Notional Finance Bi-Weekly Update July 1
Recap of the Previous Two Weeks
Notional began incentivizing one week ago on June 24th. The structure of the STIP Bridge incentive program is very different than the original STIP grant.
30% of the STIP B grant will be given as incentives to LPs by the same mechanism as the STIP. This time around though, we will be focusing liquidity incentives on a smaller number of tokens.
70% of the STIP B grant will be given to other kinds of users on Notional through the use of an off-chain points program. Total ARB incentives distributed through the points program will be 175,000 ARB over three 4-week seasons. Points are accrued during the season and then ARB distributions are made at the end of each season.
This points program allows us significantly more flexibility in incentivizing different kinds of Notional users. In particular, we are focusing on borrowers and leveraged vault users. This focus is reflected by high point multipliers for borrowing (4x) and using a leveraged vault (8x), vs. lending (1x-2x).
Full details of the points program on our dedicated dashboard:
Liquidity rewarder contracts:
| Currency | Contract Address |
|---|---|
| ETH | 0x3987F211d4BA25B6FF163B56051651bF6c6c5e54 |
| DAI | 0xE5b58DE62b71477aE4e10074fee48232DD7A2350 |
| USDC | 0xFc24ACF5BD2aFEe3efBd589F87B6610C9D162645 |
| wBTC | 0x8BC5600582c6c17194e4478C311d3133cf9361D2 |
| wstETH | 0xd2Da21d240F093A38A143426D3cd62326FC496cc |
| FRAX | 0xA8cA4FA84933106a92D4fec68C8B5A057703e862 |
| rETH | 0xda99cd202bCac9f9c945fF2954e08EAec63B067d |
| USDT | 0xe670942CE88d0ac8E655d30E5EF0229e969de26C |
Contract address label Form 20 completed for all addresses: Yes
ARB left over: 0
Plan for leftover ARB: Distribute over following periods
Summary of incentives: LPs in the following currencies are currently being incentivized at the following weekly rates.
| Currency | Weekly ARB Emission Rate |
|---|---|
| ETH | 2,083 |
| DAI | 0 |
| USDC | 2,083 |
| wBTC | 0 |
| wstETH | 416 |
| FRAX | 0 |
| rETH | 416 |
| USDT | 1250 |
STATS
Average daily TVL: $6.93M
Average daily transactions: 133
Average daily volumes: $6.9M (average open debt)
Number of unique user addresses: 4,349
Transaction fees: $387
Link to Dashboard showing metrics: https://dune.com/PierreYves_Gendron/notional-finance-v3-arbitrum
Plan For the Next Two Weeks
Amount of ARB to be distributed: No change
Contracts that will be incentivized: No change
Contract address label Form 20 completed for all addresses: Yes
Mechanism for distribution incentives: No change
Summary of incentives plan: No change
Summary of changes to the original plan:
The original plan involved a fixed allocation between lenders, borrowers, and leveraged vault users. However, this is very hard to achieve in practice without constantly tweaking point multipliers for each different product type given that points earned between different product types are fungible with one another.
To ensure a fixed allocation between different product types, we would have needed to create three different kinds of points. We felt that this was impractical and have instead decided to focus on leveraged vault users and borrowers as we have found those users to be the most important in driving growth. Depending on the results in Season One, we may tweak point multipliers for the next season to respond to any issues we see in Season One.
