Information about STIP/STIP Backfund
- Can you provide a link to your previous STIP proposal (round 1 or backfund)?
- STIP Proposal: [Silo Finance] [FINAL] [STIP - Round 1]
- How much, in the previous STIP proposal, did you request in ARB?
- 1,000,000 ARB
- What date did you start the incentive program and what date did it end?
- November 8th 2023 - March 29th, 2024
- Could you provide the links to the bi-weekly STIP performance reports and Openblocks Dashboard?
- STIP bi-weekly reports: SILO STIP Program Updates
- Openblock Dashboard: OpenBlock Labs
- Could you provide the KPI(s) that you deem relevant for your protocol, both in absolute terms and percentage change, month over month, for the first of each month starting from October 2023 until April 2024, including the extremes? If you don’t know what KPI might be relevant for you or how to properly define them, please refer to the following document.
Our growth KPIs during and after STIP distribution increased several times compared to when we started, ranking among the top protocols when the growth is weighted against the ARB incentives received.
Here is a month-to-month breakdown of KPIs growth starting in October 2023.
Charts
- TVL + Borrows: This metric refers to total funds deposited in the protocol, including borrowed funds.
- TVL: Unlike in DEXs, TVL in lending markets refers to funds currently available for borrowing, excluding borrowed funds.
- Daily Active Users
- Summary of metrics with change
*TVL + Borrows: This metric refers to total funds deposited in the protocol, including borrowed funds.
**TVL: Unlike in DEXs, TVL in lending markets refers to funds currently available for borrowing, excluding borrowed funds.
Source: https://silo.observer/
Numbers are recorded on the last day of each month.
- [Optional] Any lessons learned from the previous STIP round?
1- The grant helped increase awareness of risk isolation as a fundamental practice for risk management. It helped us educate new users on how traditional lending markets manage risk and how risk-isolated lending markets mitigate risk by design. Following an approach of learning by doing, the grant helped “onboard” users successfully to isolated lending markets; many users continue using our markets today after the grant distributed ended.
2- Incentivizing borrowing is ineffective in sustaining long-term borrowers.
3- Isolated lending markets reach an “organic cap,” where increased incentives have diminishing effects on TVLs and borrowers.
4- Incentives encourage projects to integrate lending into yield strategies.
New Plans for STIP Bridge
- How much are you requesting for this STIP Bridge proposal?
- 500,000 ARB
- Do you plan to use the incentives in the same ways* as highlighted in Section 3 of the STIP proposal? [Y/N]
- No
- [Only if answered “no” to the previous question] How will the incentive distribution change in terms of mechanisms and products?
- While the distribution framework remains similar to that used for STIP, it will now include more markets recently rolled out.
Distribution brief
- All ARB incentives are distributed to users of our isolated markets on Arbitrum.
- Incentives are distributed alongside $SILO incentives - $SILO is being distributed to markets using a buyback program.
- The core team will optimize distribution weights for higher market utilization ratios.
Here is an initial distribution plan covering 27 markets. We will decide on the final distribution weights later.
| Market | *Allocation weight (target) |
Allocation weight (minimum) |
Allocation weight (maximum) |
$ARB Allocation |
|---|---|---|---|---|
| High-cap Markets e.g. ARB-WETH-USDC.e |
30% | 15% | 50% | 150,000.00 |
| LRT markets e.g. weETH-WETH-USDC.e |
22% | 10% | 35% | 110,000.00 |
| Pendle PT markets e.g. PT-weETH; PT-rsETH |
20% | 10% | 30% | 100,000.00 |
| Mid-cap Markets e.g. GMX-WETH-USDC.e |
15% | 2.75% | 20% | 75,000.00 |
| Low-cap Markets e.g. GMX-WETH-USDC.e |
13% | 3.50% | 17% | 65,000.00 |
| TOTAL | 100.00% | 500,000.00 |
*Allocation weight (target): The expected $ARB allocated to a market category when starting the emissions. Weights will be optimized based on market conditions, collateral’s liquidity depth, and Silo’s primary growth KPIs. Allocation weights will likely be within the maximum and minimum brackets.
- Could you provide the addresses involved in the STIP Bridge initiative (multisig to receive funds, contracts for distribution, and any other relevant contract involved), and highlight if they changed compared to the previous STIP proposal?
- Multisig: (Same as STIP)
- Funding Address: arb1:0x865A1DA42d512d8854c7b0599c962F67F5A5A9d9
- Distribution contract: We will use Merkl to distribute the incentives.
- Could you share any feedback or suggestions on what could be improved in future incentive programs, what were the pain points and what was your general evaluation of the experience?
Allow teams to choose longer emission timeliness such as 6 months.