STIP Monitoring - Objective 1 & 2 - OpenBlock Labs - [FINAL]


OpenBlock Labs is excited to submit a proposal for data monitoring and reporting on the Arbitrum Short-Term Incentive Program (STIP). Considering the scale of this incentive initiative, it is vital to closely monitor grants and conduct a thorough efficacy analysis. We’re confident that our efforts will provide the DAO with valuable data, empowering it to fuel ecosystem growth and extract maximum insights from this incentive program. Our past experience in leading ARB incentive optimization for Lido and efficacy analysis for Uniswap on Arbitrum positions us as the ideal partner for this initiative. OpenBlock also boasts a wealth of experience in collaborating with various blockchain networks, having spearheaded incentive optimization for Sui, and, more recently, leading the efforts for Solana RPGF.


To meet the objectives related to data monitoring and reporting, we expect to include the following features into a public dashboard:

  1. Monitoring grant amounts by protocol, cross-referencing on-chain approvals with received funds, and ensuring accurate transfer of amounts to the respective incentive distribution contracts at the protocol level.
  2. Identifying instances where funds are transferred to undisclosed addresses.
  3. Utilizing OpenBlock’s advanced models around volume profiling and wallet tagging to track the presence of wash trading, protocol team farming, and other indications of malicious behavior.
  4. Working with protocols to ensure compliance with reporting requirements and upholding data integrity.

To fulfill the impact analysis objective, we intend to incorporate various metrics, including but not limited to:

  1. Endogenous vs Exogenous Growth (volume, TVL, users): are users simply moving from one protocol to another for the sake of farming incentives, or is this program introducing net-new users into the ecosystem?
  2. Active tick liquidity in DEXs (pool-level)
  3. Price Impact on DEXs before and after (pool-level)
  4. Organic vs Inorganic volume (e.g. quantifying LVR for DEXs)
  5. Sustainability of incentives – are organic fees (swap fees for DEXs and borrow interest for money markets) becoming an increasingly large proportion of total revenue?
  6. Supply/Borrows on Lending
  7. Analysis by sector (DEXs, lending, yield aggregators, derivatives, etc.)
  8. Net inflows and outflows from other chains
  9. Transactions
  10. DAU and unique addresses
  11. Normalizing metrics based on grant size and incentive spend
  12. Normalizing metrics based on macro (e.g. normalizing DEX volume based on market volatility)

Past Work

Below, we present a few examples of our previous endeavors in analyzing grant efficacy and detecting malicious behavior within various ecosystems:

Figure 1: Identifying Bot Volume for Lido

Figure 2: Competitive Intelligence for Lido

Figure 3: User Grant Efficacy for Moonbeam

Figure 4: TVL Grant Efficacy for Moonbeam

Timeline & Budget

Our proposed timeline aligns with the RFP schedule, providing a live dashboard within 4 weeks from the grant acceptance and a final report due on April 1, 2024. Bi-weekly reports will also be prepared for the community, sharing curated insights based on the collected data.

OpenBlock Labs requests $150k paid upfront (in ARB, 30D VWAP) for the outlined scope and $110k upon completion (in ARB, 30D VWAP). These funds will be used to finance the cost of 4-6 data scientists, 1-2 frontend engineers, 1 designer, 1-2 quantitative analysts, and 1 project manager.

Address: 0x4E39a73De100C7F84A81d773ACa9Eb7610E99c5a

About OpenBlock

OpenBlock Labs is an R&D firm focused on scaling decentralized organizations through data-driven incentive optimization. OpenBlock is backed by notable figures in the crypto space, including: Foundation Capital, Electric Capital, Circle Ventures, AlleyCorp, and others.

The team has backgrounds from a16z, Carnegie Mellon, Stanford, Amazon, MasterCard, and other top-tier institutions; the highly technical background of our team makes us confident that OpenBlock is uniquely positioned to tackle a problem of this nature.

Twitter: @openblocklabs




OpenBlock Labs is committed to delivering a comprehensive solution for the Arbitrum STIP Data Monitoring and Reporting. Our extensive experience, data-driven approach, and dedication to excellence position us as the ideal partner for ensuring the success and integrity of the program. Thank you for your consideration.


Thanks for your application. To further understand your proposal, can you please answer the following or update the original post to include:

  1. What claimant analysis is planned for Objective 1?
  2. Can you please outline the format that metrics will be displayed/discussed. For example, what will be graphs, lists, report/discussions etc.
  3. Will dashboard/analysis for objective 2 include tracking ARB spending by teams, claimant analysis, grant matching by project, ROI?
  4. Will bi-weekly report include aggregation of STIP recipient teams KPIs or reports generally?
  5. Will dashboard be open source?
  6. No value definintion has been proposed. Please give a discription of how the metrics identified are ones relevent to determining the effectiveness of the STIP and the various incentive models employed by each project?
  7. Value for money is not clear. With all major development completed in 4 weeks, the on going costs are maintenance and a bi-weekly summary/insight report. How have you arrived at the figure proposed?
  8. Will there be a final report, if so, what will it include? Recommendations or data summary/insights only?

After discussions with the grant committee, we will be lowering our bid to 75k ARB paid upfront and 120k ARB upon completion.

1 Like

Really great proposal,

found this thread from Learnings from STIP: Community Interview Summaries and Notes

@paulsengh messaged the link to the data: OpenBlock Labs

Mentioned OpenBlock Labs analysis in Use an emerging grants analysis project to analyze grants on ARB · Issue #13 · OpenDataforWeb3/DataGrantsforARB · GitHub