Pendle STIP Program Updates

DAO Grant Programs Biweekly Updates (STIP)
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Pendle Bi-Weekly Update #1 (Nov. 17, 2023)

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Recap of the Previous Two Weeks

Since the start of what we’d like to call “Arbitrum Season”, we’ve seen a tremendous uptick in traction. We have seen an increase in TVL, unique addresses, and a significant increase in traded volume. Our goal was to hit $60M in TVL and $16M in average monthly trading volume by the end of November. We have reached this goal within the span of the last two weeks! In fact, our traded volume has already breached the targeted KPI of $20M, now standing at $25M. We have close to doubled our traded volume since the start of Arbitrum Season!

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Furthermore, in the last two weeks, we have listed 2 new yield-trading pools on Arbitrum, namely MUXLP from MUX Protocol and GM ARB-USD from GMX. We will continue to list more pools on Arbitrum throughout the STIP, showing our commitment to growing the DeFi landscape on Arbitrum.

Tracking of activity officially started on Nov. 9th. Users will be able to collect their ARB rewards weekly via merkle drop by Nov. 16th onwards. The first campaign will be on Swap Fee Rebates where 75% fee rebate will be given to all Pendle trades, including buy/sell of PT & YT, zap in/out of LP, on Arbitrum (paid in ARB). Rebates will be given on a first come first serve basis.

We have launched an Arbitrum Season Dashboard where users can monitor the weekly fee rebate cap and keep a tally or make claims of their earned ARB rewards. This dashboard will be the command center for STIP on Pendle for the entire duration. More details can be found in these announcements:

https://twitter.com/pendle_fi/status/1721859974308237409
https://medium.com/pendle/pendle-arbitrum-season-ae982d2b87c0

Lastly, we have concocted a data dashboard to track our performance throughout this season. A transparency report (as also seen in this bi-weekly report) for the use of the ARB in the STIP can also be seen on the dashboard. You can find the data dashboard here:

http://arbitrum.pendle.finance/

ARB Received Last Disbursement:

285,715 ARB

ARB Utilized as Incentives in the Last Two Weeks:

70,069 ARB

Contracts incentivized over the last 2 weeks:

Pendle Merkle Distributor: 0x23a102e78D1FF1645a3666691495174764a5FCAF

Contract address label completed for all addresses:

Yes.

ARB left over:

1,929,931 ARB

Plan for leftover ARB:

We will continue following the plan as outlined in our STIP proposal and the leftover ARB will be rolled over to the next LP incentives, swap rebates, upcoming campaigns, etc. as stipulated in the proposal.

Summary of incentives:

Overall Summary:

  • 55% (1,100,000 ARB) will be allocated to the Pendle pools on Arbitrum to deepen liquidity.
  • 40% (800,000 ARB) will be allocated to campaigns to increase activity and trading volume for the Pendle markets on Arbitrum.
  • 5% (100,000 ARB) will be allocated to ecosystem integrations that are integrating the Pendle protocol on Arbitrum.

Detailed:

  • Week of 9th Nov.
    • LPs (Pendle pool incentives) — 67,000 ARB
    • Swap fee rebates (Pendle campaign) — 26,500k ARB
  • Week of 16 Nov
    • LPs (Pendle pool incentives) — 67,000 ARB
    • Swap fee rebates (Pendle campaign) — 26,500k ARB

Note: If the swap fee rebates cap is not reached and thus not all incentives will be distributed, the ARB will be rolled over to the next epoch.

Additional Info / Disclosures to Multisig:

No additional info.

STATS (Since 9th Nov.)

Average daily TVL:

$68 million

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Average daily volumes:

$1.3 million

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Number of unique user addresses:

59,722

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Transaction fees:

$5,476

Link to Dashboard showing metrics:

https://arbitrum.pendle.finance/

Plan For the Next Two Weeks

Amount of ARB to be distributed:

187,000 ARB

Contracts that will be incentivized:

0x23a102e78D1FF1645a3666691495174764a5FCAF

Contract address label completed for all addresses:

Yes

Mechanism for distribution incentives:

LP incentives and swap fee rebates are measured throughout an epoch (a week starting Thursday 00:00 UTC). At the conclusion of an epoch, users can claim their ARB rewards through Merkle drop via our Arbitrum Season dashboard.

Summary of incentives plan:

LPs (Pendle pool incentives) — 67,000 ARB
Swap fee rebates (Pendle campaign) — 26,500 ARB

Summary of changes to the original plan:

No changes from the original plan.

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Pendle Bi-Weekly Update #2 (Dec. 01, 2023)

Recap of the Previous Two Weeks

In the previous two weeks, total TVL and 30D-MA-trading volume were up to $89M and $31M respectively. According to DeFiLlama, Pendle is now the 7th largest protocol on Arbitrum by TVL.

To date, ~210k of our 2M ARB allocation from the STIP have been distributed. In addition, within this timeframe, the Arbitrum pools on Pendle have amassed ~$16M in volume. For context, that’s +8% of the cumulative sum from the previous timeframe.

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Biggest TVL growths in the last 2 weeks:

  • Silo sUSDC-01FEB2024 — $6.3M
  • rETH-26JUN2025 — $2.9mil
  • wstETH-27JUN2024 — $2.8mil
  • GLP-28MAR2024 — $2.8mil
  • MUXLP-28MAR2024 — $793k
  • GM ARB-USDC-28MAR2024 — $231k
  • HLP-27JUN2024 — $173k
  • ARB-ETH Camelot-27JUN2024 — $125k
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Highest Volume pools in the last 2 weeks:

  • Silo sUSDC-01FEB2024 — $4.6M
  • GLP-28MAR2024 — $3.7M
  • mPENDLE-26SEP2024 — $2.0M
  • wstETH-28DEC2023 — $1.4M
  • wstETH-27JUN2024 — $1.1M
  • gDAI-28MAR2024 — $1.03M
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One important change to note is that the mechanism of how ARB is allocated as incentives to pools for LPs has been changed starting last 23rd Nov. epoch. Instead of the allocation being decided by vePENDLE votes to pools, the allocation per pool is now decided by the Pendle team based on metrics such as the most active yield markets and/or new pools to bootstrap initial liquidity. This is to avoid situations where one pool captures almost the entire ARB allocation due to the votes it has captured (due to bribes or others). The team is experimenting to have a focused effort on certain pools that we’d like to incentivize more and to grow that yield-trading volume.

The ARB allocation breakdown for the last 2 epochs is listed below:

16th Nov. Epoch
Still using vePENDLE system, where allocation is based on voting weight per pool.

23rd Nov. Epoch

Pool ARB Allocated
GLP-28MAR2024 17000
rETH-26JUN2025 17000
Silo sUSDC-01FEB2024 13500
wstETH-27JUN2024 13500
MUXLP-28MAR2024 6000

On listings, in the last two weeks, we have listed a new yield-trading pool on Arbitrum, namely the Silo sUSDC.e pool for SIlo’s ARB market. That pool now stands at $6.3M in TVL after launch. We have more pool listings planned throughout the STIP which should make things interesting for Arbitrum users.

As usual, you can track our STIP performance throughout this season. A transparency report (as also seen in this bi-weekly report) for the use of the ARB in the STIP can be seen on the dashboard. You can find the dashboard here: http://arbitrum.pendle.finance/

ARB Received Last Disbursement:

285,715 ARB

ARB Utilized as Incentives in the Last Two Weeks:

140,389 ARB

Contracts incentivized over the last 2 weeks:

Pendle Merkle Distributor: 0x23a102e78D1FF1645a3666691495174764a5FCAF

Contract address label completed for all addresses:

Yes.

ARB left over:

1,789,542 ARB

Plan for leftover ARB:

We will continue following the plan as outlined in our STIP proposal and the leftover ARB will be rolled over to the next LP incentives, swap rebates/trading incentives, upcoming campaigns such as the Leaderboard campaign, etc. as stipulated in the proposal.

Summary of incentives:

Overall Summary:

  • 55% (1,100,000 ARB) will be allocated to the Pendle pools on Arbitrum to deepen liquidity.
  • 40% (800,000 ARB) will be allocated to campaigns to increase activity and trading volume for the Pendle markets on Arbitrum.
  • 5% (100,000 ARB) will be allocated to ecosystem integrations that are integrating the Pendle protocol on Arbitrum.

Detailed:

  • Week of 23rd Nov.
    • LPs (Pendle pool incentives) — 67,000 ARB
    • Swap fee rebates/Trading incentives (Pendle campaign) — 26,500 ARB
  • Week of 30th Nov
    • LPs (Pendle pool incentives) — 67,000 ARB
    • Swap fee rebates/Trading incentives (Pendle campaign) — 26,500 ARB

Note: If the incentives cap is not reached and thus not all incentives will be distributed, the ARB will be rolled over to the next epoch.

Additional Info / Disclosures to Multisig:

No additional info.

STATS (Since 17th Nov.)

Average daily TVL:

$68 million

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Average daily transactions:

386

Average daily volumes:

$1.2 million

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Number of unique user addresses:

60,659

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Transaction fees:

$7,196

Link to Dashboard showing metrics:

https://arbitrum.pendle.finance/

Plan For the Next Two Weeks

We will announce a Leaderboard campaign where the top-ranked users in terms of % gain will earn ARB rewards. This competition will stimulate more trading volume and TVL. The Leaderboard campaign lasts from 30th Nov. to 20th Dec. The ARB rewards will be distributed once the competition concludes.

In addition, we will start giving out incentives to users who make use of their Pendle assets in other Pendle ecosystem integrations, such as using their PTs as collateral or depositing their LP position in a strategy. We will be allocating 10k ARB per epoch for this activity. The breakdown of allocated incentives for each integration is as follows:

Protocol Pool ARB Amount
Stella LP-wstETH-27JUN2024-Penpie 3000
Stella LP-rETH-26JUN2025-Penpie 3000
Dolomite PT-wstETH-27JUN2024 1000
Dolomite PT-rETH-26JUN2025 1000
Dolomite PT-GLP-28MAR2024 1000
Timeswap PT-GLP-28MAR2024 (borrow USDC.e) 500
Teller PT-gDAI-28MAR2024 (borrow USDC) 250
Teller PT-GLP-28MAR2024 (borrow USDC) 250

Amount of ARB to be distributed:

187,000 ARB

Contracts that will be incentivized:

0x23a102e78D1FF1645a3666691495174764a5FCAF

Contract address label Form completed for all addresses:

Yes

Mechanism for distribution incentives:

LP and trading incentives are measured throughout an epoch (a week starting Thursday 00:00 UTC). At the conclusion of an epoch, users can claim their ARB rewards through Merkle drop via our Arbitrum Season dashboard.

The Leaderboard campaign rewards will also be distributed with the same Merkle drop contract at the conclusion of the contest on the 20th Dec.

Summary of incentives plan:

Pendle pool incentives for LPs (per epoch) — 67,000 ARB
Pendle campaign swap fee rebates/trading incentives (per epoch) — 26,500 ARB
Pendle integration incentives (per epoch) — 10,000 ARB
Leaderboard campaign (30th Nov. - 20th Dec.) — 20,000 ARB

Summary of changes to the original plan:

As mentioned in the summary above, moving forward, ARB incentives will be channeled to the most active yield markets and/or new pools to bootstrap initial liquidity and will no longer be based on vePENDLE votes. We have announced this change to our community here.

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