNI/ARB Grant Program (UAGP) aims to:
Setting up a best-in-class Grant Program is a multifaceted task. We broke it down into its key components, aligned with a grantee's journey, to effectively solve the typical challenges of grant programs.
With our WG0, we took 8 weeks to do research on the leading Grant programs from other protocols (UGP, Aave, Metamask, Synthetix), conduct expert interviews with Grant Program leads from multiple ecosystems, and iteration sessions with 8 larger Uni delegates (voting power of ≥2.5M UNI).
Find detailed research here: UAGP Research
Objectives
For an extensive description of our objectives, please refer to the mission statement above. The program focuses on three key areas:
RFP-based Program vs. Open
Rather than solely relying on inbound applications for grant distribution, we decided for an RFP-based approach to align with high-impact themes that we defined and got feedback on by a range of delegates, the Uniswap Foundation, and active community members.
To gather these ideas, we carefully selected an initial list of RFPs for funding, with a priority on projects offering the highest potential value for Uniswap. These initial themes are designed to remain adaptable, allowing for continuous adjustments to meet the evolving needs of the ecosystem. This process merged what we identified as valuable contributions within Working Group 0 with valuable guidance and feedback from both delegates and UF.
Liquidity Management and Derivative Protocols:
The development of derivative and liquidity management protocols interacting with Uniswap can pave the way for more sophisticated instruments and strategies on Arbitrum, seeing new increases in transaction volumes and TVL.
Arbitrum testnet with EIP-1153 enabled:
Currently, developers aiming to test Uniswap v4 face a cumbersome and convoluted procedure. This process, which needs to be executed locally, is far from straightforward. The lack of a streamlined approach poses challenges and inefficiencies for these developers. There's a pressing need for a more intuitive and efficient testing environment or system to simplify this procedure for Uniswap v4.
Uniswap v4 Infrastructure Dev Tools:
The intricacies of Uniswap v4 are difficult for present-day development tools to manage, often resulting in less-than-smooth implementations.
From this perspective, it underscores the necessity for a new or improved toolset that specifically adds value to the Uniswap-Arbitrum ecosystem. To prevent overlap with UF in the context of this particular RFC, which focuses on general Uniswap v4 development, we will closely coordinate our inbound with UF.
Uniswap on Arbitrum Ecosystem tools or products:
Tools or products for the ecosystem that aim to strengthen the protocol, elevate user engagement, and capture attention from new users and outside parties. This category is kept broad intentionally to allow for a broad range of contributions and targeting and tech tool or product fulfilling the aforementioned target.
Open Contribution: A variety of initiatives and applications, not necessarily aligning with the previous four categories, are welcomed by the Grant Program. This flexibility allows for the embrace of a wide range of contributions from our community, promoting growth and innovation within the Uniswap-Arbitrum ecosystem.
To efficiently handle the anticipated surge in applications, we've implemented a streamlined process that initially screens applications using RFPs and team requirements. These applications will be submitted through Airtable and published in Notion. Following this, we will manually review all projects to identify those warranting further due diligence in a structured process:
Our due diligence process aims to be a robust evaluation system that combines the rigor of early-stage investing with strategic alignment to Uniswap's goals. After the initial screening, we will focus on the following elements:
Following the evaluation using the aforementioned dimensions, projects proceed through the subsequent internal governance procedure:
Transparency and continuous dialogue form the backbone of our selection and reporting process, ensuring that each grantee remains aligned with program expectations.
Monthly Reports: We will provide monthly updates on our selections and updates on funded projects. These updates will include general project trajectory and progress toward milestones. To create the reports we will set regular monthly check-in dates where grantees fill a template/slide in order to give the key info about the project’s status, such as:
Output Metrics: With the initial priorities in mind, some effective measures for meaningful output will look as follows:
Outcome Metrics: Depending on the final portfolio of funded projects, we will gauge the success rate of grantees through specific outcome metrics. While these metrics can be influenced by a wide range of external factors, such as market conditions and individual decisions on project level, we are committed to supporting and funding the most promising projects to the best of our ability. Metrics include:
Our approach to grant allocation focuses on achieving high impact, which we believe comes from bigger, more substantial projects:
Our committee aims to create an efficient and predictable grant application and decision process.
The Grant Program’s initial team will be made up of the following individuals:
Once this proposal is approved, the 2-week voting period will be initiated to fill the remaining 3 spots, where individuals interested in becoming reviewers can nominate themselves by responding to the Election Forum post (will be created separately).
The UAGP governance aims for transparency, efficiency, and broad community involvement. It outlines mechanisms to ensure fair and balanced decision-making for all stakeholders.
1.1 million (25% of the total airdrop) $ARB tokens are requested for UNI-ARB Grants. While the vast majority of the funds will be allocated to grants, some operations costs need to be addressed.
After reviewing other best-known Grant Programs like Aave and the UGP, we decided to propose the following compensation package for core members:
Below, we put down a budget estimation for the next 6 months, considering 3 budget categories: grants itself, compensation and maintenance costs.
Budget (6 months)
| | | | ------------------------------------------------------- | ---------------- | | Category | Amount (ARB) | | Expected Grants to Award | 924,000 | | Grants Total Budgeted Cost | 924,000 | | Max Compensation | 156,000 | | Budget for tooling, subscriptions, and misc | 20,000 | | Operations Max Budgeted Cost | 176,000 | | Total UAGP Budget | 1,100,000 |
We recognize that workload varies across different phases of the cycle. For instance, the selection phase may require peak capacity, while other stages could be less demanding. As a result, we've estimated an average commitment of 25 hours per week for the operational lead and 10 hours per week for the review committee
To better articulate the scope and focus of the UAGP, we've incorporated case studies in response to feedback received from Uni delegates during our iterative process. These case studies aim to make our target projects more tangible and offer insights into what we mean by projects that strengthen the Uniswap-Arbitrum ecosystem.
<ins>Project description</ins>
<ins>Benefits for Uniswap</ins>
<ins>Scope</ins> Planned timeline for use of funds is 12 months (including 6 months for a v2 release of this project).
<ins>Project description</ins>
<ins>Benefits for Uniswap</ins>
<ins>Scope</ins> Planned timeline for use of funds is 1 to 3 months.
This is an example of a project that was beneficial to the Uniswap community as a tool, completing a building phase, accomplishing milestones, and delivering a product that is adopted by the industry.
<ins>Project description</ins> A platform that combs through blockchain entries, allowing users to craft alerts for activities such as trading, governance decisions, and tax compliance, all at an undefined cost. This tool can greatly refine user interactions and demystify the intricacies of working with blockchain.
<ins>Benefits for Uniswap (link)</ins>
In our effort to create a well-defined delegate program, we at took a systematic approach. Our initial step involved breaking down the Delegate Program into basic components to better understand its core ideas. Subsequently, we closely examined other successful Delegate Programs like Arbitrum, Optimism, Synthetix Ambassador Council, Rari, and Stader to identify effective strategies.
To gain deeper insights, we engaged with 6 experts in delegate programs. This allowed us to learn more and incorporate the best industry practices. This collaborative and iterative research led us to develop a robust UNI-ARB Delegate Program.
To secure adequate representation, a committee comprising 2 members is instituted to act as committed proponents of the Uniswap community's interests. This committee's sole responsibility is to advocate for Uniswap, guaranteeing unbiased decision-making. The primary aim is to actively participate in Arbitrum governance, enabling the Uniswap community to play a pivotal role in shaping the future of the ecosystem.
As previously highlighted, a parallel methodology was employed to ascertain the optimal Program structure. Comprising five fundamental pillars, the primary framework encompasses the entirety of the core process. Find detailed research here Delegate Program Research
These pillars are represented on the following image:
The Uni-Arb Delegate Working Group will transparently and accountability represent the Uniswap community’s interests in the Arbitrum DAO. Potential responsibilities will include:
The program holds elections on a semiannual basis. During this time, the community members who participate in Uniswap governance vote to select the delegates who will represent them for the next 6 months.
One of the WG0 members has been selected based on the criteria listed below, but we invite community members to nominate themselves below to fill the rest of the total multi-sig spots. Self-nomination will happen on this forum post, and the UF will host a Snapshot vote to determine these 2 members.
Prospective delegates submit various information about themselves based on the following criteria:
Once the proposal is approved and a specific nomination process post is created, members will be asked to make use of the official Delegate Statement Template to fill out the application and post their response on the forum.
Current committee (part of WG0)
Once this proposal is approved, the 2-week voting period will be initiated, where individuals interested in becoming delegates can nominate themselves by following the application process outlined above.
The UADP governance likewise aims for transparency, efficiency, and broad community involvement. It outlines mechanisms to ensure fair and balanced decision-making for all stakeholders.
When it comes to tracking how delegates vote, the current approach, used by different DAOs, involves looking at their voting history during specific times linked to their election cycle. This helps the community decide if they should be re-elected based on how they've voted. However, it can be tough to figure out if their voting really matches the program's main goals, especially when things aren't clear-cut.
To address this, the UNI-ARB Delegate Program will hold elections twice a year to check if delegates are doing what's expected of them regularly. This way, we can prevent problems and give the community chances to set new expectations over time. The evaluation will be based on how satisfied the community is, how much the delegates participate in making decisions, and if their choices match Uniswap's values.
Like the UNI-ARB grants program, ~1.1 million (25% of the total airdrop) $ARB tokens are requested for the UNI-ARB Delegate program. Due to the nature of delegation technically, the remaining funds in the Arbitrum community wallet will be delegated in an all or nothing transaction. These funds will be delegated to the Delegate Program wallet and will stay in the community wallet; some operational costs will be addressed. Similar to the grant program, we have capped each delegate to a maximum of 10 hrs/week for a 6 month maximum total of $48k, which translates to just under ~50k $ARB. In reality, the final amount should be less. A small portion will also be earmarked as a reserve fund in case legal and similar expenses arise. Please note that until ARB is used as an expense, our goal is to have all of the ARB be self-delegated.
Budget (6 months)
Below, we put down a similar “budget” estimation for the next 6 months.
| | | | --------------------------------------------------------------------------------------------------------------------------------------- | ---------------- | | Category | Amount (ARB) | | ARB left in community wallet for self-delegation (~1 million) | 0 | | Max Compensation (Will be self-delegated whilst sitting idle) | 50,000 | | Reserve: Legal expenses if applicable, gas reimbursements, delegation smart contract, etc. (Will be self-delegated whilst sitting idle) | 50,000 | | Total UADP Budget | 100,000 |
As previously agreed upon in the Snapshot vote, our Working Group Zero (WG0) will receive a compensation of $20,000 ARB for their efforts over the last 8-week sprint that will be split equally by its 4 members. This amount will be subtracted from the program's overall budget and will serve as the compensation for the four WG0 members.
Thanks to invaluable delegate feedback, our program is aligned to fund projects that strengthen the Uniswap-Arbitrum ecosystem.
Upon successful approval of this proposal, UAGP and the Protocol Delegate Program will initiate a 2-week nomination and election process.
We're excited to kick this off and sincerely believe that, with the involvement of our delegates, we can set a precedent for streamlined, effective grant programs that make a significant difference.
https://gov.uniswap.org/t/rfc-alastor-w3s-create-a-uni-arb-working-group/21376/14?u=abdullahumar
well articulated proposal and high likelihood of making positive impact on Uniswap ecosystem on arbitrum
$100 per ARB/hour seems quite expensive for us. You may have forgotten, but we are currently in a bear market.
