I. Introduction
The Wormhole Foundation has recently been awarded a substantial grant of 1.8 million ARB from the Arbitrum DAO. This development is a part of a larger initiative aimed at bridging 100 million USDC to Arbitrum, with the provision of ARB incentives. In this article, we delve into the details of this groundbreaking program and the comprehensive proposal presented by the Wormhole Foundation to the Arbitrum DAO.
II. The Grant Program: Connecting Chains with Incentives
A. Eligibility and Rewards
To participate in the program, eligible users are required to utilize Circle's CCTP via Wormhole Connect. The program offers two options for users to qualify:
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Mint native USDC on Arbitrum.
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Bridge USDC.e to Ethereum and re-enter Arbitrum with native USDC.
Incentives will accrue every 7 days for a maximum period of 3 months. Users can claim their rewards for at least 365 days, after which unclaimed rewards will revert to the Arbitrum DAO. It's crucial to note that users must hold USDC in the minting address for a minimum of 7 days to be eligible for this program.
B. Rewards Dashboard
Users can conveniently track their progress and rewards on the Rewards Dashboard, which provides insights into:
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Total USDC bridged
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Total projected rewards
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Amount of ARB earned
III. Proposal to the Arbitrum DAO: Wormhole Foundation in Focus
A. Applicant Information
1. Wormhole Foundation Overview
The Wormhole Foundation is committed to supporting open-source, decentralized technologies that facilitate secure and seamless connections in the Web3 space. Serving as the steward of Wormhole, a cross-chain messaging protocol, the foundation has transmitted over 620 million cross-chain messages and facilitated billions in token transfers.
2. Team Members
The foundation's team boasts experienced professionals, including Dan Receer, Robinson Burkey, Cathy Yoon, Maher Latif, and Nikhil Suri, each contributing their expertise in operations, strategy, legal counsel, research, and product leadership.
3. Project Links
B. Grant Information
The grant requested is a maximum of 1,800,000 ARB, targeting the importation of 100,000,000 USDC to the Arbitrum economy. The grant breakdown emphasizes a competitive ~5-8% annualized reward rate for users utilizing Circle's Cross-Chain Transfer Protocol via Wormhole.
C. Grant Objectives and Execution
1. Objectives
The primary objective is to onboard 100,000,000 natively issued USDC from other chains.
2. Key Performance Indicators (KPIs)
Success will be measured by the migration of the targeted amount of USDC to Arbitrum within the 12-week incentive period.
3. Execution Strategy
Wormhole will track USDC minted onto Arbitrum, with eligible addresses receiving weekly ARB token rewards.
4. Grant Timeline
The timeline includes an announcement period, rewards program development, a 12-week incentive period, and a subsequent report on grant plan results.
IV. Protocol Details: Integration with Arbitrum
A. Protocol Native to Arbitrum
Wormhole has integrated with 29 different blockchains, including Arbitrum, demonstrating its commitment to interoperability.
B. Protocol Performance
The Circle Cross-Chain Transfer Protocol, integrated with Wormhole, has successfully bridged over 130 million USDC to Ethereum. The protocol's strong performance is evidenced by its top-10 ranking in cross-chain transfer/messaging protocols.
C. Protocol Roadmap and Audit History
Wormhole continues to enhance its trust assumptions and is looking towards implementing ZK technology in Q1 2024. The protocol boasts numerous audits and a bug bounty program, ensuring robust security measures.
V. Data and Reporting
The Wormhole Foundation is well-equipped to provide data and reporting on grant distribution. The team is prepared to create Dune Dashboards or an equivalent for public reporting, ensuring transparency throughout the incentive program.
VI. Conclusion
The collaboration between Wormhole Foundation and Arbitrum DAO marks a significant step in bridging decentralized finance ecosystems. With an innovative grant program, the initiative aims to attract substantial USDC migration to Arbitrum, fostering growth and innovation within the DeFi space. As the program unfolds, stakeholders can anticipate a transformative impact on cross-chain connectivity and the broader blockchain landscape.