[Perpie] LTIPP Application - FINAL

DAO Grant Programs Long Term Incentives Pilot Program
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LTIPP Grant Proposal

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SECTION 1: APPLICANT INFORMATION

Applicant Name: Perpie God & Perpie Papa

Project Name: Perpie

Project Description:

Perpie is an innovative platform and smart wallet on Telegram that simplifies perpetual trading. With a focus on seamlessness and security, Perpie integrates with GMX V1 and V2, offering a whole new set of features on top of the those primitives. We have plans to integrate with additional protocols, acting as an aggregator solving intents in the best possible way.

Perpie is deeply integrated with Account Abstraction, utilizing self custodial MPC signing and a seamless gas payment engine to eliminate the need for users to manage native gas fees.

In addition to abstracting primitive actions on perpetuals, we have consolidated features from multiple apps, providing a convenient, all-in-one solution accessible through Telegram. We prioritize passive distribution channels, including a referral system and shareable P&L cards, to drive demand and growth.

Perpie makes interactions a whole lot faster, more efficient, and reduces common overhead - with the main goal of onboarding normies into on-chain perps trading, without the need of knowing they’re using DeFi at all. ****

How to use Perpie:
To use Perpie simply open up t.me/perpieio_bot, hit Start, sign in with your Google account, deposit funds, and start trading right away - completely self custodial

Team Members And Roles:

  • Perpie God: Co-Founder
  • Perpie Papa: Co-Founder

Project Links:

Contact Information

Forum Handles: perpiegod / perpiepapa

TG Handles: @perpiegod / @perpiepapa

Twitter Handles: @perpiegod / @perpiepapa

Emails: god@perpie.io / papa@perpie.io

Do you acknowledge that your team will be subject to a KYC requirement?: Yes

SECTION 2a: Team and Product Information

Team and Product Information

Website: perpie.io

Grant Type: Open Grant

Contacts:

Project Linkes:

Team members & Experience:

  • Perpie God: prev. Senior software engineer @ Microsoft & At a major crypto analytics company. Built complex data streams architectures and high scale systems
  • Perpie Papa: Crypto-native self-taught developer, previously founded a no-code DeFi composability platform
  • Both have been researching crypto sphere for years and have deep understanding around EVM based blockchains and DeFi protocols

What novelty or innovation does your product bring to Arbitrum?

Perpie innovates by focusing on a seamless and secure trading experience. It integrates with platforms like GMX V1 and V2 and plans to integrate with more in the future.

Perpie is deeply integrated with Account Abstraction, which eliminates the need for users to manage gas fees by utilizing a paymaster, as well as an engine to find the best gas route according to the users’ preferences (e.g. lowest cost, highest balance, etc.). It also aggregates features previously spread across multiple apps into one convenient solution accessible through a Telegram chat.
The platform is built upon a sophisticated internal architecture that abstracts away common technical frictions, providing users with a comprehensive understanding of their investments.
Perpie is also intent-centric, focusing on simplicity and ease of use.

Few examples:

  • Aggregating multiple protocols into a single UX, providing a route without the need to explicitly choose an execution path.
  • Automatically managing your gas payments, eliminating the need to maintain an ETH balance or choose which token to pay gas with.
  • Bundling multiple steps and actions into one. For example, a single button to close all positions, cancel all orders, or preset stop-loss/take-profit within a position opening.

It’s designed to onboard both CEX users and Web2 users onto GMX by providing a familiar experience that doesn’t require any previous DeFi knowledge.
Overall, Perpie’s approach is to meet the evolving needs of the DeFi community by constantly innovating and providing a more user-friendly, intuitive, and efficient trading environment.

Is your project composable with other projects on Arbitrum? If so, please explain: Perpie system is composable in the sense that we can (and will) integrate more perp protocols into our UI & aggregator. However, Perpie’s system cannot be used by other protocols in the meantime, though we’re considering on that front:

  1. Exposing our integration system externally and allow protocols to integrate themselves into the aggregator, ensuring every team building a protocol can integrate into Perpie and attempt to offer the best rates for our users
  2. Release an SDK for our aggregator and allow others to build on-top of it to trade

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains? In the Telegram bot landscape, we have encountered notable players such as Unibot, BananaGun and various other sniping bots. Similarly, in the aggregator sector, MUX and RageTrade are significant contributors. However, the combination of these with AA, social logins, and multiple ecosystem features is something we have not yet seen.

How do you measure and think about retention internally? (metrics, target KPIs): We continuously monitor our users’ behavior through anonymous logs, which show us their interaction with Perpie. We also implement A/B testing strategies with new features to improve retention rates, and verify these rates using our dashboards.
Metrics we’re going to track:
Users retention rate, User Engagement Metrics, Daily, Weekly, and Monthly Active Users

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?:At the moment - YES

On what other networks is the protocol deployed?: N/A

What date did you deploy on Arbitrum mainnet?: We launched Perpie to the public on Dec 20th last year (Announcement: https://x.com/perpieio/status/1737420420184223914?s=20)
Here is also our first smart account deployment happened while in testnet: Arbitrum Transaction Hash (Txhash) Details | Arbiscan

Do you have a native token?: Not yet. but we are planning to come out with a token on Arbitrum mainnet pretty soon

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?

https://dune.com/perpie/perpie-ltip-proposal

We have received 100KARB from GMX to incentivize trading. We had 3 milestones - The first of which was to actually integrate with GMXV2. This milestone was the dominant one which we ended up spending most of our time on, making sure all interactions are stable, safe & secure. Once we’ve completed the integration, we planned out our incentivization mechanisms. We started with building the infrastructure as well as releasing our referral program, which ended up giving us an initial volume and we hit our second milestone of $2M volume. over a week ago we launched our first trading challenge. We hit a record volume of nearly $9M and passed our last milestone (set at $7M). We would like to mention that even with the STIP’s short duration combined with our non-compromising development standards that prevented us from beginning the incentivization right from the start of the STIP period, we were able to achieve impressive results of ~$7M per week of incentives

Current Incentivization: How are you currently incentivizing your protocol? At the moment we are hosting trading challenges with large rewards and boosting our referral programs with incentives - powered by the grant we received from GMX & STIP

Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? Yes, we have received 100K ARB from the GMX grant program. So far, we have received all of three milestones.

Protocol Performance: Here’s the first version of our Protocol stats. We’ve included not only volume information but also statistics related to gas and AA, such as total/avg gas paid and the ratio between the number of user operations and transactions. https://dune.com/perpie/perpie

Protocol Roadmap:

Q1 2024

  • [COMPLETED] Build robust notifications system
    • Perpie’s highly dependent on it’s robust notifications system. It helps to asynchronously inform the users about all their activities and also keeps our cache updated.
  • [COMPLETED] Integrate with GMX V2 (alongside with GMX V1)
  • [COMPLETED] Implement twitter whale alert for futures
  • [COMPLETED] Implement trading group features
  • [COMPLETED] Launch referrals program
  • [COMPLETED] Implement Trading history
    • historical trades with P&L more accurate and instead of showing flat list of increase/decrease we show single entry consisting all the decreases of a single position
  • [COMPLETED] Implement Quick trades
  • [COMPLETED] Finetune entire system

Q2 2024

  • Finalize intent solver service (improve platform performance significantly)
  • Implement our own paymaster to improve fees and interaction with keepers
  • Wallet importer

Q3 2024

  • Cross chain trading - give users from other chains the ability to trade on Arbitrum and GMX
  • Aggregation - enhance protocols support (more liquidity & possibilities)
  • Turn the success of Perpie to success for the community by launching a token

Q4 2024

  • Create fiat onramp/offramp
  • Add recovery options to Perpie
  • Make an opensource wallet management for perpie users to make the interaction with the wallet much more decentralized
  • Add more ways to login to Perpie (e.g. passkey)

Audit History & Security Vendors:

  • Our account abstraction-related contracts are provided by Biconomy, all thoroughly audited here: Audits | Biconomy
  • Currently we have multiple smart contracts deployed by us, these contracts are related to charging & managing trading fees - all of which have been audited by 0xCommit (Previously Kawach). You can find our contracts & audits here: GitHub - perpie-io/contracts: Perpie's onchain contracts
  • We might host a bug bounty program in the future, once more extensive logic is deployed

Security Incidents: No security incidents as of now

SECTION 3: GRANT INFORMATION

Grant Information

Requested Grant Size: 200K ARB

Justification for the size of the grant:

The fundamental point we want to make is that our previous grant from STIP (100K ARB) has significantly boosted Perpie. We have generated over ten times the volume we had before. Now, we’re asking for twice the previous amount, this request we believe can yield substantial results. Our plan is to continue working with the foundation, demonstrating our progress and achievements step by step and we want to prove the success of the pilot.

We can gauge the potential success of the grant by examining the outcomes of our previous grants. Following the implementation of our incentives, we noticed a significant increase in usage and volume. Remarkably, within just a week of launching our previous challenge, the volume doubled!

Trading challenges, referrals, and gas sponsorship are all strategies designed to enhance the overall user experience, increase the virality of the chain and product, and, most importantly, reward active users. That create a feedback loop towards success of Perpie and the overall community

Note: We want to clarify that we perceive trading challenges and fee rebates/gas sponsorships as two separate methods with different objectives for using the grant. While challenges can introduce trading pressure and high usage on Perpie, the latter results in a superior user experience. Users don’t have to worry about gas and fees expenses, and they also aren’t constrained by a zero-sum mindset. That’s why we aim to combine the benefits of both methods to maximize their potential.

Grant Matching: N/A

Grant Breakdown:

Note: here’s a dune that supports our claims on previous challenges and referral programs

https://dune.com/perpie/perpie-ltip-proposal

105,000 ARB | [Perpie Challenges] get users to use and trade with perpie

We will host weekly challenges over a span of 6 weeks (1.5 months), with a reward of 15K ARB each week.

Additionally, we will allocate 15K ARBs to promote the features of our Perpie Group

Note: A detailed breakdown of regrading the execution is in the execution strategy section (Section 4)

21,420 ARB | [Perpie Referrals] make it profitable for users to spread the word about perpie by boosting their referral rewards and enhancing overall virality of Perpie & Arbitrum

Our total volume goal is $100M

Perpie’s fees are 5bps

Assuming our previous boosted referral mechanism we match our fees to referrers 1:1, additionally we refund referees 10% of the fees paid. We plan to keep the boosts for the last 6 weeks

  • So the boosts will be live for 1.5 months → ~half of our total volume goal → $75M in total volume
  • Are fees will be 5bps

5bps of $75M is $75,000 + 10% → $41,250

Note: A detailed breakdown of regrading the execution is in the execution strategy section (Section 4)

62,500 ARB | [Perpie Rebates] Fully sponsor protocols fees for the users

Our total volume goal is to get to $100M in 3 Months

We plan to activate the rebates during the second half of the LTIPP program, which corresponds to the final six weeks.

Perpie’s fees are 5bps → $35,000 ( in 6 weeks this will be ~17,500 ARB)

GMX’s fees are 12bps → $90,000 (~45,000 ARB)

Total invested: 62,000 ARB

Note: A detailed breakdown of regrading the execution is in the execution strategy section (Section 4)

11,000 | [Stickiness] Encourage stickiness and repetitiveness on the platform

We also plan to set aside a budget of 11K ARBs. This will be used as a vesting mechanism to boost rewards for users who participated in previous challenges.

Note: A detailed breakdown of regrading the execution is in the execution strategy section (Section 4)

Funding Address: 0xb9e19940Df2D555123253DAf49A33f4E04C31e81

^ Safe wallet, 2/2 multisig

Distribution Address: 0xb9e19940Df2D555123253DAf49A33f4E04C31e81 (same)

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

GRANT OBJECTIVES AND EXECUTION

Objectives: Support Perpie in becoming the leading tool for on-chain trading.

  • Volume Growth: Facilitate the handling of millions, eventually billions, of dollars in volume.
  • Encourage Onboarding: Assist in onboarding users and initiating volume and usage on Perpie.
  • Perpie Challenges: Encourage increased usage to fuel feedback loop for continuous improvement and develop a superior trading platform for on-the-go trading.
  • **Become Viral :**Through Perpie Referrals, we aim to establish ourselves as the premier trade on the go platform while ensuring our ambassadors receive the best possible rewards for their support.
  • Focus On The Trading: By utilizing our AA infra, we aim to provide our users with gas sponsorship. This allows them to concentrate on their trading experience rather than worrying about gas costs.

Execution Strategy:

Here, we explain how we came up with a desired KPI of 100M by the end of the competition, 11X higher than our current volume, using only the mechanisms and figures we had previously established. We’d also like to mention that this is a bear case that doesn’t primarily depend on lower gas fees, thanks to Dencun which should increase usage in the chain. It doesn’t rely on the consistency over a 6 weeks in a row of challenges either, which we believe will generate a flywheel effect, further pushing metrics higher.

That’s an execution breakdown based on the grant breakdown

[105,000 ARB | [Perpie Challenges] get users to use and trade with perpie]:

We will host weekly challenges over a span of 6 weeks (1.5 months), with a reward of 15K ARB each week.

Additionally, we will allocate 15K ARBs to promote the features of our Perpie Group. Perpie Group is a feature that allows everyone to monitor and follow the actions of others. Perpie provides notifications for every move, keeping track of the leaderboard and everyone’s achievements.

Our weekly challenges revolve around a rewards pool, where every participant wins based on their consistency, P&L, and generated volume.

You can see the specifics of the previous challenge; we plan to adhere to similar principles:

It’s worth noting that our 50K challenge contributed $7M in volume. However, we didn’t promote it sufficiently on social platforms and it was announced at short notice. We firmly believe that by repeating the challenges and combining them with promotions, we can achieve similar, if not better, results with only 15K ARBs.

For reference: here’s a description of a challenge we hosted lately

21,420 ARB | [Perpie Referrals] make it profitable for users to spread the word about perpie by boosting their referral rewards and enhancing overall virality of Perpie & Arbitrum

We encourage organic marketing and affiliation through various methods. To facilitate this, we will distribute a significant number of rewards and tokens to Perpie ambassadors, whether they’re on Twitter or any other platform. We’ll measure success by the number of new registrations.

Our total volume goal is $100M

Perpie’s fees are 5bps

Assuming our previous boosted referral mechanism we match our fees to referrers 1:1, additionally we refund referees 10% of the fees paid. We plan to keep the boosts for the last 6 weeks (week 6-12)

  • So the boosts will be live for 1.5 months → ~half of our total volume goal → $75M in total volume
  • Are fees will be 5bps

5bps of $75M is $75,000 + 10% → $41,250

62,900 ARB | [Perpie Rebates] Fully sponsor protocols fees for the users

By leveraging our account abstraction capabilities and build a trading platform where gas is not an issue! We’ll allocate a significant budget to make sure Perpie free of gas fees. In addition we are going to distribute fees rebates for GMX & Perpie execution fees so traders will pay only for funding rates and price impacts.

Our total volume goal is to get to $100M in 3 Months

We plan to activate the rebates during the second half of the LTIPP program, which corresponds to the final six weeks.

Perpie’s fees are 5bps → $35,000 ( in 6 weeks this will be ~17,500 ARB)

GMX’s fees are 12bps → $90,000 (~45,000 ARB)

Total invested: 62,000 ARB

Est Avg Gas fees are: so far our users paid $3350 (1675 ARB) of gas fees and we expect 50% increase in our weekly activity, while considering the lowered gas fees our estimation for a period of 6 weeks is → meaning $5025 (~2,500 ARB) over the total period of 6 weeks

calculation: ((3350 * 1.5)) / ~7 → 800$→ 400 ARB

Note: we assume that the large decrease of gas prices post eip4844, will cause an equal increase in onchain demand ( and therefore usage), that eventually will bring the base fees to a similar place they are now

10,600 | [Stickiness] Encourage stickiness and repetitiveness on the platform

We plan to set aside a budget of 11K ARBs. This will be used as a vesting mechanism to boost rewards for users who participated in previous challenges. The distribution of these rewards will be based on consistent platform usage, particularly among those who remained even after the competitions. Any undistributed rewards will be returned to Arbitrum.

Note: Since we haven’t done this method before we don’t have number to support those assumption. We are aware that there might be a case where this didn’t work and we’d have to return it back to the foundation

We are planning to evaluate the results of the vesting mechanisms to make sure it will be matured enough for the LTIP when time will come

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?:

  • Vesting: We plan to set aside a budget to implement vesting mechanism to boost rewards for users who participated in previous challenges. The distribution of these rewards will be based on consistent platform usage, particularly among those who remained even after the competitions. Any undistributed rewards will be returned to Arbitrum.
  • Perpie Groups: This strategy can create a significant network effect around Perpie. When traders share their success and actions within a group, it encourages increased usage by others.

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:

As we progress with the applications, we may introduce additional measures. However, we will initially implement some basic measures in accordance with OBL standards, such as:

  • Daily volume
  • Weekly volume
  • Monthly volume
  • Number of new signups

Grant Timeline and Milestones:

Based on previous challenges, we anticipate that the combination of the challenge and referrals can generate $9M in weekly volume on Perpie. Additionally, we’re introducing fee rebates and vesting mechanisms, which we didn’t have before. These new elements are expected to push our metrics even higher.

Note: In the Execution Strategy section, we detail how all of this will be achieved.

Phase 1: Launch Trading Challenges (Weeks 1-4)

  • Milestone: Launch first trading challenges, defining most fair and productive (stickiness wise) challenges, Collect information from users and deploy capital on those challenges
  • KPIs:
    • Weekly Trading Volume Goal: Strive to hit a weekly trading volume of ~$9M given $60K of rewards.
      So overall KPI for weeks 1-4 is $36M

Phase 2: Growth and User Experience (Weeks 5-8)

  • Milestone 1: Final two weeks of trading challenges (5-6)
  • Milestone 2: Announce fees rebates plans powered by the advantages of having account abstraction in place for our users. On this phase we expect for more users and more trades to be done by our users
  • Milestone 3: Boosted Referral Program, elevate the power of the grant to boost the rewards a referrer and referee gets
  • KPIs:
    • Weekly Trading Volume Goal: Strive to hit a weekly trading volume of ~$8.3M given $30K of rewards + proportional expenses for the rebates and referrals.
      So overall KPI for weeks 5-8 is reaching to ~$69M in total volume

Phase 3: Growth & Perpie Groups Adoption (Weeks 9-12)

  • Milestone: Initiate campaigns designed to attract traders to Perpie Groups actively. This will enable them to experience the benefits of sharing, socializing, and following other traders.
  • Keep improving the challenges
  • KPIs:
    • Weekly Trading Volume Goal: Strive to hit a weekly trading volume of ~$8.3M Given a continuation of rebates and referrals, we will also begin a vesting program for reward distribution. Overall KPI for weeks 5-8 is >$100M in total volume!

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Crypto users are drawn to platforms with high volumes and liquidity. This means there’s a general incentive for Arbitrum, specifically for Perpie and GMX, to generate volume, numbers, and liquidity. By doing so, they create an attractive opportunity for users seeking the best chain and protocols to use.

Perpie firmly believes in the power of the feedback loop. Allocating a significant amount of funds to incentives will greatly assist in:

onboarding new users/increasing usage of existing users → generating more data points and feedback → enabling Perpie to analyze insights → leading to improvements in Perpie → attracting more users due to a better Perpie.

Furthermore, these funds will enable us to allocate more resources to development while using the grant for rewards and incentive distribution. This way, Perpie can utilize its capital for other needs such as R&D, hiring, marketing, and token generation.

Last but not least, using these funds will help us build a product that subsidizes gas and other expenses for the user. This approach is akin to the experience users get from top-tier internet services. It will aid us in analyzing these results and understanding the motivations behind finding alternative ways to monetize the product that do not directly involve user fees.

LTIPP feedback #1

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Hello @perpie.io

Thank you for your application! We can confirm your application has been submitted and you will be assigned an advisor shortly.

1 Like
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Hello @perpie.io ,

Thank you for your application! Your advisor will be Castle Capital @Atomist.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

1 Like
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hey @cliffton.eth we’re ready to submit
can you please modify our title to [Final] [Perpie] LTIPP Application ?

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Hey there I’ve amended the title post to reflect that this proposal is FINAL. All the best!

1 Like
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We appreciate the detailed suggestion and interest in the program. The program interface is really simple, and it is commendable that it provides freedom to its users. In addition, it is quite impressive that Perpie’s distribution strategy stimulates trading activity on Arbitrum. Although we think the project budget is large, we vote “FOR” on this proposal due to the successful completion of past KPIs and the successful incentive system offered to users.