DefiLlama Research & Castle Capital - Research Member Application
Applicant Information
Name of Applicant & Applicant’s Representative: DefiLlama Research & Castle Capital
Email Address: ryan@dlnews.com, atomist@castlecapital.vc (please contact both)
Telegram Handle: @cryptodurs and @atomist
Role: Research Working Member
Hourly Rate (in USDC): $100 per hour
Background & Skills
Please provide a brief overview of your experience in the digital asset industry, particularly within the Ethereum & Arbitrum Ecosystems. Include your involvement in any relevant projects or contributions to the Arbitrum DAO, or other Ecosystems. (400 words max)
DefiLlama Research and Castle Capital combine expertise in data-driven research, governance participation, and hands-on contributions within Ethereum and its Layer 2 ecosystems. Our shared mission is to provide objective and actionable insights that align with and empower Arbitrum DAO’s vision of scaling Ethereum securely and without compromise.
DefiLlama Research excels in conducting comprehensive research on emerging trends, complex technical frameworks, and DeFi protocols. As a part of LlamaCorp, DefiLlama Research contributes to the broader ecosystem supported by initiatives such as DefiLlama — one of the largest free, open-source data platforms, DefiLlama News (DL News) — which delivers accurate and transparent journalism, and infrastructure projects like Llama Nodes and Chainlist.
Castle Capital is a decentralised research collective that has been deeply involved with the Arbitrum ecosystem since its inception, contributing to key DAO initiatives. Castle has played a pivotal role in shaping governance and refining incentive structures. Castle’s advisory roles in the Long-Term Incentive Program Pilot (LTIPP) and STIP Bridge have equipped them with meaningful insights into the needs of the DAO as well as hands-on experience managing collaborations with over 60 protocols.
Key Highlights of Our Experience
Data-Driven Research & Analysis:
- Published in-depth reports on Ethereum Layer 2 solutions, exploring rollup technology and consensus mechanisms focusing on scalability and decentralisation.
- Conducted comprehensive analyses of DeFi protocols, examining the impact of governance decisions on protocol sustainability.
- Delivered exploratory research on DeFi governance, assessing grant allocations and the effectiveness of funding projects that drive innovation within the ecosystem.
Arbitrum-Focused Contributions:
- Conducted targeted research on Arbitrum-native protocols like GMX V2, analysing how DAOs utilised their ARB airdrop allocations to optimise incentive structures. (Example: ARB Airdrop Analysis)
- Provided advisory support in the LTIPP and STIP Bridge initiatives, managing collaborations with over 60 protocols and refining the DAO’s incentive frameworks to align with long-term growth objectives.
Governance & Community Engagement:
- DefiLlama Research has conducted analyses of DAO governance frameworks and the regulatory landscape in the EU, providing guidance to DAOs on strategic decision-making.
- Castle Capital has been actively involved in governance roles, such as the Multisig Signer Service (MSS) and working groups like the ARB Staking Rewards Source, showcasing practical experience in DAO operations.
- Created accessible resources, such as Castle’s STIP dashboards and detailed educational reports.
Explain how your skills align with the role you are applying for and describe your methodology for fulfilling your duties. How will these skills help you effectively contribute to the Arbitrum DAO? (500 words max)
As onchain-native, grassroots, and community-driven organisations, DefiLlama Research and Castle Capital bring a distinct, hands-on approach to the role of Research Member for Arbitrum DAO’s ARDC V2. Our teams comprise researchers who have grown organically within the crypto space, driven by a commitment to decentralisation, transparency, and community engagement. This foundation aligns naturally with Arbitrum’s mission to scale Ethereum without compromise.
DefiLlama Research, led by Ryan Celaj, brings a robust background in the Ethereum ecosystem. Ryan’s experience, spanning from his early days at Messari, has seen him spearhead initiatives such as onchain trend identification, Ethereum blob pricing analysis, and deep dives into regulatory impacts in different geographic regions. With prior experience dissecting DeFi giants like Morpho, 1inch, and Liquity, the DL Research team leverages comprehensive onchain data analysis to deliver actionable insights.
Castle Capital complements this approach with its extensive hands-on experience in the Arbitrum ecosystem, actively contributing since its inception. Castle’s roles as advisors for the LTIPP and STIP Bridge, along with contributions to the ARB Staking Rewards Source working group, have provided us with a nuanced understanding of governance and incentive mechanisms. Castle has consistently produced educational content that translates complex topics into digestible formats, engaging both technical and non-technical stakeholders through effective storytelling and data visualisation.
Together, our grassroots, crypto-native ethos is complimented by our unique blend of expertise in data-driven research, educational content creation, and incentive framework design. This aligns perfectly with the Research Member role, supporting the Arbitrum DAO’s strategic goals through the provision of data-driven insights.
Methodology:
- Objective, Data-Driven Analysis: Leveraging DefiLlama’s extensive data infrastructure, we extract and analyse onchain data to provide unbiased insights. This allows us to identify trends, assess protocol performance, and recommend strategies that align with Arbitrum’s vision of scaling Ethereum while maintaining decentralisation and security.
- Strategic Content Creation: Castle Capital’s expertise in educational content and long-form research ensures that we can distil complex concepts into accessible materials. This will empower delegates and stakeholders to make well-informed decisions, fostering a collaborative and transparent ecosystem.
- Incentive Framework Design & Governance: Combining our advisory experience and research capabilities, we aim to optimise incentive mechanisms within the Arbitrum ecosystem. This includes designing frameworks that attract top-tier builders, fostering sustainable growth, and creating compelling blockspace.
- Community Engagement & Collaboration: As two grassroots collectives, we are committed to strengthening the DAO’s network by hosting regular collaborative calls and facilitating knowledge sharing. All research conducted for the DAO will be published on DL Research, leveraging our established platforms for promotion, outreach, and community engagement. To further amplify our findings, Castle will convert key insights into blog posts and Twitter threads. This multi-channel approach ensures that Arbitrum’s initiatives gain maximum visibility, attract new contributors, and drive broader adoption across the ecosystem.
By integrating our onchain-native experience with our deep understanding of decentralised ecosystems, we are confident in our ability to provide meaningful contributions that align with Arbitrum’s goals of scaling Ethereum efficiently, securely, and in a community-driven manner.
Motivation
What motivates you to join ARDC, and what do you aim to achieve as a Working Member? (400 words max)
Our motivation to join the ARDC is rooted in a shared vision of establishing Arbitrum as a premier Layer 2 scaling solution and a community-driven force dedicated to scaling Ethereum without compromise. Being part of this journey and amplifying its impact is a mission that inspires us.
We believe that integrating DefiLlama Research, alongside Castle Capital’s deep involvement in the Arbitrum ecosystem, presents a unique opportunity to accelerate the ARDC’s initiatives. By leveraging Castle’s established relationships with protocols and delegates, combined with DefiLlama Research’s data-driven insights, we can hit the ground running. This collaborative approach ensures that our contributions align seamlessly with Arbitrum’s strategic goals, enhancing governance frameworks, optimising incentive structures, and driving ecosystem-wide innovation.
Together, we will serve as a bridge between users, protocols, and the DAO itself. The synergy between our data-centric research and hands-on ecosystem experience empowers us to refine existing programs while proactively identifying new opportunities aligned with Arbitrum’s North Star.
Moreover, our combined efforts will significantly enhance the visibility and reach of the ARDC’s contributions. By publishing research findings across all DL channels and converting them into engaging content formats, we can expand outreach through blog posts and bi-weekly threads. This ensures that Arbitrum’s initiatives gain maximum exposure beyond its existing ecosystem, attracting new developers, dApp builders, and users. We are convinced that a vibrant, engaged community is the cornerstone of any successful DAO, and a key value proposition of Arbitrum. Through our efforts, we aim to strengthen that foundation.
By uniting the strengths of DefiLlama Research and Castle Capital, we are committed to supporting the ARDC in achieving its strategic objectives and solidifying Arbitrum’s position as a leader in the onchain movement. Our community-first approach will help build a resilient, inclusive ecosystem, driving the DAO’s next leap forward.
Research Initiatives
Describe your experience conducting research-oriented initiatives within the digital asset industry, more specifically (and if applicable), research related to the Arbitrum tech-stack. Explain how your previous experience can translate to an added value contribution to the ARDC & the Arbitrum DAO. (500 words max)
Castle Capital and DefiLlama Research bring a wealth of experience in conducting high-quality, data-driven research across the digital asset landscape, particularly focusing on the Ethereum and layer 2 ecosystems.
Castle Capital’s Contributions
- Arbitrum-Specific Research & Analysis:
- What Did DAOs Do with Their ARB Airdrop?: An investigation into how various DAOs utilised their ARB allocations, providing insights into optimising future incentive structures within the Arbitrum ecosystem.
- Deciphering GMX V2: An in-depth look at GMX V2’s decentralised perpetual markets, offering strategies relevant to Arbitrum in attracting high-impact DeFi protocols.
- A Spotlight on Builders Without an ARB Airdrop: A report focusing on the contributions of Arbitrum-native builders who did not receive ARB airdrops, highlighting underappreciated participants in the ecosystem.
- The State of Arbitrum (Co-authored with Revelo Intel): A comprehensive analysis of the Arbitrum ecosystem, identifying current strengths and areas for future growth.
- Incentive Program & Governance Support:
- As advisors in the LTIPP (Link to LTIPP information hub) and STIP Bridge, Castle Capital managed collaborations with over 60 protocols. This experience supports refining Arbitrum’s incentive structures to drive protocol adoption and engagement.
- Castle’s role in the Multisig Signer Service (MSS) and working groups such as the ARB Staking Rewards Source highlights their governance expertise, which can contribute to strengthening Arbitrum’s internal processes.
- Educational Content & Community Engagement:
- Castle Capital has consistently produced educational content that simplifies complex topics, supporting community engagement. Resources like our STIP dashboards are designed to increase transparency, which aligns with Arbitrum’s goal of fostering an informed and engaged community.
- We have a structured research process that allows us to generate continuous, high-quality content that can be used to promote the initiatives of the Arbitrum DAO, driving greater awareness and adoption.
DefiLlama Research’s Contributions
- DeFi & Regulatory Research:
- State of DeFi Q3’24 Report: A high-level overview of the latest developments in DeFi, which can help Arbitrum identify new growth areas and strategic partnerships.
- State of Digital Assets in Europe: A comprehensive report that covers the regulatory landscape and its implications for layer 2 protocols like Arbitrum, offering guidance on compliance and strategic positioning.
- Conducted over 40 interviews with top industry experts, providing diverse perspectives that can guide the Arbitrum DAO in aligning its initiatives with broader market trends.
- Technical Deep Dives & Layer 2 Analyses:
- Hemi Network Modular L2 Deep-Dive Report: Our deep-dive into the Hemi Network’s modular layer 2 design examines innovations that could align with Arbitrum’s goal of expanding Ethereum’s scalability without compromising security.
- Zircuit L2 Deep-Dive Report: Our comprehensive analysis of Zircuit’s architecture explores scalability solutions that can inform Arbitrum’s efforts in understanding the competitive environment.
- Insights After Dencun: An analysis exploring layer 2 blob pricing in the wake of Ethereum’s Dencun upgrade. The findings are relevant for Arbitrum’s efforts to optimise gas costs and enhance rollup data availability.
- Kontos Interoperability Protocol Analysis: By evaluating Kontos’s approach to cross-chain interoperability, we provide insights that could support Arbitrum’s cross-chain initiatives and ensure seamless integration with other ecosystems.
Relevance to Arbitrum DAO’s Strategic Goals
Our combined experience positions us to effectively support the Arbitrum DAO in several critical areas:
- Upfront exploratory research to identify opportunities for protocol improvements and scaling.
- Post-mortem analyses of past initiatives to refine incentive programmes and optimise decision-making.
- Enhanced visibility through educational content and outreach.
- Strategic guidance on regulatory compliance and governance structures ensures that Arbitrum scales securely while aligning with Ethereum’s core principles.
Project Management & Collaboration
Describe your project management experience (This could include project management in other ecosystems you have operated in, management of initiatives, etc.) (300 words max)
Our combined team at DefiLlama Research and Castle Capital brings extensive, hands-on project management experience, leaving us well-equipped to support the DAO in executing its strategic initiatives.
DefiLlama Research has successfully created comprehensive research reports that exceed 100 pages, requiring collaboration with multiple stakeholders and experts. This process involved meticulous planning, coordination, and synthesis of complex technical information into actionable insights for the broader crypto community. Additionally, our experience in hosting high-profile events, such as A Night with DefiLlama News, demonstrates our ability to orchestrate large-scale initiatives, from planning and logistics to dynamic facilitation, ensuring valuable outcomes for participants.
Operating as a decentralised collective, Castle Capital has honed project management skills through its involvement in the Arbitrum ecosystem. An internal committee efficiently handles Castle’s responsibilities as an Arbitrum delegate, including research, feedback, proposal support, and voting, in a decentralised manner. As LTIPP and STIP Bridge advisors, Castle managed collaborations with over 60 protocols and took ownership of the database management system used by advisors and council members. This experience underscores the firm’s ability to effectively manage complex, multi-stakeholder projects.
Our combined approach to project management is rooted in structured processes, clear communication and delivery, and adaptability. By combining our extensive analytical capabilities and experience in decentralised coordination, we are confident in our ability to manage complex initiatives within the DAO.
Scope of Work
Outline the tasks and key deliverables you propose, covering one-third of the 6-month term. Demonstrate your understanding of the most pressing needs within the Arbitrum DAO and how your work will support its strategic goals. (500 words max)
The proposed scope of work will tackle the challenges the Arbitrum DAO faces, providing data-driven insights that can be leveraged to accelerate each component of Arbitrum’s flywheel (outside of the technology stack).
1. Exploratory Research on Builder Retention & Expansion (Target = Applications)
Challenge: Builders are not always aware of opportunities within the ecosystem or the possibilities that the tech stack unlocks, and once onboarded have limited support from the DAO.
Goal: Identify and address key challenges in developer retention, ecosystem growth, and strategic alignment to recommend an effective builder expansion strategy.
Deliverables:
- Builder Needs Survey: Identify pain points of current developers on Arbitrum One and Nova.
- Developer Segmentation: Profile builders (DeFi, GameFi, infrastructure) for tailored support.
- Competitive Benchmarking: Assess gaps vs. other layer 2 networks.
- Strategic Recommendations: Propose clear steps to improve onboarding and incentives.
Post Work Unlock: A clear pathway for an onboarding/ecosystem workstream to be set-up with a clear basis for a strategy to be created and implemented.
2. Ecosystem-Building Initiatives (Target = DAO-Driven Development Programs)
Challenge: Arbitrum lacks a competitive and builder-focused ecosystem strategy to reward innovative projects, limiting its ability to attract and retain top-tier developers – the same developers that gave Arbitrum its reputation as the home of disruptive builders.
Goal: Provide insights and recommendations to position Arbitrum as the premier blockchain for innovation by optimising grant funding mechanisms and incentivising novel protocols.
Deliverables:
- RPGF Analysis: Assess the impact of Retroactive Public Goods Funding (RPGF) models in competing ecosystems on builder and user retention.
- Innovation Grants Framework: Explore and propose possible retroactive funding mechanisms to reward innovative projects with long-term growth potential.
- Strategic Grant Prioritization: Identify high-impact Arbitrum-aligned protocols for targeted grant allocations by creating an evaluation matrix.
- Builder Engagement Initiatives: Recommend strategies to deepen relationships with current projects, enhancing ecosystem stickiness.
Post-Work Unlock: An outline of research for a grant-driven growth workstream to pick up and run with, enabling Arbitrum to attract high-impact builders and drive sustained ecosystem expansion.
3. Readying for Orbit Chain Interoperability (Target = Ecosystem)
Challenge: Orbit chains feel isolated from Arbitrum One and other orbits, and often face issues with liquidity and bridging solutions. We must improve interoperability to fully capitalise on Arbitrum’s strengths and become a cohesive ecosystem with seamless UX.
Goal: Address interoperability gaps in Arbitrum’s ecosystem to define a pathway to enhance Orbit chain adoption, strengthen the application layer, and ensure a seamless user experience.
Deliverables:
- Non-Technical UX Solutions: Propose immediate, non-technical improvements to the user experience and public perception of Orbit chain interoperability.
- Bridge Design Analysis: Compare intent-based bridges across ecosystems, outlining key differences and suggesting best practices for Arbitrum’s ecosystem.
- Messaging Layer Review: Investigate existing messaging layer solutions, evaluating their functionality and applicability to Orbit chains.
- Alignment with Ethereum Interoperability Plans: Analyse how proposed solutions align with Ethereum’s broader roadmap for interoperability.
Post-Work Unlock: An outline of research and recommendations for an interoperability workstream implementation, enabling Arbitrum to fully capitalise on its strengths and become a cohesive ecosystem with seamless UX.
Please also elaborate as to your capacity to execute, including how you intend to allocate resources for the remaining term, with regard to ad hoc or flexible tasks that the Supervisory Council may put forward. Please also describe how you would plan to satisfy this should the ARDC be extended for an additional 6-month term. (300 words max)
Our joint application significantly strengthens our capacity to execute the ARDC’s responsibilities. This partnership is central to our approach and effectively doubles our resources. Together, we are prepared to allocate a team comprising two full-time analysts from DefiLlama Research and two full-time analysts from Castle Capital, along with additional part-time analysts as needed. This combined team ensures we have ample capacity to address both scheduled duties and any ad hoc or flexible tasks the Supervisory Council may assign.
By combining the expertise of DefiLlama Research and Castle Capital, we offer a comprehensive skill set that transcends a purely institutional research approach. Our collaborative partnership emphasises data-driven, grassroots, onchain native research, enabling us to provide deeper insights rooted in the nuances of the Arbitrum ecosystem.
Should the ARDC be extended for an additional six-month term, our partnership positions us to continue our work with sustained enthusiasm and seamless resource allocation. We are committed to maintaining flexibility and scalability in our team structure, ensuring we can adapt to extended responsibilities and evolving project needs.
Additional Details
Any additional information deemed relevant (500 words max)
Further to our outlined Scope of Work, we would like to note our interest in supporting the DAO in its search for Arbitrum’s identity.
This lack of a clear narrative or identity can at times hinder ecosystem actors from progressing toward a shared vision and impacts our ability to resonate with the wider industry. We know Arbitrum excels in various areas, but the question of what should it be known for remains unanswered.
If elected, we would advocate for the implementation of a comprehensive analysis of Arbitrum’s current identity within the wider ecosystem, addressing gaps and opportunities for narrative and branding alignment to inform the DAO and ensure ecosystem growth.
These clear and unbiased research findings would fully inform delegates of Arbitrum’s position and optics within the broader ecosystem. We suggest carrying this out before the DAO decides which Strategic Objectives to set following the agreement of Arbitrum’s Mission, Vision, and Purpose (MVP).
Informed by the experience of ARDC V1, we recognise the need for closer collaboration with proposal creators and ecosystem participants from the outset. DefiLlama Research and Castle Capital will prioritise proactive engagement, ensuring that our research and insights are aligned with the needs of the ecosystem and key stakeholders.
To address the gaps in visibility, we are committed to increasing transparency by providing regular updates on ongoing initiatives. All findings and progress will be actively shared across DL Research and Castle’s platforms, including blog posts, Twitter threads, and collaborative reports. This multi-channel strategy will ensure the community stays informed and engaged, driving a more cohesive and effective ARDC V2.
Conflict of Interest
Please disclose any potential conflicts of interest and how you plan to handle situations where they might arise. (250 words max)
DefiLlama Research and Castle Capital have no active conflicts of interest that would impact our ability to serve the Arbitrum DAO objectively. However, we acknowledge that Castle’s involvement with several protocols within the Arbitrum ecosystem could potentially create situations where conflicts may arise. We are committed to full transparency to address such scenarios and will promptly disclose any conflicts to the DAO and all other relevant stakeholders. In cases where conflicts are identified, we will refer the matter to the Supervisory Council for guidance and resolution, ensuring that our research and advisory efforts remain unbiased.
The partnership between DefiLlama Research and Castle Capital allows us to leverage each other’s strengths to mitigate potential conflicts. This includes segregating duties, reinforcing internal guidelines on impartiality, and relying on one another to maintain objectivity. By upholding these principles, we ensure that our contributions to the DAO are always aligned with its mission of scaling Ethereum without compromise.
Summary
In summary, please highlight your key qualifications and explain why you are a strong fit for the role. (500 words max)
DefiLlama Research and Castle Capital are uniquely positioned to excel as the Research Member within the ARDC V2. Together, we bring research expertise, hands-on governance experience, and a commitment to advancing the Arbitrum ecosystem.
DefiLlama Research focuses on data-driven analysis across DeFi protocols, layer 2 scaling solutions, and DAO governance. Our track record includes producing comprehensive reports, conducting technical evaluations, and delivering insights that optimise decision-making.
Castle Capital has been embedded in the Arbitrum ecosystem from the beginning, actively contributing as advisors to the LTIPP and STIP Bridge. By managing collaborations with over 60 protocols and supporting governance initiatives, Castle is deeply engrained within the ecosystem and aware of its needs.
Key Qualifications:
- Extensive Research Expertise: DefiLlama Research and Castle Capital excel in producing high-quality, data-driven research that informs strategic decisions. Our combined experience in evaluating layer 2 technologies, optimising protocol incentives, and conducting governance analysis aligns with Arbitrum’s needs.
- Proven Governance Participation and Extensive Knowledge of Incentive Frameworks: Castle’s deep involvement in Arbitrum’s incentive programs, coupled with DefiLlama’s expertise in governance structures, allow us to refine incentive mechanisms to foster sustainable growth and developer engagement.
- Project Management Expertise: Our teams have managed complex projects, from producing in-depth research reports to organising community events, ensuring timely and high-quality outputs.
- Community Engagement and Data Visibility: By leveraging our publication platforms we aim to enhance the visibility of ARDC initiatives, confident that a focus on data transparency and outreach will attract developers and users to the Arbitrum ecosystem.
Why We Are a Strong Fit:
- Alignment with Arbitrum’s Strategic Goals: A deep understanding of Arbitrum’s technology stack and a proven track record in DAO governance will enable us to deliver impactful research that drives informed decisions.
- Commitment to Transparency and Collaboration: We support Arbitrum’s mission to scale Ethereum securely while maintaining decentralisation.
- Optimising Incentive Structures: By applying our expertise we can refine DAO frameworks to drive protocol adoption and ecosystem growth.
- Empowering the Ecosystem: Our combined strengths will help advance Arbitrum’s vision of becoming the home for the universal shift onchain, contributing to a resilient and thriving ecosystem.
We are excited by the opportunity to contribute to Arbitrum’s mission and are confident that our skills and experience will be invaluable in helping the DAO achieve its strategic objectives.