[Beefy] LTIPP Application (DRAFT)

SECTION 1: APPLICANT INFORMATION

Applicant Name:

Frondoto / Jack

Project Name:

Beefy

Project Description:

Beefy is The Trusted Yield Optimizer. We help users to safely and securely autocompound yields on their crypto. Our industry-leading web app delivers hundreds of DeFi yield opportunities from dozens of chains in a single, easy-to-use service. Beefy handles the hard work of yield farming for you, saving you time, gas, and delivering superior yields by aggregating volume with other users.

Team Members and Roles:

  • Weso - SC Dev
  • Roman Monk - SC Dev
  • Kexley - SC Dev
  • Chimp - FE / BE Dev
  • Chebin - BE Dev
  • Eren - FE Dev
  • DefiDebauchery - Infra Dev
  • MrTitoune - Infra Dev
  • Frondoto - Business Development
  • YR - Design
  • TBC - Marketing & Social Media
  • EPETE - Operations
  • Jack - Legal / Finance
  • Armads - Community / Intelligence

Project Links:

Contact Information

Point of Contact:

@frondoto @jackgale.eth

TG handle:

@frondoto @iamjackgale

Twitter:

@frondoto1 @iamjackgale

Email:

frondoto@beefy.com jack@beefy.com

Do you acknowledge that your team will be subject to a KYC requirement?:

Yes

SECTION 2a: Team and Product Information

Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that.):

Since our inception in September 2020, the Beefy team has gathered a wealth of experience which is relevant to this application. Below are selected highlights we feel may be of interest:

  • Beefy has rapidly shipped across 25 different blockchains, typically with a variety of partners per chain, and dozens of different vaults. In 2023, we launched on 6 new blockchains and shipped 834 new vaults.

  • Beyond our core model, Beefy is also regularly developing and launching innovative new products and technologies. In 2023, we launched crosschain strategies, two new generations of ease-of-access ZAP technology, our Yield Module and Data Barn UI tooling, our redesigned onchain harvesting bot and new financial reporting and treasury monitoring dashboard.

  • Beefy has extensive experience working with grant funding, including:

  1. Optimism Governance Fund Season 1 Grant - received 650k $OP (c. $650k) to support and incentivize liquidity on OP Mainnet, working with partners to incentivize liquidity pools, voting incentives, promotional boosts and development work;

  2. Optimism Governance Fund Season 4 Grant - received 210,000 $OP (c. $315k) to incentivize the rollout of next-generation ZAP technology on OP Stack chains;

  3. Stargate DAO Grant Funding - received 75,000 $OP to incentivize the use of Stargate’s bridging solutions to enter the Optimism ecosystem; and

  4. Kava Labs Grant Funding - received ad hoc $KAVA funding to bootstrap liquidity for core projects and pools on the chain.

  • Our Beefy Boost program has facilitated hundreds of promotional incentive distributions to Beefy users, handling incentives on behalf of partners and funders to promote particular tokens, pools and projects. In 2023, we hosted 91 boosts.

What novelty or innovation does your product bring to Arbitrum?

Since our launch on Arbitrum, Beefy has been continually delivering both novelty and innovation to the ecosystem and its users. Beefy was the first yield optimizer to launch on the chain and has since remained the only provider of single-strategy vaults to provide such extensive coverage across the ecosystem. Throughout our time on Arbitrum, Beefy has launched each of its new innovations on the chain, including each generation of our ZAP tooling, our concentrated liquidity autocompounding strategies and our crosschain yield strategies. And with our natively crosschain audience, every innovative Arbitrum project and incentive scheme displayed on Beefy is being touted to users on dozens of other chains.

With this application, Beefy is proposing to deliver a completely novel product first and foremost on the Arbitrum ecosystem, that being our automated liquidity management (“ALM”) product for concentrated liquidity pools. Our ALM product will allow users to gain the benefits of concentrated liquidity, without the cost and risk of managing your own position. With automated rebalancing, Beefy ALM will securely balance each user’s position whilst automatically investing trading fees, giving users certainty of exposure and gain. And unlike many other autocompounding products, our ALM products do not need to sell earned tokens to compound returns. We believe that actively-managed concentrated liquidity is by far the superior form of liquidity for a given ecosystem, and that a push to migrate liquidity on Arbitrum into ALM products will help the chain to become as efficient, liquid and high-yielding as any other major blockchain. We also hope that an effective incentive campaign and launch on Arbitrum will help to attract TVL from our crosschain audience to explore the amazing opportunities available on Arbitrum; win-win-win.

Is your project composable with other projects on Arbitrum? If so, please explain:

Beefy is a prime example of composability. Our products are built on many different kinds of yield sources, allowing users to access yields quickly, easily and without expertise. To date, we have built on top of over a dozen different Arbitrum projects, delivering hundreds of different products to tens of thousands of users.

Beefy ALM products will add a further layer of composability by operating on a different level of the supply chain. ALM ERC-20 tokens will be composable for use in other applications such as lending, derivatives, and yield farming. And by being able to support partners with both liquidity management and yield optimization, Beefy will be able to interoperate to a far greater extent with new and existing partners in furtherance of their liquidity goals.

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?

There have been over 30 different yield aggregators and optimizers which have sought to bring comparable products to Arbitrum (e.g. Yearn, Yield Yak, Jones DAO, Sommelier, Harvest). So far, none have exceeded Beefy in terms of long-term TVL contribution.

How do you measure and think about retention internally? (metrics, target KPIs)

Beefy’s thinking and work around retention is wide-ranging, given the hundreds of products that are live on our application at any given time. It has been crucial to our long-term performance to react and adapt to differences in the expected and actual user base for a given product over time. For instance, following a new product launch or sudden spike in a given trend, our framework for analysis (including metrics, KPIs and targets) are necessarily configured for very short-term adjustments. This contrasts with long-term products where holders have often accrued large amounts of gains, meaning current performance metrics should be seen in the context of capital gains liability. In that sense, Beefy aims to cater for short-term audiences as much as it does for long-term audiences (and all audiences in between), and retention is one of many considerations that are adapted to suit each product and audience.

In terms of measurement, our Data Barn initiative involves a wide range of data gathering and analysis across all of our existing products. This ranges from granular analysis of short and long term position performance, vault harvesting (i.e. compounding) frequency, immediate trends in active users and grouping of user deposit size and frequency, across individual products, groups of products and whole chains. This range allows Beefy’s team to explore all manner of retention insights, from quirks in individual products to long term trends across our entire portfolio. Data Barn is used to inform our users (through in-app analytics), our partners (through reporting and performance dashboards) and our team internally about all manner of specific metrics and targets for retention. Users tell us that Beefy’s analytics are among the best in comparable decentralized applications, and a big draw to using Beefy and retaining positions over the long term (even if incentives elsewhere could offer marginally higher returns).

Relevant usage metrics - Please refer to the OBL relevant metrics chart . For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

  • Daily active users
  • Daily active growth
  • Daily transaction count
  • Daily protocol fee
  • Daily transaction fee
  • Daily ARB expenditure and user claims
  • Incentivized user list and gini coefficient
  • TVL for each asset
  • List of current deposits, addressed, deposit size, duration of deposit and time-weighted deposits
  • Daily trading volume

Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan:

Yes

Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):

No

SECTION 2b: PROTOCOL DETAILS

Is the protocol native to Arbitrum?:

Beefy is not native to Arbitrum, but was one of the first protocols to deploy on the chain in September 2021.

On what other networks is the protocol deployed?:

Beefy is also deployed on Ethereum, Polygon PoS, BNB Chain, Optimism, Fantom, Avalanche, Cronos, Moonbeam, Moonriver, Metis, Fuse, Kava, Canto, zkSync, Polygon zkEVM, Base, Gnosis, Linea and Mantle.

What date did you deploy on Arbitrum mainnet?:
Beefy deployed on Arbitrum in September of 2021, making Arbitrum one of the first chains Beefy was deployed to, and also showing our support for Ethereum’s rollup-centric roadmap and ambitious community of builders.

Do you have a native token?:

Yes, Beefy’s native token is $BIFI and all the details can be found here.

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?

During the first few months of Beefy’s life, a liquidity mining program was operated where users staked a range of blue chip assets into the protocol to receive $BIFI in return. The vast majority of the token’s fixed supply was distributed through this program, with the rest reserved for team allocations (all since distributed). Since that time, Beefy has not operated any further liquidity mining/incentive programs with our own token.

Details of past incentive programs are provided above in Section 2a above.

Current Incentivization: How are you currently incentivizing your protocol?

In light of our fully distributed token supply and lack of reserves held in the Treasury, Beefy does not incentivize our own protocol using our governance token.

Where Beefy receives funding or incentives from others, e.g. from grants, partners, airdrops or incentive programs, funds may be distributed through the protocol using our Beefy Boosts programs. Each program allows users to stake their deposit tokens into a further reward contract, to earn additional rewards on existing deposits. These incentives typically run for between 4 weeks to a few months, and are entirely ad hoc in nature.

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?

No. We applied for STIP funding in September/October 2023, and received majority approval, though we were not allocated funding due to our position in the approval-margin allocation model.

Protocol Performance:

  • Beefy has launched on 25 blockchains, built on top of hundreds of projects and protocols and delivered over 3,000 products in our 3 and a half year history;

  • At its peak, Beefy managed $1.25 billion in TVL. Current TVL is $240 million;

  • Beefy’s peak Arbitrum TVL was $65 million. During the bear market, Beefy has been extremely effective at capturing market share, and currently maintains $54 million in TVL on Arbitrum, our largest of any chain;

  • In 2023, Beefy generated $2.4 million in fees;

  • Of that $2.4 million, $772,738 was returned to $BIFI depositors in the protocol, leaving $1.62 million in treasury income from our vault products;

  • Beefy current services slightly over 58,000 unique wallets across our 20 live blockchains (not including balances remaining on the 5 deprecated chains); and

  • Our $BIFI governance token is held by over 15,000 distinct wallets.

See our 2023 Annual Report for full details of Beefy’s financial performance in the last calendar year.

Protocol Roadmap:

As a well-established protocol, Beefy has outgrown its initial roadmap, and is now focused on a range of strategic priorities for the near and long term. In 2024, our priorities are:

  • Building our own automated liquidity management service.
  • Expanding our network of validators and staking products.
  • Iterating on our suite of ease-of-access tooling, interfaces and services.
  • Implementing large-scale user programs/activities together with key strategic partners (e.g. Arbitrum).
  • Continuing our strategy of launching and rapidly building with protocols and partners.

Audit History & Security Vendors:

We maintain a public repository of audits in our GitHub project page.

Our automated liquidity management products are currently being audited and results will be made public at or before launch. We are happy to provide further details before public launch as part of the LTIPP application process.

We have hosted an ImmuneFi bug bounty since July 2021.

Security Incidents:

Beefy’s contracts have never been exploited.

SECTION 3: GRANT INFORMATION

Requested Grant Size:

600,000 ARB

Justification for the size of the grant :

The current status of Beefy’s ALM products is that we are pre-launch and do not yet have TVL or users. Our objective is to deliver the products for large volumes of liquidity (>$30 million) and users (>10,000 total active users) on Arbitrum. These figures are based on Beefy’s research of the total addressable market for concentrated liquidity, and the experience of other ALM products in the Arbitrum ecosystem.

Our incentivization mechanism will be to provide a supplementary yield in the form of $ARB tokens on top of the trading yields earned on Beefy’s ALM products, to present a sufficiently attractive total yield to encourage users to try the product out. This includes migrations (i) from other forms of liquidity, (ii) from other concentrated liquidity and (iii) from other automated liquidity management projects; yields from each category have been assessed for a suitably attractive comparable figure.

We have concluded that a 4% minimum additional return during the incentive period in $ARB incentives on top of actively-managed trading fee yield will provide a sufficient premium to attract and retain users of all profiles. This is the equivalent of a 17.3% APR guaranteed for 12 weeks. On $30 million of TVL in the Beefy ALM, that amounts to $1.2 million of incentives, or $0.04 per dollar of TVL. At current/recent market prices, in $ARB terms the ask equates to some 600,000 $ARB tokens (at a $2 valuation).

We have separately compared this grant request to the amounts requested throughout the STIP program, and concluded that this represents a suitable balance between very healthy and attractive incentives, and a proportionate and reasonably achievable goal.

In the run up to our TVL goal, the return will exceed this minimum value, presenting a greater incentive to move early. As described elsewhere in this application, there is a momentum effect with new products which means that TVL gains will typically be exponential in size. An outsized additional return for early users should help to smooth the adoption curve for Beefy ALM.

Grant Matching:

No grant matching is offered. Beefy’s token was fully distributed at the beginning of its life, leaving no residual supply in treasury for such uses, meaning any incentives would need to be paid out of pocket. As such, Beefy generally does not offer its own incentives, save for where they are derived from granted or gifted funds.

Grant Breakdown:

100% of the grant funding will be used to incentivize Beefy ALM products during the 12-week incentive period. This equates to an average of 50,000 $ARB per week in incentives, although the rate of distribution will be adjustable throughout the period (with any spare incentives being returned after completion).

Soft limits will be put in place to ensure that incentives are directed toward different pools and projects during the period. Generally, no less than 6 different pools should be incentivized at any one time, with a variety of different tokens. No more than 10% of incentives should be allocated to any one pool over the incentive period. This will help to ensure that the incentives are distributed across the entire Arbitrum ecosystem, supporting a wide range of projects and protocols.

Funding Address:

Beefy DAO Arbitrum Treasury Multi-sig - 0x3f5eddad52C665A4AA011cd11A21E1d5107d7862

Funding Address Characteristics:

The Treasury Multi-sig is a 4/8 Safe contract, which is used to manage all of Beefy’s treasury and grant funds on the relevant chain. Each signer is a unique core team member from Beefy DAO and a member of our formal Treasury Council, with signers being located all over the world. All private keys are securely stored by the relevant team member. The Safe can interact with ERC-721s. The current 8 members of the Treasury Multi-sig are:

  • frondoto
  • Jack
  • DefiDebauchery
  • EPETE
  • Moodini
  • TBC
  • YR2150
  • ChiliConCarne

Treasury Address:

  • Arbitrum Treasury Multi-sig - 0x3f5eddad52C665A4AA011cd11A21E1d5107d7862
  • Avalanche Treasury Multi-sig - 0x26de4ebffbe8d3d632a292c972e3594efc2eceed
  • Base Treasury Multi-sig - 0x1A07DceEfeEbBA3D1873e2B92BeF190d2f11C3cB
  • BNB Chain Treasury Multi-sig - 0x7c780b8a63ee9b7d0f985e8a922be38a1f7b2141
  • Canto Treasury Multi-sig - 0xF09d213EE8a8B159C884b276b86E08E26B3bfF75
  • Cronos Treasury Multi-sig - 0xa9721ae5042482d7a884a2138f580459b680920f
  • Ethereum Treasury Multi-sig - 0xc9c61194682a3a5f56bf9cd5b59ee63028ab6041
  • Fantom Treasury Multi-sig - 0xdff234670038defb2115cf103f86da5fb7cfd2d2
  • Fuse Treasury Multi-sig - 0x1c124c2cab83b3c3b5d0f0899ceea5e06964599f
  • Gnosis Treasury Multi-sig - 0x37Ed06D71dFFB97b6E89469EBf29552DA46E52fA
  • Kava Treasury Multi-sig - 0x07F29FE11FbC17876D9376E3CD6F2112e81feA6F
  • Linea Treasury Multi-sig - 0x008f84b4f7b625636dd3e75045704b077d8db445
  • Mantle Treasury Multi-sig - 0x07F29FE11FbC17876D9376E3CD6F2112e81feA6F
  • Moonbeam Treasury Multi-sig - 0x3e7f60b442ceae0fe5e48e07eb85cfb1ed60e81a
  • Moonriver Treasury Multi-sig - 0x617f12e04097f16e73934e84f35175a1b8196551
  • Metis Treasury Multi-sig - 0x0f9602B7E7146a9BaE16dB948281BebDb7C2D095
  • Optimism Treasury Multi-sig - 0x4aba01fb8e1f6bfe80c56deb367f19f35df0f4ae
  • Polygon PoS Treasury Multi-sig - 0xe37dd9a535c1d3c9fc33e3295b7e08bd1c42218d
  • Polygon zkEVM Treasury Multi-sig - 0x6fdfb18d09d5fa9a76ac76cb6cdc53c8f23c3b29
  • zkSync Treasury Multi-sig - 0x9f9fe15fda14eaa2d878ed667c805a7cc13c2560

Contract Address:

TBC. As the grant is targeted at new products, the contracts are not necessarily deployed yet, so details will be given as contracts are added to the proposed grant program.

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

Objectives:

The primary objective of this grant is to incentivize the adoption of ALM products in the Arbitrum ecosystem and thereby achieve more efficient liquidity management for the ecosystem, and in turn more TVL to Arbitrum.

Beefy’s secondary objective is to strengthen the ties of the Arbitrum community as a result of the direction of incentives to various different products and liquidity pools. The results from the current round of STIP funding show clearly that incentive distribution has united communities and raised excitement across the ecosystem. Given the breadth of partners Beefy has worked with in the ecosystem, we hope that a successful LTIPP application will help us to strengthen ties and increase participation in ecosystem activities.

Finally, Beefy aims to increase the impact of Arbitrum’s incentives programs in attracting users from other chains to Arbitrum. We note that the previous round of STIP governance votes tended to favor projects that are solely or primarily devoted to Arbitrum. This is completely understandable, but does pose a risk of some silofication of incentives, and missed opportunities to attract new users. As a natively crosschain platform, Beefy has a very wide user base across its 20 different live blockchains. Our users tend to be relatively fluent in crosschain interoperability, but to diversify their attention across many different ecosystems meaning they may be less likely to pay attention to projects that primarily exist on Arbitrum. We expect that LTIPP incentives offered by Beefy would catch the attention of our entire audience (and by extension their communities), leading to a greater likelihood of new/returning user capture.

Execution Strategy:

We are proposing to incentivize Beefy ALM users by incentivizing the ERC-20 ALM token issued by Beefy. Users of incentivized pools - which are all concentrated liquidity pools offered by third party DEXs (e.g. Uniswap, Camelot, Ramses, Trader Joe, Sushi and PancakeSwap) - will be able to deposit their ERC-20 tokens into a reward contract to participate in a linear distribution of incentives among all holders (dividing a fixed amount of incentives among all reward participants based on individual TVL and length of deposit). To maximize the impact for the Arbitrum ecosystem, we will aim to work with most if not all concentrated liquidity protocols during the grant period.

Rewards will be distributed by the Beefy team to the reward contracts for each ALM product on a regular basis, with the amount allocated to each product depending on the tokens in the pool, the pool protocol, the recent TVL and activity of the pool, the extent of previous incentives and external events that may impact the pool. We intend to diversify the distribution across as many different Arbitrum projects and communities as possible, to maximize its reach. In particular, we have identified an initial list of ecosystem tokens that we intend to include within the selection of incentivized products. As the product has not launched yet, we cannot at this time commit to which pools will be live and capable of being incentivized (but can discuss and agree this with the grants team if helpful). However, all funds will ultimately flow down in liquidity pools in other protocols, meaning the rewards and growing TVL will be disseminated across the wider ecosystem.

During the course of our LTIPP program, details of all incentivized pool will be recorded in our LTIPP Data, together with the stated and required KPIs for each pool and user, and Beefy more broadly. Given the public nature of the distribution process, the team will be open to feedback throughout the process and will work proactively with partners to plan future incentive distributions across the wider ecosystem.

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?

Beefy’s products provide both effective long-term automation and in-product autocompounding that is particularly attractive to “set and forget” users. Users who have accrued significant gains tend to think twice before exiting Beefy products, meaning there is substantial inherent “stickiness”.

The Beefy ALM products will continue this tradition by ensuring users’ positions are always kept in range and autocompound all trading fees, so users do not need to be concerned with rebalancing, claiming or the risks of impermanent loss. Likewise, by adding an additional composable layer without the need for a Beefy vault, our ALM products will unlock new functionality that can be used to achieve additional stickiness. The Beefy team will be experimenting with on-top functionality throughout the grant period, aiming to drive new use cases for ALM products to help retain users and deliver greater use cases.

The LTIPP Data will also provide live measurement of liquidities providers, position sizes, the duration of positions and other important information. This will allow us to act proactively and reactively to ensure incentives are directed towards sticky users and away from short-term opportunists.

For example, where an ALM product is shown to be successful at attracting large/long-term liquidity away from an existing Beefy vault that is characterized by long-term holders, we will seek to maintain a consistent but lower level of incentives for that product in line with the profile of the targeted user. On the other hand, where a relatively new token or underlying pool which is clearly still in price discovery is incentivized, we will not hesitate to apply significant short-term incentives to benefit from this discovery, with the aim of building a lasting user base as that discovery process settles down.

Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy.

“LTIPP Data” means the Beefy ALM The Graph endpoint and associated queries for distribution of the data required by the OpenBlock Labs (“OBL”) specification.

KPI Source of Truth Justification
Beefy ALM TVL DefiLlama / Beefy App / LTIPP Data The primary goal is to convert existing liquidity TVL into ALM TVL. The best measure of this is the project’s TVL, given this will be starting from 0 at the beginning of the timeline below
Total pools available Beefy App / LTIPP Data It will be important to monitor the rollout of Beefy ALM to ensure that it achieves sufficient impact. Prior to launch, number of pools available will be a key indicator of the rollout of the product
Total pools incentivized Beefy App / LTIPP Data Likewise, during the incentive period, the total number of Beefy ALM products which are incentivized will be a key indicator of the rollout of the program
Total active users LTIPP Data In addition to pools available and TVL, the total number of active users in those pools will indicate how effective the launch has been at attracting users to the new product
LTIPP Data uptime OBL OBL will be monitoring data uptime and requires that no project’s data is inactive for more than 24 hours
Daily active users LTIPP Data Required by OBL specification
Daily active growth LTIPP Data Required by OBL specification
Daily protocol fees LTIPP Data Required by OBL specification
Daily transaction fees LTIPP Data Required by OBL specification
Daily $ARB expenditure and user claims LTIPP Data Required by OBL specification
Incentivized user list and gini coefficent LTIPP Data Required by OBL specification
Pool TVL LTIPP Data Required by OBL specification
Liquidity provider data LTIPP Data Required by OBL specification

Grant Timeline and Milestones:

Week Actions Milestones & KPIs
w/c 1 Apr 24 Launch Beefy ALM
w/c 22 Apr 24 Assumes approval and successful completion of all compliance and administrative requirements by now
w/c 29 Apr 24 Readying Beefy ALM products and data for incentives (1) Ready for launch => No less than 10 pools available
w/c 6 May 24 Launch LTIPP Data w/ 30 days’ prior data (2) LTIPP Data endpoint provided to OBL => 95% uptime service level
w/c 13 May 24 Grant received, incentives begin (at least 7 days after LTIPP Data)
w/c 24 Jun 24 Halfway interim report (3) Noticeable increase in ALM usage => EITHER Beefy ALM exceeds $10 million TVL OR active Beefy ALM users exceeds 5,000
w/c 5 Aug 24 Incentives finish (4) Significant adoption of ALM => Beefy ALM exceeds $30 million TVL
w/c 19 Aug 24 Closeout report and return of any unused funds
w/c 2 Sep 24 LTIPP Data completed w/ 30 days’ subsequent data

On the feasibility of each milestone:

  1. Ready for Launch - once the product is fully audited, tested and positioned in the UI, it will be relatively quick and easy to work with partners to add new pools. We expect to comfortably achieve 10 pools on launch, with the potential for many more depending on the response from partners.

  2. Data provided to OBL - we will be building an LTIPP Data endpoint using The Graph alongside the initial launch of Beefy ALM. Data will be captured from launch in any event. We will aim to have early versions of the endpoint live in the first few weeks of April, meaning a 6 May formal launch date should be well within reach.

  3. Noticeable increase in ALM usage - Beefy’s internal analysis of the addressable market for ALM products on Arbitrum suggests that our TVL goals are realistic, but the primary concern will be the timing of engagement. A halfway (6-week) goal allows sufficient time for a substantial launch campaign, and follow-up reactive adjustments. We aim for slightly under half the total target at this point, recognising the impact momentum has on engagement, as more users become aware of the program or comfortable with the product.

  4. Significant adoption of ALM - as above, the $30 million TVL target is believed to be achievable in generally all market conditions, when considering the volume and longevity of concentrated liquidity on Arbitrum. Beefy has analyzed the adoption of both concentrated liquidity and ALM products on Arbitrum, and the total addressable market is substantially higher. However, in light of the 12-week timescales, $30 million reflects a reasonable TVL goal but in an ambitious period of time.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Beefy have identified a broad range of growth/innovation channels as part of our application:

  1. ALM products are innovative for ecosystems by ensuring that a greater volume of liquidity is kept available with an efficient balance of fees at any given time, meaning a better experience for all participants in decentralized liquidity. Incentivizing ALM products will encourage the proliferation of this innovation;

  2. The innovativeness of ALMs drives user growth by providing easy access to better quality liquidity at a lower price impact. Incentivizing ALMs therefore kickstart this growth;

  3. The innovativeness of ALMs drives liquidity provider growth by providing higher and more reliable yields on the same liquidity, and making the process of providing liquidity far less onerous and far more consistent. Incentivizing ALMs therefore kickstart this growth;

  4. The effective rollout of ALMs will incentivize and reward exchanges who have innovated in their product development, and take liquidity away from languishing exchange, which in turn will incentivize more exchange innovation in the future;

  5. The effective rollout of ALMs will incentivize and reward projects that have launched on Arbitrum, by enabling their protocols, products and communities to benefit from more efficient and cheaper liquidity to offer a better experience. Incentivizing ALMs therefore encourages more projects to launch and innovate on Arbitrum and innovate on top of ALM products;

  6. Opting to incentivize crosschain projects like Beefy expands the reach of incentive programs to their wider crosschain audiences, increasing awareness of and incentives to engage with the Arbitrum ecosystem, and in turn leading to user growth.

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

SECTION 5: Data and Reporting

Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO?

Yes

Are there any special requests/considerations that should be considered?

Yes

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?

Yes

Please describe your strategy and capabilities for data/reporting

The Beefy infrastructure team is building extensive monitoring capabilities for Beefy ALM products from scratch. As we are pre-launch, the team intends to build the capability to record the data required from LTIPP applicants into our internal monitoring from day 1. We will also be building a generic endpoint with The Graph in any event, and propose to build a parallel endpoint specifically for our LTIPP Data (which can be shared and handed over as required).

Beyond the data, Beefy already regularly reports on different aspects of performance to partners and other grant providers. The application submission team will handle ongoing personal reporting and communications with the Arbitrum team throughout.

Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program?

Yes

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

3 Likes

Hello @jackgale.eth

Thank you for your application! Please be aware you must complete a first draft of your application including the requested grant size before you can be assigned to an advisor.

Hey Matt! I just wanted to let you know that the proposal has been updated and completed.

Hello @jackgale.eth ,

Thank you for your application! Your advisor will be @JoJo.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

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Great, thanks @Matt_StableLab. Much appreciated

The Beefy team has done an incredible job setting up vaults for us - the turn around is extremely fast and the response time even faster. Beefy lists basically every protocol in existence on arbitrum, as such most of these rewards will flow to external protocols which is exactly what you wanna see. Excited to see and try the new product!

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Thanks so much @Tenzent - really appreciate your comments!

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thank you for your kind words @Tenzent ! It is always a pleasure to work with you and the Silo team.

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We would like to emphasize that we support the application made by Beefy for the ALM protocol on Arbitrum as the ITU Blockchain Delegation Team.

Beefy’s proposed incentive strategy and implementation plan inspire confidence in the project’s potential success. Its past achievements and high scores in security bolster the project’s credibility. However, uncertainties such as the distribution timeline of incentives and the competition management strategy need to be addressed. In the event of funding for the project, we are ready to provide the necessary support for its successful implementation as ITU Blockchain.

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Thank you so much for the kind words :pray: