[FINAL] Stryke STIP Addendum

Archive STIP Bridge Addendum
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ADDENDUM for protocols

Protocols will post this template in the newly formed “STIP Bridge Addendum” section of the forum. The post should be titled “[Protocol Name] STIP Addendum”

Information about STIP/STIP Backfund

  1. Can you provide a link to your previous STIP proposal (round 1 or backfund)?
    Round 1 proposal
  2. How much, in the previous STIP proposal, did you request in ARB?

1,500,000 ARB

  1. What date did you start the incentive program and what date did it end?

STIP incentives started the 18th of November 2023, ended March 29th 2024

  1. Could you provide the links to the bi-weekly STIP performance reports and Openblocks Dashboard?
  1. 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:[Arbitrum DAO] OpenBlock Labs Incentive Onboarding Spec

TVL of Option CLAMMs

Date 01/11/2023 01/12/2023 01/01/2024 01/02/2024 01/03/2024
TVL($M) 2.26 4.92 3.98 4.26 2.14
TVL% - +117.69% -19.10% +7.03% -49.76%

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TVL from February 27, 2024 until May 1, 2024. Dune link

Volume of Options CLAMMs

Date 01/11/2023 01/12/2023 01/01/2024 01/02/2024 01/03/2024
Volume($M) 23.3 46.82 38.29 24.59 60.03
Volume % - +100.94% -18.12% -35.77% +144.12%

Cumulative
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Cumulative Volume from February 27, 2024 until May 1, 2024. Dune link

  1. [Optional] Any lessons learned from the previous STIP round?
    Our Protocol delivered on the Milestones we set for the STIP grant:
  • Deployed CLAMM options markets
  • Hit 1.5M in TVL constantly during the whole STIP Period
  • Onboarded Defi projects such as Orange Finance, PancakeSwap and soon to be SushiSwap
  • Deployed rDPX V2 to production

During that period of time we made some big changes for the protocol. For example, we rebranded from Dopex to Stryke, sunsetted an array of products that were not aligned with our long term goals and did a complete overhaul of the DAPP UI. To read more about our rebranding decision click here

Another lesson we learned is that our TVL didn’t decrease dramatically after incentives ended. In fact it increased, showing that our LP users wanted to use our platform regardless of extra arb incentive.

See TVL from November to February here: the average size was ~2M of TVL

See TVL from April til today here: the average size is ~2.2M of TVL

Additional Notes,

Per feedback and transparency, here are the metrics for the last 2 weeks of the ARB incentive program

STATS

Average daily TVL: 2.65M

Average daily transactions: ~1,000

Average daily volumes: ~2.00M

Number of unique user addresses: ~3,600

Transaction fees: 2.5 ETH

New Plans for STIP Bridge

  1. How much are you requesting for this STIP Bridge proposal?
    750,000 ARB

  2. Do you plan to use the incentives in the same ways* as highlighted in Section 3 of the STIP proposal? [Y/N] N

  3. [Only if answered “no” to the previous question] How will the incentive distribution change in terms of mechanisms and products?

Incentive distribution will solely be used for our CLAMM pools. The reason being this is our flagship product where we want to focus on increasing TVL, Volume, adding new markets, increasing expiry dates and onboarding market makers.

Distribution:

Market Target
ETH/USDC 45%
WBTC/USDC 25%
ARB/USDC 25%
BOOP/WETH 5%

KPI targets

TVL: At a current ~2M TVL, we are striving for at least a 50% increase in TVL to 3M.

Volume: At a current 0.5-1M of daily OI, we are aiming a 100% increase and get to 2M in daily options volume

We are confident that we will continue to grow and hit these conservative targets as we are launching weekly expiry options, onboarding new market makers that will deepen liquidity and hedge their positions as well. In collaboration with other defi projects we are planning to keep onboarding options liquidity to the ARB ecosystem.

  1. 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?

Same address as previous STIP proposal.

Multisig: 0x880C3cdCA73254D466f9c716248339dE88e4a97D

  1. 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?

Major pain point was getting through KYC, especially for anon-led teams.

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Hello @defipm ,

Thank you for your application! Your advisor will be SeedLatam Gov @SEEDGov

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

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Hi @defipm we are waiting for you in the discord !

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gm fellas, just pinged you on the Discord channel :slight_smile:

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Following feedback on the proposal to establish the STIP Bridge, it was agreed to involve the LTIPP Advisors in this process with the mission to “help applicants gain insights into their proposals. This not only guides applicants through the process but also ensures that the DAO will review better proposals.”

Despite the inclusion of Advisors, this process does not involve the Council, leading us to believe that this addendum places a significant burden on the delegates who must review all the proposals. One of the reasons for the LTIPP was precisely to avoid this excessive burden. Moreover, the optimistic model adopted in this phase could raise concerns about the real control the DAO will have over these proposals, as reviewing six months of data for each applicant is time-consuming.

For this reason, we decided to accompany each application we reviewed with a brief report. We ask the delegates not to take this as an in-depth or definitive basis for deciding your vote, but rather as a guide that can potentially raise questions for your own analysis.

Regarding Stryke (formerly Dopex), STIP KPIs were:

For that, they set milestones:

The first thing we noticed is that in the addendum, they only data about TVL and volume:

  • TVL of option CLAMMS
  • Volume of option CLAMMS

Also we noticed that their last report is from March 8th, and according to the addendum, incentives were distributed until March 28th.

When asked to the applicant, they answered that after the rebranding from Dopex to Stryke, they are focusing only on CLAMMS, being its flagship product. For the complete answer please check the Discord.

Regarding potential concerns over being a different product or applicant (prev. Dopex), the applicant explained that the rebranding shouldn’t make a difference for the program. The team is the same, the core product(CLAMM) is the same as the initial STIP proposal.

When analyzing their numbers, it’s important to note that they shared a new dashboard as a source of truth since they migrated their CLAMMs contract. OBL dashboards share data until February 26th. If approved, we believe they should update them.

Regarding the metrics shared, both TVL and options volume performed well with incentives. In fact, these metrics have remained at good levels even after the incentives ended.

Finally, we appreciate that the addendum includes new KPIs for measuring the new incentives effectiveness.

Conclusions

We believe that Stryke (Dopex) did a good job during the execution of the STIP. Now, they are going to focus on their flagship product, CLAMMS. It makes sense for the incentives to be directed accordingly.

We noticed in all the applications we reviewed that there is a significant drop in TVL during the last month. We believe there are multiple reasons for this, and there isn’t enough time to conduct a thorough and conclusive analysis of the long-term effectiveness of the STIP.

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