SECTION 1: APPLICANT INFORMATION
Applicant Name: Brandon Kumar
Project Name: Layer3
Project Description:
Layer3 is an interactive quest platform to help blockchain ecosystems onboard and retain new users at scale. Our platform features immersive onchain experiences (quests) and an innovative open-source credential network, CUBEs. With these tools, we enhance learning and participation, fostering a vibrant, knowledgeable community.
What are Quests?
Quests are guided learning activities, organized around specific crypto protocols and apps. They usually involve multiple onchain steps, and are designed to familiarize users with different protocols, their processes, and the potential benefits they offer within ecosystems like Arbitrum.
Why are Quests Helpful?
Quests provide a hands-on learning experience which makes the understanding of complex protocols more enjoyable and interactive. They provide delightful step-by-step guidance which motivates users to explore and use these protocols, thereby increasing user adoption and contributing to the broader understanding of apps.
For instance, consider the above on Layer3 called “Exploring Radiant.” It guides users through learning about omnichain money markets, swapping, and depositing on Radiant, breaking down each step into comprehensible segments.
By engaging with the quest, users not only learn how to use the Radiant platform, but also get practical experience onchain. Quests like these play a crucial role in demystifying DeFi protocols, making them more accessible, and bringing users to Arbitrum.
The above quest attracted 31,100 completions. This demonstrates the high engagement rate and efficiency of quests as interactive learning tools in the DeFi space. The large number of participants signifies that the quest was not only successful in providing valuable insights about the protocol but also in garnering interest from a wider community, thereby increasing the adoption rate of the whole Radiant platform.
Why Layer3?
Layer3 has a proven track record of helping Arbitrum grow. Since launching on Arbitrum in August 2022, we have driven 4,000,000 onchain actions, engaged over 276,000 users, partnered with 87 dApps, and generated $590,000 in fees for Arbitrum directly from Layer3 Quests (Source: Dune Dashboard).
Users acquired through Layer3 went on to transact an additional 3,100,000 times after our Quests, generating an additional $559,000 in transaction fees (source: Dune Dashboard)
Together, Layer3 has driven 7,200,000 transactions and 1,150,000 in transaction fees from our Quests and the downstream actions of users onboarded to Arbitrum by Layer3.
We’ve driven these results without receiving any ARB or incentives from the DAO, indicating the efficiency of our platform and the untapped potential of driving even greater results.
Our ability to educate and incentivize high-quality engagement sets us apart, creating a learn → do → earn cycle. We believe this grant achieves multiple goals for Arbitrum:
- Support Builders: By integrating Quests with new and established dApps, we’re not just driving user traffic but facilitating deeper engagement and understanding of these platforms. This approach helps apps across Arbitrum reach a wider audience.
- Educate Users: Layer3’s Quests have interactive education built-in, making Arbitrum more accessible. By educating users through interactive content, we’re building a more informed and capable community ready to contribute to and benefit from the ecosystem.
- Drive Transaction Activity: Our targeted goal of over 1,000,000 transactions will drive blockspace demand, elevate transaction volume, and generate sequencer revenue.
- Execute Coordinated Marketing Efforts: Our reach, including 500,000 followers on X, 164,900 Discord members, 33,100 Beehiiv subscribers, and 5,100 Farcaster channel members, captures the attention of a wide audience and uniquely positions us to significantly amplify engagement across Arbitrum. We will prepare and execute multiple coordinated marketing efforts alongside the 80+ dApps we run Quests for.
Our proposal aligns meticulously with Arbitrum’s mission to foster an inclusive, vibrant, and engaged community. By engaging all users - existing and new ones - in well-design quests, we will create an environment that promotes continued exploration, interaction, and commitment. This “sticky factor” is critical for a sustainable and thriving ecosystem.
By awarding a grant to Layer3, the Arbitrum DAO is also indirectly allocating ARB to dozens of dApps in the broader ecosystem. This is unique relative to a DeFi protocol, where incentives aren’t shared by other builders in the ecosystem.
Team Members and Roles:
- Brandon Kumar - Co-Founder
- Dariya Khojasteh - Co-Founder
- Peter Ng - Engineering Lead
- Filip Sundgren - Blockchain Engineer
- Andrew Ngo - Front-End Engineer
- Piotr Miloszewski - Product Designer & UI Engineer
- Greg Oksiuta - Product Designer
- Lars Karbo - Full-Stack Engineer
- Ehsan Abbaszadeh - Head of Growth
- Yahya El Asmar - Head of Product
- Mike Cohen - Content Strategist
- Zeel Patel - Growth Manager
- Pedro Monte - Customer Success
Project Links:
Contact Information
Point of Contact: Brandon Kumar
Point of Contact’s TG handle: @brandonkumar
Twitter: https://twitter.com/Brandon_M_Kumar
Email: brandon@layer3.xyz
Do you acknowledge that your team will be subject to a KYC requirement? Yes
SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.
Team Experience:
- Brandon Kumar (Co-Founder)
- Prior Experience: Investor at Accolade Partners
- Dariya Khojasteh (Co-Founder)
- Prior Experience: Mobile App Developer
- Peter Ng (Engineering Lead)
- Experience: Blockchain Developer at Serotonin and Mojito in March of 2021, Co-Founder of Chorus Technology, Machine Learning Engineer at the New York Times
- Filip Sundgren (Blockchain Engineer)
- Experience: Blockchain Developer at Serotonin and Mojito in March of 2021, Co-Founder of Chorus Technology
- Lars Karbo (Full-Stack Engineer)
- Experience: 8 years experience as a Full Stack Engineer at Drowzee and founder of Napchart, Personate, and TokenBird
- Ehsan Abbaszadeh (Head of Growth)
- Experience: 8 years experience in Private Equity
- Yahya El Asmar (Head of Product)
- Prior Experience: Strategy & Consulting Manager at Accenture
- Andrew Ngo (Front-End Engineer)
- Experience: Software Development at Xirrus, Cisco, Everlane, and Future
- Greg (Product Designer)
- Prior Experience: Senior Product Designer at Elevate Labs
- Mike Cohen (Content Strategist)
- Prior Experience: Sr Content Strategist at TaxBit, Content Strategist at Coinbase
- Piotr Miłoszewski (Product Designer & UI Engineer)
- Prior Experience: Founding Product Designer at GammaSwap Labs and Senior Product Designer at CoinMarketCap
- Zeel Patel (Growth Manager)
- Prior Experience: Core Team at Timeswap Labs
Layer3 has been deploying Quests for Arbitrum since August 2022. During that period, we’ve collaborated with 80+ unique projects building in the Arbitrum Ecosystem. We’ve run dozens of grassroots campaigns for these teams, often without incentives. Each campaign turns onchain operations into bite-sized, step-by-step quests, making Arbitrum accessible to a wider audience.
Alongside the work we’ve done in Arbitrum, we’ve also powered growth for other Layer 1 and Layer 2 ecosystems.
Optimism: Since August 2022, Layer3 has driven 3,400,000 onchain actions, engaged over 300,000 users, and generated $800,000 in fees for Optimism directly from Layer3 Quests. Users acquired through Layer3 went on to transact an additional 2,900,000 times after our Quests, generating an additional $593,800 in transaction fees for Optimism (source: Dune Dashboard).
Base: Since August 2023, Layer3 has worked with Base to power their Onchain Daily campaign. Layer3 drove 69,900 users to make 236,100 transactions (see Dune Dashboard).
Polygon: Since August 2022, Layer3 has driven 3,500,000 onchain actions, engaged over 300,000 users, and generated $90,000 in fees for Polygon directly from Layer3 Quests. User acquired through Layer3 went on to transact an additional 2,270,000 times after our Quests, generating an additional $45,000 in transaction fees for Polygon (source: Dune Dashboard).
Linea: More recently, Layer3 partnered with Linea to power a gaming campaign called Linea Park. In less than 2 weeks, Layer3 has engaged 620,000 users and driven 4,000,000 transactions (source: internal dashboard).
Global Impact: Across all chains, Layer3 has driven 16,500,900 transactions and engaged 678,400 of users.
We are happy to provide references at each of these ecosystems who can speak to Layer3’s focus on high-quality user experience, extensive support, and professional approach.
What novelty or innovation does your product bring to Arbitrum?
Layer3’s novel application directly addresses critical challenges in the Arbitrum ecosystem.
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Problem #1: Difficulty in Connecting Builders with Users: A persistent challenge for builders is effectively connecting with the right userbase for their protocols.
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Solution #1: Layer3 addresses this by leveraging our interactive Quests and extended publisher network to bridge this gap. Our Quests are tailored to guide users towards protocols that best match their interests and needs, ensuring a symbiotic relationship between builders and users. This targeted approach increases user engagement with specific protocols and ensures that builders reach the most receptive and relevant audience.
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Problem #2: Education Barriers Leading to Low Retention: The complexity of the industry often leads to a general education problem, resulting in low user retention.
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Solution #2: Layer3 tackles this by transforming complex concepts into intuitive and engaging Quests, making learning enjoyable and effective. Our educational approach is designed to retain users by continuously engaging them in new learning experiences, ensuring they are educated and remain actively involved in the ecosystem.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, Layer3 is highly composable with other projects on Arbitrum. We are fully integrated with all dApps built on Arbitrum.
Here is a list of Arbitrum dApps we have deployed Quests for: Aave, Aevo, Aboard, Abracadabra Money, Across, Allbridge Core, Alongside, Angle, Aperture Finance, Axelar, Balancer, Blex, Bracket Labs, Buffer Finance, Camelot, CoinStats, Compound, Connext, Convex Finance, CoW Swap, Cryptex Finance, Crypto Volatility Index (CVI), Curve, De.Fi, DeBank, Decent, DeFi Saver, DODO, Dolomite, DZap, Frax Finance, Frontier, Gamma, GMO, GMX, handle.fi, Hashflow, Hop, Hyperliquid, Jumper, KTX Finance, Lido, Lodestar Finance, Lyra, Magpie Protocol, Maverick Protocol, Mean Finance, MintLabz, MUX Protocol, Nested, Nomis, Notional Finance, ODOS, Orderly Network, ParaSwap, Pendle Finance, PlutusDAO, Pocket Universe, Premia, Radiant Capital, rhino.fi, Rysk Finance, Ryze.fi, Savvy, Sentiment, Shell Protocol, Silo Finance, Slingshot, Socket, Squid, Stargate, SushiSwap, Thales Market, Thetanuts Finance, Timeswap, Trader Joe, Umami, Uniswap, unshETH, Vela Exchange, Vertex Protocol, WOOFi, Wormhole, XSwap, XY Finance, Zerion, ZeroSwap.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
While there are adjacent products in the ecosystem that are deployed on Arbitrum, such as Galxe and Intract, Layer3 distinguishes itself in several key dimensions.
- Reach & Distribution: With over 685,900 users completing Quests since inception, Layer3 has one of the largest consumer audiences in the dApp ecosystem. This reach allows us to drive significant onchain activity, benefiting Layer 1s, Layer 2s, wallets, dApps, and games by directing engaged users directly to their platforms.
- Credential System: Layer3’s credential CUBEs, or Certificates to Unify Blockchain Events, introduces a novel concept of onchain session data. These ERC-721 tokens encapsulate a user’s interactions across chains or dApps into a single onchain event, offering a unique way to reward users beyond transactional incentives. This approach broadens the scope for recognizing user actions, from completing Quests to engaging with ad units, setting Layer3 apart.
- Quality User Targeting: Layer3 employs various methods to identify and target high-quality users. Utilizing the Farcaster social graph, we can pinpoint users who are active, possess specific follower counts, maintain consistent posting habits, or demonstrate genuine non-bot human activity. Through our achievement system, we can re-engage current Arbitrum users or target individuals active on other Layer 2 platforms. Additionally, we have the ability to dynamically target users based on their NFT holdings, Proof of Attendance Protocol (POAP) participation, or past onchain interactions.
- Multi-Wallet & Modular Verification: Our platform’s compatibility with multiple wallets enhances user acquisition by recognizing and catering to the diverse wallet preferences of our users. Additionally, our capability to verify a wide range of onchain and select off-chain actions ensures that Layer3 can partner effectively with various teams, including wallet providers, to authenticate user achievements seamlessly.
- Developer Tools: Layer3 offers Quest Embeds, allowing crypto platforms to integrate onchain Quests effortlessly with just two lines of code. This feature empowers creators on platforms like Paragraph to embed Layer3 Quests directly into their content, enhancing engagement and interaction without leaving their ecosystem. It opens up new avenues for content monetization and user engagement for developers and creators alike.
- Superior Interface UX: Recognized for providing one of the best consumer experiences in the industry, Layer3’s interface combines high-quality UX, unified UI, and gamification elements. This contributes to our expansive user reach and offers protocols valuable distribution channels, convenience, and a platform for users to gain social status through leaderboards and achievements.
How do you measure and think about retention internally? (metrics, target KPIs)
Layer3 prioritizes the measurement and enhancement of “quality daily active users” (qDAUs) as an important retention metric. Targeted KPIs are established to augment the number of qDAUs while ensuring their substantial engagement and contributes to a deep understanding and utilization of the Arbitrum ecosystem. Specific retention metrics include:
- The number of Arbitrum transactions a user initiates after completing their initial Arbitrum Quest on Layer3.
- The value of Arbitrum fees a user generates after completing their initial Arbitrum Quest on Layer3.
- The percentage of users who execute another Arbitrum transaction after their initial Layer3 Quest.
- The count of re-activated users who were previously inactive on Arbitrum but re-engaged due to Layer3 Quests.
Relevant usage metrics:
Usage Metrics:
- Total Active Users (on Arbitrum): 276,000
- Total New Users Acquired (to Arbitrum): 31,000
- Total Re-Activated Users (on Arbitrum): 6,600
- Total Attributable Transactions (on Arbitrum): 4,092,000
- Total Downstream Transactions (on Arbitrum): 3,150,000
- Total Attributable Fees (on Arbitrum): $591,000
- Total Downstream Fees (on Arbitrum): $559,000
- DAU (on Arbitrum): 4,000
- Daily Transactions (on Arbitrum): 8,000
Definitions:
- New User = Wallet that had no prior history transacting on Arbitrum before completing the Layer3 Quest
- Re-Activated User = Wallet that was inactive on Arbitrum for 3+ months before completing the Layer3 Quest
- Downstream Transaction = Actions taken by wallets that were acquired or re-activated by Layer3 Quests
- Downstream Fees = Fees driven to Arbitrum by new or re-activated wallets by Layer3 Quests
Source: Dune Dashboard
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest: No
SECTION 2b: 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? Yes
On what other networks is the protocol deployed? Ethereum Mainnet, Polygon, Base, Solana, zkSync, Linea, OP Mainnet, BNB Chain, Avalanche, Polygon zkEVM, Gnosis, Metis, Zora, Mode
What date did you deploy on Arbitrum mainnet? Layer3 has been deployed on Arbitrum since August 2022; all activity can be tracked in this Dune Dashboard.
Do you have a native token? No
Past Incentivization:
Layer3 has predominantly operated without explicit liquidity mining or incentive programs on Arbitrum. Despite this, we have achieved impressive results (referenced above).
We firmly believe in demonstrating tangible impact before seeking incentives. Through our efforts, we have established a platform that effectively aids the DAO in supporting builders, expanding user reach, driving transaction activity, and fostering community education.
Current Incentivization: How are you currently incentivizing your protocol?
None.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
Yes, Questbook recently awarded Layer3 17,500 USDC for our work around Arbitrum Adventure, a growth campaign across 13 dApps on Arbitrum. During this campaign, we engaged over 12,000 users, resulting in more than 56,000 transactions. The funds were not used as incentives.
Protocol Performance:
- Arbitrum: Layer3 has a proven track record of helping Arbitrum grow. Since launching on Arbitrum in August 2022, we have driven 4,000,000 onchain actions, engaged over 276,000 users, partnered with 87 dApps, and generated $590,000 in fees for Arbitrum directly from Layer3 Quests (Source: Dune Dashboard). Together, Layer3 has driven 7,200,000 transactions and $1,150,000 in transaction fees from our Quests and the downstream actions of users onboarded to Arbitrum by Layer3.
- Optimism: Since August 2022, Layer3 has driven 3,400,000 onchain actions, engaged over 300,000 users, and generated $800,000 in fees for Optimism (source: Dune Dashboard) directly from Layer3 Quests. Users acquired through Layer3 went on to transact an additional 2,900,000 times after our Quests, generating an additional $593,800 in transaction fees for Optimism (source: Dune Dashboard).
- Base: Since August 2023, Layer3 has worked with Base to power their Onchain Daily campaign. Layer3 drove 69,900 users to make 236,100 transactions (see Dune Dashboard).
- Polygon: Since August 2022, Layer3 has driven 3,500,000 onchain actions, engaged over 300,000 users, and generated $90,000 in fees for Polygon (source: Dune Dashboard) directly from Layer3 Quests. User acquired through Layer3 went on to transact an additional 2,270,000 times after our Quests, generating an additional $45,000 in transaction fees for Polygon (source: Dune Dashboard).
- Linea: More recently, Layer3 partnered with Linea to power a gaming campaign called Linea Park. In less than 2 weeks Layer3 has engaged 620,000 users and driven 4,000,000 transactions (source: internal dashboard)
- Global Impact: Across all chains, Layer3 has driven 16,600,000 of transactions and engaged 685,929 users (source: Dune Dashboard).
Protocol Roadmap:
- Ship new UI/UX focused on personalized discovery enabling users to better find Arbitrum Quest that match their interests.
- Ship Farcaster Frame integration enabling dApps to share Arbitrum Quests directly in feed.
- Ship Social Graph integration enabling users to discover Arbitrum Quests that similar wallets have completed.
- Ship Dynamic Rewards to reward users based on their direct onchain contributions to Arbitrum.
- Ship Token Rewarding Streaks enabling dApps to reward users based on a series of actions, thereby driving retention.
- Ship enhanced builder that allows dApps to deploy Arbitrum Quests based on opinionated targeting criteria.
Audit History & Security Vendors: Sherlock audit results are here.
Security Incidents: None
SECTION 3: 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: 400k ARB
Justification for the size of the grant:
Layer3 is requesting 400,000 ARB. We leverage custom targeting within our platform to engage a diverse userbase, strategically tailoring our approach to meet the needs and interests of different user segments within the Arbitrum ecosystem. Our plan is the following.
Current Status & KPI Target
- Current Status: Since launching on Arbitrum in August 2022, Layer3 has engaged 276,400 users, acquired 31,000 new users and re-activated 6,600 inactive users.
- KPI Target: With this grant, we estimate we will be able to deploy Quests for over 80 unique Arbitrum dApps, drive 2.0M transactions, mint over 1.0M credentials, and reach over 100k new wallets.
Incentive Mechanism: ARB will be distributed to users via an escrow contract upon Quest completion.
Execution Plan:
We will deploy Quests across 80 Arbitrum dApps, targeting three distinct type of users:
- Wallets that have not transacted on Arbitrum.
- Wallets that transacted on Arbitrum but have been inactive
- Veteran users.
We will deploy Quests across 4 dApps categories:
- DeFi
- NFTs
- Bridging
- Gaming
Layer3 employs various methods to identify and target high-quality users. Utilizing the Farcaster social graph, we can pinpoint users who are active, possess specific follower counts, maintain consistent posting habits, or demonstrate genuine non-bot human activity. Through our achievement system, we can re-engage current Arbitrum users or target individuals active on other Layer 2 platforms. Additionally, we have the ability to dynamically target users based on their NFT holdings, Proof of Attendance Protocol (POAP) participation, or past onchain interactions.
We expect to allocate 0.2 - 0.4 ARB per Quest Completion with an expected 2,000,000+ transactions. This achieves multiple objectives for the DAO:
- Acquire new users to Arbitrum.
- Acquire new users to Arbitrum dApps.
- Engage and reward existing quality users.
- Helps dApps builders grow their userbase.
- Educate users about Arbitrum’s dApps, features, and community.
We will structure the incentive period across three phases:
- Phase 1 (test): We will allocate 25% of our total grant to test incentives across different user segments and dApp categories.
- Phase 2 (iterate): Building upon the insights gained from Phase 1, we will allocate 30% of our total grant to iterate and optimize incentives to maximize impact for our dApp partners.
- Phase 3 (retention): Leveraging the learnings from Phases 1 and 2, we will allocate 45% of our total grant to further iterate and deploy incentives aimed at achieving maximum impact for the DAO’s long-term retention strategy.
Grant Budget: To reach this goal, we will use 100% of our grant, totaling 400,000 ARB.
Long-Term Retention:
Based on our analysis, new users acquired from Quests proceeded to make an average of 48 transactions per user on Arbitrum within the 6-month period following their initial Quest. (source: Dune Dashboard). We will continue to deploy Arbitrum Quests after the incentive period ends, and remain confident in user engagement.
Grant Matching: N/A
Grant Breakdown:
| Month 1 | Month 2 | Month 3 | Total | |
|---|---|---|---|---|
| ARB Budget | 100,000 | 120,000 | 180,000 | 400,000 |
| Transactions Driven | 500,000 | 600,000 | 900,000 | 2,000,000 |
| Credentials Minted | 250,000 | 300,000 | 450,000 | 1,000,000 |
| Unique dApps Featured | 20 | 24 | 36 | 80 |
Funding Address: 0xB3E365212E44BbD1edDA89397f71Aa7b49c4f3aF
Funding Address Characteristics: 2/3 multisig with core team members, with private keys securely stored
Treasury Address: N/A
Contract Address: We will utilize unique escrow contracts for each Quest.
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.
Objectives:
Layer3 seeks to boost user engagement and awareness of the Arbitrum ecosystem through custom built Quest infrastructure. We aim to onboard users to Arbitrum and increase Arbitrum usage through multi-dimensional quests on Layer3 and partner platforms. Above all, the campaign will be optimized for sustained long-term retention through tiered ARB incentives, with a focus towards high-quality users.
| Objective | Description | KPI |
|---|---|---|
| KPI #1 | Bring new users to Arbitrum Ecosystem | 100,000 new wallets on Arbitrum |
| KPI #2 | Give users ownership over their quest completion history via CUBEs | 1,000,000 CUBEs |
| KPI #3 | Build high quality educational quests for the ecosystem’s best projects | 100+ quests |
| KPI #4 | Total number of transactions driven on Arbitrum | 2,000,000 transactions |
Execution Strategy:
Layer3’s execution strategy involves incentivizing both usage of both the Arbitrum chain and applications within the ecosystem to build long term users. Users receive 3 types of rewards when completing quests
- Token Incentive: Rewarding the user with Governance Tokens as a signal of participation in the ecosystem.
- CUBE ERC-721: Minting credentials on Arbitrum signaling quest completion. Helpful tool to target users and measure impact. You can learn more about CUBEs here.
- Experience Points (XP): Rewarding experience points to users. Each Layer3 user has a level on the platform, as the user levels up they unlock more opportunities for exclusive quests. This approach encourages deeper engagement with the ecosystem by dynamically rewarding more significant interactions, thereby promoting both educational pursuit and increased activity on the chain.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
- To incentivize “stickiness” among users, liquidity, or other targeted metrics, Layer3 implements a strategic mechanism through its Streaks feature. Streaks are quests that occur over a specified period of time, designed to celebrate and reward daily, weekly, and monthly crypto habits, thus fostering a consistent and engaging user experience.
- Additionally, Layer3’s Community Pages feature plays a crucial role in building and retaining a vibrant community. These pages serve as hubs for crypto applications, enabling users to explore and engage with the depth of different protocols through interactive quests and rewards. Community Pages are designed to support protocol teams in reaching, acquiring, and retaining users by showcasing their crypto protocol, elevating their brand, and engaging users.
- Together, Streaks and Community Pages form a comprehensive approach to incentivizing stickiness by not only rewarding users for their continued engagement but also by providing them with a platform where they can explore and learn on a recurring basis.
- For more detailed information on how Layer3 utilizes Streaks and Community Pages to drive user retention and engagement, you can explore the insights provided in their Building Blocks for User Retention and Embed Quests and Streaks, as well as insights on how Community Pages are utilized for community-building here.
Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]
| Objective | Description | KPI |
|---|---|---|
| KPI #1 | Bring new users to Arbitrum Ecosystem | 100,000 new wallets on Arbitrum |
| KPI #2 | Give users ownership over their quest completion history via CUBEs | 1,000,000 CUBEs |
| KPI #3 | Build high quality educational quests for the ecosystem’s best projects | 100+ quests |
| KPI #4 | Total number of transactions driven on Arbitrum | 2,000,000 transactions |
Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]
Phase 1: Test and Launch (Weeks 1-4)
- Objective: Begin with the rollout of initial quests focusing on the Arbitrum ecosystem, and test incentives across different user segments and dApp categories.
- Financial Allocation: 25% of the total grant.
- Milestones:
- Launch the platform’s first set of quests with ~20 unique dApps.
- Initiate ARB incentive distributions for completed quests.
- Conduct initial testing of incentives with diverse user segments.
- Achieve 250,000 Quest Completions, driving 500,000 transactions.
Phase 2: Iterate and Expand (Weeks 5-8)
- Objective: Broaden the quest offerings within the Arbitrum ecosystem and iterate on incentive models based on insights from Phase 1.
- Financial Allocation: 30% of the total grant.
- Milestones:
- Introduce an additional batch of quests with ~40 unique dApps, focusing on quality, sector diversity, and educational value.
- Optimize incentives to maximize impact for dApp partners.
- Achieve 300,000 Quest Completions, driving 600,000 transactions.
Phase 3: Retention, Optimization, Sustainability, and Scaling (Weeks 9-12)
- Objective: Leverage feedback and data from previous phases to refine quests, enhance retention strategies, and scale the platform towards long-term goals.
- Financial Allocation: 45% of the total grant.
- Milestones:
- Optimize existing quests, deploy new Quests, and refine engagement strategies based on user interactions.
- Further iterate and deploy incentives aimed at achieving maximum impact for the DAO’s long-term retention strategy.
- Achieve 450,000 Quest Completions, driving 900,000 transactions.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
By providing incentives, Layer3 can expand the range of educational quests and cover more topics relevant to Arbitrum, from basics for newcomers to advanced strategies for experienced users. This broadens the appeal and accessibility of the Arbitrum ecosystem, attracting a diverse userbase and strengthening the quality of the userbase.
Layer3 has a proven track record of helping Arbitrum grow. Since launching on Arbitrum in August 2022, we have driven 4,000,000 onchain actions, engaged over 276,000 users, partnered with 87 dApps, and generated $590,000 in fees for Arbitrum directly from Layer3 Quests (Source: Dune Dashboard). Together, Layer3 has driven 7,200,000 transactions and 1,150,000 in transaction fees from our Quests and the downstream actions of users onboarded to Arbitrum by Layer3.
Our strategy integrates education with actionable insights and tangible rewards, creating a cycle of engagement that encourages users to explore, learn, and transact within the Arbitrum ecosystem. This method ensures that users’ interactions with Arbitrum are part of a sustained engagement model, fostering a long-term relationship with the ecosystem.
Layer3’s reach extends beyond its platform to its extended publisher network, including Quest Embeds on Paragraph Blog Posts, Quest Embeds on dApps Interfaces, and Farcaster Frames. This reach provides users with multiple entry points into the Arbitrum ecosystem.
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 5: Data and Reporting
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 3. Along with this list, please answer the following:
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered? Yes
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?
Yes, our team commits to providing bi-weekly program updates on the Arbitrum Forum thread, leveraging our Dune Analytics team and the CUBEs system for streamlined reporting. Our strategy for data and reporting includes:
- Utilizing Dune Analytics: Our skilled team of Dune analysts will compile comprehensive data analytics to track and report on key metrics. This ensures our updates are backed by accurate and insightful data, highlighting progress, user engagement, and the impact of our quests and educational content within the Arbitrum ecosystem.
- Leveraging CUBEs for Reporting: CUBEs, ERC-721-based system, attest quest completion and facilitate transparent reporting. CUBEs track user participation and achievements onchain.
Our updates will focus on keeping the Arbitrum community well-informed about our progress, insights gained, and future plans. This includes sharing achievements, user stories, and any adjustments in our strategy based on data-driven insights.
First Offense: In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offense: Funding is halted permanently
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.) Yes
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