SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: Kharn
Project Name: Perpy
Project Description:
Perpy is a decentralized SocialFi & Asset Management Hub that connects traders with investors around the clock. It offers Perpetual and Spot trading, and soon NFT and Options trading, all on-chain. The platform prioritizes accessibility and transparency, allowing users to invest in the best traders and traders to grow their brand and community while monetizing their trading skills. Perpy’s smart contracts ensure security, audited by PeckShield, and users keep full custody over their assets. It aims to become the home of SocialFi where communities thrive and earn together.
Team Members and Roles:
- Erasme: CEO & Co-Founder
- Montaigne: Lead Dev & Co-Founder
- Baal: Front-end Dev
- Kharn: CMO
- Amospi: Community Manager
- Freelancers and Contractors when needed
Project Links:
Web: https://www.perpy.finance/
Twitter: https://twitter.com/PerpyFinance
Discord: Perpy
Telegram: Telegram: Contact @PerpyFinance
Docs: Overview | Perpy Finance
Newsletter: https://perpy-finance.beehiiv.com/
Contact Information
Point of Contact: @Kharn
Point of Contact’s TG handle: @KharnHash
Twitter: @KharnHash
Email: kharn@perpy.finance
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.
Team experience:
Erasme: CEO & Co-Founder
Holds a master’s degree in finance and worked 6 years in investment banking before turning to a job as an analyst in a venture capital fund specialized in crypto.
Montaigne: Lead Dev & Co-Founder
Holds an engineering degree with a focus on IT and a master in Finance. He worked 3 years as an IT Quant Market Risk for a major bank, then turned to Solidity and worked for a smart contract auditing company for 2 years before founding Perpy.
Baal: Front-end Dev
Self-taught Front end developer, worked 3 years in a fintech company and has been a freelancer for 3 years specialized in Web3 front end before joining Perpy.
Kharn: CMO
With a sales and engineering background, Kharn worked for 8 years as VP of Product for a famous fintech company and has since then specialized in Web3.0 marketing and growth hacking.
Amospi: Community Manager
Spent five years managing information channels on international news, technology, economics, cryptocurrencies, and NFTs. He then worked for four years as a community manager for various DeFi projects and was an ambassador for a major NFT metaverse project in 2021
What novelty or innovation does your product bring to Arbitrum?
With the current state of the ecosystem, traders have no optimal medium to share their trading setups and performance in a transparent, legitimate, and verifiable manner. Building an engaged community is even harder, and the overhead of managing different platforms, tooling, and paywalls is time-consuming. The same goes for users who follow multiple accounts, Alfa sources, a dozen Telegram groups, and a bunch of private Discord servers.
These are discrepancies and unefficiencies across crypto communities to share and earn together.
That’s where Perpy brings an all-in-one solution to solve these major issues.
Our product brings several novelties and innovations to Arbitrum. Firstly, our product introduces the innovative concept of Trading Vaults to the Arbitrum ecosystem, enabling users without trading expertise to engage in crypto trading and asset management. By leveraging the skills of experienced traders and asset managers on our decentralized application (dApp), users can effortlessly participate in the trading market, democratizing access to crypto investments and potentially enhancing their portfolio performance. This bridges the gap between novice users and the complex world of crypto trading, fostering a more inclusive and diversified investment landscape on Arbitrum.
On the Perps side, we enhance the trading experience by offering a detailed trading engine built on top of major Perp DEXs (GMX, for instance), Drag&Drop StopLoss/TakeProfits features, a transparent fee structure, and comprehensive statistics/trade history, providing traders with a fully on-chain trading journal experience.
On the Spot side, we provide a fully permissionless and “degen” (degenerate) experience, avoiding token whitelisting and offering tools like Token Sniffer and Honey Spot Checker. Spot trading on Perpy can be seen as a Dexscreener on steroids, offering enhanced capabilities for users.
Finally, our upcoming Social features introduce unique differentiators, particularly with our “Communities” functionality. Vault managers can directly manage their community and communicate with them within the dApp, fostering brand growth, making access gated in order to monetize if they wish, sharing trades or tokens of interest, and enabling vault managers to act on these calls directly from their vault. This integrated social aspect adds a new dimension to trading on Arbitrum, enhancing community engagement and collaboration. Community is at our core, and we encourage a culture of collaboration where users can share and earn together, cementing the community culture within.
Here is an overview of the Vaults browser page to choose your trader:
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, our project is highly composable with other projects on Arbitrum. We support any kind of decentralized exchange (DEX) infrastructure, including Perpetuals, AMM Spot -as well as NFT, Options, and even Sports betting platforms coming later in 2024. By integrating with these platforms, we bring user liquidity and volume to the underlying protocols that they might not typically have access to. Our platform allows users who aren’t active traders to invest in the best traders to execute trades on their behalf, thereby increasing liquidity and activity across the ecosystem. This composability fosters a synergistic relationship with other projects on Arbitrum, contributing to the overall growth and vibrancy of the decentralized finance (DeFi) space on the network.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
STFX, Valio and HyperLiquid vaults
How do you measure and think about retention internally?
Internally, we measure retention through a variety of key performance indicators (KPIs) and metrics to gauge user engagement and activity over time. Our primary focus is on ensuring that users continue to find value in our platform and remain actively involved. Some of the KPIs and metrics we’re currently implementing to measure retention include:
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Active Users: Number of active users on a weekly basis, defining “active” as users who engage in at least one of the following actions: trading, investing, joining or posting in communities, or browsing through vaults.
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New Users: Number of new users who connect their wallet on Perpy, create a vault or invest in a vault. This metric helps us understand the growth of our user base and acquisition efforts.
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Daily and Weekly Trading Volume: We analyze the trading volume across Perpetuals and Spot markets on a daily and weekly basis. This metric provides insights into the level of trading activity on our platform over time.
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Vaults TVL (Total Value Locked): We track the total value locked in vaults across Perpetuals and Spot markets. This metric helps us understand the amount of capital being utilized within our platform.
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Fees Generated: We measure the daily and weekly fees generated on the platform. This metric is essential for assessing the financial health of our platform and revenue generation.
By regularly monitoring these KPIs and metrics, we aim to identify trends, patterns, and areas for improvement in user retention. Our target is to maintain steady growth in active users and increase trading volume and TVL while also ensuring a healthy flow of fees generated. Additionally, we continuously review and refine our retention strategies based on these metrics to enhance the overall user experience and satisfaction on Perpy.
Relevant usage metrics - Please refer to the OBL relevant metrics chart 9. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
| Category | List of Metrics |
|---|---|
| General Metrics | |
| Daily Active Users | A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts. |
| Daily User Growth | A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts. |
| Daily Transaction Count | A time series metric representing the daily number of transactions interacting with the protocol’s contracts. |
| Daily Protocol Fee | A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users. |
| Daily Transaction Fee | A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts. |
| Daily ARB Expenditure and User Claims | Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics. |
| Incentivized User List | The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients. |
| Perpetuals | |
| Note - We do not fall directly into the perps class of business, but we feel many of these can be applicable. | |
| TVL | A daily time series expressed in USD. |
| Trading Volume | A daily time series, also measured in USD. |
| Open Interest | A daily time series measured in USD. |
| List of Traders | A comprehensive record of individuals or entities that have engaged in trading activities. This list should include trader addresses and the volume of trades executed. |
| List of Liquidity Providers | A list of current and past participants who have provided liquidity during the incentivized period of the protocol. The list should include LP addresses, their current liquidity in USD, time-weighted liquidity in USD, and the duration of liquidity provision. |
| Trader Net P&L Improvement | The change in traders’ profit and loss accounts, reflecting on the platform’s fairness and attractiveness to traders. |
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):
We rely on a singular advisory firm to provide feedback and insights on various aspects, including grant writing. This firm is Serious People and will not receive ANY incentives outlined in this proposal, ensuring there are no conflicts of interest.
SECTION 2b: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the protocol native to Arbitrum?:
Yes, we launched V1 contracts in Nov. 2022, and current V2 contracts were deployed in Aug. 2023
On what other networks is the protocol deployed?:
Yes, on BNB Chain
What date did you deploy on Arbitrum mainnet?:
- First V1 contract deployed: Nov 2, 2022: Arbitrum Transaction Hash (Txhash) Details | Arbiscan
- TGE: March 14, 2023: Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?: Yes
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
In the initial months following our Token Generation Event (TGE), we conducted a liquidity mining program (Nitro Pool) to incentivize liquidity providers (LP) on Camelot. We also did two Trading competitions in 2023.
The first competition was held during April 2023, doubling the volume compared to March 2023 ($26.419M in April 23 vs $13.111M in March 23).
The second competition was held between the 27th Nov 2024 and 15th Jan 2024. Regrettably, we lack comprehensive data regarding this last initiative.
Since then, we have not implemented any additional programs.
Current Incentivization: How are you currently incentivizing your protocol?
We are currently not using token incentives on our protocol, however traders are incentivized through a performance-based mechanism. When a trader demonstrates consistent positive performance over a 30-day period, they naturally attract more Total Value Locked (TVL) into their vault. With increased TVL, traders can execute larger trades, leading to the generation of bigger commissions. This setup inherently motivates traders to maintain and enhance their performance, fostering a self-reinforcing cycle of success within the platform.
We’re also hosting trading competitions once or twice a year. The last one was in December 2023.
We will implement in April a point system over 8 months to foster user acquisition and retention on Perpy. Details will be announced later on our channels, but an overview of this program will be shown later in this application.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No.
Protocol Performance:
Dec. 2022: Perpy V1 Launch (MVP) with GMX V1 support: The initial launch marked the beginning of Perpy’s journey, providing traders with access to perpetual contracts and laying the foundation for future developments.
March 2023: Public Sale on Camelot Launchpad: This strategic move helped seed the development of Perpy V2, demonstrating investor confidence and support for the project’s vision.
Sept 2023: Perpy V2 (Spectra Update) Closed Beta Launch: The closed beta launch of Perpy V2 introduced significant improvements and features, preparing the platform for its public debut.
Nov 24th, 2023: Perpy V2 Public Launch: The public launch of Perpy V2 marked a major milestone, bringing enhanced functionality and user experience to traders and investors.
Dec, 2023: GMX V2 Support Added: In December 2023, Perpy integrated GMX V2 support, further expanding the platform’s capabilities and offerings to its users
Key Metrics of Perpy V1 (before Spectra Update, Dec22-Aug23)
- Vaults Created (over 8 months, Janv23-Aug24): 1,884
- Total Trading Volume: $50,662,708
- Peak Users on the dApp: 2972
- Average Active Users: 320
Current Performance (Post-Spectra Update): The V1 launch of the Perpy platform was fairly successful by most metrics. While volume dipped slightly during unfavorable market conditions around the time of V2, Perpy is starting to pick up significant traction in terms of user growth and volume. During Arbitrum’s Short-Term Incentive Program (STIP), many other perp platforms that feature trading rewards have experienced an uptick in momentum, so Perpy anticipates that with the appropriate incentive structure, the platform can expect to see a similar increase in relevant growth metrics.
Key Metrics of Perpy V2 (Sept23-Fev24)
As of now, the statistics page shows a trading volume of $4.61 million (GMX V2) + $2.45 million (Level Finance) since the V2 launch date, indicating sustained activity and engagement within the protocol.
- Vaults Created (over 6 months, Sept23-Fev24): 171
- Peak Users on the dApp: 921
Below is the volume dashboard coming from the GMX affiliate program (GMX Referrals):
The GMX affiliate volume doesn’t show the $0.5 million of trading made during the V2 closed beta (Sept 23-Nov 23).
Relevance and Achievements:
Perpy has established itself as a leading decentralized Social Trading platform, offering innovative features such as a perp DEX, options trading (coming Q2, 2024), and spot trading (coming on March 18th). What sets Perpy apart is not just its comprehensive trading solutions but also its Social layer approach and its Trading Journal feature, which enhances user experience by enabling traders to track their strategies and performance meticulously. The platform is acclaimed for its intuitive interface, transparent fee model, and unwavering focus on security, all contributing factors to its success. The notable growth in vault creations, trading volumes, and user base highlights Perpy’s increasing importance and impact on the decentralized finance (DeFi) landscape, marking it as a key player in facilitating informed and strategic trading decisions within the community.
Performance & Statistics page (Trading journal):
Trade history (Trading journal):
Trading UI:
Protocol Roadmap:
Q1 2024: Spot Trading Vault
- Launch of Spot Trading Vaults, with a statistics page for tracking performance.
- A Vault Promotion feature to increase visibility and usage of certain vaults.
- Implementation of a $PRY token buyback and burn program to potentially increase token value.
- Enhancements to the perpetual (Perp) trading experience, including improvements in vault switching, buying power, and handling of pending deposits.
- Introduction of account abstraction, likely simplifying user experience or security.
- FIAT on-ramp, which suggests integrating traditional currency deposits.
- Integration of management fees, which could refer to incorporating fees for vault managers.
- Improvement to the Perp experience with features like drag-and-drop for take profit and stop loss settings.
- The first major update to the social layer of the platform, which might include community or social trading features.
Q2 2024: Gains Integration
- Support for options trading, in partnership with Lyra, a decentralized options protocol.
- Introduction of MetaVaults, a way to diversify your investment in multiple vault managers through a single vault
- Limit Order GMX, indicating the support for limit orders on GMX, a decentralized exchange.
- Ability to deposit multiple asset types into a vault.
- Implementation of Vault Gamification, which could include reward systems and competitions to engage users.
- The first phase of a marketing incentive to drive user growth and platform adoption.
- The second major social layer update, further developing the platform’s social trading features.
Q3 2024: [Redacted] Integration
- Integration with a soon-to-be-revealed protocol, likely a significant feature or partnership that has yet to be disclosed.
- Expansion to a new blockchain, broadening the platform’s cross-chain functionality.
- Introduction of Cross-Chain Deposits, allowing users to deposit assets from various blockchains.
- The second phase of the marketing incentive, continuing efforts to promote platform growth.
- The second version of Vault Gamification, advancing the initial gamification features.
Q4 2024: [Redacted] Integration
- Another undisclosed integration with a protocol or platform, reserved for later announcement.
- Release of a Trading Bot SDK (Software Development Kit), enabling developers to create trading bots for the platform.
- The third major update to the social layer, indicating continued commitment to social trading features.
- The third phase of marketing incentives, suggesting a sustained marketing strategy throughout the year.
Audit History & Security Vendors:
Audit by Peckshield
Security Incidents:
No security incidents.
SECTION 3: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 96,120 $ARB
Justification for the size of the grant 17:
To justify the grant size for Perpy, we’ll use the provided context and information about the project, its team, execution strategy, and specific KPIs outlined in the document. This justification will be structured around the main objectives outlined in the application template and will consider the unique innovations Perpy brings to the Arbitrum ecosystem, its team’s background, and the planned use of funds to achieve significant growth and innovation within the ecosystem.
It’s worth noting that only Perp Vaults will be incentivised through this grant, as Spot Vault will be released only after March 18th, 2024.
Objectives and Execution Strategy:
-
Attract and Retain Traders: With a grant request, Perpy aims to significantly increase its user base and trading volume across Perpetuals markets. The project plans to leverage its unique social features and transparent trading environment to attract and retain traders. This is critical for fostering a vibrant trading community that actively participates in the platform’s ecosystem.
-
Incentivize Profit and Loss (PnL): By rewarding traders based on their performance, Perpy aims to create a cycle of success that drives continued activity on the platform. This aligns with the project’s goal to incentivize profit and loss, which is essential for sustaining growth.
Grant item 1 - Fee rebates - 60,600 ARB
Background:
- Trading Volume Jan 23 - Sept 24: $50.7M (GMX V1)
- Trading Volume Sept 23 - Feb 24: $6.9M → $1.15M monthly (Level Finance and GMX V2)
- Total Trading Volume Jan 23 - Feb 24: $54.739M (GMX V1-V2) + $2.45M (Level Finance) → $4.4M monthly
- With the upfront 0.5% tax, we can generate $22K based on a $4.4M monthly trading volume, 66K over a quarter.
The target would be to nearly double this monthly volume to $8M, leading to a total of $24M quarterly, generating $120K of fees, which would be rebated.
Therefore, for this fee rebate program, we’ve sized this item to 60,600 ARB ($ARB @ $1,98).
We’ll protect the ARB distributed to ensure we’re not sending more ARB than the fees generated thanks to the following mechanism:
- If epoch fees are over 20,200 ARB: (trader fees spent/epoch fees) * 20,200 $ARB.
- If epoch fees are under 20,200 ARB: (trader fees spent/epoch fees) * (epoch fees/20,200 $ARB) * 20,200 $ARB.
- Any ARB left for this program will be sent back to the foundation.
- Each epoch will be one month.
Grant item 2 - Competition for GMX V2 (PnL Based) - 15,000 ARB
To drive further volume, we will add three monthly GMX trading competitions with a 5K ARB prize ($10K/month, a total of $30K) with similar protections as the fee rebates.
We will reward the Top 5 PnL leaderboard:
- 1st: 2,500 ARB
- 2nd: 1,250 ARB
- 3rd: 750 ARB
- 4th: 300 ARB
- 5th: 200 ARB
Sybil Protection mechanism:
- If an epoch Competition PnL is under 5,000 ARB, all prize tiers will be multiplied by this formula (Epoch PnL/5,000 $ARB) to ensure that if there is not enough activity during one epoch, ARB prizes do not exceed the traders PnL.
- Each epoch will be one month.
Grant item 3 - Vault creation - 20,520 ARB
Background:
- Perpy V1: Vault created 1884 (over 9 months, Jan 23-Sept 24), volume generated $50.7M, average vault volume ($26,910).
- Perpy V2: Vault created 171 (over 6 months, Sept 23-Feb 24), volume generated $6.9M, average vault volume ($40,350).
To increase user acquisition and trading volume, we need to incentivize the number of vaults created; we will add security protection by requiring a minimum deposit and trading volume.
- There should be a total of 3K deposited in a vault during the first two months and a total of 60K trading volume (over 3 months).
- If these conditions are met, vaults will receive a 60 ARB bonus sent at the end of the grant period. Because ARB are sent into the vaults, investors who have deposited funds in the vault will receive a portion of this bonus proportionally to their vault share if they’ve kept their funds for at least two months.
Furthermore, vault managers are incentivised to increase volume while investors are incentivized to invest in the best traders.
- If these conditions are met, vaults will receive a 60 ARB bonus sent at the end of the grant period. Because ARB are sent into the vaults, investors who have deposited funds in the vault will receive a portion of this bonus proportionally to their vault share if they’ve kept their funds for at least two months.
We’re looking to add 342 new active vaults, twice the number of current vaults (171), which brings us to 20,520 ARB.
Use of Funds:
- Trading Fee rebates (60,600 ARB): Targeting user acquisition to enhance trading activity.
- Trading Competition (15,000 ARB): Driving volume and performance through competitions.
- Vault creation (20,520 ARB): Targeting user acquisition to enhance liquidity and trading activity.
Justification for Grant Size:
The requested grant size of 96,120 ARB for Perpy is calculated based on three primary objectives: fee rebates, competition for GMX V2, and vault creation incentives, which aim to foster platform growth, user engagement, and trading volume.
Fee Rebates (60,600 ARB): This segment of the grant is designed to encourage trading volume by offering rebates on fees. The calculations are based on the existing trading volume, with an ambition to double the monthly trading volume to $8M, leading to a total of $24M quarterly and generating $120K of fees. The amount requested for fee rebates ensures that the rebates provided do not exceed the fees generated, maintaining a sustainable incentive program.
Competition for GMX V2 (15,000 ARB): To further drive trading volume and engagement, a monthly GMX trading competition is planned with a total prize pool of 15,000 ARB, distributed over three months. The competition rewards the top 5 PnL leaderboard, with protections in place to adjust the prize distribution based on the actual PnL achieved, ensuring fairness and encouraging active participation.
Vault Creation (20,520 ARB): To stimulate the creation of new trading vaults and, by extension, increase trading volume, this part of the grant is allocated for incentives to vault creators who meet specific criteria, including a minimum deposit and trading volume. The goal is to add 342 new active vaults, with each qualifying vault receiving a 60 ARB bonus, thus incentivizing both vault managers and investors.
The total grant request is meticulously calculated to align with the platform’s strategic objectives of increasing trading volume, user base, and engagement through these incentivized activities. The protection mechanisms in place for each program component ensure that the incentives are distributed in a manner that supports sustainable growth and generates genuine value for the platform and its users.
The grant size is also justified by Perpy’s comprehensive strategy to drive user adoption, liquidity, and trading volume, which will significantly increase Perpy’s reach, retention, and revenue (RRR) within the Arbitrum ecosystem.
The team’s background, with extensive experience in finance, IT, and Web3.0 marketing, further supports the feasibility of successfully executing this plan. Their past achievements, including the launch of Perpy V1 and V2 and the proactive approach to security and audits, demonstrate a strong foundation for future growth.
Grant Matching:
We will implement in April a point system over 8 months to foster user acquisition and retention on Perpy.
We are allocating 1.5% of the supply over eight months, so 5,625,000 PRY over the 12-week LTIPP stream period. This program will overlap the LTIPP stream of 12 weeks.
Details will be announced later on our channels, but here is an overview of this program (subject to changes):
Discover Perpy (Acquisition):
- Create your profile on Perpy to join the point system
- Create Spot Vault and deposit a minimum amount
- Create Perpetual Vault and deposit a minimum amount
Start your journey (Activation):
- Make your first Perp trade
- Make your first Spot trade
- Invest (deposit) in another trader vault
- Staking PRY (liquid) or xPRY (vested)
- Mint a Pepey NFT
Climb the Ladder (Retention):
- Trading volume (cumulate points for every dollar of trading volume)
- Vault TVL (cumulate daily points on your deposit)
- xPRY staking module (cumulate daily points for staking xPRY)
- PRY staking module (cumulate daily points for staking PRY)
- NFT Mint (cumulate point for every Pepey mint)
- PnL trader (cumulate points for being an awesome trader)
Grant Breakdown:
| ARB | Use |
|---|---|
| 60,600 | Trading Fee Rebates - get users to trade on the dApp |
| 15,000 | Trading competition - Organise monthly trading competitions for GMX users on Perpy |
| 20,520 | Vault Creation - get users to create vaults and trade on the dApp - also targetting existing trading communities to move their community on Perpy |
Funding Address: 0x40810b6dd67e4ccb032E955c41D56821F59d2Fd2
Funding Address Characteristics:
2/3 Gnosis Safe multisig with securely stored private keys distributed across the Perpy core team.
Treasury Address:
Camelot V2 LP: 0x4B0c0ad795f64563a98E4c0A9a7F4347EC92356E
Treasury: 0xCC44a3C646ad7BD5cc5A00FD8c9B11A0bac2cC22
Wallet gathering protocol fees: 0x068039610Df7B402e7105E3b224D2dC9386Ff4C1
Contract Address:
For each epoch, we will use a multi-send tool to send the rewards to the eligible users from the Funding multi-sig address, as we don’t want to introduce extra risk in developing a smart contract to send the reward.
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.
Objectives:
-
Attract and Retain Traders: Our foremost goal is to attract and retain traders for Perps markets. We aim to foster a vibrant trading community that actively participates in our platform’s ecosystem.
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Leverage Existing Communities: We recognize the value of existing communities on platforms like Telegram, Discord, and Twitter. Our objective is to leverage these communities to expand our user base and enhance engagement.
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Incentivize Profit and Loss (PnL): We believe that incentivizing Profit and Loss (PnL) is essential for sustaining growth. By rewarding traders based on their performance, we aim to create a self-reinforcing cycle of success that drives continued activity on our platform.
Execution Strategy:
-
Token Distribution Method: We will distribute tokens through various methods to incentivize user engagement and platform growth.
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Fee Rebates (60,600 $ARB): Allocated to boost trading activity, this portion of the grant aims to stimulate an increase in trading volume through fee rebates. Based on current trading metrics, the goal is to amplify the monthly trading volume to $8M, culminating in a quarterly volume of $24M and a fee generation of $120K.
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Incentivizing New Vault Creation (20,520 $ARB): We will offer incentives for users to create new vaults, trade and deposit funds in them, with a strong emphasis on Spot trading. This will involve targeting existing trade communities and highlighting the benefits of Spot trading on our platform.
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Campaign/Trading Competition with GMX (15,000 $ARB): We will collaborate with GMX to conduct a campaign focusing on a trading competition. We will emphasize the unique social component of our platform to attract users and highlight the benefits of our partnership with GMX.
Risk Management: We will closely monitor market conditions and user feedback to mitigate risks. Our strategies will be flexible to adapt to changing market dynamics, and we will maintain open communication with partners to address any challenges that may arise. Additionally, we will prioritize long-term integrations with sustainable projects to minimize integration risks and ensure the longevity of our platform.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
- Performance-Based Rebates: Rebates on trading fees are tailored to reward active and high-volume traders, encouraging continuous trading activity and platform utilization.
- Competitive Trading Contests: Monthly trading competitions with attractive ARB prizes for top performers stimulate consistent engagement and attract both new and existing traders to participate actively.
- Vault Creation Incentives: By offering rewards for the establishment of new trading vaults that meet specific criteria, such as minimum deposits and trading volumes, we incentivize both vault managers and investors to remain active and contribute to the platform’s liquidity and trading volume.
- Sybil Protection Measures: Implementing requirements for minimum deposit and trading volume for vault incentives ensures that only genuine and engaged users benefit, discouraging superficial participation and fostering a committed user base.
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.
- Number of Active Users: Tracking the increase in weekly active users engaging in trading, investing, or community participation. Active user growth signifies a broader and more engaged user base. This metric can be verified through platform user analytics.
- Vaults Created: The creation of 500 new active vaults within the grant period. This KPI demonstrates the platform’s growth in terms of new strategies and opportunities for investors. Verification will be through smart contract events on-chain.
- Total Value Locked (TVL) in Vaults: An increase in TVL indicates more capital is being invested and managed through the platform, showing trust and utility. TVL metrics will be verified via smart contract data.
- Fees Generated: Observing the growth in fees generated by the platform as a result of increased trading volume and vault activity. This metric is crucial for assessing the financial sustainability and success of the incentive programs. Fee data will be verified through on-chain transactions.
- Trading Contest Participation: The number of participants and the diversity of winners in trading contests. High participation and diversity indicate effective engagement and fair competition. Participation data will be collected from the platform and verified through on-chain data.
Grant Timeline and Milestones:
Milestone 1 - Weeks 1-4: Launch and Initial Onboarding
Objective:
- Kickstart the platform’s growth by implementing fee rebates and launching the first GMX V2 trading competition to attract users and increase trading volume.
Activities:
- Deploy the fee rebate program, aiming to incentivize early traders.
- Announce and begin the first monthly GMX V2 trading competition with a prize pool of 5K ARB.
- Promote the creation of new vaults with clear guidance on the bonus criteria for early adopters.
Expected Outcome:
- Increase in trading volume to a target closer to $8M monthly.
- Attraction of new users and creation of initial vaults, setting the pace for reaching the target of 342 new active vaults.
Milestone 2 - Weeks 5-8: Expansion and Sustained Growth
Objective:
- Build on the momentum from the first month to further increase trading volume and vault creation through continued incentives and the second round of the trading competition.
Activities:
- Continue the fee rebate program, adjusting incentives based on initial feedback and trading activity.
- Conduct the second monthly GMX V2 trading competition, maintaining engagement and attracting more traders.
- Encourage further vault creation with ongoing promotions and support, tracking progress towards the 342-vault goal.
Expected Outcome:
- Sustained increase in trading volume, aiming for consistent growth towards the $24M quarterly target.
- Significant progress in vault creation, with an increasing number of users meeting the incentive criteria.
Milestone 3 - Weeks 9-12: Consolidation and Scaling
Objective:
- Solidify the platform’s growth, maximize trading volume, and reach the target number of active vaults through the final push of incentives and community engagement.
Activities:
- Finalize the fee rebate distribution, ensuring all qualifying activities are rewarded and adjusting for the final push.
- Host the third and final GMX V2 trading competition, aiming to solidify user engagement and attract the last group of traders to meet volume targets.
- Intensify efforts to reach the vault creation target, offering last-minute guidance and support for new vaults to qualify for the incentives.
Expected Outcome:
- Reach or exceed the cumulative trading volume goal of $24M for the quarter.
- Achieve the target of 342 new active vaults, with a significant portion of incentives distributed to encourage continued participation and growth.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
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Enhancing User Adoption and Liquidity: The grant will be used to incentivize new vault creation and participation in trading competitions with a fee rebate. This is expected to attract a significant number of new users to the platform and the Arbitrum ecosystem, increasing liquidity and trading volume. The emphasis on Perpetuals trading, coupled with incentives for performance through trading competitions, is designed to enhance user engagement and retention, contributing to a vibrant and active trading community.
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GMX Trading Competition Collaboration: The grant targets existing GMX users through the GMX monthly trading competitions. This initiative is designed to increase Perpy’s visibility and awareness within and beyond the Arbitrum ecosystem, attracting users from other platforms. By focusing on Perpy’s unique social aspects, such as community-driven trading, the grant will help differentiate Perpy within the Arbitrum ecosystem, fostering a sense of community and collaboration among traders.
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Data-Driven Approach to Growth: Perpy’s commitment to tracking and reporting on key performance indicators (KPIs), as outlined in the grant application, ensures a data-driven approach to growth. By closely monitoring metrics such as user growth, trading volume, and Total Value Locked (TVL), Perpy will be able to adjust strategies in real-time to maximize impact and return on investment for the DAO.
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 12. 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 that reference your OBL dashboard? [Please describe your strategy and capabilities for data/reporting]
Yes.
First Offense: *In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offense: Funding is halted permanently
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?: [Y/N]
Yes.
