SECTION 1: APPLICANT INFORMATION
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: Michael Wagner (randomiser)
Project Name: Brokkr
Project Description: Brokkr is an LP-centric liquidity manager that prioritizes net results.
Team Members and Roles:
Michael - Product lead
Robi - CTO
Yasha - Strategy builder
Daniel - Smart Contract lead
& 4 more experienced devs, researchers, and marketers
Project Links:
Contact Information
Point of Contact: Michael - Randomiser
Point of Contact’s TG handle: @randomiserOG
Twitter: @randomiser
Email: michael@brokkr.finance
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
# SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.
Team experience
The Brokkr team has extensive experience building complex yield strategies with a primary focus on liquidity management for which we recently shipped one of the best-performing Arbitrum LP strategies on the market. We’ve also received a grant from Uniswap Foundation to build advanced UniswapV4 hook POCs that focused on increasing the performance of LPs.
Brokkr originally started on Terra with V2 Delta Neutral strategies. After the crash, we recreated the strategies on Avalanche and added Crypto Indexes & DCA. We pivoted to liquidity management on Arbitrum and recently launched well-performing UniV3 LP strategies.
Past work
- Brokkr app - DeFi app that manages users’ liquidity and transparently shows them the results
- UniswapV4 Hook POCs - Dynamic fees, Liquidity manager, Liquidity locking + Incentives, and a hook that combines dynamic fees with liquidity locking
- Delta Neutral Strategies - Automated yield strategies that combine multiple protocols to hedge against market volatility
- DCA - Dollar cost averaging strategy that purchases a desired asset at a regular interval from DEXes
- Crypto Indexes - A permissionless way to invest in multiple coins in one transaction
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. [Optional, but recommended]):
The leadership team has extensive experience from web2 as well as web3 startups, including V3 AMMs or chains like ICP.
What novelty or innovation does your product bring to Arbitrum?
We bring results to LPs, not just APR. All of our strategies are thoroughly and publicly backtested and continuously benchmarked against HODL to provide the best returns to the LPs.
And our upcoming features - V3 Delta neutral strategy, LP market betting, and LP leverage - are adding more functions to providing liquidity.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, our strategies can automate all V3 pools and we can customize them to other projects wishes. This is relevant for example for yield aggregators and asset managers.
Besides that, our strategies can manage protocol POLs to effectively use liquidity to optimize the POL longevity and trading performance.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Brokkr is unique in terms of the performance and strategies it offers.
Other liquidity management platforms are for example Gamma or Arrakis.
How do you measure and think about retention internally? (metrics, target KPIs)
Our goal is to provide the best performance for LPs and beat HODL.
Main metrics
- Brokkr position vs. HODL
- Brokkr position vs. Backtesting results (to know how precise are our public backtesting results)
- TVL
- Avg. deposit
- Number of depositors
- Avg. deposit length
- Repeated deposits
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:
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Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts.
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Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts.
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Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts.
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Daily Protocol Fee: A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users.
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Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts.
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Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
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Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.
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TVL
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List of Depositors: A list of current and past participants who have deposited during the incentivized period to the protocol. The list should include depositor addresses, their current deposits in USD, time-weighted deposits in USD, and the duration of their deposit participation.
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
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 (also just migrated our token to Arbitrum)
On what other networks is the protocol deployed?: Avalanche
What date did you deploy on Arbitrum mainnet?: [Date + transaction ID. If not yet live on mainnet, explain why.] 26.05.2023
Do you have a native token?: Yes
Past Incentivization: None
Current Incentivization: No incentives at the moment
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? No
Protocol Performance: TVL: 220k (including our treasury)
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
Q1
• Launch of a strategy that outperforms HODL by 40% on ETH-USDC in backtesting (so far backtesting showed ±1% difference to live results)
• Implementing own Merkle rewards for all of our vaults
Q2
• Launch V3 DNS
• Expand to other DEXs (Solidly & Algebra based) from UniswapV3
Q3
• Providing ALM services on UniswapV4
• Leveraged LPing
• Market betting
Q4
• DNS on UniV4
Audit History & Security Vendors:
We have audits from Hacken, Solidity Finance, and Dedaub. All publicly available.
Currently, we are not running a bug bounty program.
Security Incidents: None
# SECTION 3: GRANT INFORMATION
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: 200k ARB
Justification for the size of the grant : [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]
- Liquidity incentives - 80%
Regular LP vaults - 60%
DNS vaults - 20%
We plan to use the liquidity incentives on top of the biggest pools to attract V2 users. V2 pools still contain around 40% of overall Uniswap liquidity. With our LP strategies, V2 users can seamlessly migrate to already profitable strategies boosted with incentives.
As the next step, we plan to incentivize our V3 delta neutral strategies. The incentives will be used to kickstart them and attract new users that use different yield instruments and other chains. Delta neutral strategies are widely used in V2 but are still missing on V3 pools. Having them on Arbitrum will bring more attention to it.
- Partner incentives - 20%
Strategic partnerships are crucial for our growth and we need them to expand. Our vaults and strategies can be integrated by DEXs and yield aggregators and the incentives will be used for attracting new users to their platform and our vaults.
Grant Matching:
We’re committed to use our resources together with the LTIPP program. These funds will be used for developing, marketing, and securing all of our instruments. We are also open to discuss it further with the grant advisor.
Grant Breakdown:
User incentives - 100%
All incentives are aimed at end users coming to Brokkr vaults directly or through our integrators.
Funding Address:
0x4f21c301722c28920C9C5b5dC9cEbd6492873C72
Safe multisig with 2/3 signers
Funding Address Characteristics: [Enter details on the status of the address; the eligible address must be a 2/3, 3/5 or similar setup multisig with unique signers and private keys securely stored (or an equivalent custody setup that is clearly stated). The multisig must be able to accept and interact with ERC-721s in order to accept the funding stream.
Treasury Address:
eth:0xf1098E90561fAbAB58Bf57c2e06219F48e880b90
avax:0xE8855828fEC29dc6860A4362BCb386CCf6C0c601
arb1:0x3ed85f0488EdF594F212c5346E7893B42EC33Af7
gno:0x3646f9c97bf2d606b0543341Ba2ca1ea5A51CFC3
Contract Address: 0x4f21c301722c28920C9C5b5dC9cEbd6492873C72
# SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.
Objectives:
Our goal is to make liquidity providing on Arbitrum more attractive and long term sustainable. We aim to increase the TVL and the average length of users’ deposits in LP vaults.
Execution Strategy: [Describe the plan for executing including token distribution method (e.g. farming, staking, bonds, referral program, etc), what you are incentivizing, resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
Incentives will be scaled with the length of the deposit and distributed once per week to promote sticky liquidity. The users will need to stay deposited for a certain period to achieve a milestone that guarantees a certain size of rewards. This setup will be applied to our long term LP strategies and to DN strategy when live.
- Milestone 1: 7 days
- Milestone 2: 30 days
- Milestone 3: 90 days
- Milestone 4: 180 days
- Milestone 5: 365 days
Market betting strategies that require frequent management will have their milestone thresholds reduced by 30% to get the same value of the rewards.
- Milestone 1: 5 days
- Milestone 2: 21 days
- Milestone 3: 63 days
- Milestone 4: 126 days
- Milestone 5: 256 days
Incentives will be initially directed toward the biggest pools, but over time, the community can vote on different distribution.
WETH-USDC 0.05%
ARB-USDC 0.05%
WBTC-WETH 0.05%
Incentives reserved for strategic partnerships and integrating our vaults will be used for special promotion campaigns together with the other dApp.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? [Provide relevant design and implementation details]
We want to keep the LP process as simple as possible while promoting long-term deposits. Our strategies are publicly benchmarked against HODL and liquidity providers always know their performance, which also supports stickiness.
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. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]
- TVL
- Avg. deposit length
- Unique users
- Performance vs. HODL
Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]
The grant will be distributed over 12 months on a weekly basis. In the beginning, we expect LTIPP projects will be competing over the users that will farm the incentives and will take around a month to crystalize which projects users prefer.
Stage 1
- Month 1
- Adding ARB incentives on top of the vaults
- $500k TVL
Stage 2
- Month 2-4
- Adding ARB incentives on top of DN vaults
- Establishing the first partnership
- 50 days avg. deposit length at the end of the period
- $3m TVL
Stage 3
- Month 5-8
- Adding ARB incentives on top of leveraged LP strategies and market betting
- Establishing second partnership
- 60 days avg. deposit length at the end of the period
- $5m TVL
Stage 4
- Month 9-12
- Finishing up the grant incentives and transferring to incentive-free vaults
- Establishing 2 more partnerships
- 80 days avg. deposit length
- $7m TVL
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? [Clearly explain how the inputs of your program justify the expected benefits to the DAO. Be very clear and tangible, and you must back up your claims with data]
- Efficient LPing
- New features
- More TVL
Our automated strategies make liquidity providing more efficient and long-term focused. Combined with the new features like V3 DNS or Market betting, providing liquidity in V3 pools can attract more users from different chains and instruments.
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
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL . Along with this list, please answer the following:
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? Are there any special requests/considerations that should be considered?
Yes, we will comply with the requirements.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?
Yes, we will provide bi-weekly updates
First Offense: *In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offense: Funding is halted permanently
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)
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