There were rightfully a lot of questions about MAGIC asking for 12k HOP/month, or $720. This proposal is asking for $30,000 of ARB in one month and an undefined amount of HOP. There should be 42x the amount of scrutiny for this proposal, but there seems to be very little.
What this substantial cost theoretically gets us is more people creating HOP liquidity pools. The problem with that is we can create our own with treasury HOP and be the ones to benefit from trading fees. In other words, weāre paying $30,000 for something we already have and foregoing revenue we could be making on it.
Regardless, a massive driver of slippage is HOP being a low cap, high-growth token. Buying necessarily moves the price. The reason a token like UNI doesnāt have as much slippage is because focused investment in the core protocol led to more people investing in it, a higher market cap, and more demand and holders created more organic opportunities to provide liquidity.
The path to reducing slippage and appreciating long-term token price isnāt temporarily paying people to create liquidity pools, itās by making strategic investments in our bridging protocol. A great long-term investment which also keeps our treasury diversified is simply holding this ARB and keeping it delegated to the ambassador program to continue advocating for Hop and looking for partnerships within a hugely important partner protocol.