Aark’s diverse liquidity pool, combining all liquidity in a single pool and the opportunity to deposit money into all types of erc20 tokens, will attract users to the arbitrum. The fact that it will fill the RWA gap in the Arbitrum and Aark’s composability with Arbitrum projects such as Lido and Pendle will increase employment in the Arbitrum. Also for the Arbitrum, we also support Aark because of its KPIs, its success in grant use, the DAO it offers to monitor the exchange ecosystem, and the Interval it offers for security.
To the Arbitrum DAO and Council,
Aark proposes to reallocate the LTIPP as follows, based on recent user engagement analytics, to improve results and mitigate the risk of sybil attacks from referrals.
Previous Allocation:
- Acquisition: 30%
- Activation LP: 20%
- Activation Trade: 30%
- Referral: 20%
New Allocation:
- Acquisition: 36%
- Activation LP: 14%
- Activation Trade: 50%
Summary of Recent Developments: Over the past month, we identified instances of self-referrals. We introduced a minimum trading volume requirement for referees to ensure that referrers only receive fee rebates if the referred wallets meet the volume threshold. Further analysis revealed a cluster of wallets referring each other. While we could implement new rules to prevent this, there is a risk of unforeseen loopholes. Therefore, we are reallocating incentives to prioritize the Activation Trade segment, as referrals and payouts are directly tied to trading volume.
Regarding LP incentives, we have partnered with Stakestone and will receive their points when staking STONE on Aark. This partnership strengthens our LP incentives, ensuring that rewards are based on fees generated by traders rather than direct team incentives. This adjustment is healthier for LPs, aligning rewards with trading activity.
Another matter is Aark decides to align with STIP.b and LTIPP rebate cap on trading fee of <75%. The benchmark follows GMX, Vertex, Synthetix and MUX, to make sure DAO’s funds are better being spent. Arbitrum perp protocols will collectively make Arbitrum better!