[STIP Monitoring - Objective 1 & 2] Lamoka & MetricsDAO

Data Monitoring and Reporting for the Arbitrum STIP

By Lamoka in Collaboration with MetricsDAO

Understanding of Scope:

Lamoka, in strategic collaboration with MetricsDAO, comprehends the pivotal role and exigency embedded within the Arbitrum Short-Term Incentives Program (STIP) 21, particularly in its data monitoring and reporting facets. In light of the influential weight this program carries, our coalition proposes a rigorously detailed and meticulously orchestrated framework for managing, evaluating, and supervising the array of dynamics that encompass the STIP.

Granular Oversight on Fund Management:

  • Lamoka and MetricsDAO bring to the table a unified, coherent, and analytical approach towards monitoring each penny within the grant funds.
  • Our system will be engineered to vigilantly track, scrutinize, and safeguard against any potential misallocations, unethical transactions, and non-compliance with grant utilization as stipulated in grantee agreements.
  • Implementing an intelligent alert mechanism that instantaneously notifies stakeholders of any irregularities or deviations in fund movement and usage.

Holistic Assessment and Quantification of Grant Efficacy:

  • We embark on an exhaustive journey to quantify and illustrate the efficacy of each ARB spent, providing a microscopic view into the impact, utility, and ROI generated per grant, per pool, and per asset basis.
  • Envisaging a robust data aggregation model that will assemble, normalize, and interpret data from various grantees, thereby eliminating data fragmentation and ensuring a consolidated view for straightforward community analysis and decision-making.

In-depth Analytics with Real-time Reporting:

  • Our strategy involves deploying a comprehensive analytics and reporting infrastructure, offering real-time insights, live dashboards, and periodic detailed reports that help gauge the performance, impact, and overall health of the grant distributions.
  • Utilizing cutting-edge Dune and Flipside Crypto tooling, we plan to bring forth detailed metrics tracking, analytics dashboards, and on-the-fly reporting mechanisms, ensuring that data-driven decisions can be executed without delays.
  • Further, by tapping into the expertise of analysts from both Lamoka and MetricsDAO, the project ensures that the data is not only accurately reported but also meaningfully interpreted, providing actionable insights that can steer the STIP program towards unparalleled success.

Immersive Community Engagement and Transparent Communication:

  • We deeply understand the significance of continuous and transparent communication with the Arbitrum community. Our strategy encompasses bi-weekly updates, which will be meticulously curated to provide insightful, lucid, and comprehensive updates on project progress, fund utilizations, detected anomalies, and overall program impact.
  • Periodic touchpoints with projects and stakeholders will be instituted to ensure that feedback, observations, and insights are bi-directionally exchanged, fostering an environment of collaborative growth and improvement.

Ensuring Long-term Strategic Impact:

  • We aim not only to quantify short-term impacts but also to investigate and report on the sustained, long-term impacts that the grant allocations have on the individual projects and the overall Arbitrum ecosystem.
  • By tracking metrics beyond the immediate grant period and interpreting data in the context of sustained growth, we ensure that the insights provided are not just snapshots but are indicative of the larger trajectory and health of the funded projects and, by extension, the Arbitrum ecosystem.

Inclusion of Open-Source Innovations:

  • Respecting the concurrent initiatives by Arbitrum DAO, our methodology will synergize with any open-source software for grant analysis developed through parallel efforts, ensuring seamless integration and maximal utility from all available tools and platforms.

In a nutshell, Lamoka and MetricsDAO bring forth a comprehensive, end-to-end solution that safeguards the integrity, maximizes the impact, and ensures the optimal and ethical utilization of the STIP grant funds, thereby accelerating and solidifying the growth and expansion of the Arbitrum ecosystem.

Key Signals and Metrics to Monitor:

In this grant proposal, we will focus on the following key metrics for protocols that have received Arbitrum grants:

  • Growth in Protocol Liquidity:

    • Source of Liquidity Growth
    • Assets added
  • Protocol Activity Changes:

    • New Users
    • Changes in Current Users Activity Level
    • Detection of Suspicious Activities, Bots, and Farming
    • Monitoring any unusual rewards or distributions to core team members or known protocol wallets that might be indicative of unethical behavior or grant misappropriation.
    • Flagging of unusually high-volume transactions or rapid sequences of transactions which might be indicative of wash trading or other manipulative behaviors.
  • Grant Utilization Analysis:

    • Identification of any suspicious movements or large transfers which might indicate misuse or siphoning off of funds.
    • Analysis of ARB spending by teams, comparing planned vs. actual expenditures.
    • Tracking ARB distributions and remaining balances for each project.
    • Real-time tracking of all transactions related to the grants, including:
      • Source and destination addresses.
      • Transaction amounts.
      • Timestamps and block numbers.
  • Fee Collection Assessment:

    • Protocol and Arbitrum Fee Collection
    • User Interactions and Activity Impact
  • User Engagement:

    • User Stickiness
    • Lifetime Value Analysis for Arbitrum and Protocol
  • Efficiency Evaluation:

    • Comparing Grant Amount to Protocol KPIs and User Growth
    • Ecosystem Health Assessment
    • Identifying Protocols Enhancing Arbitrum’s Activity
  • Liquidity Flow Analysis:

    • Inflow of Liquidity to Arbitrum Blockchain
    • Protocols Receiving Liquidity
    • Protocols Losing Liquidity (Outflows from Arbitrum)
  • Sector Analysis:

    • Sector-specific insights and trends for areas such as:
      • Decentralized Exchanges (DEXs).
      • Lending and borrowing platforms.
      • Yield aggregators.
      • Perpetual trading platforms and others.
  • Claimant Analysis (Extended):

    • Distribution breakdown by:
      • Protocol.
      • Asset type.
    • Behavioral patterns like selling or delegation tendencies of ARB claimants.
    • Matching grant distribution to specific projects to assess efficacy.

These metrics will enable us to comprehensively evaluate the effectiveness and impact of Arbitrum grants on the health and growth of the ecosystem.

Value Definition:

In this pivotal venture, Lamoka, in tandem with MetricsDAO, upholds a multifaceted understanding of ‘value’ within the scope of the Arbitrum Short-Term Incentive Program (STIP). The encompassed perspective is crafted to ensure alignment with the Arbitrum Community’s visions and aspirations, fostering an environment where the grant’s utility is maximized, and tangible results are palpable.

  • Strategic Utilization of Funds: We define value as the strategic, ethical, and innovative utilization of the allocated grants, where funds act as catalysts, driving transformative growth and elevating the Arbitrum ecosystem to new horizons. Comprehensive tracking of ARB spending by teams (planned vs. actual) and ARB distributed/remaining will be closely monitored to ensure alignment with proposed milestones and objectives.

  • Impactful Ecosystem Augmentation: Demonstrable enhancements across pivotal metrics such as Total Value Locked (TVL), transaction volumes, unique addresses, fee generation, and overall activity on the Arbitrum network epitomize value. These quantitative enhancements signify a prosperous and thriving ecosystem and serve as determinants of the efficacy of each ARB deployed.

  • Enhanced Community Engagement and Collaboration: The fruition of a project is also gauged by its ability to galvanize the community, fostering a collaborative and inclusive environment where dialogue, participation, and shared success are in the spotlight. A project that brings together varied stakeholders and fuels collective advancement is of paramount value.

  • Unveiling of Innovative Ventures and Strategies: Introducing innovative strategies and ventures that spotlight Arbitrum as a pioneer in the blockchain space, encouraging the development and adoption of pioneering solutions that could chart new territories in decentralized finance (DeFi) and beyond.

  • Transparency and Ethical Prudence: Value is embedded in transparent, ethical practices and stringent adherence to stipulated guidelines. Projects must embody a spirit of transparency, providing regular, detailed updates and maintaining ethical decorum, which in turn cements the community’s trust and belief in the initiative.

  • Resilience and Sustainability: Value extends into creating a resilient and sustainable ecosystem where projects not only flourish in the short-term but also have a robust framework that anticipates and mitigates future challenges, ensuring sustained growth and viability.

Metrics and Data Consideration: In order to comprehensively evaluate and capture this intrinsic value, our team will leverage sophisticated tooling from Dune and Flipside Crypto. Metrics such as ecosystem metrics (TVL, Transactions, Users, Fees Generated, Volume), sector analysis (examining various sectors like DEX, Lend/Borrow, Yield Aggregators, Perpetuals, etc.), and protocol analysis will be meticulously tracked, analyzed, and presented.

Our expert analysts from Lamoka and MetricsDAO will synergistically collaborate to translate raw data into insightful, actionable intelligence, presented via a user-friendly, open-source dashboard and through regular, detailed reporting. This fusion of comprehensive data aggregation, astute analysis, and transparent communication aims to spotlight the profound impact and value derived from each ARB invested, ensuring the perpetuation of a flourishing, innovative, and synergistic Arbitrum ecosystem.

Project Timeline:

October 30 - November 30, 2023:
Kickoff and Initial Phase

  • October 30-31: Project kickoff meeting and finalization of teams from Lamoka and MetricsDAO.
  • November 1-7: Tool setup - Integration of Dune and Flipside Crypto tooling for data aggregation.
  • November 8-15: Preliminary data collection and establishment of key metrics to monitor.
  • November 16-23: Initial dashboard development and design for real-time data tracking.
  • November 24-30: First round of bi-weekly reports created and shared with the Arbitrum community stakeholders.

December 1 - December 31, 2023:
Data Collection and Reporting Phase

  • December 1-7: Analysis of first round of bi-weekly reports for improvements and adjustments.
  • December 8-15: Continuation of data collection and any required enhancements to the dashboard.
  • December 16-23: Second round of bi-weekly reports produced and community feedback sought.
  • December 24-31: Review of all data collected till year-end and preparations for an end-of-year summary.

January 1 - January 31, 2024:
Analysis and Refinement Phase

  • January 1-7: Presentation of the end-of-year summary and insights to the Arbitrum community.
  • January 8-15: Refinement of metrics and dashboard based on community feedback.
  • January 16-23: Third round of bi-weekly reports generated.
  • January 24-31: Deep dive analysis into the most impactful projects and sectors.

February 1 - February 28, 2024:
Advanced Data Monitoring

  • February 1-7: Introduction of any new metrics or analytical tools based on the evolving needs of the project.
  • February 8-15: Fourth round of bi-weekly reports created and evaluation of community engagement.
  • February 16-23: Continued monitoring, with a focus on fraud detection and misuse of funds.
  • February 24-28: Preparations for the final phase and review of all data gathered to date.

March 1 - March 31, 2024:
Final Data Collection and Report Drafting

  • March 1-7: Final round of bi-weekly reports and collection of feedback for the Final Impact Report.
  • March 8-15: Data finalization and initial drafting of the Final Impact Report.
  • March 16-23: Sharing of the draft report with community stakeholders for review and feedback.
  • March 24-31: Final modifications and refinements to the report based on feedback.

April 1, 2024:
Final Impact Report Delivery

  • Delivery of the comprehensive Final Impact Report to the Arbitrum community.

This timeline is structured to provide a systematic approach, ensuring that every phase is executed meticulously while maintaining a consistent channel of communication with the Arbitrum community and stakeholders.

Milestone/Tranche amounts (

Milestone 1 (October 30 - November 29, 2023):

  • Activities: Project initiation, tools integration, and stakeholder alignment.
  • Deliverable: Project initiation report with methodologies, tool integrations, and metrics.
  • Payment: 20,000 ARB (allocated at the launch of the initiative)

Milestone 2 (November 30 - December 29, 2023):

  • Activities: Data collection, analytics blueprint formulation.
  • Deliverable: Bi-weekly report and an advanced analytics blueprint.
  • Payment: 20,000 ARB

Milestone 3 (December 30, 2023 - January 28, 2024):

  • Activities: Data analysis and dashboard development.
  • Deliverable: Bi-weekly report and a prototype of the analytics dashboard.
  • Payment: 20,000 ARB

Milestone 4 (January 29 - February 27, 2024):

  • Activities: Dashboard finalization and anomaly detection.
  • Deliverable: Bi-weekly report, finalized dashboard, and anomaly detection report.
  • Payment: 20,000 ARB

Milestone 5 (February 28 - March 30, 2024):

  • Activities: Impact assessment and feedback collection.
  • Deliverable: Bi-weekly report, impact assessment document, and feedback report.
  • Payment: 20,000 ARB

Final Milestone (March 31 - April 1, 2024):

  • Activities: Compilation of the final impact report and wrap-up session.
  • Deliverable: Final Impact Report with project accomplishments and forward-looking recommendations.
  • Payment: 20,000 ARB

This structured payment approach ensures both accountability on our part and security for the stakeholders, as payments are disbursed based on concrete deliverables and outcomes.

Prior Experience and Proposed Team:

  • MetricsDAO Analysts: Experienced in using Dune and Flipside Crypto tooling for in-depth analytics.
  • Lamoka: Expertise in managing project timelines and reporting, ensuring project’s successful execution.
  • All team members will adhere to KYC requirements.

Information/resources required:

  • Data Access: Continuous access to Arbitrum STIP’s granular data.
  • Community Feedback: Regular touchpoints with Arbitrum stakeholders for updates and feedback.
  • Additional Data Sources: Any extra data sources deemed essential by the Arbitrum foundation for comprehensive reporting.