[SpartaDEX] [FINAL] [STIP - Round 1]

Archive Short Term Incentives Program (STIP) Round 1
42

I don’t see any documental proof rather than you are saying. If such a huge volume is gathered, highly appreciating.

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43

Very interesting project which definitely deserves for some grants. Not next clone-dex of uniswap. They are trying to something new and more innovation. NFT collection sold out very quickly and now has nice volume. They launched so far one IDO project which was very successful and sold out in under one minute and did few x at TGE. They raised over 10mln TVL in really bad market stage. Game and dex already launched and working. Team have good idea to connect defi and game functions with real yield. Many active users. Of course not everything is perfect. Team had many diffucults on their way but they are working on everything very hard to make it successful. Projects like that deserve grants to help them reach their goals

@gulliverz proof is on OpenSea

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44

you can check the collection on opensea,and you will see this number in the volume section

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45

Very interesting and unique concept with Gamified Dex. Game is very well designed and new features added every month. Definitely a big boost for Arbitrum.

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46

Please be advised that spamming this thread is not only a distraction to the diligence of reviewers but is also sacrificing eligibility.

This is a community warning.

4 Likes
47

You can verify that here, sir. To be exact, the total volume is 738 ETH.

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48

@TheTrueLeonidas can you address the comment made by Dog about security of the multisig ?

This is a major point to be solved or mitigated.

49

Thanks for pointing this out. We’ve made the necessary changes already and provided new multisig wallet address with all of the signers using hardware wallets.

50

Thanks Dog, please find the edited version.

51

What is SpartaDex value proposition in regards to the plethora of other DEXes and AMM that are already deployed on Arbitrum? Follow your docs and deployed contracts the baseline seems to be a UniV2 baseline.

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52

Hello @TheTrueLeonidas ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

53

Thanks Matt!

Hello @stonecoldpat @cliffton.eth @eli_defi, sirs, would like to notify you that our application is [FINAL]. Please feel free to lock it.

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54

Firstly, thank you for bringing your innovative SpartaDEX proposal to the Arbitrum ecosystem.

Introduction and Rationale

SpartaDEX is seeking a grant of 650k ARB, roughly 1.3% of the total available 50M ARB in the program. The funds will be used for various incentives, including rewards for new liquidity providers and single staking rewards. As a native Arbitrum protocol with a unique approach, blending gaming and NFT dynamics with decentralized exchange functionalities, SpartaDEX has already shown promise with a $3m market cap and $10m in TVL. We think the proposal has the potential to further deepen liquidity and attract new projects to Arbitrum, although some points might need further clarification.

Major Concerns

Allocation and Usage of Liquidity

  • Current demand for IDOs on Sparta Launchpad seems low
  • Unclear checks and balances to ensure effective utilization of liquidity
  • Our recommendation for change: Define contingency plans for redirecting liquidity and implement checks and balances to ensure efficient usage.

Focus and Scope of Incentives

  • High percentage of staked SPARTA comes from the team
  • SpartaDEX has good TVL for its size
  • Our recommendation for change: Reallocate the 10% incentives from single asset staking to focus on a broader scope within the Arbitrum ecosystem.

Minor Concerns

  • The DEX’s multi-identity as a game, launchpad, and DEX needs clearer incentive alignment
  • Multi-signature structure for the funds is not clearly stated
  • Our recommendation for change: Develop a cohesive incentive mechanism to align SpartaDEX’s multiple functionalities and clarify the multi-signature structure for better governance.

Summary

Castle Capital appreciates the fresh and multifaceted approach that SpartaDEX brings to the Arbitrum ecosystem. However, in its current form, we believe a slightly smaller grant request would be more appropriate, and some concerns need to be addressed for better alignment with Arbitrum’s goals. Our recommendations include defining contingency plans for liquidity, reallocating incentives for a broader ecosystem impact, and clarifying the governance structure.

We hope our feedback is seen as constructive and beneficial for the broader success of both SpartaDEX and the Arbitrum ecosystem.

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Post has been changed to FINAL and locked.

58

Thanks for your question!

We’re not just a DEX. Our NFT collections have gathered one of the highest volumes in the past six months (700 ETH). Despite conducting only one IDO, our launchpad was a huge success, and the price of $GSWIFT has remained at levels 4-5 times higher than the IDO, which is rare in this market. The project also has 8000 hodlers and has a strong history with Terra, so we’ve migrated their community to Arbitrum. During the program, we’ll conduct at least a few IDOs, with currently 5 confirmed, each unique in its own way.

We’re also the first gamified DEX, and the entire game, after completing the multiplayer mode we’re working on, aims to onboard people from the web2 market to web3. In addition to this:

  1. We want to introduce gamified white labels of other protocols on Arbitrum. Why might users want to use “gamified perpetuals,” “gamified marketplaces,” and others? To receive gamified rewards from Spartadex for using them as well.

  2. We believe that a system where rewards come both in the form of $SPARTA tokens and tokens provided as bribes from projects, rewarding liquidity provision not just based on position size but also on progress in the game, can build incredible engagement and community loyalty. It also encourages more stable liquidity holding as the game progresses.

  3. As a gamified DEX, we can attract projects related to gaming. Even though the hype around web3 gaming has waned, we believe it will come back. We are in talks with many projects in this field, though, of course, we don’t want to limit ourselves to it and treat gaming as an auxiliary aspect.

I highly encourage you to visit are app to try out the gamified experience - app.spartadex.io

59

Thank you @CastleCapital for this constructive feedback. We really appreciate that you gave us your time to analyze our proposal.

We would be more than happy to address all of your points.

Launchpad activity

We have confirmed 5 projects to have their IDOs on SpartaDEX Launchpad by the end of January 2024 and are planning to double that number if the circumstances are favorable. Two out of 5 projects are already known publicly, but it’s a part of the campaign to not announce all of them at once.

The next IDO will take place on Oct 9, so in just 5 days.

SpartaDEX values quality over quantity, therefore so far we launched only 1 project - GameSwift - a big name and reputable company, that gathered a strong community of players and integrated around 100 games on their platform.

We allocated 30% of the grant to incentivize liquidity to the projects that will have their IDOs on our Launchpad and after your feedback, find it important to disclose the details of the distribution.

1. To each project there will be a max of 6% (5 x 6% = 30%) allocated for incentivizing liquidity

2. If SpartaDEX doesn’t launch 5 projects, the remaining funds will be returned to the wallet provided by Arbitrum Foundation. We will not keep these funds.

In case it will be known for us in advance that we won’t launch 5 projects, which I find unlikely considering what’s happening on the backstage, we will move certain % to reward existing liquidity.

3. The allocation for incentives rewards of each project will depend on the liquidity.

Single Asset Staking

Could you please back your conclusion with a proof? If this is an assumption, please let me clarify that:

The Team does not stake ANY $SPARTA tokens.

Team & Advisory tokens are subject to 6 month cliff and 18 month vesting period. These are not claimable yet.

Marketing & Development tokens are subject to 24 month vesting. The tokens from these contracts haven’t been even claimed yet.

If the Team members stake $SPARTA tokens in single asset staking they were obtained via purchase on the open market and not from the Team-related pools.

We are not direct beneficiaries of allocating the 10% share to single asset staking pool, however we are open to reallocate them and understand the argument of broadening the scope, therefore:

10% that was initially supposed to be allocated to SAS, will be now allocated to Liquidity Incentives for Trading Pairs, increasing the pool from 60% to 70%.

Now, the updated proposal will look as follows:

  • 70% - Liquidity Incentives for Trading Pairs

  • 30% - Incentives for Liquidity of the New Projects that will have the IDO on our Launchpad

Could you please provide a more detailed explanation to this?

Summary

  1. SpartaDEX adjusts the proposal according to recommendation of CastleCapital and lowers the grant request by 7.7% to 600k $ARB tokens

  2. SpartaDEX reallocates 10% SAS pool to Liquidity Incentives for Trading Pairs, increasing the pool from 60% to 70%.

  3. SpartaDEX keeps the 30% of the grant distribution funds as Incentives for Liquidity of the New Projects that will have the IDO on our Launchpad, but:

  • will host the IDO of at least 5 projects by the end of January 2024, aiming at doubling that number
  • to each of the projects it can be allocated maximum 6% of the grant for liquidity incentives
  1. SpartaDEX Team does not stake $SPARTA tokens in SAS from any of the Team pools available.

Hope that addresses all of the concerns. As we already closed the proposal, @cliffton.eth could you please open it once again so we could make the proposed changes?

We are looking for your feedback @CastleCapital. Thank you!

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60

Post has been unlocked. Please tag me once ready and I’ll lock it again.

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61

Apologies if there was anything not accurately stated, things were a little bit rushed yday.

  • Thanks for alleviating any team staking concern and removing this native token boost from the proposal
  • re: multi-sig this may have been a comment from a previous draft of yours, again if StableLabs are ok so are we
  • Appreciate your commitment to the IDO side

To finalise however, we would have preferred to see a 500k request due to the budget constraints, our own governing values, and our preferences of sectors we would like to see a slight reduction in request.

62

No problem at all, I’ve seen your effort analyzing all of the proposals and believe it provided a significant value to the Forum.

Although we believe that the 600k request is reasonable, considering the TVL, number of users and a concept of game that makes SpartaDEX unique on the Arbitrum stage, we agree to lower it to proposed 500k.

@cliffton.eth I can see that editing option has been locked. Would you be so kind to open it for one more change please?