RFP - Abitrum Short-Term Incentive Program (STIP) Data Monitoring and Reporting
The Arbitrum Short-Term Incentives Program (STIP) is due to begin after Round 1 voting concludes October 12, 2023, followed by distributions to successful teams. Intended goals of this program are:
- accelerate ecosystem growth;
- experiment with grant distribution models;
- generate data to inform future programs; and,
- uncover new strategies to drive activity on the network.
The size of this program (50M ARB) justifies significant monitoring of grant funds and collection of data for both fraud/unethical behavior and performance. This Request for Proposals (RFP) requests one or two specialized service providers (SPs) capable of delivering services to address three priorities. These priorities are:
- Tracking funds and incentivized pools for misallocation, unethical behavior, etc.
The primary goal is to track grantee funds (and wallets) to ensure grants are used as specified, and allow for the identification of any grantee fraud or unethical behavior in violation of the grantee eligibility requirements. To assist this, applications require disclosure of contract addresses and other information to help streamline monitoring. Deliverables for this objective include transaction monitoring, wash trade detection, claimant analysis, and any other signals determined by an expert SP to violate the General Eligibility Requirements.
- Measuring the efficacy of each ARB spent on a per grant, per pool basis, per asset basis.
In its current form, data creation will be through each successful grantee providing analytics, dashboards and bi-weekly status reports to inform the Arbitrum Foundation and DAO of their progress. This will generate a lot of information which has the potential to be significantly fragmented across the multiple successful projects making assessments and analysis difficult for the community.
At a high-level, the program needs to track the overall impact in terms of short-term activity. This data is to be collected in a way that can inform what strategies proved to be most effective at providing value to the Arbitrum ecosystem. Baseline metrics are going to be the normal ones, for most of these incentives this will track at TVL, Volumes, Unique Addresses, Fee generation, # of transactions, progress milestones, KPI tracking, ARB spending etc. In addition to the claimant analysis mentioned above.
Note: Concurrent with this SP engagement, the Arbitrum DAO will be leading initiatives dedicated to improving community data infrastructure and analytics. This effort is expected to fund open source software for Grant analysis that may also be helpful to the SP.
STIP comprises a collection of individual grants across XX grantees (Estimated - up to 50). The chosen SP will be responsible for the construction and maintenance of a data pipeline capable of delivering dashboards and regular reporting across each individual grant to achieve the following objectives:
The Arbitrum DAO seeks a monitoring and reporting solution to promptly alert the STIP-ARB Multisig of any activities that breach STIP eligibility criteria. These activities encompass fund misuse and actions deviating from individual grantee applications. Service providers are invited to showcase their proficiency in delivering monitoring and reporting solutions that focus on the following key metrics, among others.
The Arbitrum DAO seeks data analytics and dashboards capable of demonstrating grant efficacy on a per grant basis, across a wide-diversity of sectors and protocols. Given the diversity of strategies and protocols, the Arbitrum DAO expects the SP to present methods of standardization and benchmarking across protocols. Service providers are invited to showcase their proficiency in delivering precise analyses that focus on the following key metrics, among others.
Projects will be asked to deliver three deliverables: 1) open-source dashboard and analytics tooling capable of delivering real time data on the following objectives across both priorities; and 2) regular reporting to the Arbitrum community, and 3) a Final Impact Report.
- Wallet and Fund Tracking
- Protocol/Core Team Farming
- Transaction monitoring
- Wash Trading
- Claimant Analysis
- Ecosystem Metrics
- Fees Generated
- Sector Analysis
- Yield Aggregators
- Protocol Analysis
- Pool Level Analysis
- Impact per ARB
- Ecosystem Metrics
ARB spending by teams (planned vs actual), ARB distributed/remaining
- Distribution of claimants by protocol
- Distribution of claimants by asset
- Percentage of claimants selling ARB
- Percentage of claimants delegating ARB
Grant matching by project
The successful SP will report to community stakeholders (Disruption Joe, tnorm, Burns, and program managers the Data Intelligence Grants Program) using weekly to bi-weekly reports with the following deliverables:
- Report of suspicious activity regarding grant mismanagement or misallocation
- Report of wash trading, grant manipulation, or worrisome claimant behaviour
- Individual project update summaries for all successful STIP projects
- Project KPI tracking
- Links to project reports and dashboards/analytics
Bi-Weekly touch point and coordination with each project for status update and communication back to the community stakeholders/STIP-ARB Multisig signers to flag any issues and informany potential decision to halt funding streams. As such, we expect the service provider to intake requests communicated from the STIP-ARB multisig and conduct investigations raised by the community.
Due on April 01, 2024, the Arbitrum community will receive a comprehensive report, demonstrating the impact of STIP across macro-level network trends, sector trends, protocol trends, pool trends, and assets trends.
This report will be published in collaboration with appointed community stakeholders (Disruption Joe, tnorm, Burns and program managers the Data Grants Program) after an initial draft, with 1 week to review followed by 1 week for updates and final submission.
Monitoring is to be continuous for the duration of the program through April 01, 2024 to allow for extended distributions (if projects retain extra funds and run slightly over) in addition to extra time to collect granular retention data.
The STIP-ARB Multisig will determine the preferred cadence of its updates, which occur every two weeks, once the SP has been engaged for its formal contract. This preference will be communicated by community stakeholders (Disruption Joe, tnorm, Burns) who will serve as points of contact for the service provider throughout their engagement.
RFP Live - Oct 8
RFP Submissions Open: Oct, 08 to Oct 015, 2023.
RFP Interview and Submission Reviews: Oct 15 to Oct 22, 2023.
RFP Decision: Oct 22 - Oct 27 2023.
Grant awarded - Oct 27
|Potential Blocker||Mitigation Strategy|
|Varied timelines for each project||Set global program schedule for projects’ bi-weekly reporting as part of STIP application approval. Proposal is for this to begin 1 week after distribution of first funding tranches to give protocols sufficient time to set up incentive streams|
|Untimely submission of bi-weekly reports by projects||KPI requirement for STIP approval and ongoing funding|
Setting up communication channels with each project through TG or otherwise
Bi-weekly touch point|
|Insufficient data available from projects|KPI requirement for STIP approval and ongoing funding
SP to provide stand-alone on-chain analytics|
|Number of projects and submissions|Ingestion of proposal data from forum/multisig streams|
[Project to define final scope including exhaustive list of metrics and signals to be monitored.]
[SPs to present their plan to meet aforementioned signals and metrics and present any other relevant signals and metrics]
[In order for useful recommendations to be drawn from the data collected, a unified understanding of what value is defined as by the Arbitrum Community. This section is to describe how the applicant SP defines what results should be attributed to a successful distribution of funds and therefore what data is to be collected and presented for all projects in the program.]
[Expected timeline for operations]
[Total funding requested, individual tranches and timing]
[Provide evidence of suitable prior experience for each priority application applies to. Note teams will need to agree to KYC requirements]
[What information and resources are required of the STIP Committee, Plurality Labs, program teams or the Arbitrum foundation generally]