
### 50% - Development of better oLIT UX for Arbitrum users 

-   **Context**: A key limiting factor in the growth of the Arbitrum instance of Bunni is the current user experience of the reward token (oLIT).  oLIT currently needs to be bridged to mainnet using the official Arbitrum Bridge, which mandates a 7 days wait. The o-token call option needs then to be exercised with a Mainnet transaction that requires equivalent amounts of WETH to be held by the user. 
    
-   **Approach**: Research and development are underway, with several options being considered for phased implementation. The budget includes audit costs.
    
    #### Phase 1: Cross-Chain Seamless Transfers
    
    -   **Objective**: To adapt the xERC-20 standard for oLIT, streamlining cross-chain transfers.
    -   **Benefit**: Eliminates the 7-day waiting period for bridging oLIT from Arbitrum to Ethereum Mainnet, thereby reducing transaction costs and improving the overall user experience.
    
    #### Phase 2: Research on o-token Call Options on Arbitrum
    
    -   **Goal**: To expand the team to research native oLIT redemption solutions on Arbitrum.
    -   **Outcome**: Aims to eliminate the need for bridging and speed up the redemption process, further enhancing the UX on Bunni's Arbitrum instance.

### Positive Impacts on the Platform

  
    -   Enhanced oLIT UX leads to increased trading activity.
    -   Surge in fees boosts revenue generation and sustainability.
    -   Grant supports Bunni's path towards independence and self-sufficiency.

### 25% - Bootstrapping Liquidity Incentives

-   **Usage**: To incentivize new high-value, high-volume, and high-interest pairs. Examples include:
    -   ARB-USDC
    -   ARB-ETH
    -   wstETH / ETH
    -   rETH / ETH
    -   USDC / USDC.e
    -   Potential inclusion of UNI pairs, depending on the committee's decision.

### 20% - Attracting Value-Aligned Partners and Incentive Matching

-   **Purpose**: To use the funds to attract value-aligned partners and match incentives on Bunni. This will be for a limited period to bootstrap liquidity and showcase the high-value proposition of the protocol.

### 5% - R&D for the Arbitrum Deployment

-   **Allocation**: To cover the expenses incurred in the research and development of the Arbitrum deployment.