[DODO] LTIPP Application - FINAL

Archive Long Term Incentives Pilot Program (LTIPP)
6

DODO is submitting clarifications for our LTIPP proposal as detailed below.

The requested amount is 350k ARB, which is 50% of the original request.

Summary of Feedback from Votes Against:

  • Lack of detailed milestones and grant breakdown.
  • Excessive grant size.
  • No significant TVL growth over the years.

Responses and Updates:

  1. We have reduced the grant request to 350k ARB, 50% of the original amount.

    Justification for Grant Size and Target Metrics

    Baseline and Target Metrics:

    • Current Metrics on Arbitrum: Daily trading volume at $5M; TVL at $2M.
    • Proposed Targets: Increase daily trading volume to $15M and TVL to $6M, marking a 200% growth.

    Strategic Rationale and Financial Calculations:

    • Historical Data & Market Potential: Our past campaigns have consistently shown that targeted incentives lead to substantial growth in both trading volume and TVL. For instance, a previous initiative saw a 150% increase in TVL over a six-week period. This success underpins our confidence in achieving the set targets.
    • Incentive Plans:
      • Liquidity Provider Incentives: To achieve a $6M TVL with a competitive 20% APR, the required incentive is calculated at $1,200,000 annually. For the specific campaign period of 12 weeks, this translates to an estimated need of $266,666. At an ARB price of $1.15 (as of April 25, 2024), this equates to approximately 231,883 ARB tokens.
      • Trading Volume Incentives: Aiming for a $15M daily trading volume requires incentives for trading fee rebates projected at $130,000 over 12 weeks. This corresponds to about 113,043 ARB tokens, recalculated with the current ARB price of $1.15.

  2. We have added detailed milestones:

    Grant Timeline and Milestones:

    • Milestone 1: Successfully deploy the dPoints system on Arbitrum. Announcement by the end of Week 1.
    • Milestone 2: Stablecoin pair TVL reaches $4 million, average daily volume reaches $6 million by the end of Week 4.
    • Milestone 3: Stablecoin pair TVL reaches $6 million, average daily volume reaches $10 million by the end of Week 8.
    • Milestone 4: Bridge stablecoin LP into the newly launched Orbit L3 DODOchain, ensuring sustainable TVL and trading volume for the pair after the incentive period ends by the end of Week 12.

  3. TVL growth
    DODO has recently announced the launch of the layer 3 solution DODOchain, the first restaked rollup powered by Arbitrum Orbit, focusing on integrating liquidity from other chains. Securing this LTIPP grant will significantly boost the TVL and trading volume on Arbitrum, attracting new users from other ecosystems, who will lock up their assets through our LP pairs on Arbitrum and eventually bridge to DODOchain through the official Arbitrum Bridge.

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