Applicant Name : Anshu_LogX
Project Name : LogX
Project Description : LogX is a Perp DEX Aggregator with Cross-chain Routing.
- DeFi trading lagging behind CeFi
- Top reasons:
- Liquidity fragmentation
- Markets fragmentation
- Collateral fragmentation
- Poor UX - bring gas tokens, multiple pop-ups, etc.
Solution & Mission
- “Bring the best of all worlds together” - Aggregate!
- Arbitrum - top choice due to trading-friendly tech & deepest liquidity
- Our mission is to make DeFi trading bigger & better than CeFi
What makes us different?
- Cross-chain routing - will bring volumes from other chains to Arbitrum. More sequencer fees.
- SDK integrations - getting embedded inside wallets like Metamask, OKX, etc.
- Mobile-first approach - onboarding mass users to Arbitrum
Team Members and Qualifications :
- Crypto-natives since 2017
- Builders since 2021, with top backers like Sequoia, Coinbase, Hashed, IOSG etc.
- Previously built “Flint Money” - yield-generating product for Indian consumers. Scaled to 100k users. Got shut down by regulations.
- Building LogX since Feb 2023.
- Arbitrum native.
Anshu_LogX: Co-founder, Head of BD, Marketing, Community Management
Akshit_LogX: Co-founder, Head of Product and Technical Owner
KaitouKid: Senior Blockchain Dev
Kuroku: Senior Blockchain Dev
Naitik: Senior Frontend Dev
Dark Spartan: Blockchain Dev
Distroinfinity: Blockchain Dev
Berjin: Frontend Dev
Sumit: Frontend Dev
Yash: Marketing & Community
Shivam: Content Manager
Aadeesh: All things design
Project Links :
Github: GitHub - eugenix-io/logx-aggregator-contracts: Aggregation Contracts for LogX
Discord: LogX 🪵 | Perps Aggregator
Docs: Welcome! - LogX
Substack: Sign in to LogX's Newsletter
Stats: Perpetuals DEX with Aggregated Liquidity
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
Requested Grant Size : 750,000 ARB tokens
Grant Matching : $LOGX token Airdrop rewards
Poised for a triple-win = Best ROI of grant. Traders on LogX will get:
- LOGX ARB incentives (through this grant)
- ARB incentives of other perp DEXes like GMX, MUX, etc.
- $LOGX airdrop incentives
Grant Breakdown : Will be broken down into 2 parts:
- 80% for traders incentives
- This is for incentivizing traders on the LogX trading platform. This will be focused on growing the #traders, #transactions per trader, and long-term retention.
- We have already found a strong PMF in this offering, and want to double-down on what;s working well for us
- 20% for SDK integration inside wallets
- Integration of LogX SDK inside wallets to provide perp trading to millions of users. Similar to how 1inch or 0x SDKs are integrated inside wallets for swaps.
- This is an innovative bet we want to pursue. No one has ever tried this for perps, we want to be the first ones and unlock a new paradigm of growth for perps.
- LogX will work with wallets to pass on these incentives to the end users
Funding Address : 0xA57146ff13671f730D0D122ed192550A3B235fD7
Funding Address Characteristics: This will be 2/3 multisig with private keys securely stored independently.
Contract Address: Specific contracts will be deployed at a later stage and the addresses will be publicly available. Initially, the funds will be securely kept in a 2/3 multi-sig wallet.
If any portion of the grant remains undistributed, the LogX team commits to returning the remaining funds to the DAO.
- Moving CEX traders and volumes to Arbitrum
- Increase the TAM of perp trading through wallet integrations, leading to market expansion of DeFi and long-term value creation for the whole ecosystem.
- Increase user engagement, repeat transactions, and hence, retention by carefully designing long-term usage incentives
- Onboard users from other chains into the Arbitrum ecosystem
- Increase the number of transactions per trader
- Increase the average transaction value number of transactions per trader
- Increase revenue collection for Arbitrum via sequencer fees
- Provide better bonding incentives for retail users and Arbitrum-aligned wallets
Key Performance Indicators (KPIs) :
- Monthly Active Traders
- Cumulative Trading Volume
- Number of new traders per week
- Monthly trader retention
- Average trade size
- Average number of traders per trader per week
- Sequencer fees
- LogX fees
- Open Interest
- Quality of wallets trading on LogX
- Number of wallet integrations
- Number of first-time perp traders acquired through wallets
We understand that one of the primary objectives of the DAO is to measure the impact of this STIP and make further decisions for the long term. To facilitate that, we propose creating a dashboard where we will draw a comparison of performances between pre-incentive, during-incentive, and post-incentive phases for all the above KPIs.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Let us first answer the ‘Why now’ before answering the ‘How’:
- Growing fast, have scaled to almost $100M in organic trading volume within a few weeks
- At an inflection point. Best time to fuel growth
- Strong PMF, good retention
- Interest from wallets for SDK integration
- $LOGX Airdrop incentives are also LIVE, which will be a boost
How it will foster growth:
- Strategically, the first step in achieving our mission is to acquire traders and maximize the volumes flowing through us. The 80% grant that we wish to allocate directly to traders will be a huge boost in accelerating this. ARB emissions, coupled with LogX’s own airdrop program, will move traders from other ecosystems and CEXes to Arbitrum
- Since LogX provides the best execution for perps there can be, we are naturally a go-to partner for wallets wanting to offer perp trading to their users. Most of these are passive customers who do not differentiate much between various chains. So we have a golden opportunity to onboard all of these directly to Arbitrum in a seamless manner. This would foster new growth, more transactions, more fees, more engagement and more TVL.
- We are betting on Arbitrum rollups, app-chains, and community mindshare to solidify the network as the go-to place for off-chain options and provide valuable blockspace for the network.
Justification for the size of the grant :
We have been Arbitrum native since Day 0 of the LogX journey, and are committed to pulling all levers needed to grow the ecosystem. We are uniquely poised to grow not just the user count & transactions count, but also the TVL.
With regards to the traders’ incentives - we are already up and running with a steady growth of daily traders count. The 50% allocation we have for the trader’s incentives, which amount to 375k ARB, will support the acquisition of up to 10k new traders and a long-term retention of up to 20k traders (including the prior ones we have + the more traders that we are continuing to acquire currently). By the end of Jan 2024, having 20k monthly traders will put LogX ahead of other perp trading platforms across ecosystems like Optimism, and even ahead of certain CEXes. We are committed to bringing more and more users on-chain, and that chain better be Arbitrum.
With regards to the wallet incentives for the LogX SDK integrations - - Wallet incentives will start for a 2-month period (December & January), with the 375k ARB tokens allocated for incentives, we are expecting to get up to 50k traders to test out perp trading inside the wallets powered by LogX. Once they experience it, we are confident of being able to grow it organically from there without the ARB rewards.
Execution Strategy :
Our execution strategy is focused on achieving long-term usage of the project, even after the short-term incentives are over.
For both - direct trader incentives as well as wallet integration, we are creating a unique 2-dimensional, exponential curve-based model where the more you trade, and the more volume you do, the more your rewards would receive.
The total rewards pool for trading incentives will be defined for the 100-day period (roughly from Oct 20 to Jan 31). These rewards will be broken into epochs of a 7-day period, and rewards will be transferred at the end of every epoch. The calculation of incentive distribution would take off-chain due to the complexity of the calculation and will be transparently conveyed to the community. These ARB incentives will be coupled with the ongoing $LOGX airdrop rewards campaign.
Grant Timeline :
- Trader incentives will run from Oct 20th to Jan 31st
- Wallet incentives will run from Dec to Jan 31st
LogX Team will create a dashboard in which all of the metrics and KPIs will be tracked at regular intervals to ensure transparency and verifiability.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multi sig holds the power to halt your stream? Yes
Is the Protocol Native to Arbitrum? : Yes
On what other networks is the protocol deployed? : None as of now. There are plans to deploy on other ecosystems in the future.
What date did you deploy on Arbitrum? June 2, 2023
Protocol Performance :
Total traders: 1250
Cumulative Trading Volume: ~$100M
OI as a % of Total Volume: 4% (Better than GMX or other top perp DEXes)
Supported trading pairs: 60+
Dashboard link: Perpetuals DEX with Aggregated Liquidity
DefiLlama link: https://defillama.com/aggregators/logx
More than 100,000 unique visitors in the past month
- GMX V1
- AARK (in progress)
- GMX V2 (in progress)
- Vertex (coming soon)
- Deri (coming soon)
- Vela (coming soon)
Launched ‘Mystery NFTs’ that traders earn for various activities. These NFTs multiply their airdrop rewards.
Collaborating with key ecosystem builders like Axelar to help migrate users to Arbitrum
Delivered best-in-class trading terminal with advanced chart settings, 50+ supported pairs, advanced TP/SL, Smart order analysis, Rewards dashboard, etc.
Super-optimized load distributions and speed of order execution
Protocol Roadmap :
LogX currently has 4 perp DEXes integrated on Arbitrum. We are working to take this figure to 8 by December end. This will:
- deepen the liquidity
- improve price discovery
- reduce slippage
- reduce trading cost
- increase the trading pairs available
Launch our B2B SDK for wallet provider - the first ever attempt at providing perp trading inside wallets to retail users
V2 of $LOGX airdrop mining system - with tier based benefits
Cross-chain access to Arbitrum’s liquidity - this will enable traders of other chains to deposit funds, and we will bridge them to Arbitrum to enable their trading
Account Abstraction integration to enable gasless trading and sessions
Feature additions like PnL analytics, PnL sharing, Advanced order types, etc.
Is your team prepared to create Dune Dashboards for your incentive program? : Yes. We already have a dashboard, we will open it up for the community.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? 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