Dolomite STIP Program Updates

DAO Programs & Initiatives Biweekly Updates (STIP)
1

Dolomite Bi-Weekly Update 11/17/2023

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 142,568

ARB Utilized as Incentives in the Last Two Weeks: 0

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

Contract address label Form completed for all addresses: Yes

ARB left over: 142,568 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the following markets (shown below) to depositors of these assets. APRs were elevated which resulted in an increase in TVL and usage of the platform. More on the distribution strategy with oARB below.

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Additional Info / Disclosures to Multisig: No new information since our STIP was posted on the forum. Multi sig is a 2/3, address is 0xa75c21C5BE284122a87A37a76cc6C4DD3E55a1D4.

STATS

Average daily TVL: $12.25M

Average daily transactions: 523

Average daily volumes: $1.99M

Number of unique user addresses: 441

Transaction fees: $8,939.97

Link to Dashboard showing metrics: Subgraph, Dune Dashboard, Tx Fees

Plan For the Next Two Weeks

Amount of ARB to be distributed: 142,568

Contracts that will be incentivized: The same contracts as above.

Contract address label Form completed for all addresses: Yes

Mechanism for distribution incentives: Dolomite uses oARB (an option token) to distribute the ARB. Users earn oARB by depositing liquidity on Dolomite and then can vest oARB into ARB by pairing oARB with an equal amount of ARB for intervals up to 4 weeks. You can learn more about oARB on our docs.

Summary of incentives plan: We plan to incentivize USDC, ETH, WBTC, ARB, and LINK markets using weights shown on the Rewards page on Dolomite.

Summary of changes to the original plan: No changes.

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Dolomite Bi-Weekly Update 12/1/2023

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 143,148

ARB Utilized as Incentives in the Last Two Weeks: 183,097

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 102,618 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform. More on the distribution strategy with oARB below.

STATS

Average daily TVL: $
Average daily transactions: 639.92
Average daily volumes: $741,000
Number of unique user addresses: 1,071
Transaction fees: $14,412
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 143,138 ARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. After receiving feedback on the oARB distribution method, we’ve worked with the multi sig signers to make some adjustments:

  • The max vesting duration will increase from 4 weeks to 40 weeks
    • Recall that when a user vests their oARB, it reserves the corresponding amount of ARB in the vester smart contract
    • Despite the STIP grant ending in February, any unreserved funds can be sent back to the DAO in February while vesting continues for users that wish to go for the full 40 weeks
  • The discount will be linear, at 2.5% per week
    • Thus, users can receive their ARB for free if they vest for the full 40 weeks
  • Users that vested before this update goes live will be able to extend their duration (if they desire)
  • Depending on technical lift, we also will enable Dolomite users that are level 4 or higher achieve a discount of 3.75% per week.
    • Thus, users who become more active on the platform can accelerate the vesting process further.
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This seems to be a direct response (without actually responding) to the clandestine affairs I outlined in the thread reporting your actions. It falls woefully short of addressing the issues and still creates a toxic environment promoting people who want to see any incentives within 40 weeks 0.7692 YEARS to pay your treasury substantial amounts of ETH for your personal gain. The DAO and users have not forgotten your initial intentions, and this comedic attempt at rectifying it is not going unnoticed. Your egregious actions will reach justice and your brand will be permanently tarnished due to your self-serving nature and zero respect for the arbitrum ecosystem.

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Thanks for doing god’s work, the amount of grift resulting from STIP grants is truly disheartening. This grant program has been a net negative to the ecosystem: it provides barely any benefit and it gives such a poor image of arbitrum.

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Hey @federalInformant,

We’ve been following the discussions surrounding Dolomite’s usage of the STIP grant program funds and felt it was important to provide a more formal response to address your concerns.

First and foremost, we want to emphasize that there’s no secrecy or malice behind our grant program. We outlined the entire structure in our public proposal, discussed it with Arbitrum in the comments, received approval through community voting, and made the steps for participation clear on our web app. The fact that 90%+ of eligible ARB is being utilized via the oARB system is a testament to its transparency and community support. We’ve even seen entities pull ARB off CEXs like Binance to do the pairing process, bringing more value back to the on-chain world!

We understand that opinions vary, and it’s perfectly valid if the program doesn’t align with your preferences. However, it’s crucial to acknowledge that Dolomite adhered to established procedures, and the legitimacy of our proposal is backed by the STIP program’s multi sig, Stable Labs, the broader Arbitrum community, and our users.

If you believe adjustments are necessary for the grant program’s requirements or rules, we welcome constructive suggestions for consideration in future iterations of Arbitrum’s grant programs. While Dolomite doesn’t control these aspects, we value community input and actively encourage it.

Our program’s structure was designed with the long-term interests of Arbitrum in mind, aiming to discourage mercenary capital and prevent market disruptions to ARB’s price by spacing out any sell pressure. As a matter of fact, we wanted to initially offer longer vesting periods to offer steeper discounts but couldn’t because it would extend beyond the STIP’s deadline.

We took user feedback like yours seriously, so we initiated discussions with the multi sig via Stable Labs to incorporate changes like a longer vesting period and the ability to earn a 100% discount (thus completely removing any ability for Dolomite to receive any ETH for users that opt for this 100% discount). Importantly, the proposed changes were approved by these representatives of the Arbitrum DAO, and these representatives saw no wrongdoing in how the program was operating beforehand and knew the program’s mechanics were disclosed prior to being voted on. Despite our efforts, we understand that not everyone’s preferences align with our approach.

Since these modifications were just approved going into Friday afternoon, we thought it’d be best to address the community early next week about the changes, so they wouldn’t be missed going into a weekend.

The rewards program is entirely optional, and users are free to explore alternative opportunities within the Arbitrum ecosystem. We respect differing views on the future of Arbitrum and appreciate the diversity of opinions within our community.

Thank you for bringing your concerns to our attention. We remain open to further discussion and appreciate your engagement with Dolomite.

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the patience of a saint

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Dolomite Bi-Weekly Update 12/15/2023

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 142,858

ARB Utilized as Incentives in the Last Two Weeks:

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 108,364 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform. We rolled out updates to vesting oARB to enable selections with up to a 100% discount. The change has been well received, with TVL increasing over the last 2 weeks.

STATS

Average daily TVL: $17,843,647.42
Average daily transactions: 727.85
Average daily volumes: $970,714
Number of unique user addresses: 1,123
Transaction fees: $16,799.43
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 143,138 ARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution.

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Dolomite Bi-Weekly Update 12/29/2023

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 142,858

ARB Utilized as Incentives in the Last Two Weeks:

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 142,858 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $25,061,566.28
Average daily transactions: 846.36
Average daily volumes: $1,432,142
Number of unique user addresses: 1,642
Transaction fees: $24,568.61
(Cut off date was 12/18, inclusive)
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 143,138 ARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. This past week, we lowered the oARB distributed from 90,000 per week to 72,000. Next week, we will lower the oARB rewards again to 54,000. This corresponds with a price increase in ARB as well as needing to taper oARB emissions since participation has been really high. We should be able to extend oARB rewards until March, to correspond with the unified end date of the week of March 25th.

9

Dolomite Bi-Weekly Update 1/12/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 142,858

ARB Utilized as Incentives in the Last Two Weeks:

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 142,858 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $32,287,922.36
Average daily transactions: 832.21
Average daily volumes: $2,200,000
Number of unique user addresses: 662
Total unique user address growth: +547 unique user addresses
Transaction fees: $65,220.99
(Cut off date was 12/18, inclusive)
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 142,858 ARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. We lowered the oARB distribution per week to 54,000. We may slightly lower the oARB emissions per week one more time to reach the rewards extension in March, to correspond with the unified end date of the week of March 25th.

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Dolomite Bi-Weekly Update 1/26/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 285,716

ARB Utilized as Incentives in the Last Two Weeks:

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 290,400 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $37,342,008.48
Average daily transactions: 890.28
Average daily volumes: $2,295,000
Number of unique user addresses: 795
Total unique user address growth: +652
Transaction fees: $93,594.60
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 72,000 oARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. We lowered the oARB distribution per week to 36,000. We may slightly lower the oARB emissions per week one more time to reach the rewards extension in March, to correspond with the unified end date of the week of March 25th.

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Dolomite Bi-Weekly Update 1/26/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 0

ARB Utilized as Incentives in the Last Two Weeks: 72,000 oARB

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 201,214.23 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $35,774,185.61
Average daily transactions: 618.93
Average daily volumes: $4,189,000
Number of unique user addresses: 633.5
Total unique user address growth: +410
Transaction fees: $53,250.86
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 72,000 oARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. We lowered the oARB distribution per week to 36,000. We may slightly lower the oARB emissions per week one more time to reach the rewards extension in March, to correspond with the unified end date of the week of March 25th.

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Dolomite Bi-Weekly Update 2/23/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 0

ARB Utilized as Incentives in the Last Two Weeks: 72,000 oARB

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 156,734.2 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $35,544,490.07
Average daily transactions: 553.43
Average daily volumes: $1,808,571
Number of unique user addresses: 717
Total unique user address growth: +291
Transaction fees: $32,474.85
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 81,000 oARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. We will increase next week’s distribution to 45,000 oARB to make sure all ARB is claimed for vesting by March 25.
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Dolomite Bi-Weekly Update 3/8/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 0

ARB Utilized as Incentives in the Last Two Weeks: 72,000 oARB

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 75,310.13 (oARB mechanism results in delays in distribution)

Plan for leftover ARB: oARB Vesting begins on 11/17/2023 at 8:45 PM EST. At this time, ARB will be utilized. Due to the nature of the oARB incentivization system, there’s a “start delay” from when users can start utilizing the rewards.

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

Apologies for the late post - we had an issue with our Dune dash that was being resolved the other day.

STATS

Average daily TVL: $43,957,794.96
Average daily transactions: 545.57
Average daily volumes: $3.09M
Number of unique user addresses: 554
Total unique user address growth: +224
Transaction fees: $67,551.71
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

Amount of ARB to be distributed: 72,000 oARB
Contracts that will be incentivized: Same as before.

Mechanism for distribution incentives: We will continue to use oARB claiming and vesting for reward distribution. All ARB is on track to be claimed for vesting by March 25.

14

Dolomite Final + Bi-Weekly STIP Update 3/22/2024

Recap of the Previous Two Weeks

ARB Received Last Disbursement: 0

ARB Utilized as Incentives in the Last Two Weeks: 72,000 oARB

Contracts incentivized over the last 2 weeks: 0x6Bd780E7fDf01D77e4d475c821f1e7AE05409072

ARB left over: 0

Plan for leftover ARB: All ARB has been utilized by oARB vesters!

Summary of incentives: Over the past week, we distributed oARB to the same markets as the prior bi-weekly updated. APRs remain elevated and we have seen a sustained increase in TVL and usage of the platform.

STATS

Average daily TVL: $64,489,298.48
Average daily transactions: 967.86
Average daily volumes: $5.43M
Number of unique user addresses: 504
Total unique user address growth: +218
Transaction fees: $154,147.80
Link to Dashboard showing metrics:

Plan For the Next Two Weeks

oARB rewards has been turned off after a final emission on March 27. Our UI also transitioned to no longer show rewards being factored into the interest rates. If we are made recipients for the STIP Bridge, we will honor all old oARB and will continue running the program with a lower output to taper off yields.

Reflection on Dolomite’s Growth during STIP

Dolomite has grown considerably thanks to the STIP grant, bullish tailwinds from the market, and continuously shipping meaningful updates and listings that drive the usefulness of Dolomite. We are extremely grateful and humbled to be recipients of the grant, and we hope some of the stats below show how well the grant was put to use!

Overall Stats and Growth from STIP

Since our first bi-weekly update,

  • Dolomite’s daily average TVL grew from $12.25M to $64.5M (+426%)
  • Dolomites average daily volumes grew from $1.99M to $5.43M (+173%)
  • Total unique wallets grew from 6,934 to 13,627 (+96.5%)
  • Bi-weekly transaction fees grew from $8,940 to $154,147 (+1,624%)
  • oARB Data:
    • A total of 2,482 vests have been opened up
    • 723,004 oARB opted into max vesting to receive their ARB for free
      • This is spread across 1,785 vesting positions
    • 276,996 oARB opted into non-max vesting to receive their ARB faster (for a fee)
      • Of this amount, 44,011.49 has not not matured yet
      • This is spread across 697 vesting positions
    • Dolomite accumulated 126.57 ETH in POL from short-term oARB vesters who opted for a shorter vesting duration, instead of choosing the max vesting duration
      • This ETH is currently deposited in Dolomite and is helping underwrite additional liquidity. Most popularly, this liquidity has been instrumental for PT-eETH looping strategies, which recently has played a big part in Dolomite’s growth

Impact of Using oARB

Choosing to create a novel distribution mechanism for the ARB that the Arbitrum DAO allocated to Dolomite was the best decision we could have made. While oARB was initially met with friction, the adjustments we made to allow for a longer vesting in exchange for free oARB conversion was met with significant usage, TVL growth, and positive sentiment. We even mixed in our XP Program into oARB vesting, enabling level 4+ users to accelerate their vesting to 3.75% discount per week instead of 2.5%

Now that STIP is over (for now), we have 1,785 long-term oARB vesters who have 723,004 ARB locked up with oARB for vesting, which matures between May 22, 2024 and December 31, 2024 (depending on when they began vesting and if they achieved level 4+). Due to their lingering oARB vesting positions, they established a relationship with Dolomite that will bring them back to the dapp continuously for months to come.

The Arbitrum DAO should be extremely pleased with the results of the oARB distribution mechanic. Dolomite successfully warded off predatory value extractors, was able to lock up almost 75% of the ARB that was granted to Dolomite for months beyond the end of STIP, and even created a sink for the paired ARB that is coupled with each oARB vesting position. This sink and time-based vesting process has resulted in more distributed ARB sell pressure and more users that are committed to Arbitrum over the long term.

Interestingly, if you dig into the profile of each long term oARB vester, you’ll notice a few strategies that were executed for this pairing process:

  1. Borrow the ARB for oARB pairing on Dolomite. This was a particularly smooth UX flow, since users were able to tap into Dolomite’s virtual liquidity for this borrowing process (paired ARB is sourced from user’s Dolomite Balances). It spurred additional borrowing activity for Dolomite which led to more transactions, sequencer revenue, and fee accrual for Dolomite and the Arbitrum DAO.

  2. Acquire ARB for oARB pairing across the various DEXs in the Arbitrum ecosystem. The realization for many that Arbitrum was going through a renaissance of activity led some to acquire a long term position in ARB, and they didn’t mind locking it up in an oARB vest for months.

  3. Withdraw ARB for oARB pairing from CEXs. We noticed various users would withdraw ARB from CEXs like Binance to their wallet and then would deposit this ARB on Dolomite to initiate the pairing process. This user journey was especially exciting to see unfold, because it brought activity back on chain that was otherwise lost to Binance being used as a place to custody the users’ assets.

How is Dolomite doing now with incentives turned off?

We have been monitoring usage closely since oARB’s final distribution on March 27, 2024. So far, Dolomite has been able to retain nearly all of the TVL it has accumulated. At the time of writing, we have $62M in TVL and total value borrowed (TVB) remains elevated at $21.8M. We’re humbled by the retained users, lenders, and borrowers, and we intend to continue shipping exciting features and new listings to make Dolomite the best possible lending protocol on Arbitrum.

What would we change with oARB if Dolomite is granted STIP.B?

The primary complaint we heard from users with significant capital deposited was that completing tasks from the XP program is not feasible from such high-value wallets. In exchange for the capital they’re providing, they really wanted Dolomite to implement a threshold number (like $100,000+ in net equity across their deposits/positions) that allows them to receive the 3.75% preferential discount per week. This way we can still encourage high net worth users, institutions, DAOs, and funds to participate who, for various reasons, feel like they cannot utilize the XP program. Perhaps we’ll explore this for STIP.B if we’re able to receive an extension.