For the past 2 years, AlphaGrowth has served ecosystems. We help manage & grow their grant & incentives programs. We recognize billions of dollars of grants has been spent pursuing ecosystem growth. Understanding effective grants deployment is multi-billion dollar attribution opportunity. AlphaGrowth was made to take on the opportunity. With the forward thinking STIP Monitoring request the stars have aligned. A perfect opportunity for our team to serve the Arbitrum ecosystem.
Some key questions we will answer over the length of the engagement are:
Were the grants used as specified?
How does an ecosystem measure the efficacy of a grant?
Which contracts are grants deployed to? (pools, staking, perps, yield aggregators)
What happened by onchain metrics? (Fees, Transactions, Users, DAUs, MAUs, Trading Volume, Staking, Locking, TVL)
What happened by offchain metrics?(Twitter, Telegram, Discord, Reddit, Github, Website visits)?
Which assets recieved incentivizes and what happened? (Price, Holders, MarketCap, FDV)
Most important. Which incentives were effective and which were not?
AlphaGrowth’s combined experience in the data & grants is best in class. This is our exact expertise. AlphaGrowth will provide it’s expertise and build a comprehensive reporting. We under the importance of this responsibility. The impact of the incentives program is a serious matter. We will help Arbitrum and the entire crypto industry with the findings and we do not take this duty it lightly.
A sincere thank you from our team for taking the time to read through our proposal.
To put it in simple terms, the monitoring program just wants to answer one question
Arbitrum has given $x to a project. 6 Months later, what has the project given to Arbitrum?
The STIP monitoring program contains two broad areas. Impact measurement, and use of funds.
To set scope of our contribution as a service provider, we map a high level outline :
- Program Discovery
- Understand individual grantee grant intention
- Understand grantee use of funds
- Methods of ARB incentive deployment
- Collaborate with Plurality Labs and Stable Labs on use of funds definitions
- Publicly state commitments of Grantees and which contract incentives are deployed
- Categorization and segmentation of grantees based on specific expectations of KPIs
- By grant amount: Beacon, Siren, Lighthouse, Pinnacle
- By Sector: Yield, DEX, Lending, etc.
- Data Pipeline:
- Collect data points necessary for program assessment: smart contract details
- Routinely obtain timestamps of the start of incentive programs by individual grantees
- Feed the data to AlphaGrowth’s Arbitrum Attribution system.
- Open Analytics Dashboard:
- A single point of reference for the Arbitrum community for status report on the program
- AlphaGrowth will create a dedicated platform for the dashboards, while a Dune template will be distributed to grantees to display data, certain benchmark metrics are better represented with a custom dashboard
- Dashboard to contain at least 5 different interfaces for different metrics
- Grantee Communication:
- Create communication channels with grantees to facilitate progress and tracking reports
- Weekly/bi-weekly sync with grantees, ensuring proper flow of data and timely reporting
- Report grantee activity, fund utilization and other updates to community
- Leverage community expertise for any issue that the grantee team may require help with
- Documentation & Records:
- Separate from dashboards, there will be a data repository for single point of access of every grantee data(CSVs, potentially an API)
- Maintain jointly by AlphaGrowth and individual grantee teams
- Bi-weekly reports & updates:
- The monitoring team will be the primary point of contact for STIP team to get any updates
- Bi-weekly sync with the STIP team
- Impact Assessment:
- Research on qualitative and quantitative aspects.
- Final Program Impact Evaluation:
- A grand summary of the program will contain detailed reports on a diverse range of metrics
- To be presented to the community by the Program end on April 24
Open Analytics dashboard
The dashboard will be a great source for community members to have a quick look at the ecosystem and protocol metrics. The dashboard is projected to have the following data:
- Ecosystem global Metrics
• Fees Generated
- Ecosystem sector Metrics
• Other Categories
- Protocol level Analysis
• Wallet/new users increase
• Fees generated
• Dune Dashboards
- ARB token
• Current grantee wallet
• Which contract ARB token in grantee wallet went
• Remaining granted ARB in grantee wallet
Set up communication lines: Create a telegram group between SP team and individual grantee projects.
The telegram group to include,
- SP Manager (AlphaGrowth) and Program lead from AlphaGrowth
- Grantee team members (primary contact, team member who filled the forum application, technical team, etc)
- STIP members - Optional & Situational (Stablelab, Plurality labs, Arbitrum foundation, Off-chain labs)
Maintain Data for grantee documents
- Individual data entry page: Lists out all the necessary information about the grantee throughout the program
- Relevant wallet addresses
- Smart contract addresses
- Dashboard and data links
- Progress reports/links
- Meet with Grantee teams to retrieve updates (either virtual meetings or async on telegram)
- Ensure that the data pipeline on grantee updates stays full
- Update STIP team (Stable labs, plurality labs, Arbitrum foundation/offchain labs and more)
- Enumerate the issues faced by grantees and the possible help that can be managed from the broader Arbitrum community
Qualitative and quantitative reports on the program, its impact, protocol initiatives and growth. Here are some of the key points that will be covered:
- Arbitrum Comparative ecosystem performance metrics
- Comparative sector-wise performance: DEX, lending, Yield, perps, etc.
- Grant usage statistics
- Spending metrics
- Underperforming stats, projects underutilizing funds, projects misusing funds, etc
- Program Findings and Recommendations
- Grantee ROI analysis
- Top Performers
Ecosystems grants programs should be run like an investment firm. Any grant from the firm should generate positive returns for the ecosystem or its participants. Grants are the key components of growth for ecosystems. They attract developers and incentivize particular desirable behaviors. Any program that is assigning money/resources will generate a certain degree of activity. There are 72+ confirmed grant programs currently active in the Web3 industry that we know of. But what makes a grant program successful? After all, resources are finite. Grant programs should not only have an impact on the ecosystems, but they should sustain the impact even after the initial acquisition grant has been spent.
Our focus of analysis will be to gauge the magnitude of impact generated by the incentive program, and how much of this impact will be sustainable even without follow-up grants.
- Key metrics of impact of the program. Mapping of different aspects of impact in users, TVL, on-chain activity.
- Easy access to outcome data: The community should have access to the impact metrics, the more set of eyes, the better evaluation we get.
- Grant program outcomes roughly follow the Pareto principle. Our aim is to identify the relevance here.
- Grading: Segmenting grantees on starting positions (Grant size, ecosystem dominance, etc), Gauge whether the impact is proportional to their allocation
- What intrinsic and extrinsic factors help a grantee perform better
Behavior Incentivization & Continuity
- Which grantees were able to motivate users to take a desirable planned behavior on the app/project.
- How does the behavior continue over time when incentives no longer exist?
- Spending vs user acquisition
- New users over time
Profitability and Sustainability
- Is the program generating enough fees, revenue or other tangible benefits that match the overall cost?
- In the long term, is it forecasted to keep generating fees, etc even in the absence of an incentive program?
To sum it up, we will measure the value of the program using the AARRR Pirate metrics.
Acquisition: User growth, activity boost, CAC, etc.
Activation: Behavior incentivization + increase in stats like TVL
Retention: Continuity in user behavior
Revenue: Profitability and sustainability
Referral: N+1 Viral Co-efficient and user-2-user onboarding. Not within the scope with the current ask.
There will be two main points of contact from AlphaGrowth, Program Manager and Program Lead along with the technical team that will create the analytics system. The program manager is the dedicated resource from AlphaGrowth to report to the STIP committee.
For better reporting, the program is divided into a number of cycles. Each cycle spans for a period of 2 weeks. Each month is divided into two cycles called Cycle 1 & Cycle 2. Thus updates will look like November Cycle 2 update, March Cycle 1 update, etc. This architecture ensures the simplicity and effectiveness of the operations. The STIP committee will be updated on the first Monday after the end of the ongoing cycle. This will be done in the form of a virtual meeting, followed by a public update to the community. The reports will go out on alternative Mondays.
For building, managing, and communicating the data aggregation and impact analysis project for Arbitrum grants - To build and run this project over the next 6 months, our team is requesting a total budget of 85,000 ARB (~$68,000 at ARB cost on proposal submission). The reason we can price our ask so low is that we have invested over 6 figures into our development over the last 2 years to get to this spot and Arbitrum gets full benefit of our pre-existing infrastructure. The requests are divided into 3 main components
- Infrastructure costs: $8,000 - For hosting, Frontend Dev, Dune, APIs, UI/UX, computational resources, dashboard, reporting system, blockchain data providers, other third-party services
- Technical resources: $ 28,000 2 engineering resources
- Program resources: $ 32,000 3 resources, Product Manager, Operations manager and 1 Research Associates
Milestones and disbursements
|Kickoff||Initial funding to kickstart the program and mobilize resources||Immediately||20K ARB|
|Milestone 1||Basic Dashboard for Arbitrum Chain||December Cycle 1|
|(Before 15 Dec 2023)||15K ARB|
|Milestone 2||Advanced Dashboard for protocols||January Cycle 1|
|(before 15 Jan 2024)||10K ARB|
|Service Period 2||Invoice for service of 4 cycles spanning the months of January & February 2024||Feb 26, 2024||20K ARB|
|Service Period 3 & Final report||Invoice for service in 4 cycles in March & April+ Final report||April 22, 2024||20K ARB|
As stated by the original RFP, there may be some friction points
- Variable start: Different KPIs and different timelines for the start of programs by grantees.
- Inadequate or no communication from grantees
- force majeure - Unforeseeable circumstances in any aspect of the program or external incidents
- As the program proceeds, the reporting standards may get more insights.
- Learning that some processes are inefficient, we may adapt different set of technical processes, all of which will be conveyed to the STIP committee
- KPI and success measurement may differ for each grantee
Operating since 2018, AlphaGrowth has years of experience in DeFi, Data and Crypto BD, we have worked with multiple protocols including Kava, Sommelier Finance, NEAR, Aurora, and many others.
A prerequisite for our operations is having a lot of data at our disposal. More data allows us to make better decisions and hence better impact. To better analyze the on-chain and off-chain data, the AlphaGrowth team developed internal systems to monitor the markets. We are ready to use this mountain of data to build the best system for the Arbitrum STIP program.
The dashboards will be developed as proper platforms. While we believe DUNE analytics provides good data, it might not be very well suited for data analysis and user journey for the monitoring program.
Below we have provided a few screenshots of our existing/WIP dashboards. Anyone should be able to visit the links and see the dashboards. We already have a functionality to filter Arbitrum projects based on TVL, Marketcap or Users. Further users can segment the data based on different categories like DEX, Yield, etc.
To back our proposal, we have linked some of our past and present works on Arbitrum analytics
- Dashboard Screenshots
- Dashboard and Analytics links
[Arbitrum DEX ranking by TVL]
[Yield projects on Arbitrum by TVL]
AlphaGrowth data on Chains
Arbitrum Ecosystem Map: Ecosystem by Category
Arbitrum Token Optionality
|Arbitrum Crypto Analytics & User Data||Arbitrum Crypto Analytics & User Data | AlphaGrowth||General user data and Analytics on Arbitrum Chain|
|Arbitrum One Ecosystem and On-chain metrics||https://alphagrowth.io/arbitrum-one/ecosystem||Ecosystem apps on Arbitrum, TVL and transaction data on Arbitrum|
|Highest TVL Projects on Arbitrum||https://alphagrowth.io/highest-tvl-arbitrum-one||Projects ranked by TVL in Arbitrum|
|Arbitrum Ecosystem Saturation||How saturated is Arbitrum | AlphaGrowth||What are the most populated sectors on Arbitrum, what does it not have|
|Fastest Growing projects on Arbitrum by Twitter activity||Fastest Growing Project on Arbitrum by Twitter Activity | AlphaGrowth||Twitter activity and growth of Arbitrum related projects|
|Chain Comparison: Comparing Arbitrum to Optimism||Arbitrum vs Optimism | AlphaGrowth||Comparing general data about Optimism and Arbitrum|
|Arbitrum Detailed Dashboard||https://alphagrowth.io/projects?sort_by=tvl&sort_order=desc&query=&sort_category=dex&sort_chain=arbitrum-one||Ecosystem dashboard for Arbitrum|
About Our Team
The folks that will be working on the Monitoring program. More about the members can be found on their linkedIn & Twitter profiles
- Bryan Colligan, Co-founder of AlphaGrowth.
- Joe Bjornsen, Co-founder of AlphaGrowth
- Project Manager for STIP Monitoring program
- Shardul Pilley, DAO & Governance Lead at AlphaGrowth
- STIP Monitoring Program Operations Manager
AlphaGrowth team is very excited to be a contributor the the Arbitrum Ecosystem’s growth. We are confident that our engagement with the Arbitrum community will help the community get a better understanding on the grant initiatives. Our working principle focuses on coordination, between us and different stakeholders within the ecosystem and we are excited to collaborate with other teams as well to get the best for the monitoring program.
For any queries or remarks, please feel free to write in this forum or collaborate with our team through telegram: