Notional STIP-B Bi-Weekly Update

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.

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Notional Finance Bi-Weekly Update July 15

Recap of the Previous Two Weeks

Notional’s incentivization program continued forward with no changes over the past two weeks. As a recap:

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: $7.75M

Average daily transactions: 1108

Average daily volumes: $7.6M (average open debt)

Number of unique user addresses: 11,462

Transaction fees: $1,579

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.