SECTION 1: APPLICANT INFORMATION
Applicant Name: Midoji
Project Name: Orderly Network
Project Description: Orderly Network is a combination of an orderbook-based trading infrastructure and a robust liquidity layer offering perpetual futures. Unlike traditional platforms, Orderly doesn’t have a front end; instead, it operates at the core of the ecosystem, providing essential services to projects built on top of it.
Team Members and Roles: 45+ Team members across 10+ countries.
Core contributors: Ran (CEO), Terence (CTO), Arjun (COO), Bryan (Product), Slava (Product), Amine (Product), Midoji (BD & Product), Pedro (BD), Aurora (BD), Henry (Institutional BD), Drew (Marketing), Brandon (Social & Content Marketing), Irene (Growth Marketing)
Project Links:
- Website: https://orderly.network/
- Documentation: What is Orderly Network? - Orderly Network
- Github: Orderly Network · GitHub
- Dune Dashboard: https://dune.com/orderly_network/orderly-dashboard
- Twitter: https://twitter.com/OrderlyNetwork
- Medium: Orderly Network (🟣,🟣) – Medium
- Linkedin: Orderly Network | LinkedIn
Contact Information
Point of Contact: Midoji
Point of Contact’s TG handle: @Orderly_Midoji
Twitter: https://twitter.com/midoji7
Email: Midoji@orderly.network
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Team experience:
Co-Founded by Ran Yi & Terence Ng
Linkedin: https://www.linkedin.com/in/ran-yi-b722696/
Ran Yi:
Ran came from a traditional finance background and brought 14 years of experience in global asset management and seeding top quantitative funds.
After completing his BSc at Carnegie Mellon University and MBA at China Europe International Business School, he started his career with Freddie Mac from 2006 to 2008 as a Quant on the derivatives desk.
Then he went on to work for 10 years in TradFi, within the asset management field. In 2017, he went into the field of cryptocurrency with his friends from Carnegie Mellon, Jack Tan and Mark Pimentel, who started Kronos Research. He joined them as COO. He was responsible for Kronos’ and WOO Network’s (incubated by Kronos) push into DeFi, where he had the role of COO. From then, he founded Orderly Network in late 2022.
Terrence Ng:
Terence is currently a Co-Founder of Orderly Network since April 2022. Before that, he was the CTO of WOO Network, a liquidity pool for crypto enthusiasts, starting from May 2020. Terence also served as the CEO of HaiChuanTech from February 2019.
In their earlier career, Terence worked as the COO of Derivatives China Capital, focusing on company strategy, operation refinement, process management, and team management. Terence also had roles at Horizon Software as a Senior Technical Account Manager and Senior Sales Manager - China Market, at HSBC as an EQD Senior Trading System Specialist, at Ullink as a Technical Account Manager, and at Horizon Software as a Software Engineer.
Terence’s expertise includes system implementation, support client business, connectivity implementation, software development, and market making.
Terence Ng attended The Hong Kong University of Science and Technology from 2001 to 2005, where they pursued a Bachelor’s degree in Computer Engineering.
What novelty or innovation does your product bring to Arbitrum?:
Orderly brings a combination of orderbook-based trading infrastructure and a robust permissionless liquidity layer to builders on Arbitrum. Builders can create their own Perp DEX on top of low latency and shared liquidity CLOB trading infrastructure, accessible from all the main EVM chains, without the need for any back-end development.
A trader on Arbitrum can trade against traders on other chains like Optimism or Polygon, without leaving Artbiturm. No need to bridge funds, no extra complexities.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, Orderly Network allows projects within the Arbitrum network to quickly build and deploy flagship PERP DEXs with best-in-class liquidity without the need for back-end development. It is a simple plug-and-play experience for builders who can then leverage our liquidity and composability.
A wide range of protocols within the Arbitrum ecosystem can connect to Orderly’s liquidity later to bolster their product offering with perpetuals.
Once the token is live the composability will increase, tokenomics are not public yet.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?:
Despite several protocols offering similar features, Orderly is unique in its offering.
There are multiple perp DEXs on Arbitrum, both oracle-based and orderbook-based, however, none of them acts as infrastructure nor as a shared permissionless liquidity layer.
Orderly does not have a front end, instead, it provides the orderbook trading infrastructure and the liquidity for an entire ecosystem to build Perps-based products on top of.
How do you measure and think about retention internally? (metrics, target KPIs):
We track and measure a variety of different metrics: cumulative volume, daily volume, cumulative fees, daily fees, TVL by chain, funding rate, liquidations, daily active traders, volume by broker, and revenue by broker.
We monitor retention using several key metrics above to compute retention rates, which gauge the change over a fixed time frame while emphasizing positive values and upward trends. For instance, the Traders Retention Rate is calculated by subtracting the number of new users from the total users at the end of the period and then dividing by the initial number of users at the beginning of the period."
All metrics can be found on our Dune Dashboard:
https://dune.com/orderly_network/orderly-dashboard
Relevant usage metrics - Please refer to the OBL relevant metrics chart . For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
General Section Applicable Metrics:
- Daily Active Users.
- Daily User Growth.
- Daily Transaction Count.
- Daily Protocol Fee.
- Daily Transaction Fee.
- Daily ARB Expenditure and User Claims.
- Incentivized User List & Gini.
Perpetuals Applicable Metrics (For each pair):
- Trading Volume.
- Open Interest.
- List of Traders.
- List of Liquidity Providers (Orderly Quantum Pools).
- Trader Net P&L Improvement.
- Funding Rate Stability.
- Liquidations.
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant): No
SECTION 2b: PROTOCOL DETAILS
Is the protocol native to Arbitrum?:
Yes, Arbitrum was the first chain where Orderly deployed an asset management vault on in our EVM expansion. Orderly operates as an app chain with asset management vaults for native deposits and withdrawals. Currently, Orderly’s Arbitrum vault represents 45% of Orderly’s TVL.
On what other networks is the protocol deployed?:
Orderly also has asset management vaults for deposits and withdrawals on Optimism and Polygon.
What date did you deploy on Arbitrum mainnet?: 19/10/2023
Do you have a native token?: No, but will be live have it in the future.
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run?
No previous incentive programs.
Current Incentivization: How are you currently incentivizing your protocol?
There are no incentives currently. Apart from small Galxe/Zealy campaigns for trading and social interaction.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem-related program?
No
Protocol Performance:
- Mainnet: Nov 2nd 2023.
- Cumulative Volume = >$8.6bn
- Total Value Locked = $7.6m ($3.5M in Arbitrum)
- Number of Brokers = 3 (WOOFi Pro, LogX,EMDX)
- Avg Daily Active Traders = 2000
Source: https://dune.com/orderly_network/orderly-dashboard
Protocol Roadmap:
Q1 ’24
- TP/ SL Order
- New fee structure
- New chain support
- Smart contract trading support
- Liquidation bots
- SDK open source
Q2 ’24
- DEX token listings
- Additional EVM Deposit Vaults
- Algorithmic Trading Tools
- AI-based Trading Agents
H2 ’24
- Isolated margin
- Multi-collateral
- On-chain oracles
- Cross-chain infrastructure upgrade
Audit History & Security Vendors:
Orderly has been audited by multiple security firms, including Halborn, Zellic, Guardian Audits, and several independent consultants. All audit reports can be found on our GitHub.
https://github.com/OrderlyNetwork/Audits
Our bug bounty can also be found on Immunefi.
Security Incidents: No
SECTION 3: GRANT INFORMATION
Requested Grant Size: 184,614 ARB tokens
Justification for the size of the grant:
To attract users to Arbitrum and incentivize them to try Orderly’s products, we plan to offer competitive APR for depositing USDC in the different products offered at Orderly.
Based on the current stablecoin yields on Defillama, 10% APR would position Orderly’s stablecoin yields among the Top 5 highest yields offered by Derivatives Platforms, enabling us to attract users from different ecosystems to Arbitrum.
The target is to offer 10% APR once we reach our TVL goal, meaning users will benefit from a larger APR on the way up.
Orderly will also incentivize users on top of Arbitrum’s incentives, increasing the APR over 10%.
- Incentivize Deposit Vaults, once the vault reaches $10M in TVL the users will benefit from 10% APR.
Required ARB Incentives = $10M * 10% *12/52 = $230,769 → 1 ARB = $2 → 115,384 ARB tokens needed.
The Arbitrum Deposit Vault has $3.5M in TVL, the incentives will help increasing TVL by $6.5M.
Since Orderly’s trading infrastructure is accessible from multiple ecosystems, the increase in TVL will come from other ecosystems’ traders that are incentivized to migrate and trade from Arbitrum due to the higher APR.
With the growing number of brokers leveraging Orderly’s infrastructure, more users will gain access to our trading platform, resulting in more capital deposited into our Deposit Vaults. Presently, Orderly boasts 3 brokers, with plans to expand its ecosystem to include over 10 new brokers in the coming months. Arbitrum’s current TVL stands at $3.5M, and we consider aiming for $10M a feasible goal.
- Incentivize Quantum pools, once the pool reaches $5M in TVL the users will benefit from 10% APR.
Required ARB Incentives = $5M * 10% * 12/52 = $115,384 → 1 ARB = $2 → 57,692 ARB tokens needed.
Quantum Pools are not live yet, but will be live by the start of the incentives campaign. Therefore, the current TVL is 0.
Quantum Pools are powered by Elixir, and the same product is already present in other protocols like Bluefin with $10M in TVL, Vertex with over $6.4M in TVL or Rabbit X with $3.9M.
Taking into account that the Quantum Pools will be incentivized using the ARB incentives, along with Orderly and Elixir incentives, and the past results from other protocols we consider $5M in TVL to be a feasible target.
- Incentivize Algo trading tools, and AI-based Trading Agents, once the vaults reach $1M in TVL the users will benefit from 10% APR.
Required Incentives = $1M * 10% * 12/52 = $23,076 → 1 $ARB = $2 → 11,538 ARB tokens needed.
Like Quantum Pools, AI-based Trading Agents aren’t live at the time of submitting this proposal. However, AI-based Trading Agents will be up and running by the start of the incentives campaign.
Trading Bots manage substantial trading volumes, reaching hundreds of millions on major CEXs, while the strategies maintain millions in AUM.
Orderly pioneers bringing Trading Agents on-chain for the first time, accessible through any of our brokers. Despite the product is unique and it is difficult to find objective metrics to quantify its potential, we might consider utilizing other Vaults from analogous platforms such as Hyperliquid as a benchmark. At Hyperliquid, the TVL of the main vaults falls within the range of $470k to $1.68M… We anticipate TVL to exceed $1M, with Arbitrum serving as the central platform for user capital deposits.
Expected Benefits:
With the injection of liquidity, Arbitrum stands to gain in several ways:
- TVL Boost: We foresee TVL rising from $3.5M to $16M.
- User Growth: Expectations include attracting 7000 new DAUs.
- Increased Transactions: Interactions with the Deposit Vault, Quantum Pools, and Trading Agents are set to drive transaction growth.
Important Note:
Orderly operates on its own app-chain infrastructure, so trading volume doesn’t occur on Arbitrum. Therefore, trading volume isn’t a part of our KPIs or considered a value addition to Arbitrum.
Despite trading volume occurring externally, Arbitrum will retain its TVL, user base, and on-chain interactions. Orderly serves a vital function by onboarding projects and their communities from other ecosystems. This isn’t just valuable for Orderly; it also benefits Arbitrum. The users and capital onboarded could potentially flow to other protocols within the ecosystem, enhancing its overall vitality.
Grant Matching: No
Grant Breakdown:
Total Grant Size = 184,614 ARB
- Deposit Vaults - 115,384 ARB (62.50% of the grant)
Attract users from other chains to use Orderly’s ecosystem from the Arbitrum Deposits Vault.
- Quant Pools - 57,692 ARB (31.25% of the grant)
Incentivize liquidity provision through our Arbitrum Market-making vaults powered by Elixir.
- Algo Trading Tools/AI-based Trading Agents - 11,538 ARB (6.25% of the grant)
Bootstrap the adoption of the new products, users can benefit from the returns of profitable trading strategies run by professionals, automated trading bots similar to CEXs, or even create their own custom strategies. Arbitrum to become the go-to place for all the users that want to deposit on our Trading Agents.
Funding Address: 0x3d236964936f04F129D2ABa65B767c42088CA7CC
Funding Address Characteristics: 4/6 Multisig.
Treasury Address: No DAO
Contract Address: 0x3d236964936f04F129D2ABa65B767c42088CA7CC - MultiSig
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Primary Objectives and KPIs:
The main goals are bringing new types of users and builders to Arbitrum, as well as increasing the TVL and transactions.
- Increase DAUs by 350%: from 2000 DAUs (last 30D) to 7000 DAUs.
- Increase Arbitrum TVL by +450%: from $3.5M in Arbitrum TVL to $16M+ TVL.
- Onboard Brokers: Increase the number of brokers accessible from Arbitrum by 3+.
Execution Strategy:
Orderly will launch a new set of products that will cater to the requirements of new segments of users, will improve and promote the accessibility to the Arbitrum deposits vault, and will onboard new brokers to the Arbitrum ecosystem.
New Products:
A suite of new features and tools to encompass a 360 trading experience in any of our brokers. Orderly expects to attract new types of audiences such as Liquidity Providers, Algo Traders, and users that want to leverage highly profitable strategies while delegating their capital to professional traders.
Orderly will be launching the following products:
- Orderly Quantum Pools, powered by Elixir
These pools will incentivize liquidity provision through our Arbitrum Market-making vaults powered by Elixir, increasing Orderly’s orderbook depth and bringing both new yield opportunities for Arbitrum users and better trading conditions for traders.
ETA: H1 April 2024
- Algo Trading Tools, and AI-based Trading Agents
The Algo Trading Tools and the Trading Agents will bring a whole new dimension of users on-chain, offering tools to cater algorithmic traders demands. It will help attracting new users and driving volume.
ETA: H1 April 2024
Orderly expects to increase Arbitrum’s TVL up to $5M+ thanks to Orderly Quant Pools and $1M thanks to the algorithmic trading tools, and the AI-based trading agents.
Should any of our products face delays, Orderly will promptly notify Arbitrum and make necessary adjustments to the grant based on the affected part. Any ARB tokens allocated for incentivizing the delayed product will be returned until the product is live.
Improved Accessibility from New Chains:
Bring new users and TVL by promoting the utilization of the Arbitrum Deposit Vault and opening seamless access to users in new ecosystems to bridge directly into Arbitrum Deposit Vaults, and trade in any of our brokers.
Orderly already offers cross-chain swaps into Arbitrum Deposit Vault for Ethereum, Base, BNB, Avalanche, and Linea users via WOOFi Swap, but the offer will be expanded to cover new chains.
Orderly expects to increase Arbitrum’s TVL up to $10M+ thanks to incentivizing the deposits on Arbitrum and opening new ways to access the Arbitrum vault from new chains.
New Brokers:
Orderly is already in conversations to onboard 10+ brokers in the coming months. The new front ends building on top of our trading infrastructure will be accessible from Arbitrum. Some of this brokers will be native Arbitrum projects increasing their offering adding Perps.
Incentives:
To drive adoption Orderly will incentivize the utilization of the new products for 12 weeks, using both Arbitrum and Orderly incentives.
- Arbitrum Deposits Vault - 62.50 % of the grant.
A fixed number of ARB tokens will be distributed every week to the users with capital deposited into the Arbitrum Deposit Vault.
To prevent users from gaming the incentives, weekly incentives will be time-based and will be only distributed to users who have deposited for more than 48 hours and who have surpassed $100,000 in weekly trading volume.
This mechanism will promote Arbitrum utilization when trading on any of the brokers on top of Orderly, attracting traders from other chains.
- Orderly Quant Pools - 31.25 % of the grant.
A fixed number of ARB tokens and Orderly incentives will be distributed every week to users providing liquidity to the Orderbook using Quantum Pools.
To prevent users from gaming the incentives, weekly incentives will be time-based and only distributed to users who have deposited for more than 48 hours.
This mechanism will boost liquidity providers’ APR during the initial stage to drive adoption. The incentives will be in the form of ARB tokens and Orderly and Elixir incentives.
- Algo Trading Tools & AI-based Trading Agents - 6.25 % of the grant.
A fixed number of ARB tokens and Orderly incentives will be distributed every week to users depositing funds into the AI-based Trading Agents.
To prevent users from gaming the incentives, weekly incentives will be time-based and only distributed to users who have deposited for more than 48 hours.
The goal is to boost APR during the initial stage to drive adoption. These new products will attract algorithmic traders to Arbitrum.
Milestones:
Milestone-based approach, the ARB incentives will be unlocked after the completion of specific milestones. The campaign will be divided into 3 different phases, achieving the set KPIs in each of the stages unlocks the ARB tokens to continue with the next phase.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity, or some other targeted metric?
Stickiness would be achieved through multiple features:
-
After the LTIPP the infrastructure to access Arbitrum through multiple new chains will continue working.
-
New brokers integrating with Orderly will continue operating on Arbitrum after the campaign finishes, therefore their users will continue using Arbitrum.
-
AI-based Trading Agents are innovative products that no other platform is offering, and the returns will continue to be compelling even after the LTIPP.
-
Orderly Quantum pools will continue being incentivized both with Elixir and Orderly rewards.
-
Orderly will continue incentivizing the utilization of different products after the LTIPP campaign ends. The users will need to keep using the product to unlock certain Orderly’s incentives.
Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy.
Grant objectives are onboarding new users and brokers, and increasing TVL on Arbitrum, therefore the main KPIs are:
- DAUs
- TVL
- Number of new brokers onboarded
Source of truth: https://dune.com/orderly_network/orderly-dashboard
Grant Timeline and Milestones:
Initial Allocation: 61,538 ARB (⅓ of the total grant)
- 62.50% Deposit Vault
- 31.25% Quantum Pools
- 6.25% Algo Trading Tools/AI-based Trading Agents
Week 1 - 4 Plan:
- Launch incentives.
- Update the Website with the incentives program details.
- Marketing campaign to inform the community about the incentives program and how to participate. Both from Orderly and our ecosystem’s brokers. Co-marketing with Arbitrum and other partners involved like Elixir.
- Open access to Arbitrum Deposit Vault from at least 1 new chain.
Week 1 - 4 Milestones
- TVL: Achieve $7.5M
- DAU: 3000 DAUs on average
- Builders: Onboard 1 teams
If KPIs are met → It unlocks the second allocation = 61,538 ARB (⅓ of the total grant)
- 62.50% Deposit Vault
- 31.25% Quantum Pools
- 6.25% Algo Trading Tools/AI-based Trading Agents
Week 5 - 8 Plan:
- Marketing campaigns to inform the community about the incentives program and how to participate. Co-marketing with Arbitrum and other partners involved like Elixir.
- List new AI-based Trading Bots.
- Host a Hackathon with a prize pool → The best algo trading strategy during the week wins a prize.
Week 5 - 8 Milestones
- TVL: Achieve $10M
- DAU: 5000 DAUs on average
- Builders: Onboard 2 teams
If KPIs are met → It unlocks the third allocation = 61,538 ARB (⅓ of the total grant)
- 62.50% Deposit Vault
- 31.25% Quantum Pools
- 6.25% Algo Trading Tools/AI-based Trading Agents
Week 9 - 12 Plan:
- Marketing campaigns to inform the community about the incentives program and how to participate. Co-marketing with Arbitrum and other partners involved like Elixir.
Week 9 - 12 Milestones
- TVL: Achieve $16M
- DAU: 7000 DAUs on average
- Builders: Onboard 3 teams
If KPIs are met → No more rewards unlocked, Arbitrum could consider continuing to support Orderly in future campaigns.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
The grant will help drive the adoption of new types of products that aim to bring new user segments on-chain. The algo trading tools cater to the needs of algorithmic traders, the AI-based trading agents are also a pioneering product that applies Artificial Intelligence into Perps to offer trading strategies that backtest and correct as they run.
On top of that, the grant is designed to attract and retain users from other ecosystems, to increase the number of projects on Arbitrum, and to increase the TVL.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Yes.
SECTION 5: Data and Reporting
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 19. Along with this list, please answer the following:
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered? Yes
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread referencing your OBL dashboard? Yes, the team will provide bi-weekly updates.
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.) Yes
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: Yes