[Defined] LTIPP Application Draft

DAO Grant Programs Long Term Incentives Pilot Program
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SECTION 1: APPLICANT INFORMATION

 
Applicant Name:
Nick (TheDefiDog)

 
Project Name:
Defined

 
Project Description:

Defined has developed an API to assist builders in querying real-time and historical pricing, charts, and aggregates (volume, liquidity, buyers, sellers, etc.) for millions of tokens across 49 chains, including Arbitrum. We also offer custom indexing for projects. In addition to our data business, Defined powers its own front-end using the same API (https://www.defined.fi/), which also hosts our new non-custodial trading terminal now live on ETH, ARB, OP, and Blast.

 
Team Members and Roles:

  • Mike - CEO / co-founder
  • Braden - CTO / co-founder
  • Matt - Full Stack Developer / co-founder
  • Derek - Full Stack Developer / co-founder
  • Nathan - FrontEnd / co-founder
  • Paul - Senior Developer
  • Griffin - Senior Developer
  • Kyle - Senior Developer
  • Caity - Senior Developer
  • James- Senior Developer
  • Nick - Business Development
  • Adrian - Senior Developer
  • Ehsan - Senior Developer
  • Elijah - Community Management

 
Project Links:

 
Contact Information:

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

Yes.

 

SECTION 2a: Team and Product Information

 
Team experience:
 
Defined is among the top new crypto companies in the space, as we successfully finished the Alliance accelerator last year, with an acceptance rate of less than 1%.

Our team comprises veteran DeFi traders, seasoned Web2 and Web3 developers, and diverse members with backgrounds spanning TradFi and crypto.

Over the past three years, we’ve developed an enterprise-grade API featuring real-time and historical pricing, charts, and aggregates (volume/liquidity/buyers/sellers/etc) for millions of tokens and NFTs. TradingView utilizes our API to showcase approximately 5,000 tokens on their platform. Additionally, we offer custom bespoke protocol indexing, exemplified by our work with Sudoswap, where we handle 100% of their data needs.

 
What novelty or innovation does your product bring to Arbitrum?
 
Most recently, we added trading support to our frontend and Telegram bot, enabling traders to execute trades through the most suitable DEX based on available liquidity with their non-custodial wallet.

Our trading terminal and Telegram bot provide Arbitrum users with a secure and efficient method to trade tokens using our non-custodial wallet and intuitive frontend. Our trade offering benefits native DEXs on Arbitrum by routing trades to the optimal source of liquidity…

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

Our trading terminal seamlessly integrates with Arbitrum projects, boosting trading volume directed to their pools and benefiting DEXs hosting liquidity on traded pairs. We believe our intuitive UI is instrumental in attracting new users to the trading scene on Arbitrum.

Our focus is on native and non-native crypto users. We intend to offer onboarding solutions such as MoonPay for non-native crypto users. This focus should bring additional traders to Arbitrum if they decide to trade pairs hosted on Arbitrum.

Our frontend (https://www.defined.fi/) can also be used for research, which would help users discover new projects, further amplifying projects on Arbitrum that deserve attention via our “Trending” or “New” discovery tools.

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

DexScreener, DexTools, GeckoTerminal, Banana Bot, Maestro, and Thunder Terminal.

 
How do you measure and think about retention internally?

Trading Users:

  • Average volume per user, Number of Daily Active Users

Frontend Users:

  • Monthly Active Visitors

 
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:

Lifetime Users, Daily Active Users, Lifetime Volume, Average 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

 
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?:

Defined’s API service is available to builders on 49 networks including Arbitrum. We’re not native to Arbitrum.

Defined’s Trading Terminal is available on ETH mainnet, Arbitrum, Optisium, and Blast. With plans to continue expanding to other chains.

 
On what other networks is the protocol deployed?:

Defined’s API is available on 49 Networks.

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Defined non-custodial wallet is available for deposits on Ethereum, Arbitrum, Optimism, and Blast. With plans to launch on all available chains with demand.

 
What date did you deploy on Arbitrum mainnet?:

Defined was the first charting tools platform to deploy on Arbitrum back in September 9th, 2021.

Defined opened deposits on Arbitrum for it’s non-custodial wallet on February 28th, 2024

 
Do you have a native token?:

No.

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

N/A.

 
Current Incentivization: How are you currently incentivizing your protocol?

Defined is incentivizing trades on Blast with 0% trading fees on all transactions.

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

No.

 
Protocol Performance:

Trading:

Frontend:

 
Protocol Roadmap:

2024 Defined Trading Product Roadmap

Q1

  • Improve trading UX by including fiat onboarding solutions such as moonpay.
  • Make trading flow improvements
  • Create full aggregates for wallets, including PnL, holdings over time, transaction counts, and more
  • Launch Solana Support

Q2

  • Roll out additional use cases for Defined’s smart wallet such as perps, options, NFTs, etc.
  • Launch our trading terminal on every network supported by our infrastructure
  • Additional trading improvements based on user feedback

Q3

  • Continue to add additional features for Defineds frontend/wallet users. Including launchpads, NFT marketplaces, additional PerpDexs.
  • Improve Trading Frontend to Telegram bot flow

Q4

  • Improve trading experience by gamifying trading
  • Continued trading terminal and frontend improvements
  • Marketing campaigns to gain additional exposure to the trading terminal

 
Audit History & Security Vendors:

N/A. Defined does not have smart contracts to audit.

 
Security Incidents:

N/A.

 

SECTION 3: GRANT INFORMATION

 
Requested Grant Size:

70,000 ARB

 
Justification for the size of the grant:

We are seeking a grant of 70,000 ARB based on the average monthly users of our frontend over a period of 12 months, multiplied by the average volume traded by the average Scarab user.

Over the last 12 months (March 15th, 2023 - March 15th, 2024), Defined had 2 million unique visitors to its frontend. On average, that is 166,666 unique users per month.

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Throughout the existence of the Scarab SDK, Scarab has recorded $1,530,000 in trading volume with 138 unique users, boasting an average of $11,000 in trading volume and 18 trades per user.

With this grant, we aim to convert 0.5% of our average monthly visitors to our frontend into active traders over the period of the LTIPP grant. This would mean, on average, we aim to have 833 traders trying out the Defined trading terminal per month.

We expect these 833 monthly users to engage with the Defined trading terminal due to the incentives offered during the LTIPP. We anticipate them to trade similarly to an average scarab user. On average, these traders should place 18 trades and generate approximately $11,000 in trading volume.

Over the LTIPP grant period (3 months), we anticipate having 2,500 traders (833 per month) trying out the Defined trading terminal. These 2,500 traders are expected to execute 45,000 trades, generating $27,500,000 in trading volume on average, based on the provided metrics.

Trades executed through Defined incur a 0.5% fee. Users can reduce these fees by purchasing $DUNG and adhering to $DUNG tokenomics.

  • Defined’s trading fee structure

We want to incentivize Arbitrum users to trade on our platform by offering rebates for trades done on Arbitrum network pairs. Our goal is to gain 2500 unique users, amounting to 45,000 trades and $27,500,000 of volume generated by these users.

Users will be compensated in the following ways with our ARB grant:

  • Traders will have 100% of their fees rebated.
  • Traders will have 100% of their gas fees rebated.

Additionally, we would like to put on an ARB trading competition over the duration of the LTIPP grant, which will reward users based on their PnL%. We will give out $1500 bi-weekly over the duration of the grant. We would also like to entertain the idea of having any un-used $ARB from trading rebates rolled into the competition. Subject to the Arbitrum LTIPP counsel’s approval.

 
Grant Matching:

N/A
 
Grant Breakdown:

Allocation Metric Cost/unit Total Cost:
Trading Fees Refund $27,500,000 Volume 0.5% $137,500
Gas Refund 45,000 Trades .024 $1080
Trading Competition 6 Prize pools $1500 $9000

 
Funding Address:

 
Funding Address Characteristics:

GnosisSafeProxy 2/3 multi-sig

 
Treasury Address:

N/A

 
Contract Address:

N/A

 

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

 
Objectives:

Our objective is to convert monthly active users of our frontend into traders. We aim to have 0.5% of our average monthly frontend users trade at least $11,000 in volume on Defined over the period of the program.

 
Execution Strategy:

Defined will help boost trading activity on Arbitrum by offering incentives to users who trade Arbitrum pairs on Defined’s trading terminal.

Collective fees and gas accumulated on Arbitrum pairs will be calculated and returned to users’ wallets on a bi-weekly basis (attended to when $ARB rewards are distributed to Defined from the LTIPP grant).

  • Fees accrued on a bi-weekly basis

  • Gas accrued on a bi-weekly basis

$ARB will be distributed to fees and gas on a first-come, first-serve basis. Any $ARB not used in that distribution period will be added to the next.

Additionally, we will also host six 2-week-long trading competitions for users who trade Arbitrum pairs on our trading platform. The competition will be based on PnL% to ensure the program doesn’t favor whales. Rewards will be distributed bi-weekly (attended to when $ARB rewards are distributed to Defined from the LTIPP grant).

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

Trading fees and gas rebates will be claimed by traders with their Defined non-custodial wallet. This accomplishes two objectives to retain users on Defined and Arbitrum:

  1. Retaining users in the wallet provides them with more funds to trade Arbitrum pairs on Defined.
  2. Users spend more time on the Defined app, thereby increasing their exposure to Defined’s other trading tools such as our Telegram bot.

By incentivizing users to utilize the trading platform, we are also encouraging them to utilize protocols supported by the trading platform.

The availability of additional funds for trading and increased time spent in the application enhances volume, attracts unique users, and fosters user loyalty.

 
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.

Allocation Current progress KPI
Unique Users 138 Add 2500 unique users
Volume $1,530,000 Add $27,500,000 volume

 
Grant Timeline and Milestones:

By the end of Month 1:

  • 500 unique users
  • $5,500,000 volume

By the end of Month 2:

  • 1250 unique users
  • $13,750,000 volume

By the end of month 3:

  • 1875-2500 unique users
  • $20,625,000 volume

The feasibility of these metrics is considered as follows:

  • Users on our frontend will typically be assumed to be traders, as they’re looking at charts and aggregates such as transactions, volume, and unique buyers/sellers of a specific token.

  • A large portion of our total traffic is from Arbitrum-specific pairs. [Plausible · defined.fi]

  • Total monthly users and traders are assessed without considering the impacts of the grant, with growth assumed to be stagnant. By running a marketing campaign and interacting with other Arbitrum projects distributing the grant, we expect to gain monthly active users.

  • Growth doesn’t take into account the impacts of implemented user-friendly solutions like Moonpay into our trading solution.
     

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

Arbitrum users utilizing our frontend will have a secure, non-custodial way to trade assets on Arbitrum. Currently, there are no solutions available on Arbitrum for this type of trading.

Users native to our platform will notice the incentive of zero fees on Arbitrum and be more inclined to trade pairs on Arbitrum over other networks.

Additionally, we will index unique Arbitrum protocols to ensure trading for their platform is available on our DEX. Once indexed, projects will have access to their data through our API.

Year to date, we’ve had 311,000 unique visitors to our platform (Plausible · defined.fi). Unique users will receive push notifications about an ongoing Arbitrum trading incentive program and will likely explore the opportunity, leading them to discover Arbitrum and its benefits, such as a robust DeFi economy and low gas fees.

 
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 comply. The team has no special considerations.

 
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? [Please describe your strategy and capabilities for data/reporting]

  • Yes, we agree to provide bi-weely program updates. Defined will provide our Arbitrum contact with on-chain metrics including users, trades, and volume.
  • We are a company that provides an API for Pricing, charts, and aggregates like volume, unique buyers, sellers. We will be capable of providing data reports bi-weekly.

 
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.

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Hello @TheDefiDog

Thank you for your application! We can confirm your application has been submitted and you will be assigned an advisor shortly.

1 Like
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Hello @TheDefiDog ,

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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As per @JoJo’s reccomendations we’ve removed the following componets of our grant:

  • We are no longer asking for $ARB from our Infra business
  • Reduced the amount of 250k ARB to 70k

@Matt_StableLab We are ready to update the draft to ‘Final’, please help us change the title of the forum topic, thank you!