[Gamma] [FINAL] [STIP - Round 1]

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Applicant Name:


Project Name:


Project Description:

Gamma offers non-custodial, automated, and active concentrated liquidity management services.

Team Members and Qualifications:

@bp_gamma - Project Lead
@strategicreserve - Project Associate

Gamma is a global team that has been developing concentrated liquidity solutions for over two years. The team comprises individuals with experience in business development, strategy, frontend, backend, data analytics, marketing, social media, documentation, and community management.

Project Links:

Website: https://www.gamma.xyz/
Web App: https://app.gamma.xyz/
Documents: https://docs.gamma.xyz/
Twitter: https://twitter.com/GammaStrategies
Medium: Gamma Strategies - Medium
Github: Gamma Strategies · GitHub
DeFiLlama: https://defillama.com/protocol/gamma

Contact Information

TG: bp_gamma
Discord: bpgamma
Twitter: @BP_Gamma
Email: brian@gammastrategies.org

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



Requested Grant Size:

750,000 ARB

Qualification Check:

Siren Grants (Up to 750K ARB)
Live on Arbitrum for at least 4 months.
Meets one of the following criteria
$4M TVL.
$40M 30D cumulative Volume

Lighthouse Grants (Up to 2M ARB)
Live on Arbitrum for at least 6 months.
Meets one of the following criteria:
$15M Arbitrum Network TVL.
$100M 30D cumulative Volume

Gamma has been active on Arbitrum 10.5 months - :ballot_box_with_check:Siren :ballot_box_with_check:Lighthouse
Gamma has $6.2m in TVL - :ballot_box_with_check:Siren :x:Lighthouse
Gamma has $76m in 30d cumulative volume - :ballot_box_with_check:Siren :x:Lighthouse

AMM Parner Gross Fees (USD) Volume Through Vaults (VTV) Average Fee Tier**
Uniswap V3 $9,515.37 $8,807,593.54 0.1080%
Sushiswap V3 $179.75 $95,343.64 0.1885%
Ramses $15,740.27 $28,257,458.23 0.0557%
Camelot* $27,318.86 $21,160,334.62 0.1291%
Zyberswap* $8,660.94 $18,033,995.70 0.0480%
Pancakeswap $0.00 $0.00 0.0000%
TOTAL: $61,415.20 $76,354,725.74 0.0804%
Block Start Block End
125275000 134898756
Aug-26-2023 09:36:13 PM UTC Sep-26-2023 09:35:49 PM UTC

VTV = Gross Fees x (1 / FeeTier%)
*Variable Fees = Approximated
**Extrapolated only, not calculation based

See the Raw Data (Google Sheets)

We feel the maximum ask on Siren is appropriate, given the circumstances.

Grant Matching:

No matching funds available

Grant Breakdown:

Gamma proposes a three-month liquidity incentive program. The program would run from November 1, 2023 - January 31, 2024.

The program would distribute 250,000 ARB monthly for three months to liquidity providers who participate in qualified Gamma vaults built on top of liquidity pools of our six currently supported AMMs.

Since we have already deployed on Arbitrum and our partner AMMs, we would not require any development funds for this grant. 100% will be going to LPs.

Funding Address:

0x8beFf353FCb2E288fdFFbb0b2B61B4c76dc700Df - Gamma Community Treasury Arbitrum

Funding Address Characteristics:

2/3 GnosisSafe multisig with stored keys. Link.

Contract Address:

Gamma will deploy specific rewarder contracts (example) for each AMM to properly disperse funds. Rewarder contracts will be posted here in our Contracts Repository.



Our objective is to deploy liquidity incentives on three native AMMs (Ramses, Camelot, and Zyberswap) and two non-native AMMs (Uniswap, SushiSwap, and Pancakeswap), to increase liquidity on the Arbitrum network.

Compared to other grant proposals, our priority is to find unbiased, undercapitalized pools on the Arbitrum network.

Key Performance Indicators (KPIs):

  1. Total Value Locked (TVL) - Evaluating the amount of liquidity that has entered the liquidity pools via Gamma’s vaults
  2. Volume Through Vaults (VTV) - Evaluating the amount of volume that Gamma vaults have facilitated
  3. 𐤃 Volume - Evaluate the change in volume in the pool prior to incentivizing Gamma vaults
  4. Slippage - Measuring slippage on a variety of hypothetical trades.
  5. Efficiency - Evaluate the actions of DEX aggregators toward incentivized pools
  6. TVL / Volume - Evaluating the capital efficiency of each pool by understanding the volume to TVL ratio.
  7. LP Performance - Evaluating the performance of LPs from fixed points in time. These include Gamma vault vs hold, hold 100% token0, and hold 100% token1.

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

Liquidity incentives are critical to bootstrapping and building healthy decentralized liquidity pools on a growing blockchain. Correctly allocated and managed concentrated liquidity pools allow low slippage trading, which is vital to a healthy network.

Gamma receiving this grant creates long-term ideal liquidity conditions for liquidity providers, traders, and our partner AMMs. Gamma also has the incentive to find undercapitalized pools that “fill the gaps” between proposals from exchanges or other liquidity mangers.

Justification for the size of the grant:

Gamma passes all the metrics for a Siren grant.

Gamma has invested significant resources to integrate natively with many of the major DEXs on Arbitrum, including Uniswap, Zyberswap, Ramses, Camelot, Pandcakeswap, and SushiSwap.

Many of these integrations were bespoke integrations that involved integration with not only their smart contracts (UniswapV3Pool.sol, AlgebraPool.sol v1.0, AlgebraPool.sol v1.9, AlgebraPool.sol v2.0, and RamsesV2Pool.sol) but with each DEX’s unique rewarder infrastructure including the Angle Merkl rewarder for Uniswap and Sushi, MultiFeeDistribution contract for Ramses, and Camelot’s spNFT liquidity locking contract.

We’ve spent hundreds of thousands of dollars on blue-chip audits with ConsenSys Diligence for our main position manager smart contracts, and we have a prepaid two-week/two-person audit with OpenZeppelin specifically for our hedging vaults that will integrate natively with GMX v2 on Arbitrum to hedge against impermanent loss on our positions.

Additionally, we are running four servers to handle the data infrastructure and two dedicated servers to handle the automation of these positions. We’re also subscribed to the highest-tier RPC plans to handle the load on Arbitrum where we average well over 1.8 million RPC requests daily. We are also subscribed to the enterprise plan for OpenZeppelin Defender, which provides the execution layer for both our LP positions and our hedging strategies.

We were also active proponents of supporting Arbitrum liquidity in Uniswap’s governance forum. We authored a Uniswap governance proposal to utilize Uniswap’s $ARB DAO airdrop to support liquidity on Arbitrum. This proposal garnered significant support amongst Uniswap delegates, with 50.03M in support of the proposal with only 5.52M opposed.

Gamma is currently integrating a sixth AMM, Pancakeswap, and they will be included in the program.

Execution Strategy:

If funds are awarded to Gamma, we will immediately begin talks with our partner AMMs on identifying appropriate pools to incentivize.

Not listing the pools here is not an attempt to be purposely ambiguous, but more to have flexibility about how we’re going to be distributing incentives. In our experience, these kinds of choices are made with the most possible information, closer to game time.

Gamma will take into account pairs that are already being incentivized and search for under-capitalized pools based on our analysis of trading activity on the Arbitrum network.

Our methodology on choosing pairs comes down to the following factors:.

  1. Native pairs to Arbitrum (these pairs tend to need the most liquidity and are undercapitalized)
  2. Critical infrastructure pairs (WETH, ARB, WBTC, stablecoins, and most users regularly use)
  3. Pairs that play to the strengths of the AMM they’re on.
  4. Avoiding already incentivized pairs by another organization
  5. Avoiding overcapitalized pairs
  6. Structuring incentives so AMMs are not working against each other inefficiently

Grant Timeline:

-Application/Review/Voting: October 11, 2023
-Grant Administration / KYC Period: Late October 2023
-Pool Identification and Deployment Period: Late October 2023
-Incentive Program Begins (with biweekly updates): November 1, 2023
-Incentive Program Ends: January 31, 2024
-Final Report: February 15, 2024

Time ARB per Period Cumulative ARB
November 2023 250,000 250,000
December 2023 250,000 500,000
January 2024 250,000 750,000
TOTAL 750,000.00

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?



Is the Protocol Native to Arbitrum?:

No, Gamma currently supports fourteen different networks, including Arbitrum.

On what other networks is the protocol deployed?:

Ethereum Mainnet, Optimism, Polygon Proof-of-Stake, Polygon zkEVM, BNB Chain, Base, Moonbeam, Linea, Mantle, Rollux, Celo, Avalanche, Fantom.

What date did you deploy on Arbitrum?:

November 1st, 2022 (324 days ago)

Protocol Performance:

As of September 21st, 2023, Gamma currently has $6.2m in TVL on Arbitrum. Gamma’s TVL peaked on Arbitrum on April 1st, 2023, with approximately $19.1m in TVL. After a period of decline, Gamma was able to onboard several new partners to bolster our Arbitrum participation.

Gamma supports five different AMMs on Arbitrum and is adding a sixth (Pancakeswap). Uniswap, SushiSwap, Zyberswap, Ramses, and Camelot. All these AMMs currently have frontend support on Gamma’s application and have already established liquidity incentive programs with Gamma.

Gamma currently manages over all networks about $80m in funds on fourteen networks and seventeen AMMs. We have a diverse management portfolio of volatile and stable assets. We are a leader in our space in fees and revenue produced, AMM/network integrations, supported pools, and Arbitrum TVL,

Gamma is currently at a sustainable operations level where we are making enough protocol revenue to fund operations indefinitely. We can confidently continue operations through the life of the grant cycle.

Protocol Roadmap:

Gamma is currently in the process of deploying hedging strategies on Arbitrum using GMX. These new strategies will be deployable in Gamma’s vaults on our partner’s liquidity pools. The hedging strategy code is being audited by OpenZeppelin.

Once these new strategies are ready, we plan to migrate some of the incentives to the advanced vaults for liquidity providers to take advantage of.

Audit History:

Gamma has major audits from Arbitrary Execution and ConsenSys Diligence. As mentioned previously, our hedging strategies will be audited by OpenZeppelin.

SECTION 5: Data and Reporting

Is your team prepared to create Dune Dashboards for your incentive program?:


Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes. Gamma can provide bi-weekly updates on vaults, TVL, performance, and incentive distribution.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:



Gamma is a special protocol. Excited to see their growth on Arbitrum and supporting teams like Gamma is going to benefit the entire ecosystem.


I support this proposal for a few reasons:

  1. They are not taking any of it for themselves-- a real testament to their dedication as builders and helping the overall ecosystem.
  2. The grants are being used to support ecosystem AMMs, the lifeblood of any DeFi landscape.
  3. A personal bias, but I have worked with the Gamma team first-hand and can attest to their consistency as builders alongside their adaptiveness in all situations.

Having literally just worked with the Gamma team this past weekend to implement a super complex staking mechanism for making a UniswapV3 position fungible, I have to share how inpressed I was with the team.

And I happen to know they have a ton going on right now - but they were timely, helpful, and just the kind of partners you want to be working with. Big fan of this proposal and look forward to them pushing Arbitrum forward.


Hello @strategicreserve thank you for submitting. Could you please link the addresses of the “qualified Gamma vaults” you plan on incentivizing as per the application instructions?

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This application should have much more detail about how the $ARB is actually being allocated. When you are requesting almost $1m worth of funds then we really need to have more than a vague idea like below.

If funds are awarded to Gamma, we will immediately begin talks with our partner AMMs on identifying appropriate pools to incentivize.

Gamma will take into account pairs that are already being incentivized and search for under-capitalized pools based on our analysis of trading activity on the Arbitrum network.

This is also the same for the KPIs, we need clear targets to be able to measure.

It is really hard to even comment on the proposal itself when I have no idea how the ARB is actually going to be allocated - will it just be one DEX, will it be on one pool? It’s not enough to just assume you will distribute it effectively, this info needs to be the main part of the application.

Thank you


Hey @Matt_StableLab and @meyaf320219, thanks for your feedback.

I’d like to get some clarification from Arbitrum about what level of detail we have to post in this document. It’s not an attempt to be purposely ambiguous, but more to have flexibility about how we’re going to be distributing incentives. In our experience, these kinds of choices are made with the most possible information, closer to game time.

We have six different AMMs we can incentivize. (Uniswap, SushiSwap, Ramses, Camelot, Zyberswap, and PancakeSwap). They all have different strengths and attributes. I assume all of them will also be posting their own grant proposals here. We also assume that other liquidity managers, aggregators, and other platforms will be applying as well.

As an example, right now. there is a proposal to do quite a bit of incentives on LST pairs on Uniswap. If that passes, it would definitely influence how we would choose pairs to best help the Arbitrum ecosystem.

Likewise, our exchange partners like Camelot, Ramses, and others are likely going to apply for incentives with strategies in mind. It’s important to understand where they’re headed so we can make the best choices to support Arbitrum. To their credit, they all have their own agendas and ideas about where incentives need to go, and it’s totally fair for them to have a stake in that.

But I can offer some guidance on how Gamma will pick pairs.

  1. Native pairs to Arbitrum (these pairs tend to need the most liquidity and are undercapitalized)
  2. Critical infrastructure pairs (WETH, ARB, WBTC, stablecoins, and most users regularly use)
  3. Pairs that play to the strengths of the AMM they’re on.
  4. Avoiding already incentivized pairs by another organization
  5. Avoiding overcapitalized pairs
  6. Structuring incentives so AMMs are not working against each other inefficiently

I hope this sheds some light on our approach. I will get some clarity on the rules of the grant, and we’ll add more details as needed.


Hi @strategicreserve, I initially agreed with @meyaf320219 but your response is very logical and I completely understand the need for flexibility.

It is certainly possible to find common ground by giving a little more information and detail on the factors you will use to make your decision, the type of pools you would like to support as a priority, the criteria you will use to distribute the grant amongst the various AMMs you mentioned… Basically, you could incorporate the end of your last message into the proposal, with a bit more detail and numbers, and why not a rough example of what it would look like if it started tomorrow.

But apart from these minor adjustments that I humbly recommend, I will personally support this proposal.


We are waiting for NOV to start new journey to get rewards here :rocket:

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Thank you for these added details. This will suffice for now but please add the addresses of the vaults once they are selected in your first bi-weekly update. Your submission now meets all requirements to be considered for a snapshot vote.


Hey @strategicreserve

@tnorm We may see more cases like this; where a protocol receives more than one subsidy due to its partners; I can’t find if there is a defined decision on the matter; right now Ramses is an example of this.

I agree with this point

Can you share KPIs from previous grants you received?

Do you think it may make sense to accompany the ARB distribution with dexes partners interested in matching the distribution with their own token? Accompanied by some selection to incentivize pools that generate organic volume.


Right now, the only grant near completion would be incentives for WETH-OP. This program was designed to run for twenty-six weeks with 300,000 OP.

I will preface that KPIs are tricky on concentrated liquidity. The goal is to reduce slippage, create lower-cost trading, get a good TVL / $ incentive, and have LPs make a reasonable profit. The CL industry is still developing collective “standards” for measuring those things.

Program runs May 29, 2023 - November 29, 2023

Uniswap Pool Info
Gamma WETH-OP (Narrow)
Gamma WETH-OP (Wide)

As of September 24, 2023 w/ OP @ $1.28:
WETH-OP 0.3% Narrow - $3,227,270 TVL - 1,478.33 OP/day or $1892/day
WETH-OP 0.3% Wide - $290,360 TVL - 164.26 OP/day or $210/day
Narrow vault is running about $1705 TVL per $1 of incentives
Wide vault is running about $1767 TVL per $1 of incentives

Performance has been very good for each pair vs. holding for the LPs throughout the grant.

Narrow and Wide vaults have returned a similar amount for LPs.

Gamma’s vault constitutes about 45% of the TVL in the vault, and it’s been in range the entire time.

The WETH-OP 0.3% dominates on Optimism, with 10x the capital efficiency of non-concentrated liquidity exchanges. (we’re excited about CL on Velodrome). Likewise, most routing on 1INCH, Paraswap, and other aggregators go to Uni V3 and Gamma, respectively.

Pool Platform Volume TVL Vol/TVL
WETH-OP 0.3% Uniswap V3 $1,200,000 $7,700,000 0.1558
WETH-OP 0.3% Velodrome V1 $73,000 $4,800,000 0.0152
WETH-OP 0.3% KyberSwap $50,000 $322,000 0.1553

You can actually see Gamma’s Limit and Base positions on the Uni V3 pool (September 25, 2023).

WETH-OP 0.3% Narrow


The Green area would be our base position, the green would be our limit position.

That approach could work in certain circumstances, but not for the STIP. As previously stated, Gamma’s best practice in the STIP is to be a neutral party of where incentives go. Doing co-incentives would make us tethered to what each exchange wanted to incentivize. Again, that is their right, but that might not be what Arbitrum needs.


I’ve added significant sections to our grant application after getting edit access, including our pair-choosing methodology requested by @Perl and @Jadmat.

I’ve also added a Google doc and table showing our current fee production and Volume Through Vaults (VTV) that qualify us for a Siren grant. I think anyone who is using volume as a metric for grant allocations should post raw data regarding the volume flowing through their protocol.

Our grant meets time, TVL, and volume.


I honestly believe all ALMs and farm optimizers that are built on top of AMMs shouldn’t ever get any grants – giving those grants to the source AMM instead would make more sense without any unnecesary value extracting or double-dipping of same grants.

However, Gamma is literally the only exception in my book. They have no performance fees and being myself an avid CL/ALM user and researcher I can appreciate their tech as a true public good service. And it’s very good.

Despite UniV3 dexes having infinitely bigger efficency than most alternatives, there is a clear problem with onboarding enough TVL from the average user compared to older solutions, and I think Gamma shortens the gap for the average DeFi user which is very important if we ever pretend to move on from older inefficent models.

I support this proposal. Best of luck.


TLDR: This proposal is reasonable, well thought out, and in my opinion, would benefit Arbitrum greatly. Gamma has my support.

Having worked with them over the past few months, few things are clear:

  1. They are competent in what they do - their results speak for themselves, really. The selection methodology proposed is also very sound.
  2. They are highly committed to the vision of making LPing profitable and fuss-free for users, and have the technical chops to make it happen. As they expand their presence on Arbitrum, more users will surely come.
  3. They conduct themselves professionally and are a joy to work with.

Arbitrum would clearly benefit from an enhanced presence of Gamma in the ecosystem. Looking forward to our integration sers!


going on … Arbitrum will show huge performance :rocket:


Firstly, thank you for your proposal and keen interest in the Arbitrum ecosystem.

Introduction and Rationale

Automated Liquidity Managers (ALMs) are growing to become a foundational sector of DeFi. As v3’s (concentrated liquidity) complexities are difficult to manage for the average user, ALMs provide great products that allow for the inclusion of all market participants while significantly contributing to deeper liquidity across ecosystems. Active management is often beyond the knowledge/skill-base of the average LP. ALMs like Gamma Strategies can provide a seamless approach to increase fee capture and reduce IL for passive LPs.

Gamma Strategies initially launched on Arbitrum in December of 2022 and now has ~$6.2M TVL combined across Arbitrum DEXs including: Uniswap, SushiSwap, Zyberswap, Ramses, and Camelot (they will be adding Pancakeswap as well). It may also be worth noting that prior to their merge with Gamma Strategies, Visor and the VISR token somewhat live with low liquidity on Arbitrum in 2021.

Looking at some of the WETH and ARB narrow strategies, Gamma Strategies 30-day performance (without LM rewards) vs. HOLD strategies are:

Exchange Pair Time Frame (Days) TVL Fee APR Gamma vs HOLD
Camelot WETH-USDC 30 $293.4K 5.7% 1.7%
ARB-USDC 30 $153.2K 21.7% -1.1%
Ramses WETH-USDC 30 $194.6K 3.6% -1.4%
WETH-ARB 30 $135.7K 11.7% 1%
Zyberswap WETH-USDC.e 30 $236.9K 7.35% 2.8%
WETH-ARB 30 $74.8K 7.92% -0.6%
Uniswap WETH-USDC.e 30 $61.4K 3.2% 0.5%
ARB-USDC 30 $3.2K 32.2% 0.8%
Sushiswap WETH-USDC.e 30 $0.22 9.8% 16.2%
WETH-ARB 14 $1.9K 23.5% 6.8%

This data suggests that Gamma narrow strategies have improved fee performance with minimal IL versus holding.

Gamma Strategies is requesting 750K $ARB to incentivize liquidity into their Arbitrum vaults (250 $ARB being emitted as rewards every month for 3 months). DEXs included in these incentives include those mentioned above and potentially PancakeSwap. Gamma intends to choose pairs by speaking with AMMs, learning what pools are already being incentivized, and dedicating resources to under-capitalized pools.

Benefits of the proposal include:

  • The inclusion of Arbitrum native DEXs - Camelot, Ramses, and Zyberswap.
  • 100% of the $ARB received will go to vault LPs
  • Under-capitalized pools will be chosen for incentives

We generally support Gamma Strategies’ proposal to receive $ARB incentives. However, a larger combined grant with Arbitrum native DEXs would be more meaningful.

Major Concerns

Potential Redundancy of ALM-based Proposals

  • There are many ALM providers hoping to service LPs on Arbitrum and funding each individually may be redundant.
  • We believe a group proposal between ALMs, such as Uniswap Proposal 45, (potentially in cooperation with a DEX) would be the most effective and inclusive use of ARB distribution.

Minor Concerns

  • Gamma Strategies may choose to incentivize DEXs that are not native to Arbitrum (Uniswap and Sushiswap)
  • The criteria for choosing pairs to incentivize is unknown.
  • More empirical data is necessary to determine the effectiveness of Gamma Strategies in long-term benefits to LPs.


Castle Capital appreciates the efforts put forth by Gamma Strategies. While we generally support the proposal, we believe a larger combined grant with Arbitrum native DEXs would be more meaningful. Moreover, we believe detailed information on how pairs will be chosen and the overall performance of Gamma Strategies needs to be provided before funding.

Our recommendations can be summarised as follows:

  • Provide detailed information on how Gamma Strategies intends to choose pairs that will be incentivized
  • Provide granular data on performance for strategies and/or pairs that are likely to be included in the execution of the proposal
  • Combine this proposal with those of Ramses, Camelot, and/or Zyberswap (or other ALMs) to make them more meaningful

We hope that our comments are constructive and are seen in a positive light for the benefit of the broader ecosystem.


Hey, @CastleCapital, thanks for your feedback on our proposal.

We think the best use of the STIP is to avoid entanglements with DEXs and other Liquidity Managers to give us precise data about each protocol’s results.

Under the terms of the STIP here:

The goals of the framework [is] to:

  • Support Network Growth: Accelerate the distribution of incentives to Arbitrum dApps to drive network and ecosystem growth.
  • Experiment with Incentive Grants: Experiment with grant distribution to uncover new incentive strategies that increase user engagement and volume, transactions, and liquidity in the Arbitrum ecosystem.
  • Find new models for grants and developer support that generate maximum activity on the Arbitrum network.
  • Create Incentive Data: Generate data on the efficacy of distributed grants to inform future incentive programs and incentive design.

The liquidity managers all have different AMMs they support. We have invested significant time and money to deploy on Arbitrum. We do not feel it’s appropriate or fair to combine our grant proposal with those who have made little to no investment in the Arbitrum network. I think your suggestion of combining the grants would be more appropriate for a longer-term incentive program, spread over a variety of qualified DEXs.



There needs to be clarity on where these incentives are being distributed.

It is not enough that we should “trust you” that you will distribute them effectively.

Each dex and pool included should have a specific allocation as part of the grant breakdown.

I do not see how it would be possible to vote for this proposal without knowing where the incentives are being allocated.

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thanks for kind information here :ok_hand: