Rysk Bi-Weekly Update #1 [11/16/2023]
Recap of the Previous Two Weeks
Rysk has seen a tremendous growth since the start of the STIP (Nov 3rd) in volumes, TVL and users.
Goal of the incentives in the proposal was to increase volumes with a target of 3k contracts per week and to increase TVL to $3m. Those targets were hit in the first week (Weekly Volumes: 4.4k contracts, TVL: $3.44M with capped vault) massively contributing to the Arbitrum options volumes growth recorded in the last days.
We can confidently say that we are successfully on track with this goal.
ARB Received Last Disbursement: 71,429
ARB Utilized as Incentives in the Last Two Weeks: 35,714 distributed on Nov 10 for the period Nov 3rd - Nov 10.
Contracts incentivized over the last 2 weeks:
- Liquidity Pool (0x217749d9017cB87712654422a1F5856AAA147b80)
- OptionsExchange (0xC117bf3103bd09552F9a721F0B8Bce9843aaE1fa)
Contract address label Form completed for all addresses: Yes
ARB left over: 35,715
Plan for leftover ARB:
- 35,715 ARB will be distributed on Nov 17 for the period Nov 10 - Nov 17
Summary of incentives:
- 18,857 ARB weekly to Liquidity Providers
- 18,857 ARB weekly to Traders as follow:
- 80%: Selling contracts — trades that sell options to the DHV (closing a bought contract does not qualify). Sellers earn rewards when:
- hold position at least 24hrs
- 20%: Buying contracts — trades that buy options from the DHV (closing a sold contract does not qualify). Buyers earn rewards when:
- trade longer dated expiries (+30 DTE)
- hold position at least 24hrs
- 80%: Selling contracts — trades that sell options to the DHV (closing a bought contract does not qualify). Sellers earn rewards when:
Additional Info / Disclosures to Multisig: n.a.
STATS
Average daily TVL: $2.55m
Average daily transactions: 140
Average daily volumes: $1.4m
Number of unique user addresses: 932
Transaction fees: 0.4327 ETH
Link to Dashboard showing metrics:
- https://dune.com/ugolino/rysk-arbitrum-stip
- https://dune.com/thenorthon/rysk-beyond
- https://defillama.com/protocol/rysk-finance
Plan For the Next Two Weeks
Amount of ARB to be distributed: 71,429
Contracts that will be incentivized:
- Liquidity Pool (0x217749d9017cB87712654422a1F5856AAA147b80)
- OptionsExchange (0xC117bf3103bd09552F9a721F0B8Bce9843aaE1fa)
Contract address label Form completed for all addresses: YES
Mechanism for distribution incentives:
Liquidity Providers:
Total weekly grants pool: ~17.8k ARB
Anyone with a deposit in the DHV when the weekly epoch is executed (every Friday):
- airdrop every Friday after weekly epoch ends
- (user shares / total shares) X total weekly grants pool
Traders:
Total weekly grants pool: ~17.8k ARB
Every contract traded is eligible to earn a share of the weekly grants pool at option expiry (every Friday 8AM UTC). Each contract traded will receive proportional rewards based on the following distribution:
- 80% Selling contracts — trades that sell options to the DHV (closing a bought contract does not qualify). Sellers earn rewards when:
- hold position at least 24hrs
- 20% Buying contracts — trades that buy options from the DHV (closing a sold contract does not qualify). Buyers earn rewards when:
- trade longer dated expiries (+30 DTE)
- hold position at least 24hrs
Summary of incentives plan:
- 18,857 ARB (50%) weekly to Liquidity Providers
- 18,857 ARB (50%) weekly to Traders
Summary of changes to the original plan: No changes are implemented to the original plan yet. The following changes might be applied in the following weeks:
-
Liquidity Providers: Increase the current cap of $2.5m in case utilization of the pool is high and additional capital is required for the vault to support trading or hedging.
-
Trading. Adjust the buyer / seller ratio or products incentivized in order to keep volume high and risk for LPs under control.
Any potential change in the distribution will be communicated properly beforehand.