OpenBlock Labs - Update for Arbitrum STIP
We’re thrilled to update you on OpenBlock’s progress in STIP efficacy analysis. Unlike past updates, here we will specifically highlight the effectiveness of incentives across various categories, the broader Arbitrum ecosystem, and competitive ecosystems. As we anticipate future incentive initiatives, we’re confident that the insights gained from our analysis can be pivotal in refining budget allocations for optimal outcomes.
Below, we show which protocols have had the highest growth in TVL and volume per claimed ARB:
Below, we show which protocols have had the highest nominal growth in TVL and volume:
Below, we show which categories have had the highest growth in TVL and volume per claimed ARB:
Below, we show which categories have had the highest nominal growth in TVL and volume:
We believe this data should be used to optimize future incentive allocations. OpenBlock has presented a methodology for this allocation in WG calls.
Below, we dive into details for each category:
DEXs
Since the STIP has started, the DEX category has reached $238.6M in 30D MA TVL (+51.93%) and $159.1M MA in volume (+345.02%). To achieve these results, these protocols have claimed ~5M ARB.
A valuable point of comparison for these incentives is Uniswap on Arbitrum. While it wasn’t included in a STIP, it did feature its own set of incentives, including a previous ARB airdrop (1.8M ARB) and individual incentives from various projects. Since November 3, Uniswap on Arbitrum has reached $268.3M in TVL (+37.27%) and $434.4M in MA volume (+151.97%).
Other useful comparisons include: Curve on Arbitrum, Uniswap on Polygon, and Balancer on Ethereum. Since November 3, Curve on Arbitrum has reached $42.7M in MA TVL (+16.86%) and $7.1M in MA volume (+212%). Uniswap on Polygon has reached 94.8M MA TVL (+38%) and $106M in MA volume (+129%). Balancer on Ethereum has $658M MA TVL (+24%) and $27.2M in MA volume (+25%).
It’s also important to consider which protocols were the most effective with their incentives. According to our data, Balancer has had a considerable TVL growth, while Camelot has led in volume and fee growth when normalizing by claimed grant amount. It is also important to note that Trader Joe leads on capital efficiency (volume and fees normalized by TVL), which is the leading KPI for DEXs. Volume is deemed to be a close second metric to track, while TVL alone is less important.
Perpetuals
Since the STIP has started, the perpetuals category has reached $604.6M in MA TVL (+16.56%) and $775.5M MA in volume (+90.95%). This category has brought the highest nominal growth in volume, but still falls slightly under the DEX category when normalizing by claimed grants. To achieve this growth, these protocols have claimed ~17M ARB.
Diving into this sector, Vertex has led in volume growth and has had a 5x higher ROI on its grant in this KPI. It has displayed similar trends in TVL, but GMX takes the lead in nominal TVL growth. GMX also boasts a highly decentralized set of users, with over 5x more than any other protocol in the category. It is important to note that volume is a far more relevant metric than TVL in this category, and, accordingly, perpetuals have been 4x less efficient than the DEX category in attracting TVL per claimed ARB.
Lending
Since the STIP has started, the lending category has reached $275.6M in TVL (+3.68%). It is important to note that this growth, along with the broader STIP growth, is skewed by Radiant’s exploit. These protocols have claimed ~2.37M ARB.
Diving into the individual protocols, it’s noteworthy that Silo and Lodestar have demonstrated the highest nominal TVL growth across all protocols in the STIP, when normalized by claimed ARB.
To put this growth into perspective, we compare it with Compound-V3 on Arbitrum, which is currently at $60.1M TVL (+168.5%). Silo is also at $60.1M TVL, but has grown 278.1%. Silo has attracted $6.5M more TVL than Compound-V3, but has claimed 714k ARB.
Conclusion
We invite the community to kickstart a dialogue on the effectiveness of incentives and contribute further insights to complement OpenBlock Labs’ quantitative methods. Recognizing that data is just one aspect of grant allocations, we anticipate engaging with the community to harness our insights for the development of more robust campaigns in the future. We are concurrently working on incentive optimization recommendations, and have presented some of our work at recent WG calls. Stay tuned for more updates!
Twitter: @openblocklabs
Website: www.openblocklabs.com
Email: team@openblocklabs.com