MUX STIP Program Updates

Archive Biweekly Updates (STIP)
1

Context

  • MUX was granted 6M ARB
  • MUX received the first round of streamed grants on Nov. 10th UTC.
  • MUX started the STIP Trading Fee Rebate campaign on Nov. 16th UTC.
  • Abstract of the MUX STIP Proposal
    • Tentatively, 55% of the grant will be utilized to reduce trading fees for GMX V1, GMX V2, Gains, and MUX native pool positions opened through the MUX Aggregator.
    • Tentatively, 45% of the grant will be utilized to increase yield for the MUX native pools on Arbitrum.
    • The grant allocation ratio for trading and liquidity incentives is tentative and can be adjusted based on performance.
  • MUX kicks off the trading incentives first and will prioritize trading incentives during the STIP campaign
    • Considering the reduced grant size (9M → 6M), the latest trading demand spike due to natural market volatility, and long-term benefits for both traders and LPs on all aggregated protocols, trading incentives are prioritized.
    • Trading incentives will be beneficial for both traders and all aggregated protocol LPs: Lowering the fee barrier for more traders to onboard to the Arbitrum eco, and producing more income for all aggregated protocol pools and their integrators
    • After the first day of kicking off the trading incentives, MUX native pool TVL has increased around $5M on Arbitrum.

MUX Bi-Weekly Update - Nov. 17th UTC

Since MUX kicked off the STIP trading fee rebate program on Nov. 16th UTC, the following data will only cover one day. Future updates will cover longer program time duration.

  • ARB Received Last Disbursement
    • 857,143 ARB
  • ARB Utilized as Incentives in the Last Two Weeks
    • Traders‘ trading fees covered by the scope will be rebated as $ARB tokens weekly.
    • Upon distribution, the number of ARB tokens rebated is calculated based on the trader’s weekly trading fees and the real-time ARB token price.
    • Since the trading fee rebates will be distributed to traders in the form of $ARB tokens once a week, we don’t have an exact $ARB number at the moment; the exact $ARB number update will be available every Thursday UTC.
    • We can use the traders’ current total fees paid to estimate: $311,896 / $1.09 = 286,143 ARB
  • Contracts incentivized over the last 2 weeks
    • 0xe21d366d5042F713C0C872591e610fB6a74C775b
    • MUX backend will track weekly trading fees and the number of $ARB to be distributed as rebates. Then once a week, the $ARB token will be distributed to this contract, and the traders can claim their weekly $ARB rebates from it
  • Contract address label Form completed for all addresses
    • Yes
  • ARB left over
    • 6M ARB (This number will change weekly)
    • Currently estimated 286,143 ARB
  • Plan for leftover ARB
    • Continue the trading rebates campaign
  • Summary of incentives
    • Trading incentives: Traders‘ trading fees covered by the scope will be rebated as $ARB tokens weekly.
    • MUX kicks off the trading incentives first and will prioritize trading incentives during the STIP campaign
    • Considering the reduced grant size (9M → 6M), the latest trading demand spike due to natural market volatility, and long-term benefits for both traders and LPs on all aggregated protocols, trading incentives are prioritized.
    • Trading incentives will be beneficial for both traders and all aggregated protocol LPs: Lowering the fee barrier for more traders to onboard to the Arbitrum eco, and producing more income for all aggregated protocol pools and their integrators

STATS

Plan For the Next Two Weeks

  • Amount of ARB to be distributed
    • Since the amount of ARB to be distributed to determined by unpredictable real-time trading fees, there isn’t an exact amount, but based on the first-day performance, the spending rate can potentially be around 200,000 ARB per day
    • MUX will adjust the trading fee rebate rate based on spending speed, and the rate can potentially be lowered so the campaign can last 2-3 months.
  • Contracts that will be incentivized
    • 0xe21d366d5042F713C0C872591e610fB6a74C775b
  • Contract address label
    • Yes
  • Mechanism for distribution incentives
    • After the Rebate Program goes live, when traders open & close positions through the MUX Aggregator, fees covered in the rebates scope from MUX, GMX V1, GMX V2 and Gains positions on Arbitrum will be rebated weekly as ARB tokens.
    • The original trading cost will be charged upfront when opening/closing a position. Traders’ weekly cost will be tracked and rebated in the form of $ARB tokens once a week.
    • $ARB tokens will be distributed as fee rebates to traders weekly on Thursdays UTC based on the fees they spend during the week. Upon distribution, the number of ARB tokens rebated is calculated based on your weekly trading fees (covered by the scope) and the real-time ARB token price.
    • The rebated $ARB tokens need to be manually claimed. Unclaimed $ARB tokens will accumulate until they are claimed. Unclaimed $ARB tokens won’t expire before the Rebate Program ends.
    • The Rebate Program will kick off rebating 100% of the fees covered by the scope for all integrated protocols. Since the expected duration of STIP is 3–4 months, the rebate rate can be potentially adjusted along the way based on the grant spending speed.
    • If the rebate rates need to be adjusted according to grant spending speed and market conditions, MUX will notify the community before making any changes.
    • The final rebate rate will be based on the users’ actual fees spent. If the integrated protocols offer additional rebates/rewards separately, MUX will ensure the final total rebates won’t exceed the fees paid.
    • No wash trading or Sybil-attack-related activities are allowed. MUX contributors will closely monitor related activities from this campaign; Addresses involving wash trading or Sybil-attack-related activities will be published and excluded from receiving the rebates.
    • MUX contributors reserve the right to identify any Sybil-attack-related addresses and exclude them from the incentive program.
    • The anti-wash-trading & anti-sybil-attack rules will remain unrevealed. Otherwise, the rules can be abused with planned strategies.
    • When calculating $ARB rebates, the trading fee discount and MUX native rebate from using a MUX referral code will be considered as well. Please check the “MUX Native Referral Code Affiliation” section for more information.
  • Summary of incentives plan
  • Summary of changes to the original plan: [Insert changes]
    • The original proposal proposed tentative grant allocation for both trading and LP incentives. It was also indicated that the grant allocation ratio for trading and liquidity incentives is tentative and can be adjusted based on performance.
    • Considering the reduced grant size (9M → 6M), the latest trading demand spike due to natural market volatility, and long-term benefits for both traders and LPs on all aggregated protocols, trading incentives are prioritized.
    • Trading incentives will be beneficial for both traders and all aggregated protocol LPs: Lowering the fee barrier for more traders to onboard to the Arbitrum eco, and producing more income for all aggregated protocol pools and their integrators.