Information about STIP/STIP Backfund
1. Can you provide a link to your previous STIP proposal (round 1 or backfund)?
2. How much, in the previous STIP proposal, did you request in ARB?
- 250,000 ARB
3. What date did you start the incentive program and what date did it end?
STIP incentive Started March 12 of 2024, ended March 29 2024
4. Could you provide the links to the bi-weekly STIP performance reports and Openblocks Dashboard?
https://api.rodeofinance.xyz/dashboard
- rodeo did not complete final report due to reasons provided here Discord
5.Could you provide the KPI(s) that you deem relevant for your protocol, both in absolute terms and relative change, for the first of each month starting from October 2023 until April 2024, including the extremes? If you don’t know what KPI might be relevant for you or how to properly define them, please refer to the following document: [Arbitrum DAO] OpenBlock Labs Incentive Onboarding Spec
TVL
| DATE | 01/10/23 | 01/11/23 | 01/12/23 | 01/01/24 | 01/02/24 | 12/03/24 | 29/03/24 | 30/04/24 |
|---|---|---|---|---|---|---|---|---|
| TVL ($M) | 3.3 | 3.36 | 1.27 | 0.62 | 1 | 1.32 | 2.59 | 0.891 |
| TVL % | 0% | 1.18% | -62.2% | -51.1% | 61.3% | 32% | 96% | -65% |
Unique Farmers
| DATE | 01/10/23 | 01/11/23 | 01/12/23 | 01/01/24 | 01/02/24 | 12/03/24 | 29/04/24 | 3/04/24 |
|---|---|---|---|---|---|---|---|---|
| UF | 268 | 274 | 194 | 167 | 242 | 229 | 238 | 184 |
| UF %0% | 2.23% | -29.1% | -13.9% | 44.91% | -5.37% | 3.93% | -22% |
6.[Optional] Any lessons learned from the previous STIP round?
The STIP incentives were delayed to Rodeo due to the KYC process resulting in receiving the grant funds late feb 2024. We had to rush a program to accommodate the short timeframe from Mach 12 to March 29.
The influx of users farming with boosted rates shows that the mercenary capital is looking for the best rates for lending and leverage opportunities, we were not able to capture this as sticky liquidity in the timeframe.
A revised approach to facilitate long term sticky capital will be utilized to balance the lending and farming sides with the addition of in demand products such as Pendle LRT, Camelot V3, GM farms.
We have seen both Pendle and Gearbox experience tremendous growth through integration of LRT asset leverage opportunities. Rodeo will provide similar in demand opportunities to drive user interest.
This experience highlighted the importance of closely monitoring and adjusting emissions balance from lending / farming to ensure a sustainable user experience.
New Plans for STIP Bridge
7. How much are you requesting for this STIP Bridge proposal?
- 60,000 ARB
8. Do you plan to use the incentives in the same way* as highlighted in Section 3 of the STIP proposal?
- No
9. [Only if answered “no” to the previous question] How will the incentive distribution change in term of mechanisms and products?
Rodeo previously distributed incentives through a “points type” campaign detailed here 250,000 $ARB Incentives Rush. Running of the Bulls Competition | by Rodeo Finance #getleverage | Mar, 2024 | Medium
This served to generate interest in the period of incentives, but tapered off immediately after incentives concluded.
TVL
| DATE | 01/02/24 | 12/03/24 | 29/03/24 | 30/04/24 |
|---|---|---|---|---|
| TVL ($M) | 1 | 1.32 | 2.59 | 0.891 |
| TVL % | 61.3% | 32% | 96% | -65% |
Based on review, the lending rates dropped for passive USDC enough to warrant users to moev to other, more profitable, passive opportunities. This in turn lead to high borrow rates and redced demand for the farms.
Based on lessons learned, Rodeo is implementing and proposing the following:
Interest Rates Update
Adjustment to the interest rate model has been implemented, putting the passive earn APR in line with the base rates seen across defi on Arbitrum to effectively compete
We believe that people will use Rodeo for DeFi opportunities that justify the cost of borrowing. However, no degree of loyalty can retain users if they face financial losses. Thus, to ensure long-term engagement, we must expand our integration with various protocols, enhancing safety and security while providing a comparable passive earn APR rate. At Rodeo, our commitment is to increase composability by safely and securely incorporating more protocols, to consistently offer the best DeFi opportunities. This approach ensures that users have access to optimal strategies to leverage their investments, promoting sustained use of Rodeo.
Passive Lending Targets
- Weeks 1-4 Hit 1.5m TVL on Arbitrum
- Weeks 5-8 Hit 3m TVL on Arbitrum
- Weeks 9-12 Hit 5m TVL on Arbitrum
Utilization Ratio as a means for incentive adjustment and leverage evaluation
- The balance of distributions will be change to dynamic based on lending utilization rate to maintain the optimal 85% utilization ratio. This serves the benefit of providing optimal conditions for all users while using the ARB incentives as an adjustment tool. ARB incentives will be straightforward farming/lending rewards proportional to position size and time period.
Achieve and maintain target utilization ratio within the first 4 weeks while maintaining this throughout the period of the 12 weeks of LTIPP. Incentives will be utilized to adjust on a weekly basis based on snapshots
Demand for leverage (measuring the utilization ratio) serves as measure of demand for leverage farms, and determining successful incentivizing the leverage farms.
In the coming weeks, as we get our 3 new dev members up to speed, our short-term deliverables will include:
- Immediate quality of Life (QoL) UX fixes
- Pendle LRT farms
- New LRT-focused strategies
- Camelot V3 vault farms
- Updated GM farms
- redeployment of jUSDC
- Small number of farms with partners to be announced
- Launch of an ETH lending pool
- Full Alamo launch with updated list of collateral assets
- Updated interest models
With the market showing signs of a shift back to real yield flows, we aim to position ourselves to capture a share of this money flow, while continuing to build and capitalize on dynamic opportunities in the immediate term such as LRT leverage demand.
Milestones
Upon Approval: 15,000 ARB
- Hit 1.5m TVL on Arbitrum 15,000 ARB
- Hit 3.5m TVL on Arbitrum 15,000 ARB
- Hit 5m TVL on Arbitrum 15,000 ARB
Incentives will be distributed as straightforward farming rewards, proportional to position size and time.
10. Could you provide the addresses involved in the STIP Bridge initiative (multisig to receive funds, contracts for distribution, and any other relevant contract involved), and highlight if they changed compared to the previous STIP proposal?
The address will be:
-
Multisig to receive the incentives: 0x2e39fbb069accd1959d003297250129879eb20a1 (same as last time)
-
Rodeo deployer:Rodeo Finance: Deployer | Address 0x20dE070F1887f82fcE2bdCf5D6d9874091e6FAe9 | Arbiscan
-
StrategyHelper StrategyHelper | Address 0x72f7101371201CeFd43Af026eEf1403652F115EE | Arbiscan
We have updated contracts for GM farms, jUSDC, Pendle (new LRT pools), LRT farms and Camelot V3 strategies for deployment in ~2 weeks
11. Could you share any feedback or suggestion on what could be improved in future incentive programs, what were the pain points and what was your general evaluation of the experience?
The key pain points as part of the STIP program where:
- large capital outflow to those protocols who received STIP (we were included in backfill round) making it challenging to compete with outsized rates, resulting in loss of revenue and downsizing team
- inflexible timeline based on time of grant receipt
- we also found it unclear where the requirement for openblocks data was noted and lack of clear channel of communication, leading to a misunderstanding of reporting datapoints