[Dopex] [FINAL] [STIP - Round 1]

[defipm]

SECTION 1: APPLICANT INFORMATION

Applicant Name: 0xCasio, Product Lead

Project Name: Dopex

Project Description: Dopex is a Decentralized Options Exchange that uses blockchain technology to provide permissionless and non-custodial access to options trading. Our vision is to provide a platform that minimizes losses for option writers and maximizes liquidity for option buyers.

Team Members and Qualifications:

• Tztok-Chad: Founder
• Witherblock: Co-founder & Lead Developer
• Psytama: Developer
• Despereaux: Developer
• HolyPepperoni: Developer
• Arc: Developer
• Komorebi: Developer
• 0xCarrot: Developer
• Potto: QA
• 0xYYC: Research
• Polymmo: UI Designer
• RunningAndEscaping: Chief Meme Officer
• Oolong: UI & Illustrator
• Ohic: Content & Marketing
• Mario: Comms and Operations
• 0xBella: Marketing Manager
• NiNi: Marketing Manager(Asia region)
• Bulma: Marketing Manager & Content Manager
• Ukiyo: Social Media
• Bigbazuso: Social Media
• 0xSaitama: Biz Dev
• 0xCasio: Product Lead
• Wong Karwhy: Project Manager
• Corporealfeast: Community Manager
• Chutoro: Community Manager & Content Creator
• Zoombie: Community Manager & Customer Support
• Halko: Defi Strategy & Biz Dev

Project Links:

• Dapp
• Docs
• Github
• Dune Dashboard

Contact Information:

• Discord: link
• Twitter: @dopex_io
• Email: casio@dopex.io

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

SECTION 2: GRANT INFORMATION

Requested Grant Size: 1.5M ARB

Grant Matching: No matching funds

Grant Breakdown:

Program name	Arb amount	Grant %
RDPX V2 Receipt tokens stakers	675,000	45%
RDPX V2 Perpetual put vault deposits	225,000	15%
Dopex V2 CLAMM LPs	600,000	40%
Total	1,500,000	100%

• Incentive vesting distribution: 500,000 ARB/Month
• Vesting period: The program would run from November 2023 to January 31, 2024

Funding Address: 0x880C3cdCA73254D466f9c716248339dE88e4a97D

Funding Address Characteristics: ⅗ multisig

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:

• Onboard new on-chain users into the Arbitrum options ecosystem
• Increase protocol sequencer fees paid to Arbitrum
• Jumpstart the Dopex V2 ecosystem: RDPX V2, CLAMM and Options AMM
• Solidify Protocol Owned Liquidity(PoL) for the Dopex ecosystem
• Provide better bonding incentives for retail users and Arbitrum aligned DAOs

Key Performance Indicators (KPIs):

• Monthly Active Users(MAU)
• TVL(Product and Protocol side)
• RDPX token transactions
• Sequencer fees

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

The Dopex protocol has been Arbitrum aligned since day one of the rollup being public. Our main goal is to build an alternative for CEX option markets on-chain while leveraging the composability of defi to build new option primitives. In addition, we will turn the ARB token into a productive asset, some examples are: create arb options markets, margin trading for major assets such as BTC and ETH.

This grant would act as Nitro fuel to bootstrap and solidify the new Dopex option architecture we are building with our V2 ecosystem. RDPX can be bonded to get receipt tokens that represent ETH:DPXETH LPs in a curve pool. This receipt token can be used in our upcoming CLAMM and Option Pools with deep liquidity, instant settlements and a range of option markets for blue chip tokens such as BTC, ETH and ARB as well.

Users who bond their RDPX will help strengthen the protocol liquidity and get rewarded by it with these extra ARB incentives. Same goes for users who LP in our Perpetual Puts and CLAMM LPs.

Justification for the size of the grant:

The 1.5M ARB tokens will be distributed on a 3 month vesting period and will be used to jumpstart defi options activity, increase TVL, engage with DAOS that are willing to delegate into the RDPXV2 bonding system. All this fuel will increase paid on-chain fees therefore bringing in more revenue for the Arb DAO via sequencer fees.

Execution Strategy:

Funds will be used in the following programs:

• RDPX V2 Receipt tokens stakers
• RDPX V2 Perpetual put vault deposits
• Dopex V2 CLAMM LPs

RDPX V2 Receipt tokens stakers:

Users deposit their receipt tokens into the staking contract and receive the additional arb rewards every 2 weeks based on TVL and staking time

• Arb amount: 675,000(45% of the grant)
• Monthly distribution: 225,000 per month

RDPX V2 Perpetual put vault deposits:

LPs will lock their assets and receive arb rewards based on % share deposited for perp put vault

• Arb amount: 225,000(15% of the grant)
• Monthly distribution: 75,000 per month

Dopex V2 CLAMM LPs:

Users deposit their CLAMM LPS with us and earn additional ARB rewards based on the TVL/time LPs are locked.

• Arb amount: 600,000(40% of the grant)
• Monthly distribution: 200,000 per month

The following pools will be incentivized:

• ETH/USDC
• ARB/USDC
• DPX/ETH

Funds will be hold and distributed on the following ⅔ multisig address: 0x880C3cdCA73254D466f9c716248339dE88e4a97D

Grant Timeline: [Describe the timeline for the grant]

Based on the distribution schedule, the grant will be distributed in total within 3 months. Growth metrics dashboards will be submitted no later than one week after each month that passes among the various initiatives. After the grant period concludes, Dopex will extensively evaluate the grant’s impact.

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

Milestone Descriptions:

• Milestone #1: Deploy CLAMM Options
• Milestone #2: Deploy RDPX V2 to production
• Milestone #3: Add 1.5M in TVL from our treasury
• Milestone #4: Onboard DAOs to the bootstrap program

SECTION 4: 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?: Yes

On what other networks is the protocol deployed?: Yes, Polygon Sidechain

What date did you deploy on Arbitrum?: [Date of deployment]

• October 5, 2021[rdpx]
• October 8, 2021[DPX]

Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

• Rdpx holders: 57,858
• Arbitrum transactions: 1,597,344
• Cumulative options volume: ~$350,000,000
• Accumulate TVL: $194,523,163

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application.]

Q3 2023

• Open Zeppelin and C4 Audits
• RDPX V2 Production Deployment
• CLAMM and Options AMM MVPs
• Telegram Options bot

Q4 2023

• CLAMM and Options AMM production deployments
• Dapp UI revamp
• Multichain deployments
• PWA mobile app

Audit History: [Provide historic audits and audit results]

• Audit portal

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?: [Please describe your answer]

Yes, we will provide Dune analytics dashboards to keep track of KPIs

[Pepe]

Thanks you
it is good to read you as you give us information.

[0xGDucky]

Agree Dopex is one of the first projects in the Arbitrum ecosystem.

However, I think it is not appropriate to deduct up to 20% to audit the product.

I think 100% incentive should be given to the user

[tnorm]

Hi @defipm, please observe the most recent application which articulates the change to fund streaming (instead of milestone based funding) via Hedgey as well as the grant period.

@tnorm

It is expected that all funds distributed by this program will be used by the end of January 31, 2024. Participating grantees will be expected to self report data, dashboards, and summarize grant performance on an ongoing basis. Successful applicants will receive funding distributions biweekly via Hedgey streams.

[defipm]

Hi tnorm.

Thanks for the heads up. So I should just confirm that we consent to the new streaming mechanism and delete the funding tranche/milestone section?

[CastleCapital]

Firstly, thank you for your proposal and your ongoing commitment to the Arbitrum ecosystem.

Introduction and Rationale

Dopex has submitted a request for a grant of 1.5M ARB, which equates to 3% of the total program. Dopex is a native protocol in the Arbitrum ecosystem and focuses on the burgeoning field of options within DeFi. With a transaction volume exceeding $350m and 1.5m transactions to date, the protocol is a pivotal player. Dopex’s objective with this grant includes onboarding new users, increasing sequencer fees, and kickstarting its V2 ecosystem, among other goals. The protocol has formed partnerships that add value to the ecosystem, and its role in options trading could attract a wide range of users to Arbitrum. In light of these positives, we are inclined to support the proposal, pending some adjustments.

Major Concerns

Grant Size

• The grant request is on the high side given the current budget constraints
• Our recommendation for change: Consider lowering the grant request to better align with available funding and other initiatives within the Arbitrum ecosystem.

Minor Concerns

• Dopex’s recent inactivity during an extended development phase has not allowed their new products to be battle-tested without incentives

Summary

Castle Capital appreciates the innovations Dopex is bringing into the options space within the Arbitrum ecosystem.We are inclined to support the proposal, contingent upon the lowering of the grant size to better fit within the current budget constraints.

Our recommendations can be summarized as follows:

• Consider lowering the grant request

We hope our feedback helps fine-tune your proposal and that it’s received as constructive input for the benefit of everyone involved in Arbitrum’s growth.

[tnorm]

Yeah I think milestones are nice to have as they give you measurable outcomes, but funding will no longer be done in tranches so can delete those!

[Wolverine]

Exciting times for Arbitrum and looking forward to this grant for Dopex being approved. This protocol has brought in many new users to arbitrum Defi and as options mature will continue to bring more sophisticated users as well as TVL. This grant will surely accelerate the process.

[0xsaitama]

Allocating funds to audits is important for user security. Audits help identify and fix potential vulnerabilities, which ensures a safer experience for everyone & more conviction for onboarding.
*It’s an investment in our users’ trust and in the long-term success of Dopex & its products which in turn benefits Arbitrum.

[defipm]

Thanks ser, updated as mentioned

[Rariart]

Wonderful for the mention Thanks

[peter]

Just want to inform that RDPX/WETH is among the pools being incentivized by Gaulnet, following its Uniswap Liquidity Mining on Arbitrum.

PETER

[Matt_StableLab]

Hello @defipm thank you for submitting! Please make the following changes to your proposal to comply with the program rules.

1. Please note the following regarding the expected timeline of the incentives program. Unfortunately, your 6-month timeline does not meet these requirements.

@tnorm

funds are expected to be distributed as they are received, and programs should aim to end before the end of the incentivization period on Jan. 31, 2024.

2. Grant funds are not permitted to be used for audits as stated in the following stipulation.

@tnorm

Can I use grant funding for operational costs?

Funds are to be kept in ARB and used to incentive Arbitrum contracts. This funding is not meant support development or operational costs.

[meyaf320219]

The proposal itself is good, but 20% should not be for audit.

Funding an audit means that the product is not live and will likely not be live for the duration of the framework. This framework should be explicitly for incentives, to be used on products that are live.

I would like to see this proposal focus on incentivising products that are already live, and therefore with the audit removed. Audits and other development work should go through different programmes, not the incentive framework.

[0xGDucky]

Audit is the job of the project team itself and is not related to Arbitrum.

I think that cost must come from the project itself as extracted from the project’s treasury

[Db_DefiEdge]

This is a Detailed Proposal. Kudos to the Dopex Team.
A question: Can you provide more detailed information on how the 80% of grant funds allocated for incentives will be distributed? What pools or mechanisms will be used?

[jerame20]

Great proposal, from the grandfather Arbitrum native protocol. I expect after the minor changes that have been pointed out by @krst are taken into account this will pass with massive support.

[axlvaz_SEEDLATAM.eth]

Hi @defipm , @axlvaz_SEEDLATAM.eth here, part of @cattin @seedlatam delegation.

I have some questions about your proposal:

@defipm

Incentivize receipt token deposits

• 80% / 1,200,000 ARB tokens

Can you elaborate on how you will prevent the rewards from being gameable?

And also, what are the conditions to start receiving the rewards, do they have a limit per unique address?

[SalmaKayak]

@defipm , agree with @axlvaz_SEEDLATAM.eth Given the proposed allocation of 20% for audits in the Incentive Framework and the feedback suggesting that audits should be funded separately from the incentive program, what impact could this allocation have on the overall effectiveness and efficiency of the program? Are there potential trade-offs between allocating funds for audits and achieving the program’s primary goal of incentivizing live products, and how might these trade-offs be quantified and managed.
I understand the behind the scene non disclosure agreement play.

[ArbUSER]

20% for Audit costs? ROFL.

Otherwise not bad. A little greedy on the amount as a lot of others but DOPEX has at least tried to add value and is native project.