This is the official proposal of Savvy DAO, posted by 0xidm, a member of the team
Information about STIP/STIP Backfund
- Can you provide a link to your previous STIP proposal (round 1 or backfund)?
- How much, in the previous STIP proposal, did you request in ARB?
200,000 ARB
- What date did you start the incentive program and what date did it end?
We ended March 31, 2024; starting date was approximately January 7, 2024.
- Could you provide the links to the bi-weekly STIP performance reports and Openblocks Dashboard?
https://forum.arbitrum.foundation/t/savvy-stip-updates/21309
https://www.openblocklabs.com/app/arbitrum/backfund/grantees/Savvy
NB: OBL needs to push their dashboard or make it live; we are in touch via TG; eta was ~April 19.
- Could you provide the KPI(s) that you deem relevant for your protocol, both in absolute terms and percentage change, month over month, for the first of each month starting from October 2023 until April 2024, including the extremes?
TVL of Synthetics
| Oct 2023 | Nov 2023 | Dec 2023 | Jan 2024 | Feb 2024 | Mar 2024 | Apr 2024 | |
|---|---|---|---|---|---|---|---|
| TVL ($M) | 0.872 | 1.019 | 1.075 | 1.113 | 1.034 | 1.622 | 1.597 |
| TVL % | 0% | 16.87% | 5.50% | 3.47% | -7.04% | 56.80% | -1.54% |
- [Optional] Any lessons learned from the previous STIP round?
The previous STIP round was a major event in our timeline and there are so many learnings to share - a lot of which Alex has already given voice to. By now we’ve had the chance to observe the consequences of our initial STIP, which focused on developing Protocol-Owned Liquidity through a Bonds program. We found:
- substantial action in the Pool we targeted
- Savvy effectively re-purchased a quantity of our protocol tokens from the market
- The reduced token supply will have some effect over the long-term but, for the short term, the price action has been volatile
- We would probably use a slightly different strategy next time but it was nevertheless very exciting
New Plans for STIP Bridge
- How much are you requesting for this STIP Bridge proposal?
200,000 ARB
- Do you plan to use the incentives in the same ways* as highlighted in Section 3 of the STIP proposal? [Y/N]
No
- [Only if answered “no” to the previous question] How will the incentive distribution change in terms of mechanisms and products?
Upon the conclusion of STIP, we conducted interviews with protocol users and built a new economic model of protocol operation. Based on the results, our strategic goal for this STIP bridge is to strengthen the peg for our 3 synthetics: svBTC, svETH, and svUSD. We wish to develop long-term LP that will stay beyond the end of STIP so we are structuring these incentives to reward longer-term LP commitments.
Based on interviews, we believe there is a category of liquidity provider who does not wish to actively manage their LP position and who is willing to accept a slightly lower APR in exchange. We hope this incentives program will be attractive to this kind of LPer, who we think will also be a better community partner for the long-term health of the protocol.
The program will be structured as follows: for each synthetics pools, ARB will be used to to provide a base APR that is in line with comparable no-impermanent-loss pools. On top of the base APR, there will be a bonus that rewards LPers providing the largest proportions of the pool. To be eligible for the bonus APR, LPers must lock their liquidity during STIP and for 12 weeks afterwards. The total size of this program will be naturally capped by the target APR, which can only be guaranteed up to a certain TVL. This design is open to participation by anybody but we think it will be particularly attractive to large holders who want bluechip exposure in a safe and predictable way with also a specific guaranteed APR.
At the conclusion of STIP, if any ARB remains unused AND is not earmarked for distribution to the bonus APR program after the natural end of the STIP, it will be sent back to the DAO.
- 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 multisig is 0x210c0856cD966fB8990B062488A18De778122329
This address is unchanged.
- Could you share any feedback or suggestions on what could be improved in future incentive programs, what were the pain points and what was your general evaluation of the experience?
We’ve worked very hard to implement a data monitoring infrastructure - and for our small team, this has been a pretty heavy lift.
Overall, STIP has proven to be an amazing opportunity and it is a truly impressive demonstration of what a DAO can accomplish.