LTIPP: Improving efficiency and ROE with conversion growth tool

Intro

Tokenguard is excited to open discussion on improving the ROE (‘return on emissions’) results of LTIPP by delivering DeFi-specific insights and strategies for engaging new and existing wallets. This idea is created based on:

  • Results of STIP program delivered by OpenBlock Labs (here)
  • A great post by SeriousPeople team about increasing the efficiency of LTIPP program (here)
  • Discussions with @DisruptionJoe , who gave us a lot of insights and useful ideas.

The challenge

  • Results of OpenBlock STIP analysis uncovered that at least 800k $ARB has been lost due to sybil account activity within DeFi protocols awarded.
  • The main goal of incentive programs such as STIP & LTIPP is to increase the new user inflow into the ecosystem that will lead to higher network usage, TVL and finally - the price of $ARB.
  • @SeriousPeople has proposed a great framework for making incentive programs measurable and profitable but underlined that there are no tools to currently measure it within the Arbitrum ecosystem

The solution

We propose to support Arbitrum ecosystem and all DeFi protocols participating in LTIPP with a tool to measure all wallet-related metrics suggested by @SeriousPeople and other that are agreed within this discussion. What is Tokenguard?

:white_check_mark: Tokenguard is a dedicated no-code wallet analytics for DeFi builders. With cross-protocol and cross-chain tracking, it delivers actionable insights about wallet conversions, engagement and churns, allowing DeFi to build strategies around increasing revenue and wallet engagement.

Core functionality

  1. Top wallets: Understanding the behavior of the most powerful wallets that generate most revenue within a specific DeFi. Feature will allow segmentation of wallets based on their on-chain behavior and characteristics such as:
  • Activity within DeFi and other on-chain dApps / DeFi
  • Activity timeline (date joined, interactions)
  • Wallet balance & TVL
  • Custom events (eg. receiving a LTIPP reward)
  1. Wallet conversions: Allowing wallet segmentation based on on-chain conversions within a specific DeFi. This feature will require uploading the ABI of a protocol in order to properly convert possible DeFi events into conversions. DeFi is able to create its own conversion types based on:
  • Smart contract within the dApp / DeFi
  • Type of event / call
  • Time when conversion happened
  • Value of the conversion
  1. Segments deep-dive: Feature that will allow drawing visual insights from aggregated wallet segments based on the above-mentioned and custom characteristics.
  • Possibility to segment wallets that claimed ARB rewards and / or were acquired with other programs to measure their CAC, LTV and observe their behaviour afterwards,
  • Possibility to understand the behavior of specific wallet groups, e.g. whales, traders, liquidity providers, etc.

What can be measured?

This opens a new range of growth possibilities for Arbitrum Ecosystem and its DeFi by delivering actionable knowledge about:

  • Identification of wallets that translate into highest ROI / ROE for the ecosystem / DeFi,
  • LTV calculation of wallets that joined the ecosystem as a result of the LTIPP program / other activities,
  • Understanding whether the CAC < LTV for different wallet segments or DeFi protocols,
  • Identification of wallets that shouldn’t receive rewards due to lack of earlier activity (potential sybil accounts),
  • Identification of other protocols / ecosystems that wallets churn to.

Out of 10 metrics proposed by SeriousPeople to measure ROE (‘return on emissions’) for LTIPP program, Tokenguard currently measures 5 of them - per each wallet and each dApp / DeFi:

  • Users from other blockchains
  • New Defi users
  • Permanent users
  • New volume (for your respective protocol or what you are incentivizing)
  • Retained Volume
  • Sequencer fees generated by your protocol

:white_check_mark: Source: https://app.tokenguard.io/stellaswap/dapp-growth/

Other custom features proposed by the Arbitrum Community & LTIPP Council are possible as Tokenguard is a flexible tool for user-centric DeFi analytics.

Who are we?

Tokenguard is an experienced team of 9 web3 data analysts who build their product with DeFi & dApp builders in mind. We started working on this idea in early 2023 and quickly gained traction with protocols and companies such as Aleph Zero, Astar Network, Polkadot, Sygnum Bank, W3F, Bitcoin.com and others.

Our co-founders:

  • Kamil Gorski - Co-founder & CEO - Bootstrapped tech company to $1m revenue in less than a year; Former hacker & dev with 7+ yrs experience; Conducted +20 security audits of protocols. (https://www.linkedin.com/in/gorskikamil/)
  • Jakub Rojek - Co-founder & CTO - Created blockchain products before Ethereum even existed; Co-created web3 user engagement platform OpenLoyalty. (https://www.linkedin.com/in/jakub-rojek-dev/)
  • Damian Rolek - Co-founder & CDO - Implemented Al/ML solutions for retailers & e-commerces as a Senior Data Scientist at PwC; Co-built a DeFi analytics platform for investors; (https://www.linkedin.com/in/damianrolek/)

Our investors & accelerators:

  • Outlier Ventures & Synergis Capital 18/09/2023: $200k pre-seed round
  • Finalist of AWS Global Fintech Accelerator 14/12/2023

Discussion

We would like to take up a discussion with the community about 2 additional features that our team is already working on to understand whether this could be helpful for the LTIPP and other programs:

On-chain wallet intelligence oracle

We would like to open a discussion on whether an on-chain output of wallet intelligence data would be useful for LTIPP and future programs. This feature will allow a decentralized distribution of LTIPP rewards to wallets that represent a valuable segment to DeFi protocols and Arbitrum Ecosystem. It can also be used for on-chain airdrops to guarantee a ROE-positive and fully measurable distribution of rewards.

GA4 / Mixpanel integration

Feature allowing to finally bring performance marketing campaigns with positive ROI to web3 space. Most DeFi & dApps already have GA4 installed in order to understand which inbound channels bring in most users and which campaigns have the lowest CAC (‘customer acquisition cost’). Connecting this data with Tokenguard will allow to measure user LTV (‘lifetime value’) and finally understand which campaigns have LTV > CAC.

Website: Tokenguard.io
Twitter: https://twitter.com/Tokenguard_io
Mail: dev@tokenguard.io