[Clipper] [DRAFT] [STIP - Round 2]

SECTION 1: APPLICANT INFORMATION

Applicant Name: Ariana

Project Name: Clipper

Project Description:
Clipper is a DEX designed for blue-chip token swaps (e.g., ETH, WBTC, ARB, USD stablecoins). Clipper’s novel architecture incorporates prices formed off-chain into a sophisticated formula and validates them on-chain. This removes the need for arbitrageurs and ensures lower gas fees for traders. Clipper was built to optimize liquidity provider profit–by only executing trades that are profitable for LPs, Clipper delivers sustainable returns with no impermanent loss.

Team Members & Qualifications:
Clipper is governed by AdmiralDAO, with certain administrative services provided by Shipyard Software, the original developer of the Clipper platform.

Shipyard Software Team bios

1 Co-founder (Business)
1 Co-founder (Scientist)
2 Sr. Frontend
3 Sr. Backend
2 Smart Contract
1 PM/Designer
1 Ops Lead
1 Content/Research Lead

Project Links:
Website
Docs
Dune Dashboard
Twitter
Discord

Contact Information

TG: @arianafariab @marklurie

Twitter: https://twitter.com/Clipper_DEX

Email: ariana@shipyardsoftware.org

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

SECTION 2: GRANT INFORMATION

Requested Grant Size:
750k ARB (Siren grant)

Grant Matching:
We will match the funds we receive from this grant with the same number of SAIL tokens. SAIL is AdmiralDAO’s governance token.

Grant Breakdown:
Clipper will use the grant for the following initiatives:

  1. To create an ARB farming pool (incentive program) on Clipper’s Arbitrum deployment (70% of grant)
  2. To provide grants to projects that integrate Clipper on Arbitrum (30% of grant)

The farming pool will help onboard more organic users to the Arbitrum ecosystem and increase TVL, trading volume, and transactions (we will not farm our own incentive program). Clipper already has farming pools for OP on Clipper’s Optimism deployment and for Clipper’s own governance token, SAIL, on Ethereum. We plan to implement the same type of incentive program for ARB. Check out Clipper’s docs for more on our existing farming pools.

30% of the grant will be used to distribute grants (in ARB tokens) to projects that integrate Clipper on the Arbitrum chain. This can help incentivize more projects to launch on Arbitrum.

Funding Address: arb1: 0x4122E5aA4A998526D146235d6DDc067eCd0E11FF

Funding Address Characteristics: Multisig with 3/6 signers

Contract Address: To be deployed

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Objectives:

  • To grow organic users in the Arbitrum ecosystem and support trade and transaction volume growth on Arbitrum and Clipper.
  • To incentivize LPs to provide liquidity on Arbitrum.
  • To incentivize more projects to launch on Arbitrum and integrate Clipper.

Key Performance Indicators (KPIs):
For the ARB farming pool, the KPI will be TVL. We track this with the Dune dashboards as well as on Clipper’s data page. For grants to projects integrating Clipper, the KPIs will be number of projects receiving grants for integration and the number of users and other relevant metrics that they bring to the ecosystem.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
The grant will enable Clipper to launch an ARB farming program (something we have been wanting to do but haven’t had the funds to enable), which will help drive more liquidity providers and organic users to Arbitrum. Being able to offer ARB grants as incentives for integration and partnership will help bring more projects to Arbitrum, helping grow the ecosystem.

Clipper already has over 200k total organic traders and 11k LPs (across all chains). Providing incentives for Clipper users to transact on Arbitrum will help drive organic users to the chain and grow on-chain TVL, trades, and transaction volumes.

Justification for the size of the grant:
Clipper’s TVL is measured in what we call comparable TVL. Clipper has less slippage per dollar of TVL than traditional AMMs, so to help compare Clipper to other AMMS, “comparable TVL” shows the TVL required on AMMs like Uniswap to achieve the same amount of slippage.

In terms of comparable TVL, Clipper meets the TVL recommendation for the Siren grant. Clipper has also been live on Arbitrum since October 18th, 2022, exceeding the 4-month recommendation for this grant size.

Execution Strategy:
70% of the grant will be used as incentives in the ARB farming pool. This will be executed in the same way we deployed our OP farming pool. The other 30% will be given as grants to projects that integrate Clipper on Arbitrum. This program will be hosted by AdmiralDAO (which governs Clipper) and the process details will be decided by AdmiralDAO community governance, but will adhere to all STIP rules.

Grant Timeline:
Clipper will begin the ARB incentive program (farming pool) as soon as the grant tokens are received in the multisig and the farming pool contract is up on Clipper. The reports and data will be shared on an ongoing basis. For the integration grants, the AdmiralDAO community will vote on details of the program (adhering to STIP rules) once the grant has been approved, and the program will begin after that (once tokens are received in the multisig). Clipper will follow the timing of grant distribution for both.

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

SECTION 4: PROTOCOL DETAILS

Is the Protocol Native to Arbitrum?:
Yes - Clipper is deployed on Arbitrum One. Arbitrum is Clipper’s second largest chain by TVL (just after Ethereum mainnet).

On what other networks is the protocol deployed?:

  • Ethereum
  • Optimism
  • Polygon
  • Mantle Network

What date did you deploy on Arbitrum?:
The first version was deployed on October 18, 2022.

Protocol Performance:
Real-time, as well as historical, performance metrics can be viewed on Clipper’s Data Dashboard.

Protocol Roadmap:
On the advice of counsel, we cannot make public statements that would create expectations about core contributors’ future efforts.

Audit History:
Audits

SECTION 5: Data and Reporting

Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, Clipper’s dev team is well-equipped to do this.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes, AdmiralDAO Operators will post bi-weekly updates on the forum on behalf of Clipper.

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

2 Likes

These funds are intended to be distributed into the ecosystem, they’re not intended to build liquidity so (assuming that’s not against the rules already), I don’t think it’s in line with the original purpose of the STIP here.

1 Like

Noted. Thanks for the comment. We’ve updated our proposal to be better in line with the program guidelines and our overall objective of helping grow the ecosystem.

2 Likes

The amount asked in-relation to your current success on Arbitrum seems quite high

1 Like

Clipper meets the recommendations for the Siren grant, which aligns with the amount we’re asking for.

1 Like

Unlisting until Stable Labs gives us direction to make Round 2 Applications Public.