[Arbidex] [FINAL] [STIP - Round 1]


Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name: Arbidex

Project Name: Arbidex

Project Description: Arbidex is an advanced, user-oriented DEX & Ecosystem. Our community-centric ethos positions us uniquely as to serve as a self-sustaining protocol/dex. The only Liquidity Marketplace with a suite of products (dex,perpetuals,launchpad,marketplace,bridge) having all of its fees generated reidrected to its token as real yield.

Team Members and Qualifications:







+5 other team members consisting of marketing, designing and community management.

Project Links:

Linktree - arbidexfi | Twitter | Linktree

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes


Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 240,000 ARB (~$200,000)

Grant Matching:

Grant Breakdown: All of the granted funds will be used for Liquidity Incentives (Farms) on the DEX.

  • $ARB from grant will be added as the third reward for liquidity incentives with $ARX + $xARX

Funding Address: 0xE8FFE751deA181025a9ACf3D6Bde8cdA5380F53F

Funding Address Characteristics: 2/4 Multisig


Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.


Our proposed budget is carefully crafted to propel growth and enhance efficiency on our Arbitrum platform, concentrating on bolstering volume and liquidity. Here is a high-level breakdown of how we currently allocate our funds and the potential enhancements we can achieve with the grant:

  • Monthly Incentives (Current): Our current budget reserves $35,000 per month for our own token incentives for liquidity. This has resulted in an impressive average monthly average volume of $55+ million, leading to the generation of about $60,000+ in real yield (fees and bribes), which we redistribute in real yield to our token. The outcome is a marginal net inflation only.
  • Monthly Incentives (With Grant): The proposed grant of 240,000 ARB (~$200,000) allows us to substantially boost our monthly incentives to a total of $135,000 ($100,000 additional each month to the current $35,000 incentives). We expect this increase in incentives to spark exponential growth in both volume and Total Value Locked (TVL) on chain. This is straight incentives, but since we expect a major boost in liquidity the incentives from our side will increase as well and we aim to boost them to $50k that means $150k liquidity incentives each month ($100k from Grant + $50k from us in our token).
  • Impact on Fee Generation and Real Yield Redistribution: The additional funding would enable us to double our fee generation and redistribution to our token holders because of volume growth. This not only enhances incentives but also fosters our token’s appreciation, subsequently elevating the APR which in turn into more incentives creating a loop. Hence, the current $35,000 in incentives will grow to over $50,000 due to the volume & liquidity influx, thereby increasing revenue and real yield, thus providing space for more incentives as explained in above point with projections.
  • Liquidity and Volume Projections: Leveraging our existing efficiency ratio over the past months of 1.85 (Efficiency = Volume/Liquidity), we anticipate that a 3-4x increase in liquidity would lead to a 5x-6x surge in volume over our monthly average, approximately $100 million/month, facilitated by ~$135,000 ($100,000 from the grant and $35,000 from our Arbidex incentives) incentives to liquidity. This sets a solid ground for us to target our ambitious $1 billion mark in cumulative volume, indicating a potential volume increase of $700 million over the subsequent two months with the help of grant.

In essence, this grant is not just additional funding; it’s an essential catalyst that can supercharge the ecosystem, notably by enhancing incentives for liquidity providers and by allowing us to offer more to our holders through increased 100% fee redistributions resulting from the volume increase which allows us increase incentives which means that grant is not just a certain boost here but it starts a cycle which then can increase our incentives to 2.5x-3x or more. This grant is poised to significantly expedite the swift and efficient expansion of our platform on Arbitrum and bring significant tvl and volume on chain.

Key Performance Indicators (KPIs): Key Performance Indicators (KPIs) that we’re tracking for this milestone are Cumulative Trading Volume, Incentives, Real Yield Distributed, Total Value Locked. Each of these offers a unique perspective into our operations, guiding us to refine our strategies for the most efficient outcomes.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: Our request for this grant is rooted in the genuine aim of bolstering the liquidity provision on Arbidex, our decentralized exchange (DEX) and Arbitrum as a blockchain. We believe that with the support from the Arbitrum Foundation, we can significantly strengthen the inherent “Liquidity Loop Flywheel” model, an approach that has proven instrumental in fostering a self-sustaining ecosystem within the DEX. The grant would act as a catalyst and eventually grow liquidity/tvl on Arbitrum. Arbidex is a closed community-to-community dex, where the incentives and fees all of it is redirected back to the users/investors hence no intermediaries.

To elaborate, the funds from the grant will solely be channeled towards incentivizing liquidity provision especially to BTC/ETH/ARB/USDC/USDT pools which have the most capital in all of DEFI. This infusion of liquidity is designed to drive a substantial increase in trading volume because. When there is deeper liquidity in our DEX attracted by incentives, traders are more likely to experience smooth, efficient, and favorable trades powered by our low tick spacing concentrated liquidity and 20% lower fees then other DEXES on chains like Optimism, Ethereum, BSC, Fantom and others, which might not be a big cut for small defi users but a good number and reason for Big Whale’s/Institution to move money to Arbitrum and trade on Arbidex saving the cut in fees and better rates. This enhanced trading experience invariably attracts more activity and, thus, raises the volume of transactions happening on Arbitrum and Arbidex. Meaning: Capital infusion from traders as well as yield farmers on Arbitrum for better yield and rates.

Higher transaction volume translates into more fees being generated for Arbidex. All of these fees, coupled with bribes from our partners, are redirected towards real yield staking for $ARX (our main utility token). The purpose of this redirection of all of fees + bribes is two-fold: on one hand, it appreciates the token value as the APRs for real yield staking increase; on the other hand, it incentivizes more users to contribute liquidity to our platform on Arbitrum, due to the higher returns from the farms as the token value appreciate.

This dynamic creates a powerful, virtuous cycle: as liquidity increases, trading volume and fees grow, fueling further yield for real yield stakers and incentivizing more liquidity provision, which in turn boosts liquidity yet again benefiting the chain as well as the dex as it is plays the key role.

We see this grant as an contribution not just in Arbidex, but in the future growth and robustness of the Arbitrum blockchain itself. By improving the liquidity, efficiency and lowering fees for swaps of our DEX, we are also enhancing the overall user experience and utility of the Arbitrum blockchain over every other blockchain. In essence, this grant serves to fortify the interconnected and mutually beneficial relationship between Arbidex and the broader Arbitrum ecosystem.

Arbidex serves as a beacon of sustainable value in the Arbitrum ecosystem, fostering an environment where value isn’t minted but organically generated through a self-sustaining, 100% community-owned model without any intermediaries. This unique construct helps us enrich Arbitrum in several ways, each adding a distinct and enduring value. Arbidex has built a complete “circle of life” model where value is organically generated, focusing on “The People” where the true value lies.

  • Firstly, we offer 20% lower swap fees on swaps compared to DEXs on other chains such as Ethereum, BSC, Optimism, Fantom among others and even within Arbitrum as well. This competitive pricing drives significant volume to our platform and to Arbitrum, attracting a wider user base especially the bigger investors where this 20% cut matters.
  • Secondly, we have launched the Developer Program by Arbidex, a unique initiative that gives up to 25% of swap fees generated by the protocol’s token back to its treasury in real liquid token. This supports the growth and evolution of both emerging and established protocols by providing them with an additional revenue source for expanding there operations.
  • Lastly, Arbidex has partnered with various protocols to expand their offerings to the Arbitrum network for the time and also introduced them to the era of Concentrated Liquidity for the first time on Arbitrum only, which offers better swap rates than regular DEXs on other chains. For instance, our partnership with Frax Finance has introduced their $sfrxETH to the Arbitrum network, bringing the highest yield liquidity staking derivative (LSD) to Arbitrum from Mainnet and BSC. This successful introduction has seen millions of dollar worth of sfrxETH bridged to Arbitrum from the mainnet, and multiple partner protocols, including Frax Finance, have been introduced to Concentrated Liquidity on Arbitrum for the first time as well which drives a lot of volume from other chains because of better pricing with decent liquidity only.

In summary, Arbidex has facilitated a swap volume of about $300m on the Arbitrum network, reflecting our efficient model’s effectiveness. Furthermore, we have redistributed around $500k to our users as real yield, creating a self-perpetuating cycle that benefits our users and enhances the Arbitrum ecosystem’s vibrancy. As we continue to innovate, partner, and grow, we reaffirm our commitment to adding lasting value to the Arbitrum ecosystem, one swap at a time.

Justification for the size of the grant: Our existing efficiency ratio over the past 6 months has been 1.85 (Efficiency = Volume/Liquidity) with current incentives, we anticipate that boosting incentives 3x-4x will result in a 3-4x increase in liquidity which would lead to a 5x-6x surge in volume over our monthly average, approximately $100 million/month, facilitated by ~$135,000 incentives to liquidity.

With previous data, average volume of $100m/month nets $62k in sole fees which is re-distributed to token which will be a 2x-2.5x increase in Real Yield resulting in token value appreciation resulting in higher aprs on farms.

Execution Strategy: As mentioned all the incentives are used for liquidity farming, the pools to be incentivised-

arb-usdc - 15%

arb-weth - 15%

weth-usdc - 12.5%

Arx-weth - 12.5%

wbtc weth - 12.5%

Used.e-usdc - 12.5%

Usdt-usdc - 12.5%

Partner pools - 7.5%

Usdt-usdc: 0x27629d01f673d9f68efa136c30865a5720dbf5c3
Usdc-usdc.e: 0x837823ed246a7e34a59aa96701c6f2de9e96d592
Wbtc-weth: 0xb7fa82d0493f6c51f03b1da41387d3eede594f6d
Weth-usdc.e: 0x48d7e1a9d652ba5f5d80a8dc396df37993659f35
Arb-usdc.e: 0xe3d2f7c05b818ac79765329c953ef2427714fb5b
Weth-arb: 0xbb304e41a3dcab1eebe4bf9975e39f91fabe69d0
Rdnt-weth: 0x3418f617c8ec5efbcf929fb2e33802c5a693f1c5
Frax-weth: 0x4f3867358a4c16fa8f71c9c4d5c87bc7b8837cd2
Arx-weth: 0x62FdDfC2D4b35aDec79c6082CA2894eAb01aC0db
USD±DAI+: 0xE8C060d40D7Bc96fCd5b758Bd1437C8653400b0e

Grant Timeline: 2 months

Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream? Yes


Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?: Yes, Arbidex is native to Arbitrum Network only.

On what other networks is the protocol deployed?: N/A

What date did you deploy on Arbitrum?: 03/15/2023

Protocol Performance: We’re proud to share that Arbidex has performed remarkably well. The metrics reflect not only our dedicated efforts but also the value our platform offers to its people. And with little boost (grant) we can assure to reach new heights and levels.

  • Transaction Volume: We’ve recorded an impressive total ~$340 million in transaction volume so far, with daily averages consistently maintaining around the $2 million. On peak days, this figure has touched $8-10 million, evidencing the robust user engagement our platform has and the efficiency it offers at lowest fees.
  • Real Yield: Thanks to our community-first model, we’ve distributed roughly $500k back to the users staking ARX as real yield. This encompasses all sources of revenue, including fees, partner bribes, and other income streams.
  • Market Cap to Liquidity Ratio: Among native DEXs, we’ve maintained the thickest liquidity and the lowest Market Cap/Liquidity ratio, which usually stands between 1.2-1.7. This optimal ratio has not only ensured a dense liquidity pool but also fostered a stable token price with a relatively low market cap and deep liquidity.
  • Total Value Locked: Arbidex reached one of the highest tvl on Arbitrum on inception driving a lot of volume and capital on chain, with peak tvl of over ~$180m.
  • Real Yield APR: The average APR for real yield on our stakers has been an impressive 120-200% APR over the last five months at an average that would net to an 70% ROI so far in sole real yield i.e. BTC ETH ARB USDC. This figure is testament to the value we provide to our users, who benefit from 100% of the swap fees and partner bribes going to them.
  • Emissions: Currently, our effective daily emissions are only around ~$1k, while the fees generated range between $1.5k-$2k each day (daily average based on last 6 months). This closes us to one of the lowest inflation rates in the Arbitrum ecosystem in terms of incentives.
  • Efficiency: In terms of TVL to Volume efficiency, Arbidex stands out, regularly utilizing more than 60-70% of the DEX’s liquidity. On certain days, we’ve even reached 150% efficiency, an indicator of how well we optimize liquidity. Thanks to concentrated liquidity and the 20% lower fees.

In essence, these figures reflect the compelling performance of Arbidex, its ability to maintain stability while generating substantial real yield, and its success in fostering an efficient, low-inflation, and high-liquidity platform that benefits all users. Our vibrant growth and commitment to providing exceptional value make Arbidex a key central player in the Arbitrum ecosystem and with the grant many new heights can be reached.

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application.]

Audit History:

Audits - arbidexaudits's Favorite Links - Linktree

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?: Yes, on receiving the grant we are prepared to create Dune Dashboards tailored towards KPI and milestones to track them efficiently.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? Yes, we will provide bi-weekly updates covering dashboards, metrics and explanations.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes


I don’t see why Arbidex should be the recipient of a grant above any other UniV2 + Masterchef DEx. This will just attract temporary liquidity until the program ends, and I am willing to bet that the providers of that liquidity (having no real commitment to Arbitrum) will just sell their rewards. Something that might make this proposal more attractive is forcing LPs to provide liquidity for x amount of time to be able to claim ARB rewards, or some sort of lockup. Those are just two options off the top of my head, but I believe that to receive any ARB reward users should be committed to the network in some way.


Well engage the convo or not.

Arbidex isn’t any other UniV2 + Masterchef DEXs, we are a classic + concentrated liquidity (v2+v3) DEX, that too with triple rewards - escrowed farming model. The primary purpose of the grant is to encourage liquidity providers only to participate in building liquidity on chain, which in turns bringing inflow on Arbitrum from other chains and building liquidity. Arbidex is with approximately 20% lower fees on the CL side, we aim to attract big investors/traders by providing best rates at lowest cost.

Read more about Arbidex - https://arbidex.gitbook.io/

1 Like

Hello @Arbidex thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

However please add the addresses for the pools you will incentivize.


I still don’t see any reason to grant Arbidex a grant over any other Uniswap fork project. Would be nice to get some clarification on the commitment aspect of it all.

Arbidex has made significant contributions to the Arbitrum ecosystem, scaling to over $160 million in TVL and facilitating more than $340 million in trading volume. Notably, we’ve achieved these milestones while the lowest fee rates on Arbitrum (avg. -20% lower).

We have been at the forefront of expanding the possibilities on Arbitrum. We were the pioneers in introducing liquidity of $sfrxETH on arbitrum, demonstrating our commitment to pushing the boundaries of what’s possible on the Arbitrum network and expanding protocols.

Our developer program has played a crucial role in bolstering the sustainability of various small protocols on Arbitrum and helping them scale. By sharing fees generated from the trading of their own tokens, we’ve contributed to the growth of these projects’ treasuries, creating a win-win scenario for all involved.

Moreover, Arbidex isn’t just a Uniswap fork; it’s a comprehensive ecosystem encompassing perpetuals, bridge, a marketplace, and all that brought with the distinction of being the only DEX that shares 100% of its generated fees directly with its token holders without any locking or taxes. Our commitment to innovation and creating real value for the community sets us apart in the dex landscape.

These are just a few key highlights of what Arbidex brings to the table. We invite you to delve deeper into our ecosystem and discover more - https://arbidex.gitbook.io/

Pools -

Usdt-usdc: 0x27629d01f673d9f68efa136c30865a5720dbf5c3
Usdc-usdc.e: 0x837823ed246a7e34a59aa96701c6f2de9e96d592
Wbtc-weth: 0xb7fa82d0493f6c51f03b1da41387d3eede594f6d
Weth-usdc.e: 0x48d7e1a9d652ba5f5d80a8dc396df37993659f35
Arb-usdc.e: 0xe3d2f7c05b818ac79765329c953ef2427714fb5b
Weth-arb: 0xbb304e41a3dcab1eebe4bf9975e39f91fabe69d0
Rdnt-weth: 0x3418f617c8ec5efbcf929fb2e33802c5a693f1c5
Frax-weth: 0x4f3867358a4c16fa8f71c9c4d5c87bc7b8837cd2
Arx-weth: 0x62FdDfC2D4b35aDec79c6082CA2894eAb01aC0db
USD±DAI+: 0xE8C060d40D7Bc96fCd5b758Bd1437C8653400b0e

1 Like

This isn’t true, you share fees to LPs not exclusively to your token holders.

There are also other dexes that revenue share without fees nor locks on Arbitrum.

Sorry if I was not specific enough, I meant commiting users to Arbitrum, not Arbidex’s commitment to Arbitrum

Hello @Arbidex ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

Hey @stonecoldpat @cliffton.eth @eli_defi - we’d like our proposal to be moved to [FINAL] from draft.

1 Like

We appreciate your proposal. Firstly, when we reviewed your proposal, we found it to be too basic. Your proposal could have been supported with graphics and analyses. Secondly, we noticed that your project has not been very active recently. Most of the data you provided mainly discusses peak values. Looking at the current data, it doesn’t seem very promising. Lastly, it’s good to see that you are using some of the funds for incentives, but our vote is ‘Against’.

1 Like