OpenOcean STIP Addendum

Dear @cattin and DAO Members, thank you for your thoughtful feedback. Please find our response below:

Original STIP incentive distribution mechanism:

See below our distribution mechanism from different sectors:

  • Gas fee rebates: we rewarded gas rebates to all users who interacted with OpenOcean during the STIP and further airdropped tokens to those who haven’t claimed during the process.
  • Referral program: The referrer earned commissions from the transaction gas fees of their referrals and claimed the rewards on campaign websites.
  • Trading campaign (including swaps/limit orders/cross-chain swaps) : participants are allocated rewards after they complete the trading quests on Arbitrum on a weekly basis. The rules were published for each epoch on twitter. The unclaimed rewards are distributed to winners via airdrop at the end of STIP.
  • Partnership: we negotiated with each partner with rewards covering the cost of the integration and their users’ swaps. Our STIP Bridge program implements the partnership rewards by introducing clear rules to reward partners who bring more users and higher volume to Arbitrum ecosystem.

Reward details are shown in bi-weekly reports and final report.

Growth impact on OpenOcean:

It’s true that most STIP projects have experienced volume and user number decreases without providing continual incentives. However, our daily average users, and swaps have significantly increased compared to pre-STIP levels (see attached chart) and maintained that level of activity. In the two months following the STIP, we have been undertaking a major API upgrade to increase the API response times by a factor of five to become the fastest, most flexible and robust aggregator API on Arbitrum and now the wider market.

At the moment our API services to major partners such as defillama on Arbitrum are temporarily suspended to prevent potential issues during the upgrade process, resulted in a temporary decrease in trading volume. Once the vital upgrades are fully implemented and our top Arbitrum API users are reinstated, we expect our volume to rise back to an even higher level as we will have one of the most competitive Arbitrum order flows in the ecosystem.

Sustained grants are helpful to cultivate the most cutting edge swap environments. Our next STIP Bridge plan will focus on these new initiatives, as mentioned in the last question, to boost retention and engagement of the whole ecosystem.

Metric One Month Before STIP Began One Month After STIP Ended % Increase
Avg. Daily Active Users 367.06 771.23 110.11
Avg. Daily Swaps 636 1,860 192
  • Avg. Daily Active Users increased by 110.11%
  • Avg. Daily Swaps increased by 192.44%

Source: OpenBlock Labs

Distribution Mechanism of Partnership in STIP-Bridge Fund:

As a leading DEX aggregator, we actively drive traffic through our extensive API users to the Arbitrum ecosystem and enhance the diversity of grant distribution. To clarify the distribution in partnership, please see the breakdown of the 25% (62,500 ARB) Bridge fund below.

We plan to divide the funds into two portions. The 25,000 ARB will be distributed as rewards to partners under 3 levels (see attached chart below) based on metrics including the integration process (50% downpayment, 50% upon completion), initial DAU & volume in the past two weeks, and community engagement. The remaining 37,500 ARB will be used to reward partners’ users through joint campaigns.

DAU Daily Volume Rewards
LEVEL 1 100 - 500 500k-5m 1,000
LEVEL 2 500 -1,000 5m-10m 3,000
LEVEL 3 1,000+ 10m+ 5,000