[LOGX] LTIPP Application - FINAL

Archive Long Term Incentives Pilot Program (LTIPP)
1

SECTION 1: APPLICANT INFORMATION

Applicant Name: Anshu Agrawal

Project Name: LogX

Project Description:

LogX is the go-to platform for trading on-chain perpetuals, which innovates on the frontend trading experience while utilizing the robust infra and liquidity of other perp DEXes like GMX V2.

LogX has one of the largest number of traders within the DeFi perp DEXes with over 110k unique trading wallets.

LogX is evolving to be the largest broker in DeFi onboarding CEX traders through offering superior features like:

  • algorithmic automation
  • trading strategies
  • wide range of token pairs
  • low latency trade placements through dark Oracle Infra
  • and intelligent risk management prompts.

Team Members and Roles:

Anshu: Co-founder, Head of BD, Marketing, Community Management
Akshit : Co-founder, Head of Product and Technical Owner
KaitouKid: Senior Blockchain Dev
Kuroku: Senior Blockchain Dev
Dark Spartan: Blockchain Dev
Distroinfinity: Blockchain Dev
Berjin: Frontend Dev
Sumit: Frontend Dev
Yash: Marketing & Community
Aayush: Growth
Aadeesh All things design
Akash: Growth

Project Links:

Website: https://app.logx.trade/
Twitter: https://twitter.com/LogX_trade
Discord: LogX 🪵
Docs: Overview - LogX Docs

Contact Information

Point of Contact: Anshu Agrawal
Point of Contact’s TG handle:@anshu_agrawal
Twitter:@anshuagrawal_
Email: anshu@flint-labs.com

Do you acknowledge that your team will be subject to a KYC requirement?: Yes

SECTION 2b: PROTOCOL DETAILS

Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):

Anshu Agrawal: trader since 2017, previously a founding team member at now India’s largest FinTech currently valued at ~$7B, an angel investor in a few web3 startups, an engineer by education, lives and breathes distribution hacks in web3

Akshit Bordia: tinkering with blockchains since 2019, also an early member at the same company as Anshu, an engineer. Anshu and Akshit have been building products together for the last 9 years now since their University days.

More than 70% of the team at LogX are developers. Our engineering team consists of individuals from Goldman Sachs, JP Morgan, and Morgan Stanley who have built complex trading systems at scale.

The growth team at LogX has a wide array of Web2 as well as Web3 experiences, where they have scaled their past products to millions of users.

The founders have shipped multiple successful products in the past:

  1. Built and scaled a core payments product to over $100 million in ARR at CRED (the largest fintech in India).

  2. Launched a crypto yield app in 2021 for Asian markets, which attracted over 100k users within 6 months.

  3. Shipped ‘Gaspay’ at ETH Denver in 2023 and won the DeFi track.

  4. (Current Project) Scaled LogX to over $4.5 billion in trading volume with more than 100k traders in just 6 months.

What novelty or innovation does your product bring to Arbitrum?

All perp trading platforms offer similar features like leverage trading, order types, and low fees, however, LogX not only delivers CEX-like features but also distinguishes itself by offering unique features that enhance the trading experience and complement some of the features on GMX V2:

Following are a few innovative features LogX brings to Arbitrum:

  • Automated algorithmic trading: Users can execute perpetual trades based on signals, and alerts, and even create their algorithms on LogX, which will be executed at GMX V2
  • Autonomous agents for pre-built trading strategies: With our trustless mechanisms, users can deploy funds on common trading strategies like arbitrage bots, grid bots, etc. and efficiently manage their positions through account abstraction
  • Superior Liquidity: LogX pools liquidity primarily from GMXV2, ensuring deep liquidity for a wide range of trading pairs.
  • Low Latency Trades through dark oracles: With our ultra-fast dark oracle infrastructure complementing GMX’s price feed, LogX achieves reduced trade latency which no other DeFi broker offers.

Sharing some depth into each of these points:

  1. Automated algorithmic trading:

In crypto trading, timing and precision are everything. We’ve learned that automated trading not only enhances efficiency but also removes emotional decision-making from the trading process for our users, paving the way for more consistent and potentially profitable outcomes.

This brings us closer to our vision of onboarding users from CEFI like Bybit and Binance to provide them with a trading terminal designed to empower users with secure automated algorithmic trading. Most importantly, offering automated trading bots compliments our protocols like GMX V2 as well.

  1. Autonomous agents for pre-built trading strategies:

Our integration with EmpyrealSDK enables our users to deploy funds on common trading strategies and not only manage the automation effectively but also streamline complex data points with unmatched privacy through account abstraction. This further allows our users with precise control over every action by their AI agents.

  1. Superior Liquidity:

In DeFi, a prominent challenge revolves around liquidity. GMX V2 strategically addresses this concern by introducing isolated liquidity pools. LogX primarily leverages liquidity from GMX V2 which means users can now access a consolidated and streamlined view of market liquidity from top-tier DEXes like GMX. This innovative approach enables LogX to support a diverse array of markets without aggregating collective risk and overall contributes to an efficient trading experience, enabling users to make informed decisions with a comprehensive overview of the market conditions.

  1. Low latency trades:

The biggest pain point of CEX traders coming to DeFi is latency. That’s a major pain point of derivatives exchanges and we truly believe that the low-latency oracles are a new standard in ultra-fast oracle infrastructure, and a big step forward for improving the security, decentralization, and DeFi user experience.

Inspired by the GMX V2 version, LogX uses a dark oracle to complement GMX’s price feed, which aggregates prices from various centralized and decentralized dexes to agree upon a common median value of price. This aggregated price value is compared against the price from the Pyth Oracle network and written to the chain. This comparison is done on chain and the aggregation from multiple sources makes sure that a common market price for token pair is taken into consideration. Pyth provides us with real-time prices for token pairs on GMX v2.

Is your project composable with other projects on Arbitrum? If so, please explain:

Yes, absolutely. The whole premise of LogX is based upon composability. LogX does not only integrate with other composable protocols, but other protocols can also integrate LogX. Applications like wallets, copy trading platforms, analytics platforms, etc. can find seamless composability with LogX.

This is important to us because LogX would not have existed if not for the composability of other protocols. We owe our existence to it, and want to ensure that other protocols and apps can build on top of LogX to unlock new value props.

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?

At the time of launch, LogX stood as a solution to aggregate perps liquidity across various DEXes and chains, and enable a cross-chain routing mechanism. While there were projects like MUX that aggregated liquidity, LogX distinguished itself with its unique approach to including order-book liquidity in aggregation and smart cross-chain order routing to ensure optimal trade execution.

Now, with our core focus directed towards creating a supreme frontend experience to onboard CEX users, we are solely leveraging GMX V2 for our infrastructure, risk, and liquidity needs. As GMX v2 has grown to become a robust infra by itself, coupled with groundbreaking innovation that we’re bringing on the front end as a broker, there are currently no comparable protocols developing on similar lines.

How do you measure and think about retention internally? (metrics, target KPIs)

Our retention analysis is devised differently for 2 major user personas - Power traders and casual traders.

For power traders, we review retention weekly, and for casual traders we review monthly.

We continuously review our user retention every week to obtain a holistic view of the protocol and every marketing campaign/incentive program - both pre and post-launch. This analysis allows us to gauge the effectiveness of our campaigns and assess new protocol features.

We evaluate our user retention through metrics like:

  1. DAU, MAU (where U = traders placing at least 1 trade)

  2. DAU MAU split between old and new users

  3. Cumulative users

  4. Weekly growth rate in cumulative users

  5. Daily volumes split between old and new users

  6. Retention cohort analysis (smile curves)

Key definitions & numbers:

  1. Cumulative Users = Placed at least 1 trade on LogX trading terminal. As of Feb 2024 end, we have 110k unique wallets, out of which over 50% are on Arbitrum.

  2. Daily Active Users = Traders placing at least 1 trade. On Arbitrum, we have over 1000 daily active traders currently.

Relevant usage metrics - Please refer to the OBL relevant metrics chart 26. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

Category Relevant Metrics
General Most of the general metrics in the OBL relevant metrics chart are relevant. Majority of the data can be viewed by the public on our statistics page. Metrics included are: Daily Active Users, Daily User Growth, Daily Transaction Count, and Daily Protocol Fee. Metrics that we will make available post the grant approval: Daily ARB expenditure & User Claims and Incetivised User List & Gini Coefficient
Perpetuals Most metrics for perpetuals are relevant to LogX. These metrics include: TVL, Trading Volume, Open Interest, List of Traders, Trader Net P&L and Liquidations.

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 (Note: this does NOT disqualify an applicant):

No

SECTION 2b: PROTOCOL DETAILS

Is the protocol native to Arbitrum?: [Yes/No, and provide explanation]

Yes. We deployed LogX around 8 months ago on Arbitrum and have been an Arbitrum native project, with around 75% of our trading volumes being on the Arbitrum One chain.

We have made remarkable progress and have processed over $3.5 billion in volume on Arbitrum. We are currently averaging $60 million in volume a day, and with the help of this grant, we aim to grow multi-fold.

On what other networks is the protocol deployed?: [Yes/No, and provide chains]

LogX is additionally deployed on Optimism, Mantle, Mode network, Linea, Blast network.

What date did you deploy on Arbitrum mainnet?: [Date + transaction ID. If not yet live on mainnet, explain why.]

Deployed on the Arbitrum mainnet on 8th June 2023. Link: MuxAdapter | Address 0x97db34cdba1f9a539974d8bed87d69524a3811b6 | Arbiscan

Do you have a native token?: [Yes/No/Planned, link tokenomics docs]

We do not have a native token yet. It’s scheduled to launch in Q3 this year.

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?

  1. LogX conducted a “Rise to Chief Experience Officer” marketing campaign starting from 18th Jan to 3rd March.

Here’s a quick summary of our campaign details:

  • Trade a cumulative volume of $500 on LogX via the Arbitrum chain to unlock 5 coveted lottery tickets.

  • Achieve a cumulative volume of $5,000 on the Arbitrum chain, and secure an impressive 60 lottery tickets.

  • Trade a cumulative volume of $15,000 on the Arbitrum chain, and be crowned with an unparalleled 200 lottery tickets.

  • Moreover, users can claim multiplier NFT, additional XPs, and cash rewards of $1350 USDC on LogX after the campaign ends.

Achieved results:

Parameter Pre CEO campaign Post CEO campaign
Daily Active Traders 100 1000
Daily Volume Avg $5M $20M
  1. LogX also conducted a Battle Royale trading competition starting from 7th feb to 3rd March.

Here’s a quick summary of our campaign details and achieved results:

  • Up to $25,000 USDC Prize Pool.
  • Limited LogX NFTs to top 50 wallets.
  • Daily Bonus Payouts of 100 $OP tokens EVERY DAY until March 3.
  • LogX Airdrop Points.
  • Bonus Zealy XPs
  • All participants crossing $50k volume by March 3 will guaranteed win cash rewards from the USDC prize pool.

Achieved results:

Parameter Pre Launch Post Launch
Daily Active Traders 1000 1800
Daily Volume Avg $20M $60M
  1. We also introduced midway snapshots during the Battle Royale to reward top 15 traders on the leaderboard with Unique NFTs and cash prizes.

Achieved results:

On days of snapshots, we were able to bump up the volumes by 50% for the day.

  1. Other campaigns

Apart from our “Rise to Chief Experience Officer” event & Battle Royale on Arbitrum, some other campaigns we organised include:

  • Incentivized users via trading rebates on the Mantle chain and distributed MNT tokens across 1500 wallets in 3 weeks. This campaign generated more than $500M in trading volume and around 1000 users daily.

  • We also ran multiple quests on Mode network which generated around 200M$ in trading volume and successfully added 6M$ in TVL.

Current Incentivization: How are you currently incentivizing your protocol?

We have allocated 12% of the total $LOGX token supply towards user incentives. The rewards program is broken down into multiple incentive programs as follows:

  1. Points mining program running till March 5th
    Within this, our traders have been earning Log points corresponding to their trading behaviour like volumes, OI, PnL, etc. Till now, we have awarded points for over $4.5 Bn trading volume to over 110k users.

  2. Token mining program starting March 5th
    As a part of this program, we are giving away 0.2% of our total supply per week in the form of IOU $LOGX tokens to traders. This program optimises rewards for traders towards good trading behaviour like good PnL, high OI, high return on assets, etc.

  3. Royalty NFT redeemable for $LOGX tokens

  • We have a rare NFT program having 3 tiers of rare NFTs like Black NFTs, Gold NFTs and Silver NFTs (in the decreasing order of rarity), which the users can earn by completing certain actions. These NFTs are redeemable for $LOGX tokens at the time of TGE
  • We have reserved up to 1.2% of our total supply towards this NFT program
  1. Whale Program
  • This incentive mechanism aims at benefitting some large whales and power traders over and above the incentive mechanism available to the general users
  • 1% of the total supply is reserved for whales
  1. Referral & Affiliate Programs
  2. Weekly Leaderboards
    Lastly, LogX runs continuous leaderboards to reward traders on a weekly basis, primarily considering their PnL

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem-related program? [yes/no, please provide any details around how the funds were allocated and any relevant results/learnings(Note: this does NOT disqualify an applicant)]

No

Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

Important timelines:

  1. Alpha launch: July 2023
  2. Public launch with GMX & MUX routes : Aug 2023
  3. Addition of new routes like GMX V2, Hyperliquid, Gains: Sept 2023
  4. First $100M Cumulative volume milestone: Sept 2023
  5. First $1B Cumulative volume milestone: Jan 2024
  6. Hit 100k unique traders: Feb 2024
  7. TGE: July 2024

Key metrics (as of Feb 2024 end):

  1. Cumulative trading volume: $4.5B
  2. Cumulative trading volume on Arbitrum: $3.5B
  3. Total unique trading wallets: 110k
  4. DAU on Arbitrum: 1000
  5. WAU: 2000
  6. MAU: 5000
  7. Avg daily trading volume on Arbitrum: $60M

Dashboard: Perpetuals DEX with Aggregated Liquidity

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]

In 2024, LogX’s prime focus is on onboarding CEX users to DeFi through leveraging our innovative frontend terminal on top of GMX V2’s robust infra and liquidity. And our protocol roadmap will be a reflection of that.

TL;DR: We have grown to 110k wallets with over $4.5B in volume over the last 7 months, with some key learnings on growth and product (mentioned below). And now we know the product and growth demands to scale 10x from here.

We have had numerous experiments with learnings around:

  • who is our ideal user
  • what do our CEX traders need to come to DeFi
  • what growth experiments work
  • how much capital we need to infuse to grow at a certain velocity, etc.

This section covers our upcoming roadmap on both - product as well as growth side - that CEX traders need for LogX to go 10x:

Q1 2024:

  1. [COMPLETED] Launch of support for algorithmic trading based on signals, alerts & charts
  2. [COMPLETED] Integration with Alertatron telegram bot
  3. Launch of autonomous agents to deploy pre-built trading strategy bots
  • Going live with 3 initial strategies (DCA, Trailing SL, Grid bots) in March 2024
  • More strategies in April
  1. [COMPLETED] Integration with cede.store to drive movement of TVL from CEXes to Arbitrum.
  2. Advanced order types like TWAP, VWAP on top of GMX V2 execution

Q2 2024:

  1. Launch of more pre-built bots beyond the initial 3 trading strategies
  2. Integration with 3 more telegram bots
  3. Trading vaults (community owned)
  4. Launch of our “CEXy” growth campaign to incentivise CEX traders to move to LogX through cheaper trading fees, daily bonus payouts, etc.
  5. Optimising the 3 strategies launched in Q1 with the help of data and simulations

Q3 2024:

  1. $LOGX TGE
  2. LOGX’s own telegram bot
  3. Launch of our own NFT collection (like GBC) for targeted community campaigns
  4. Cross-chain access to GMX’s liquidity: Will be working on a white-label solution with cross-chain messaging protocols like Axelar/LayerZero to devise a custom sub-protocol enabling access to GMX’s liquidity from other chains
  5. Integration of MPC wallets for faster/easier logins

Q4 2024:

  1. Social trading: Real-time chat room for all frequent LogX traders to increase engagement and fun
  2. Launch leveraged yield vaults on top of GM pools to start driving more liquidity to GM pools, which in turn will enhance the experience of LogX traders
  3. Intelligent risk-management prompts through AI. Will utilise data on past trade behaviours corresponding to the market movements and resulting PnL to nudge traders on their trading decisions
  4. Institutional-friendly APIs and SDKs
  5. Seeking core PMF will then expand outwards to add more liquidity sources.

Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]

  1. Audit 1 (Peckshield): Audit - LogX Docs
  2. Audit 2 (SolidProof): logx-aggregator-contracts/audits/Solidproof_Audit_Report.pdf at main · eugenix-io/logx-aggregator-contracts · GitHub

Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]

No

SECTION 3: GRANT INFORMATION

Requested Grant Size: 395,000 ARB

Justification for the size of the grant 28: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]

To grow the on-chain share of perps trading volumes, we believe following are the top problem statements in the order of priority:

  1. Acquiring more CEX traders
  2. Continuous engagement of the acquired traders (leads to long term retention)
  3. Driving new growth flywheel via the acquired users

Over the last 7 months of operation, we at LogX have experimented with 100s of growth/engagement/retention strategies, and now believe that we have a perfect understanding of how to impact metrics for the long term. Using our past learnings, we have designed a solid execution plan to focus on bringing more volume, new traders and build retention strategies for LogX and ultimately our partners like GMX.

Let’s look at how we arrive at the total grant size:

1. Acquiring more CEX traders

Currently, we spend roughly $100,000 every month from our treasury to acquire 500 unique trading wallets with over $50k monthly volume. Please note that we have acquired many more unique trading wallets but we are considering anyone with less than $50k monthly volume as insignificant for now.

That brings our CAC to $200 per activated trader.

Given that perp DEXes do roughly 4% of overall perp volumes daily and given that perp DEXes have roughly 20k monthly active traders across all chains (with $50k+ monthly volumes), we approximate that the relevant pool of CEX traders to acquire is around 500k monthly active traders.

From a long-term perspective, we aim to acquire at least 0.2% of CEX traders and bring them to Arbitrum EVERY QUARTER. This means, that throughout this 12-week LTIP program, out of these 500k active traders, we aim to acquire at least another 1000 of these CEX traders.

At a CAC of $200 per trader, acquiring 1000 traders would need $200k, which, at $2 per ARB would require 100k ARB tokens.

2. Continuous engagement of the acquired traders (leads to long-term retention)

In the last 8 months of being operational, we have run multiple experiments and have formulated this section based on those learnings. To achieve continuous engagement, some experiments that have worked well for us our:

  1. Trading competitions
  2. Partial fee rebate campaigns
  3. Daily bonus payouts

We have the following targets related to engagement during the 12-week period:

  • Growth in weekly volumes from $400M to $1 Bn
  • Growth in WAU from 2000 to 4000
  • Growth in MAU from 5000 to 10000

We’d like to channel this grant funding towards engaging high ROI traders (who make more than $50k monthly volumes). Currently, we have 5k such weekly traders. We will be spending to engage another 1k newly acquired traders = a total of 6k traders.

Right now, to engage 5k high ROI traders, the following is our weekly cost involved:

  1. Trading competitions: $10k prize pool
  2. Partial fee rebate campaigns: $10k
  3. Daily bonus payouts: $500/day = $3500

So our weekly engagement cost involved is $23.5k/week

To engage an additonal 1000 traders, totalling to 6k high ROI weekly traders, our spending would become roughly $28.2k/week.

Over 12 weeks, that would be a $338.4k total cost, which, at $2 per ARB would be 170k ARB tokens.

3. Driving new growth flywheel via the acquired users

As we have learned, all the experiments that we run to drive top of the funnel growth has diminishing returns as we scale. This means, if the first $1k helped acquire 5 traders, then $10k will not help acquire 50 traders. It would be lesser than that.

This means, we need to start driving growth via the acquired users itself so that the ROI on the initial top of the funnel spends would improve.

The 2 strategies that have worked well for us in this regard are:

  1. Tiered referral program
  2. Affiliate program

Right now, our referrers get 10% of the trading fees as the commission while the affiliates get up to 25%. We will incentivise them with additional ARB tokens on top of this commission to:

  1. Grow our network of high quality affiliates
  2. Motivate them to push more

The tiers are as follows:

Tier # referrals per week Total volume referred per WEEK Base trading commission Added ARB commission
1 0 to 5 $0 to $4 Mn 10% 10%
2 6 to 20 $4 to $8 Mn 10% 12%
3 40 $8 to $15 Mn 10% 15%
Affiliates 100 $15 to $25 Mn 10% 20%

Our target is to have the following performance:

WEEKLY Breakup:

Tier # active referrers that week Avg volume/referrer Total volume referred per WEEK Fees paid at 0.01% per trade ARB commission
1 10 $2 Mn $20 Mn $20k $2k
2 5 $6 Mn $30 Mn $30k $3.6k
3 4 $12 Mn $48 Mn $48k $7.2k
Affiliates 2 $20 Mn $40 Mn $40k $8k

Additional incentives in ARB tokens is coming out to be $20.8k per week. Over 12 weeks, that would amount to $250k, or 125k ARB tokens.

Summary:

Parameter ARB tokens
Acquiring more CEX traders 100k
Continuous engagement of the acquired traders (leads to long term retention) 170k
Driving new growth flywheel via the acquired users 125k
Total grant size 395k

Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
LogX will match with up to 1% of the total $LOGX supply, worth $2M at $200M FDV

Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]

Our allocation will be distributed as follows:

Parameter ARB tokens
Acquiring more CEX traders 51%
Continuous engagement of the acquired traders (leads to long-term retention) 31%
Driving new growth flywheel via the acquired users 18%

Funding Address: [Enter the specific address where funds will be sent for grant recipients]: 0xA57146ff13671f730D0D122ed192550A3B235fD7

Funding Address Characteristics: ⅔ multi sig

Treasury Address: NA

Contract Address: To be updated as the process progresses.

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

Objectives:

  • Acquiring more CEX traders
  • Continuous engagement of the acquired traders (leads to long-term retention)
  • Driving new growth flywheel via the acquired users
  • Grow Volumes, DAU, and open interest on GMX V2 via LogX

Execution Strategy:

1. Acquiring more CEX traders

  • Thought process: We want to create a community movement that will bring CEX traders to the the best trading-focused chain, Arbitrum. Based on our experiments, UGC (User-generated content) creates the highest amount of traction and creates a community feeling.

  • Campaign details:

    • Withdraw funds from CEX to Arbitrum and tweet about it to get a 100% trading fee refund on LogX. #TRADINGCHAIN #ARBITRUM
    • Campaign would refund 100% of trading fees up to $1 Mn of trading volume per user
    • The tweet storm from so many users will create a flywheel effect that will FOMO other users to get funds on Arbitrum and use LogX.

  • Cost of acquisition:

    • At 0.1% trading fees cost, $1 Mn of trading volume would require a maximum of $1000 fees per user.
    • 50% of the fees would be paid in LogX tokens and 50% of the fees in ARB tokens.
    • In all our past campaigns users usually only do 30-50% of the upper limit. Therefore the cost of acquisition per user would be ~$200 in ARB tokens and the same in LOGX tokens.
    • We will acquire a total of 1000+ high-quality traders via this campaign.
    • Total cost: 1000*200=$200,000 (100,000 ARB)

  • Execution:

    • LogX will push out the campaign at the start of May
    • Users can verify their withdrawal/tweet on the Zealy Quest platform
    • LogX will refund 100% of the fees to users every 2 weeks once the grant is received
    • LogX will push the campaign with 100+ partner KOLs to amplify the reach

2. Continuous engagement of the acquired traders (leads to long-term retention)

  • Thought process: Our top learning from running multiple campaigns is that different types of traders require different kinds of campaigns. To drive mass adoption we need to design multiple campaigns to cater to all sizes of traders.

  • Campaign details:

    • Weekly Trading competitions

      • Targeting pro traders
      • $12k weekly prize pool
      • Users can track their position and volume on the LogX leaderboard
      • $6k would be distributed to the top 30 users by trading volume
      • $6k would be distributed to the top 20 users by P&L

    • Partial fee rebates

      • Targeting retail traders
      • $12k weekly budget
      • 50% of the trading fees would be refunded to users
      • Rebates will be paid on a first come first serve basis
      • Refunding 50% of the trading fees worth $12k would mean being able to refund fees over a volume of the first $24 Mn. As a % of the total weekly volume this is not a lot, but when carefully spread out across lots of users, solves for cold-start problem.

    • Surprise daily bonus ARB drops

      • Targeting all trader types (an inclusive campaign)
      • A surprise reward program to create excitement (inspired by the Cash app)
      • $4200 would be a weekly budget
      • ARB drops will be on multiple surprise parameters:
        • Highest numbers of trades per week (drive regular behavior)
        • Worst P&L (Boost morale after a major loss)
        • Highest volume on a volatile day (Boost activity on volatile days)
        • Highest OI in a particular week (Help build a healthy trading skew)
        • Other parameters will be decided by the team to drive good trader behavior

  • Overall cost: $28.2k*12 weeks = $338.4k (170k ARB tokens)

  • All the users will get a 1:1 matching allocation of $LOGX to fuel the growth

  1. Driving new growth flywheel via the acquired users

  • Thought process: Acquisition campaigns have diminishing returns after a certain point. Therefore we need to design long-term referral and affiliate programs to drive long-term low-cost user activity.

  • Tiered referral+Affiliate program:

    • Currently users get 10% of the trading fees on referrals.

    • Total budget: 125k ARB tokens

    • Campaign timeline: May start till budget ends

    • We will offer additional ARB incentives based on various tiers:

      • 10% of trading fees in Arb rewards: Min 10 referrals and $5 Mn in referred trading volume
      • 15% of trading fees in Arb rewards: Min 20 referrals and $10 Mn in referred trading volume
      • 20% of trading fees in Arb rewards: Min 40 referrals and $20 Mn in referred trading volume
      • (Affiliate program) 25% of trading fees in Arb rewards: Min 100 referrals and $100 Mn in referred trading volume

    • All the users will get a 1:1 matching allocation of $LOGX to fuel the growth

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? [Provide relevant design and implementation details]

Stickiness post-LTIPP will be maintained through a few mechanisms as listed below:

  1. Long-term $LOGX token incentives: Around the end of LTIPP is when the $LOGX token is expected to be launched. We have reserved over 40% of our supply for post-TGE incentives, to incentivize long-term usage of the protocol
  2. Scaled-up Referrals & Affiliates: As mentioned, one of our key objectives to achieve with this grant is to scale our referrals and affiliates program. Once we manage to utilize this grant to get there, the effects of it will stay forever as partners once acquired will continue to push our brand out and acquire users.
  3. Research & Action with Openblock: LogX will work with the Openblock data science team to research users who discontinue using LogX and create strategies to re-acquire those users
  4. Sticky product with a strong PMF: One of the undisputed facts of LogX’s journey has been a strong PMF, which has resulted in a natural long-term retention of acquired traders. This is also the reason why we are using the major portion of our grant towards acquisition. We are confident that our product itself drives a lot of stickiness.
  5. Royalty NFTs: LogX has a rare NFT collection (mentioned previously in the proposal) that will be leveraged to drive long-term actions as well.

Protection measures against farmers:

  • Thought process: We want to incentivize real traders to trade instead of people just doing wash trading. The list of checks are mentioned below:

    • Self-referral protection is built in the programs below. We will run a check to see if there was any significant money transfer between the referrer and referee dashboard
    • Trade open and close before 10 seconds will be given 50% fewer rewards to penalize wash trading
    • All wallets will be screened via Sybil/IP checks to ensure legitimate users get rewards
    • The length of the wallet creation would also command a higher premium than wallets created recently
    • Surprise bonus ARB drops will by design incentivise good behaviour

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.

Relevant to our objectives, we will be monitoring the following KPIs:

Objective 1: Acquiring more CEX traders

  1. New traders, to be further broken down into:
  • New to DeFi.
  • Old to DeFi
  • New to Perp
  • Old to Perp
  1. Quality of the acquired traders
  • Mean lifetime trading volume/trader
  • Median lifetime trading volume/trader

Objective 2: Engagement

  1. WAU & MAU split into new wallets versus old wallets
  2. Weekly trading volumes split into:
  • New wallets versus old wallets
  • Growth in weekly volumes week on week
  1. Weekly fees paid
  • Total
  • New wallets versus old wallets
  1. Open Interest, split into new wallets versus old wallets

Objective 3: Affiliate program

  1. New affiliates onboarded
  2. Total volume driven by affiliates
  3. Share of affiliate-driven volume as a percentage of total volume

Objective 4: Drive more traders & volumes to GMX

  1. New traders acquired by GMX
  2. New volumes driven to GMX
  3. New OI driven to GMX

Grant Timeline and Milestones:
Tranch 1: 120k ARB (30%)

Timeline: Week 1 to 4

Milestones by Week 4 (as compared against week 0):

  1. 300 new traders with $50k+ monthly volume
  2. Increase WAU from 2000 to 2500, MAU from 5000 to 6000
  3. Increase cumulative weekly trading volume from $400M to $500M
  4. At least $75M of the $500M weekly volume should be via referrals

Tranch 2: 120k ARB (30%)

Timeline: Week 5 to 8

Milestones by Week 8 (as compared against week 0):

  1. 600 new traders with $50k+ monthly volume
  2. Increase WAU from 2000 to 3000, MAU from 5000 to 7500
  3. Increase cumulative weekly trading volume from $400M to $750M
  4. At least $100M of the $750M weekly volume should be via referrals

Tranch 3: 155k ARB (40%)

Timeline: Week 9 to 12

Milestones by Week 12 (as compared against week 0):

  1. 1000 new traders with $50k+ monthly volume
  2. Increase WAU from 2000 to 4000, MAU from 5000 to 10000
  3. Increase cumulative weekly trading volume from $400M to $1 Bn
  4. At least $150M of the $1 Bn weekly volume should be via referrals

Justification of Feasibility: The execution plan and timelines mentioned above are derived from our months of experimentation and learning. We have figured out the sensitivity of capital towards each of the metrics we are chasing, and as we fuel in more capital, we are confident of producing a proportional bump in metrics. Something to be cautious about here is to be sensitive to the diminishing returns of excess capital. To combat this, we have decided to break down the tranche sizes in 30-30-40% fashion.

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

  1. New users - we are bringing new users (traders) to DeFi from CeFi and other DeFi ecosystems by providing a trading experience as good as CEXes with the added advantage of self-custody, censorship resistance, and transparency. This will onboard new, high-value users to Arbitrum.
  2. New TVL - Similar to point #1, these new users will be bringing their funds directly to Arbitrum and locking on contracts.
  3. Cross-chain access to Arbitrum’s liquidity: As mentioned in our protocol roadmap, we will be working on a white-label solution with cross-chain messaging protocols like Axelar/LayerZero to devise a custom sub-protocol enabling access to Arbitrum’s liquidity from other chains.
  4. Rather than focusing on increasing the quantity of Perp DEXs, LogX’s goal is to enhance the quality and meet the needs of perp traders trading on LogX and scaling GMX. In long run, this will solidify Arbitrum’s positioning as the home of DeFi and help keep users/TVL sticky.
  5. Attracting External Investment: Success stories within the Arbitrum ecosystem, fueled by grant-supported projects, can attract external investors. This can lead to additional funding for the ecosystem, not just in the form of direct investment but also through increased purchasing of tokens associated with Arbitrum projects, potentially driving up their value.
  6. Cross-Pollination of Ideas and Technologies: Projects funded by grants can collaborate, leading to a cross-pollination of ideas and technologies. This could result in interoperable solutions that enhance the user experience across different applications and platforms within the Arbitrum ecosystem.
  7. Increased #txns leading to increased sequencer fees
  8. Growth in market share against other L2s
  9. Leveraging our robust community of 200k+ Twitter followers and 150k+ Discord members, LogX will run campaigns to channel these users towards Arbitrum. This will again help build defensibility in the long run.

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/No]

Yes

SECTION 5: Data and Reporting

  1. 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?

Yes

  1. Are there any special requests/considerations that should be considered?

NA

  1. Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?

Yes.

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

  1. 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

  1. 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?: [Y/N]

Yes

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gm @Matt_StableLab - tagging to draw your attention towards the draft. Please screen and let me know if this requires further work before an advisor can be assigned to us.

Thanks for you help.

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Hello @Anshu_LogX ,

Thank you for your application! Your advisor will be Castle Capital @Atomist.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

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@cliffton.eth - pls help move the application from DRAFT to FINAL. Thanks.

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Hey there, I’ve amended the post title to reflect that this proposal is FINAL. All the best!

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Firstly, we would like to thank you for your proposal. LogX’s application caught our attention because of its concrete goals and track record of past performance. Particularly, the metrics they set show that their strategies for achieving their goals are sound. In our opinion, by focusing on CEX users and successfully implementing this strategy, the team is creating a positive impact for the Arbitrum ecosystem. Finally, LogX’s product features are also worth noting. Therefore, we will vote in favor of this proposal as ITU Blockchain.

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