SECTION 1: APPLICANT INFORMATION
Applicant Name:
StrategicReserve
Project Name:
Gamma
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?:
Yes
SECTION 2: GRANT INFORMATION
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 - 
Siren Lighthouse
Gamma has $6.2m in TVL - Siren 
Lighthouse
Gamma has $76m in 30d cumulative volume - Siren 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.
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives:
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):
- Total Value Locked (TVL) - Evaluating the amount of liquidity that has entered the liquidity pools via Gamma’s vaults
- Volume Through Vaults (VTV) - Evaluating the amount of volume that Gamma vaults have facilitated
- 𐤃 Volume - Evaluate the change in volume in the pool prior to incentivizing Gamma vaults
- Slippage - Measuring slippage on a variety of hypothetical trades.
- Efficiency - Evaluate the actions of DEX aggregators toward incentivized pools
- TVL / Volume - Evaluating the capital efficiency of each pool by understanding the volume to TVL ratio.
- 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:.
- Native pairs to Arbitrum (these pairs tend to need the most liquidity and are undercapitalized)
- Critical infrastructure pairs (WETH, ARB, WBTC, stablecoins, and most users regularly use)
- Pairs that play to the strengths of the AMM they’re on.
- Avoiding already incentivized pairs by another organization
- Avoiding overcapitalized pairs
- 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?
Yes
SECTION 4: PROTOCOL DETAILS
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?:
Yes.
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?:
Yes.
