Hi everyone, it’s Paul from OpenBlock Labs.
Thanks to the Serious People team for kickstarting the discussion!
We have also been working on an incentive allocation methodology based on the STIP data we’ve collected, which we will be presenting on the January 9th Working Group call. Our proposal incorporates data-driven feedback loops to dynamically adjust incentive allocations across categories and individual protocols.
In anticipation of our Jan. 9 presentation, we have attached a snippet of the methodology below. We have delineated grant buckets for each category, aiming to create incentives that are robust to the variability of DeFi yet objective in nature.
In the screenshot above, the variables represent important metrics, such as TVL growth, sustainability index (e.g. fees generated), and nominal TVL changes. Each grant bucket will have a different set of parameters, as different categories may emphasize different KPIs (DEXs should care more about volume and fees than TVL, lending protocols should focus on borrows, etc.).
Constructing a robust incentive model hinges significantly on the availability of high-quality data. OpenBlock’s efforts alongside the STIP have not only allowed us to start the conversation on a data-driven methodology for forthcoming incentive allocations, but have also equipped the community with vital insights to guide their decision-making when voting on future incentive budgets.
Below is a small snippet of insights we have captured to inform future incentives:
Protocol leaderboard:
Market share per category:
Category-level analysis on sell pressure:
Competitive intelligence across ecosystems:
We are excited to share the rest of the work on our upcoming call, and thanks again to Serious People for getting the public discussion started! It’s great to see more community engagement and the potential of our data to empower a diverse range of future initiatives.