[JOJO Exchange] [FINAL] [STIP - Round 1]

Archive Short Term Incentives Program (STIP) Round 1
1

# SECTION 1: APPLICANT INFORMATION

Applicant Name: JOJO Exchange

Project Name: JOJO Exchange

Project Description:

JOJO is a decentralized perpetual contract trading platform that uses an off-chain matching and on-chain settlement order book model.

JOJO balances liquidity and composability, providing professional traders with a smooth, fast, low-cost trading experience and hedging capabilities for other DeFi protocols.

Team Members and Qualifications:

David.Q - Tech Lead
Qualification: Co-founder and CTO of DDEX
Responsibility: Backend Development and Infrastructure

Joseph.L - Contract dev
Qualification: Senior contract engineer from DODO
Responsibility: Smart contract development and security supervision

Jack - Backend dev
Qualification: Senior backend engineer from Coinbase
Responsibility: Backend API development

Frank - Backend dev
Qualification: Senior backend engineer from Gate
Responsibility: Matching engine

Almo - Frontend dev
Qualification: Senior frontend engineer from HTX
Responsibility: Front-end development|

Enya - Product Manager
Qualification: Senior product manager from Binance
Responsibility: Product feature design

Josceslyn - Contract dev
Qualification: Junior contract engineer
Responsibility: Smart contract development

Jolin - UX/UI Designer
Qualification: Experienced
Responsibility: UI/UX designing

Koichi - Graphic Designer
Qualification: Experienced
Responsibility: Graphic and visual designing

Iggy - BD
Qualification: Senior BD from Oracle
Responsibility: Business developing

Jaqen - Marketing&Operation Lead
Qualification: Former business management consultant
Responsibility: Market and community strategy development

Jolene - Operation
Qualification: Former operation from multiple DEXes
Responsibility: Marketing and KOL operation

Lisa - Researcher
Qualification: Independent researcher
Responsibility: Marketing research

Kars - Researcher
Qualification: Former GBV researcher
Responsibility: Market and product research

W.X - Community Manager
Qualification: Community Manager
Responsibility: Community operation

Project Links:

Website: https://jojo.exchange/
Twitter: https://twitter.com/jojo_exchange 
Github: https://github.com/JOJOexchange 
Tech doc: https://docs.jojo.exchange/general 
Gitbook: https://about.jojo.exchange/jojo/jojo-exchange/overview 
Medium: https://medium.com/@jojoexchange 
Discord: https://discord.com/invite/jojoexchange

Audit & Bug Bounty:
Sherlock security review:
https://github.com/JOJOexchange/smart-contract-EVM/blob/fix-review/audit/JOJO_Exchange_Audit_Report.pdf
Immunefi and HackenProof bug bounty program:

https://immunefi.com/bounty/jojo/ 
https://hackenproof.com/programs?title=jojo

Certik and Slowmist audit reports:

https://github.com/JOJOexchange/smart-contract-EVM/blob/main/audit/REP-final-20230109T013939Z.pdf
https://github.com/JOJOexchange/smart-contract-EVM/blob/main/audit/SlowMist%20Audit%20Report%20-%20JOJOexchange.pdf

Contact Information

TG: https://t.me/jojoexchange

Twitter: @jojo_exchange

Email: contact@jojo.exchange

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

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 200,000 ARB

Grant Matching: N/A

Grant Breakdown:

$ARB credit by the people, should be for the people.

All of our grant funding will be dedicated to effectively incentivizing the acquisition of new users and driving growth in trading volume both on Arbitrum and JOJO through a variety of targeted campaigns.

  1. Airdrop for users who are the first time on Arbitrum - 40% of $ARB grant

    JOJO offers liquidity, low fees, and a top-of-the-line matching engine, with professional features like sub-accounts and grid trading. We’re bringing people into the decentralized exchange space with our first airdrop from the Arbitrum ecosystem project.

    Our mission is to provide a trustworthy gateway to the Arbitrum ecosystem, powered by JOJO while leveraging perpdex and 40% $ARB rewards to incentivize new users. We will implement a set of criteria to encourage new user activities. With our platform, they can experience the benefits of decentralized exchanges in a secure and transparent trading environment and increase their potential for profits.

  2. Orderbook pool incentive - 40% of $ARB grant

    JOJO offers 5 permanent trading pairs. Monthly $ARB bonus distribution in order book pools is based on each pair’s trading volume. We give our users 40% of the $ARB profit earned by the protocol as a thank-you for their trust. Traders in a pool receive a share of the $ARB bonus as a prize.

  3. Trading fee rebate - 15% of $ARB grant

    JOJO offers a 15% rebate on fees in $ARB to our valued users. We ensure that all Arbitrum traders have access to this advantage, regardless of their trading frequency or transaction fees.

  4. “JOJO’s Bizarre Adventure” campaign - 5% of $ARB grant

    We launched a campaign with 12 quests to promote JOJO’s features and boost engagement on Arbitrum. Our evolving points and rebate system will offer great benefits to users who explore JOJO’s functionalities.

Funding Address:

0x25eb8A26f819bDEf70Facf4dF119CAA6239Dcf92

Funding Address Characteristics:

0x25eb8A26f819bDEf70Facf4dF119CAA6239Dcf92

Contract Address:

0x25eb8A26f819bDEf70Facf4dF119CAA6239Dcf92

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Objectives:

JOJO’s primary objective is to drive user growth. This objective can be broken down into three key metrics: user number, trading volume, and total value locked (TVL).

  1. User number

JOJO is committed to growing its user base. The platform is developing new features to attract new users, such as a multi-collateral system that accepts liquid staking and unstable tokens as collateral, subaccount, and grid trading bot infrastructure. These features will make JOJO more attractive to a wider range of users and help the Arbitrum DeFi ecosystem thrive.

  1. Trading volume

As a perpetual contract trading platform, trading volume is a straightforward metric to measure the popularity of an exchange. An increase in trading volume indicates increased activity and engagement on JOJO, which can attract more users and liquidity. We have already launched the “JOJO’s Bizarre Adventure” campaign to attract users to trade and complete quests. With the grant program, JOJO has greater flexibility to incentivize traders and subsidize trading fees, which will further motivate traders to use the platform.

  1. TVL

Total value locked (TVL) is also a crucial metric for measuring user growth on JOJO. TVL represents the total amount of assets locked in decentralized finance protocols, including JOJO. As JOJO attracts more users and liquidity, the TVL will increase, indicating the platform’s growth and popularity within the DeFi ecosystem.

Key Performance Indicators (KPIs):

  • Number of new traders onboarded: 200 DAU
  • Growth of trading volume: 20M

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

We plan to expand our reach beyond the Arbitrum ecosystem by utilizing JOJO’s various benefits, including its liquidity, user-friendly interface, advanced features like sub-accounts and grid bot, and email login option. Furthermore, JOJO’s low fees, multi-asset collateral capabilities, and high liquidity will also aid in our growth within the decentralized financial ecosystem of Arbitrum.

When it comes to decentralized exchanges, users are often worried about liquidity and a smooth trading experience. However, JOJO, an order book perpetual contract exchange, is here to alleviate those concerns for Arbinauts. JOJO allows for fast and efficient trading with deep liquidity that rivals centralized exchanges. Plus, the exchange’s low fees mean users can save on transaction costs and attract more participants. JOJO also offers a multi-asset collateral feature, which gives Arbinauts more options for 0-interest lending and investment strategies.

JOJO offers advanced features such as sub-account and grid bot functionalities. With the sub-account feature, users can manage multiple accounts at the same time, and each account is isolated from others in terms of risk. This helps users manage their assets based on different investment strategies. The grid bot provides users with more profit opportunities and financial choices in a consolidating market, allowing them to gain more returns in volatile market conditions.

Arbitrum’s decentralized exchange space is set to experience a significant surge in user traffic with the arrival of JOJO. This growth is poised to bolster the decentralized financial ecosystem and create more avenues for users to make profits.

Justification for the size of the grant:

JOJO has been live on the Arbitrum network for two months. During this time, we have been dedicated to building new features and DeFi infrastructure for the Arbitrum ecosystem. Our efforts have achieved an astonishing trading volume of $77 million in the Sep 2023, far exceeding the requirements suggested by the Arbitrum Incentives Working Group for the Beacon Grant.

Although JOJO is still an early protocol on Arbitrum, it has tremendous potential for growth. JOJO offers a wide range of features as an order book without the need for spot reserves. In addition to our multi-asset collateral feature allowing zero-interest borrowing and lending with assets like WETH, wstETH, ARB, GMX, and more, JOJO’s highly flexible sub-account system is one of our core functionalities. Furthermore, our neutral strategy contract trading robot has been launched, and we will continue to develop more features based on user demand on Arbitrum.

At the same time, the JOJO team emphasizes the code security of the protocol and provides a high-quality trading experience for users. In terms of code security, we have conducted a public audit contest with Sherlock and established bug bounty programs for JOJO’s smart contracts and web interface on Immunefi and HackenProof. JOJO will continue to conduct code reviews and security testing to ensure the safety of users’ funds and transaction data.

In addition to security, we are constantly improving and optimizing the trading experience. We are committed to providing a fast, reliable, and user-friendly trading environment to meet the needs of our users. Our user interface is clean, intuitive, and easy to use, while also offering a wealth of features that enable users to trade effortlessly and explore more DeFi opportunities.

Till now, JOJO has not conducted any public fundraising, but it has developed many trading features on the Arbitrum ecosystem that other PerpDex platforms do not have, accumulating a significant trading volume. Instead of directly incentivizing mature projects with $ARB, we believe it is the duty of DAO voters to reevaluate smaller-scale but highly potential projects and teams within the Arbitrum ecosystem and support their growth and development.

Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]

If the DAO approves JOJO’s proposal, the $ARB token will be sent to the funding address, and allocated to users based on different timelines.

  1. Airdrop for users who are the first time on Arbitrum - 40% of $ARB grant

    We will allocate 80,000 $ARB to incentivize new users on Arbitrum since we believe numerous users from CEX still haven’t migrated to the defi space.

    JOJO will create a set of criteria to encourage new users’ activities, measurements include TVL on the multi-collateral system, trading volume, and the number of trades made on JOJO. We will check the eligibility for the accounts at the end of the incentive campaign and distribute rewards.

  2. Order book pool incentive - 40% of $ARB grant

    We will allocate $80,000 $ARB to our 5 permanent trading pairs’ order book pool, including BTC-USD, ETH-USD, ARB-USD, SOL-USD, and LINK-USD. The incentive will not be evenly distributed to these pools. Instead, JOJO is planning to allocate the incentive based on the monthly trading volume of each pair.

    In other words, traders could team up with other traders in the community and boost the rank of a specific trading pair to secure a higher amount of reward. This design can bring healthy community competition and generate more activities on the Arbitrum network.

  3. Trading fee rebate - 15% of $ARB grant

    We will allocate 30,000 $ARB as a trading fee rebate for the users and we will evenly distribute the rebate over 4 months. If the total gas expense is less than 7,500 $ARB, we will fully refund the trading fee rebate to traders and roll over the remaining to the next month. If the total gas expense is higher than 7,500 $ARB, we will rebate the trading fee in proportion to the traders.

  4. “JOJO’s Bizarre Adventure” campaign - 5% of $ARB grant

    We will distribute the 10,000 $ARB to the campaign participants after the incentive period, based on the number of quests they have finished and the total points they have collected.

Grant Timeline:

JOJO will kickstart all the incentive campaigns if the proposal is approved.

Oct 2023

  • Order book pool incentive: 20,000 $ARB
  • Trading fee rebate: 7,500 $ARB

Nov 2023

  • Order book pool incentive: 20,000 $ARB
  • Trading fee rebate: 7,500 $ARB

Dec 2023

  • Order book pool incentive: 20,000 $ARB
  • Trading fee rebate: 7,500 $ARB

Jan 2024

  • Airdrop for users who are the first time on Arbitrum: 80,000 $ARB
  • Order book pool incentive: 20,000 $ARB
  • Trading fee rebate: 7,500 $ARB
  • “JOJO’s Bizarre Adventure” campaign: 10,000 $ARB

Feb 2024

  • Data analysis to evaluate the performance of the whole incentive program

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

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:

JOJO is deployed to L2 chains, and Arbitrum is the main focus of the JOJO ecosystem

On what other networks is the protocol deployed?:

N/A

What date did you deploy on Arbitrum?:

Jul-25-2023 03:10:18 AM +UTC

Protocol Performance:

Screenshot 2023-09-25 at 4.05.26 PM
Screenshot 2023-09-25 at 4.05.26 PM1920×586 53.6 KB

  • JOJO has launched new trading pairs and accepted wstETH and GMX as collateral in early September, and we can see that the daily trading volume has increased significantly.
  • JOJO has accumulated over 62m trading volume since the launch on the Arbitrum network.

Protocol Roadmap:

Next Step - The Absolute Decentralization V2.X: Diamond Is Unbreakable Era

The decentralized insurance fund: Allowing users to top up a variety of assets (including various interest-bearing assets) as an insurance fund to protect the platform trader’s profit redemption.

The decentralized market making: Allowing users to select a market maker account and provide them with a margin. Users can share the profit and bear the loss from the market-making proceeds. Market makers (and their LPs) who perform well will be rewarded with platform tokens.

The decentralized funding rate: In situations where transactions occur frequently, the funding rate will be determined using a zero-knowledge proof that relies solely on on-chain transaction data instead of being calculated centrally based on the mid-price.

The decentralized matching engine: It is possible to build a POS system for a matching engine, transforming JOJO into a fully decentralized trading platform for perpetual contracts.

Tokenomics: JOJO plans to decentralize governance and provide additional utility by launching a governance token in the future. Details will be disclosed once tokenomics is settled.

Audit History:

Audit & Bug Bounty:
Sherlock security review:
https://github.com/JOJOexchange/smart-contract-EVM/blob/fix-review/audit/JOJO_Exchange_Audit_Report.pdf
Immunefi and HackenProof bug bounty program:

https://immunefi.com/bounty/jojo/ 
https://hackenproof.com/programs?title=jojo

Certik and Slowmist audit reports:

https://github.com/JOJOexchange/smart-contract-EVM/blob/main/audit/REP-final-20230109T013939Z.pdf
https://github.com/JOJOexchange/smart-contract-EVM/blob/main/audit/SlowMist%20Audit%20Report%20-%20JOJOexchange.pdf

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

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, JOJO can provide a dashboard on Dune Analytics to monitor the performance of the KPIs set in section 3.

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.

7 Likes
2

Thank you for showing up

3

This looks like another protocol mercenary farming chain tokens. “JOJO” which I’ve never heard of until now has only been live on Arbitrum for just under 2 months really. Far too soon to tell what your intentions are and if you add value to my ARB holdings.

5 Likes
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Hi @ArbUSER, thank you for your feedback. We understand that JOJO is a new project, and we appreciate your skepticism. We want to assure you that we are committed to building a valuable addition to the Arbitrum ecosystem.

In just two months, we have already launched several unique features, including:

  • A grid trading bot infrastructure that allows traders to run trading strategies on-chain
  • A multi-collateral system that provides traders with a wider range of collateral options
  • Sub-account features that make it easier for traders to manage their portfolios

Our goal is to bring traders from centralized exchanges to the Arbitrum network. We believe that Arbitrum has the potential to become the leading Layer 2 solution for Ethereum, and we want to play a role in its growth.

5

Specifics

I think this is not needed for two reasons:

  1. Gas is negligible on Arbitrum, so there’s really no need for a refund
  2. Looking at your daily volumes, this seems to be a pretty active protocol, so such a small amount of ARB would probably hit that 2,500 mark easily.

This to me is a bad idea, for a few reasons:

  • A real user has no way to know if they are eligible for ARB
    • Imagine that a new user is using JOJO because of the extra ARB airdrop, and they want to know if they will get any ARB, all that can be said to them is ‘It’s a secret’. Not a good look.
  • Sybils will happen anyways
  • It’s not provable if someone should receive ARB or not.
    • I imagine that if the reward mechanism is closed-source, it could easily be manipulated by a rouge team member or bad actor to allocate ARB to a non-participating address, and the community would not be able to verify that this airdrop is correct or not.

You say ‘N/A’ in the second response but your first implies that you are deployed on other L2 chains. Would be nice to have a definitive answer here.

General

I don’t really see any mechanism or specification for keeping people on Arbitrum after the end of the reward period - which is ultimately the desired outcome for the ARB grants program. It would also be nice to have a look at more analytics rather than just volume, which seems to be inflated in general for perpetual DExes,

1 Like
6

Same thoughts here, even the Dune they are posting it shows the metrics have been pumped when the Arbitrum Incentives proposal was launched, to try and fit into de metrics.
As the recommendation for the incentives i think this protocol dont show they can fit into them. Also the 30 days prior to incentives metrics that are the requirements, it shows that they are very poor and most probably arranged to fit the proposal recommendation.

I think its bad, maybe the protocol can try to grow organically and try to get a future grant next year.

2 Likes
7

Hello @Kars thank you for your proposal!

Unfortunately, this aspect of your application is not eligible for this grants program as funds can not be used for marketing or development and must solely be used to incentivize Arbitrum contracts.

8

Looks like JOJO started out on ZKsync initially but then changed tactics probably due to delays and getting wind of the ARB grants coming up.

See here: https://twitter.com/jojo_exchange/status/1677255923969191936

When looking at the dAPP all other chains are “Coming Soon” and it appears they have wiped all evidence of zKsync in their docs, see here: https://about.jojo.exchange/jojo/trade/getting-start-to-trade/bridge-assets-to-zksync-era

They also directly state on their dApp “0 gas fees” so not sure how a gas refund program would work???

" JOJO is a decentralized perpetual contract trading platform, with high security, high transparency, deep liquidity, high leverage, and 0 gas fee."

4 Likes
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Thank you @ZIsBraindead for your comments!

JOJO does not charge gas for user deposits and withdrawals. We aim to bear the cost of gas for these transactions, which is very reasonable at using 5% of the total grant. Our gas-free feature is part of the on-chain confirmation of all transactions.

I believe that not disclosing all the specific airdrop criteria in advance is a common practice. We will announce a framework to the public with incentivizing items such as TVL, trading volume, and number of trades. However, we cannot disclose the exact numbers now, as this would only benefit sybil accounts and not real traders.

JOJO has not conducted any public ICO or IDO, and does not have any VC backing. The cost of deploying on each chain is high for a new project like JOJO, especially the expenses on the back-end business. If we cannot balance these costs through fee income, we will operate at a loss (as we are currently doing). Therefore, we have dropped zkSync and Linea.

The only way for protocols to keep users on Arbitrum after the incentive period is to provide valuable features and a good user experience. This is why JOJO has invested in building grid trading bot infrastructure and other functions that serve the needs of CEX traders and bring them to the Arbitrum network.

10

Since our launch, JOJO has been continuously building and innovating. Regarding the Dune metrics you have mention, JOJO actually have listed new trading pairs (ARB-USD, SOL-USD, and LINK-USD) on 4 Sep and supported new assets (stETH and GMX) in our collateral system on 5 Sep.

I believe that you are making a conclusion that JOJO is only interested in farming the Arbitrum grant without making any effort. However, I hope that you will take the time to consider what we have built in the past two months, and the potential value that we can contribute to the Arbitrum ecosystem.

11

Thank you, @Matt_StableLab for your feedback! We understand that the Arbitrum grant must be used to incentivize Arbitrum contracts. Therefore, we will reallocate the community incentive parts to the order book pool incentive, gas refund, and trading fee rebate sections.

2 Likes
12

@ArbUSER, we hear your concerns about JOJO’s deployed chains and the gas issue. Since someone else has already asked about these topics, I’ll quote my reply to address your concerns.

13

Thanks for the reply.

14

What does this even mean?

I think this should be done BEFORE any proposal is proposed, because there is – as I said before – no way of knowing how the ARB will really be allocated ATP.

You say that deploying on new chains is very difficult, but you also dropped two chains just to apply for the grant? This doesn’t track for me.

2 Likes
15

Hello @Kars, you must update the proposal to reflect this change before I can confirm your eligibility to move to a snapshot vote.

16

Thanks @Matt_StableLab for the feedback. We’ve revised our proposal. Here is the latest version of the grant break down.

17

Thanks for the follow up questions @ZIsBraindead.

I was trying to clarify that we don’t cover all gas activities on JOJO, such as deposits, withdrawals, borrowings, repayments, or setting up sub-accounts. We only cover on-chain confirmation activities, which are the core function of a perpetual trading contract. However, we also agree that there are other way to incentivize users thats why we have re-allocate the grant distribution.

Yes, you’re right. We’ve edited the proposal to list the criteria. Thanks so much for your constructive feedback!

We dropped two L2 chains to reduce our ongoing development and maintenance cost & resources. This should not be interpreted as JOJO “dropping two chains just to apply for the grant”.

18

Thank you for making these changes! Your submission now meets all requirements to be considered for a snapshot vote.

1 Like
19

Hello @Kars ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

20

Thank you @Matt_StableLab for the reminder!

@stonecoldpat @cliffton.eth @eli_defi The proposal is ready to proceed to final.