Project Name: Compound Finance
Project Description:
The First Lending DeFi protocol. Compound provides Arbitrum users a blue chip lending and borrowing platform with attractive rates and safe returns. The protocol is fully decentralized providing users an avenue to deposit their surplus liquidity to earn interest or borrow assets for an interest.**
Team Members and Roles:
Compound is a DAO, there are multiple entities involved in the operations of Compound. We have listed out the organizations and individuals contracted with the DAO
Compound labs: Development and strategic targeting for Compound Growth
Compound Growth DAO: Targets partnerships and Growth opportunities.
Gauntlet: Risk management for Compound protocol, Gauntlet’s recommendations ensure that that platform has effective rates and parameters for different markets
OpenZeppelin: Code Auditor for Protocol, OpenZeppelin’s work is key in ensuring the security of the protocol
Compound Grants Program: CGP Funds projects and initiatives that integrate Compound Services
Project Links:
| Website | https://compound.finance/ |
|---|---|
| https://twitter.com/compoundfinance | |
| Github | Compound · GitHub |
| Discord | Compound |
| Defillama | https://defillama.com/protocol/compound-finance |
| Compound Dashboard (Gauntlet) | Risk Dashboard |
| Compound Dashboard (Chaos Labs) | Chaos Labs |
Contact Information
Point of Contact: bryancolligan, Shardul Pilley
Point of Contact’s TG handle: Telegram: Contact @bryancolligan , Telegram: Contact @sharpweb3
Twitter: https://twitter.com/bryancolligan
Email: bryan at alphagrowth.io, shardul at alphagrowth.io [AlphaGrowth has been authorized to represent Compound’s interests in the Arbitrum Community. Readers can find more details about it here ]
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Team experience:
The team behind Compound is one of the earliest builders in the DeFi space
Compound v2 was launched in May 2019, igniting the yield farming era. The team’s work in developing Compound V2 was a benchmark moment in the Defi industry, as this would inspire numerous forks of Compound.
For Grant incentive utilization, there are two key teams within Compound.
- The Risk Management team: Gauntlet
- The Marketing and Partnerships team: Compound Growth Program
Gauntlet: The risk team is charged with predictions, projections and modeling. Any Grant received from the LTIP, its distribution and incentivization, will be managed by the risk analytics team. Gauntlet currently serves as the risk Management team for Compound. Gauntlet’s calculations back their recommendations for how to incentivise Arbitrum Markets on Compound.
Compound Growth Program (AlphaGrowth): The Marketing team brings attention to Compound Markets. The Marketing team will activate its own distribution channels to drive attention to the Arbitrum STIP grant once deployed. It should be noted, the marketing team’s resources are sourced from the Compound Treasury, and 100% of the Arbitrum grant will be passed through to end users as incentives.
What novelty or innovation does your product bring to Arbitrum?
Compound Finance introduces an autonomous, algorithmic protocol for money markets in Arbitrum. This enables users to lend and borrow assets without requiring traditional financial intermediaries, providing a more efficient, transparent, and accessible DeFi experience. Compound’s existing integration into Arbitrum enhances the network’s scalability and efficiency, supporting a wider range of assets and potentially reducing transaction costs, thereby fostering a more robust and versatile financial ecosystem on the Arbitrum platform.
Compound as one of the oldest DeFi protocols, also brings in its brand and network to the Arbitrum ecosystem. The Compound Brand has been trusted by major institutions and liquidity providers, many of them park their liquidity on the protocol for long periods of time. With the LTIP incentives that we will deploy on Compound markets on Arbitrum, the APRs on Compound will be highest on Arbitrum Markets, providing an easy route to onboard sticky institutional capital from L1 to Arb L2.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, Compound Finance is highly composable with other projects on Arbitrum. Compound’s open lending protocol allows for seamless integration with various DeFi projects, offering decentralized finance services like borrowing and lending of assets. This composability means that other protocols can easily connect with Compound to leverage its lending pools for their services, enhancing liquidity and accessibility. This integration not only facilitates a more interconnected DeFi ecosystem on Arbitrum but also encourages innovation and the creation of new financial products.
- We are currently also pursuing a close integration with gmBTC and gmETH from GMX.
- We are already running a marketing campaign with Wormhole, where USDC deposits to Compound through Wormhole receive additional interest due to Wormhole incentivising actions through their STIP grant. (Detailed graph on the current success below)
- A step ahead, we are also inviting top defi protocols from ETH to integrate with Arbitrum on Compound. Recently, we partnered with Sommelier Finance to expand structured products through their Vault services to Arbitrum. Sommelier recently went live on Arbitrum, and Compound is going to be one of their first partners.
- Many more partnerships are lined up to expand Compound’s integrations within the Arbitrum Ecosystem.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Yes, other Lending protocols on Arbitrum include Radiant, Silo and Aave.
How do you measure and think about retention internally? (metrics, target KPIs)
Relevant usage metrics - The usage metrics for Compound Will be
- Daily Protocol fee
- Withdrawals:
- Borrowed Amount:
- Daily Borrowing Volume:
- Daily Deposits Volume:
- List of Depositors:
- List of Borrowers:
- Utilization Ratio:
- Loan Origination Volume:
- Default/Liquidations:
30 Day metrics of Compound V3 for Arbitrum:
30 Day metrics of Compound V3 in all 4 networks
30 Day metrics for Compound V2. Compound is currently deprecating V2, and a focus of the grant will be to shift the TVL from V2 to Compound V3
Screenshots sourced from Messari
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:
Compound has its own Growth Program, the expenses of which are paid through the Compound treasury. The Compound Growth Program is tasked with coordinating with the Arbitrum ecosystem and its dapps. The Grant from LTIP will NOT be used to pay for any expenses of the Growth Program.
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?:
No. The protocol was natively on Ethereum
On what other networks is the protocol deployed?:
3 Networks- ETH Mainnet, Base and Polygon
What date did you deploy on Arbitrum mainnet?:
May 4th, 2023. [ Arbiscan Link ]
Do you have a native token?:
Yes
Past Incentivization:
What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
Current Incentivization Programs:
Currently, Compound has two incentivization programs running.
- COMP Built-in Rewards strategy
- Compound-wormhole incentivization program
[1] COMP Built-in Rewards Strategy
Compound has a built-in rewards contract that rewards users in COMP tokens for Lending or Borrowing through the protocol. Currently, $58K (COMP @ $90) are distributed to users every day. These rewards/incentives are added to the base interest rates thereby increasing the total APR. The emission of these COMP incentives are set by the DAO.
Lending – Users lending their assets on Compound pools receive an interest rate on their deposits. Added to the base interest rates (shown below in green) are additional rewards in the form of COMP tokens (shown below in yellow), thus increasing the total APR on deposits.
Borrowing – A similar strategy exists for borrowing. Users receive COMP rewards added to their loans (shown below with gray and purple stripes).
COMP with a Market Cap of 550 Million makes a very good, liquid reward and incentive token for users.
[2] Compound Wormhole Incentivization program
Wormhole received a LTIP grant from Arbritrum to drive USDC across their bridge into the Arbirtrum ecosystem. Wormhole is working with Compound to run a campaign that rewards bridge users if they supply the USDC they bring to the Arb ecosystem in Compound on Arbitum. Thus the program incentivises users to deposit USDC to Compound using the Wormhole Bridge. Compound on Arbirtrum has witnessed a steep increase in active wallets and TVL since the program began on Feb 22, 2024.
The campaign is run through Quest platform (Layer3)
Image: Number of active addresses on Compound Protocol on Arbitrum network over time. The uptick since Feb 22, represents the beginning of the Compound-Wormhole quest campaign. Compound Growth Program supported this campaign with +$20,000 marketing spend adding over 1,700 new users to the Compound protocol on Arbitrum.
Source:Risk Dashboard
Image: Daily transactions executed on the protocol for Arbitrum network. Transactions jumped two folds since the start of the campaign
Image: Since the wormhole campaign started supply increased from $88.1M to $117M and borrowing from $18M to $32.94M. Bringing the total TVL (Deposits minus borrowing) from ~$70M to $84.4M. Source: Gauntlet
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No, this is the First time Compound has ever applied for any Grant in Arbitrum.
Protocol Performance:
Compound is currently deployed on four ecosystems, giving the protocol a smooth way to incentivize its $2.23B in TVL from ETH mainnet to Arbitrum.
- Compound is the 4th Lending protocol by TVL on DeFi Llama ($2.82 Billion) and the 13th DeFi protocol overall.
- Since inception it’s generated $491M in protocol fees, fully distributed as real yield.
- During the last bull compound’s TVL peaked at $12.01 Billion.
- Demand is on the rise, In the last 30 days, $6.1M in protocol fees were generated, 2x the previous 30 day period.
After only 9 months on Arbirtrum (source compound.finance)
- TVL has increased from $0 to $84.4M
- $930K in protocol fees & rewards were distributed on Arbitrum
- Two main markets exist for USDC and USDC.e
- The USDC utilization rate is 91% (91% of available USDC is currently borrowed)
- The USDC.e utilization rate is 95%
The last 30 days have accelerated Compound on Arbitrum
- $338K in protocol fees & rewards were distributed on Arbirtrum.
- TVL has accelerated and increased by $14.5M.
Currently two lending markets are live on Arbitrum USDC and USDC.e (bridged USDC). Here is how they’ve performed since launch.
TVL
fig: TVL on Compound Arbitrum Network since the deployment of the protocol in May 2023. (Currently $84.4M) Source - Messari This graph includes Borrowed Assets, Subtracting the $32.9M borrowed, the current TVL is $84.4M.
Protocol revenue on Arbitrum over 30 Days
fig: Daily revenue generated by Compound on Arbitrum Network in the last month
Source Messari
Protocol Roadmap:
The following objectives are confirmed by the Compound community members. Please note that the final implementation of these points are dependent on a Governance vote.
| Roadmap | Estimated Date |
|---|---|
| USDT Market LIVE on Arbitrum Network | April 30, 2024 |
| Structured Product integration begins | |
| (Includes Somm Finance & others) | April 30, 2024 |
| Rewards Contract LIVE | |
| (allows rewards in multiple tokens at the same time. For example $ARB + $COMP) | May 15, 2024 |
| LST exploration & Collateral Integration | May 15, 2024 |
| Arbitrum LTIPP reward distribution begins & lasts 3 months | May 15, 2024 |
| ETH Market on Arbitrum Network | May 30, 2024 |
| Arbitrum LTIPP reward distribution ends | August 15, 2024 |
| V2 Deprecation | Phased, continuous |
| GMX gmBTC and gmETH markets on Compound V3 | Uncertain, DAO vote required |
Audit History & Security Vendors:
Security Vendor: OpenZeppelin
Risk Management Vendor: Gauntlet
Audits: Please refer here for a full list of audits
Bug Bounty: $150K for Bug Bounty, read more here
Security Incidents:
COMP Token distribution Bug (Oct 2021, ETH) : A bug in the script resulted in the incorrect distribution of Comp rewards to users. Read more here . Compound since then, has hired OpenZeppelin as the Security service Provider to secure the platform.
V2 Oracle issue (Feb 2024, Compound V2): This has not been categorized as a security issue.
SECTION 3: GRANT INFORMATION
Requested Grant Size: 1.8 Million ARB
Justification for the size of the grant:
As the original DeFi, Compound currently has a TVL of $2.5Bn, $84.4M of which has accrued on Arbitrum since inception on the ecosystem 9 months ago. As the 4th largest lending protocol and 13th largest DeFi protocol in existence, Compound continues to to exhibit significant potential for growth, thanks to its COMP reward strategy and conservative nature that creates a highly secure offering attractive to larger investors. While the Grant Ask is 4% of the 45M ARB LTIPP budget, here’s why the proposal and its size should be considered.
- Demonstrated success: Compound launched on Arbitrum 9 months ago and has acquired $84.4M in TVL with minimal marketing aside from our built-in compound reward program. Our partnership with Wormhole’s incentive program over the last month has already demonstrated the effectiveness on moving TVL onto Compound.
- Market Expansion: Compound already has $2B in TVL on ETH mainnet, of which $1B is part of a deprecated compound V2. We have an existing channel to incentivize liquidity from mainnet to Arbitrum.
- Sticky Liquidity: Whales have the stickiest TVL whom our strategy strongly encourages. Compound’s focus on security provides a strong history of converting institutions.
Impact Metrics on Arbitrum
Grant Breakdown:
- Compound USDC & USDT Liquidity Incentives (1,650,000 ARB)
Our goal is to increase Compound’s TVL on Arbirtrum from ~$84.4M to ~$155M in 3 months. And to make the TVL sticky, so it remains after the three month incentive program.
Here’s how we plan to do so, and why it’s achievable.
Currently, Compound on Arbitrum provides 18.8% APR on supply and has attracted $84.4M in TVL into its USDC Arbitrum market. This APR is derived from the interest rate model where higher rates of utilization dictate higher APR.
Compound USDC pool utilization rates, historically above 80%, the recent utilization rates have been above 92% (at the time of writing this application) Source Gauntlet
Users can learn more about Compound markets here
if the APR makes a meaningful long term, downward move, we anticipate a greater amount of new TVL attracted by the reward amounts.
Providing 18.8% APR to suppliers on $84.4M TVL over 12 months costs $15.2M, over 3-months $3.8M. Therefore in order to incentivize an additional $70M in TVL at 18.8% interest $3.29M ($70M x 0.188 * 3/12) is required to spike the APR. With these added incentives we predict an additional users and capital will supply in Compound such that it normalizes back to the Beta APR 18.8% after new TVL supplies into the market.
Attracting Sticky TVL
We will make the TVL sticky, through who we incentivize, the length of time we require them to participate, and the manner in which we distribute the Arbitrum rewards.
Who: Crypto whales have the stickiest TVL, therefore we will incentivize whales to move their funds through a tiered reward system. (We recommend the exact nature of the rewards be obscured so they aren’t gamed, but here they are). We will distribute ARB rewards to individuals who supply as a weighted average of the amount they contribute.
Ranges
- Under $10K is 1x APR Multiplier
- 10-100 is 1.2x APR Multiplier
- Above 100k is 1.4x APR Multiplier
Distribution Method: We’ll distribute the rewards over 3 months, every time interval distributing the same amount of tokens. This will Spike APY on the day the program launches, attracting TVL from our partners like OKX’s network, the $1B in Compound TVL on ETH mainnet, and beyond. The influx of TVL will normalize the APY back to original levels (18.8% supply). We will heavily market from Compound’s separate marketing fund, to ensure the ecosystem is aware of the opportunities at launch.
Assuming that each range supplies roughly 33% of the total TVL with $3.29M available for incentives. Each group will receive approximately the following rewards, during the 3 month period.
| Range | Multiplier | TVL | Rewards | Interest rate @ $70M Net New TVL |
|---|---|---|---|---|
| <$10K | 1 | 23.3M | $0.91M | 15.60% |
| $10K-$100K | 1.2 | 23.3M | $1.10M | 18.80% |
| >$100K | 1.4 | 23.3M | $1.28M | 22.00% |
As the TVL increases the rewards will be distributed across a larger pool until the reward “alpha” returns to 18.6% Beta.
Timeframe: In order to promote sticky TVL, we will reward suppliers with ARB that is supplied on Compound and unlocks after 6 months. 100% of ARB rewards will continue to provide TVL to the Compound pool for 3 months after the program has ended and will linearly unlock for the next 3 months (6 months after they were initially rewarded). The ARB will remain supplied and earning supply fees from Compound until their holders choose to move their positions. These mechanics will be published up front to attract users who have long term belief in Arbirtrum.
Pools: USDC is live on Arbitrum, USDT will launch on May 15th, assuming an equivalent or slightly lower liquidity premium around 16.34% (sourced from Aave’s current USDT pool). One seventh (1/7) of the $3.29M in liquidity rewards will be applied to a new USDT pool ($470K). While the remaining incentives will be applied to the USDC pool. The goal in this distribution is to bootstrap the USDT pool from $0 to over $10M in TVL as quickly as possible.
Fig. USDT liquidity premium (Source Aave)
- DeFi Wallet pool creation incentives (0 to 150,000 ARB)
A number of DeFi wallets (including OKX and Crypto.com) have Compound pool integrations. These integrations give Compound markets on Arbitrum additional exposure to vast audiences. Our aim is to attract 5-7M in TVL on the Compound USDC market through OKX & Crypto.com
Both OKX and Crypto.com’s proposals provide a channel to make their users aware of the opportunity to earn additional yield if they onboard to Compound (on Arbitrum) through the DeFi wallet. The Compound team will ensure that 100 percent of these incentives are passed to the users. Any platform fee for these DeFi protocols, if applicable will be borne by the Compound treasury.
This serves the aim of onboarding mainnet liquidity to the Arbitrum network. A majority of these DeFi wallets have higher share of users and liquidity on mainnet. An incentive from Arbitrum will help shift focus of the users from mainnet to Arbitrum.
Compound will work with OKX and Crypto.com to determine the ideal reward APYs to engage the largest possible audience.
Market Changing Scenarios.
The original calculations were made on March 13th. The initial calculations we during a high utilization, risk on, scenario. Our proposal is optimized for levered, high utilizations, risk on markets we proposed what we will need to double TVL. If we are in more subdued less levered markets our proposal will over perform, this is proposal structured for both scenarios.
Long Term Ecosystem Value
Compound Rewards
Compound smart contract will award users 652 COMP every day in total, averaging out at 168,210 COMP over a period of 3 months( approx $14.4M in USD value for COMP @ $86). This value is set by the DAO through a governance vote on recommendations by the Risk partner (Gauntlet). The distribution of these rewards between networks is set up by the DAO.
Current incentivization includes $108K/Month (COMP @ 90) for the USDC market on Arbitrum. As we are adding more markets (USDT, gmBTC) COMP incentives earned by Arbitrum users will continue to increase.
Compound Grants
Additionally, Compound has a Grants program. We will be inviting projects from the Arbitrum ecosystem to develop integrations and get grants.
Bringing Institutions to Arbitrum
Compound is a trusted brand by the institutions. Compound brings with it the top institutions in the Web3. Attractive strategies for APR make up for an exceptional opportunity to invite Compound’s institutional partners from Mainnet to the the Grantor chain.
A Clean Path to bring Mainnet ETH to Arbitrum
Mainnet to Arbitrum: Out of the $2.5Bn, ETH Mainnet dominates with $2.34Bn, while Arbitrum follows in the Second spot with $84.4M TVL. There are no chain side incentives on Mainnet. Incentivization from the Chain help make the markets on the specific chain be the most attractive with added incentives over the current APR. Incentivising Compound markets will enable users to switch from ETH Mainnet to the network that provides best rates.
V2 to Arbitrum: Additionally, a significant amount of TVL still remains in Compound V2 (>$1 Billion), with the Compound Community doing a phased deprecation of V2 markets, the 1Bn Liquidity will be looking for a new home in the form of the Network where Compound Market interest rates are highest.
Funding Address:
Funding Address Characteristics:
0x05B51C484146170240497CE3Ce18aCc6AF2ABC28
Treasury Address:
Timelock (Ethereum): 0x6d903f6003cca6255D85CcA4D3B5E5146dC33925
Comptroller (Ethereum): 0x3d9819210A31b4961b30EF54bE2aeD79B9c9Cd3B
Reservoir (Ethereum): 0x2775b1c75658Be0F640272CCb8c72ac986009e38
Contract Address:
Timelock (Ethereum): 0x6d903f6003cca6255D85CcA4D3B5E5146dC33925
Timelock (Arbitrum): 0x3fB4d38ea7EC20D91917c09591490Eeda38Cf88A
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Execution Strategy:
Objectives:
- Attract Liquidity from ETH mainnet to Arbitrum through ARB incentives on Compound
- Provide an attractive L2 option for Compound users currently using Mainnet. Currently $2.4 Billion TVL is on Mainnet without any chain side incentives.
- Onboard liquidity from Mainnet to Arbitrum ecosystem projects that have Compound pool integration
- Incentivize Arbitrum ecosystem projects to develop closer integration with Compound through the Compound Grants program
- Attract top assets on Mainnet to come to Arbitrum for transaction efficiency.
The execution rests on two key pillars -
- Liquidity size
- Stickyness of the TVL
Compound has predominantly been used by Whales to park their liquidity. To capitalize on this user base, we will be implementing a step function to incentivize liquidity deposits to the Protocol.
The primary blueprint of distribution looks like this:
- Under $10K is 1x APR Multiplier
- 10-100 is 1.5x APR Multiplier
- Above 100k is 2x APR Multiplier
While the incentives will be distributed within 3 months, the distributed ARB rewards will be locked and unlocking will begin after a period of either 3 months or 6 months. So the users will be able to collect the additional rewards only after a set period of time.
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.
Primary KPI: TVL increase in turn creating capital efficiency on Arbitrum network
for details about KPIs, please refer the the timeline and milestones section
Secondary KPI:
- TVL through Structured products
- TVL Retention over time
- ARB Utilization metrics by users
- Total earnings over time
- Total borrowings over time
Grant Timeline and Milestones:
| Milestone | Description | Payout |
|---|---|---|
| 1. Grant Award | DAO awards grant to Compound | Payout 1 : 800K ARB |
| 2. USDT Market | Compound deploys USDT market on Arbitrum. This market is projected to be equally popular as our USDC market. | Clubbed with Milestone 5 |
| 3. GMX gm Markets | Deploying gm Markets that are popular within the Arbitrum network | The deployment is subject to DAO vote (Not linked to payout) |
| 4. USDC Pool 100Million TVL | The USDC Market nears $100 M mark | Payout 2 : 700K ARB |
| 5. USDT Pool 10 Million TVL | The USDT market TVL surpasses $10M mark | Payout 3 : 300K ARB |
| 6. TVL $125 Million | Protocol TVL Crosses $125 Million | Final review |
Key consideration: while the program aims at distribution of arb in a phased manner, a greater part of the execution is depended on the market factors and calculations of the risk service provider (Gauntlet). So the milestones achievement may change depending on the DAO priorities. If the DAO decides on execution of a better strategy, we will maintain full transparency and communicate the modifications to our bi-weekly update posts.
Current initiatives to onboard mainnet liquidity to Arbitrum
Compound has partnered with Wormhole to facilitate onboarding of ETH Mainnet liquidity to Arbitrum. Wormhole, a STIP grantee, has launched a program to provide additional interest rate to deposits on Compound via its interface. Compound DAO has put marketing resources behind this initiative and collaborated with Layer 3 to make this a success. For this reason, we have also awarded a Grant to Layer 3.
On-chain data will take time to be analyzed but initial metrics for the Campaign are out, which has been running for a month now. A total of 1209 participants completed the process of bridging their USDC to Arbitrum network and depositing it on Compound.
Readers can find more details about the program here: https://layer3.xyz/quests/compound-academy-bridge-usdc
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Through partners and Incentives, Compound will encourage innovation through aligning with new strategies around increasing dex pool liquidity on-chain, incentivizing money markets LSTs(liquid staking tokens) and LRTs(liquid restaking tokens), implementation of delta neutral vaults and encouraging new mainnet assets to migrate to arbitrum. The final implementation of the strategies will be subject to DAO approvals.
In case the DAO is unable to approve any of the devised strategies, Compound Growth Program will be working directly with the risk service providers and enable incentivization strategies.
Compound has a brand that is trusted by institutional liquidity and traders alike. Users depositing liquidity to the protocol continue doing so for a long time. The grant will boost the protocol’s ability to attract sticky liquidity to the Arbitrum network. Matching incentives and integration grants from Compound will further boost Compound’s links within Arbitrum ecosystem apps, further facilitating flow of liquidity to these structured products.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multi-sig 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 12. 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. One consideration is that we will be able to provide only data that is available through the blockchain. Compound website does not track individual user data.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? Yes. The team will be providing bi-weekly updates to the Arbitrum DAO through forum posts. We will be sharing Dune dashboards for this purpose as well.
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