SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: Substance Exchange
Project Name: Substance Exchange Protocol
Project Description: Substance Exchange Protocol is a decentralized exchange (DEX) platform built on Arbitrum, providing fast and low-fee trading services for both centralized exchange and decentralized perpetual DEX users.
Team Members and Roles:
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Haonan “Roger” Zhang (Founder and CEO)
-
Peratx (Chief Architect)
-Jiawen Cai (CTO)
Project Links: https://substancex.io/
Contact Information:
-
Point of Contact: Roger
-
Point of Contact’s TG handle:@lordofcaspain
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Twitter: https://twitter.com/SubstanceX_
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Email: haonan@substancex.io
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.
Team experience:
The team comprises members from OKX and Bybit with extensive experience in product design. They have provided technical support for building a perpetual DEX called HyperionX on ZKfair, ranking in the top 4 for trading volume among all DEXs.
Roger Zhang (Founder and CEO)：
Founded Jianan Quantitative Investment-a fintech company that provides MM service to multiple top-3 exchanges(OKX, Bybit,Upbit), ranked 3rd in terms of trading volume among all the MM on OKX from 2017 - 2018. From 2019 - 2023, he served as head of a derivatives department in a top 20 centralized exchange prior to Substance, cumulatively generated tens of millions of dollars in profit and tens of billions of dollars in volume for the exchanges served.
Peratx (Chief Architect)：
After graduating from university, he joined Substance Exchange to work as a developer, including smart contracts, backend service and some frontend works. During his time at university and high school, he contributed code to well-known open-source projects (PeratX (PeratX) · GitHub), some of which have garnered more than 1,000 stars.
What novelty or innovation does your product bring to Arbitrum?
Substance Exchange offers lower fees and faster listing times compared to competitors. It’s the first DEX to list ORDI/RATS/SATS pairs on Arbitrum and supports up to 20x leverage for those pairs.
Is your project composable with other projects on Arbitrum? If so, please explain:
https://twitter.com/kunjitweets
Kunji is a decentralized platform that allows users to copy the entire portfolio of traders across multiple asset types, & liquidity sources.Kunji’s copy trading system requires an exchange as the infrastructure for executing trades. We have already established communication with Kunji Team multiple times before, and we will use Substance Exchange as one of the exchanges for executing copy trading.
We will soon launch a basic yield section where users can deposit stablecoins such as USDT, USDC, DAI into Substance’s liquidity pool. With the user’s approval, we will stake the stablecoins from the liquidity pool into Aave’s demand deposit through a contract to generate interest. This will provide users who become liquidity providers (LPs) with the base yield from Aave plus the liquidity staking rewards from Substance.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Hyperliquid, Mux Protocol, Vertex Protocol, Equation, Gains Network
How do you measure and think about retention internally? (metrics, target KPIs)
We haven’t issued our token yet, so the biggest reward mechanism will be during the period when we officially distribute the token. We plan to quickly gain a lot of attention and trading volume through intense marketing activities and token incentives. Regarding user retention after the event, our core competitiveness lies in the rapid coin listing capability of our operations department. We were the first in the Arbitrum ecosystem to list BRC20 (Ordi, Sats, Rats) perpetual contract trading pairs, giving us nearly a whole month during which users had to come to Substance if they wanted to trade BRC20 perpetual contracts. This strategy significantly boosted our traffic at the time. We will continue to quickly list new coins; you can see that we still list 3 new coin pairs every week, accurately capturing market trends. With the bullish market as our backdrop, we have no shortage of coins to list, and the coins we list tend to be very profitable. For liquidity providers (LPs), given the existence of a basic yield rate, instead of keeping their money in Aave for a fixed return, why not earn the same base yield from Aave while also receiving additional rewards from Substance in the form of trading fees and tokens?
Relevant usage metrics - Please refer to the OBL relevant metrics chart 9. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
| Category | List of Metrics |
|---|---|
| General Metrics |
(Applies to all)|Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts.
Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts.
Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts.
Daily Protocol Fee: A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users.
Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts.
Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.|
Perpetuals For each tradable asset:
TVL: A daily time series expressed in USD.
Trading Volume: A daily time series, also measured in USD.
Open Interest: A daily time series measured in USD.
List of Traders: A comprehensive record of individuals or entities that have engaged in trading activities. This list should include trader addresses and the volume of trades executed.
List of Liquidity Providers: A list of current and past participants who have provided liquidity during the incentivized period of the protocol. The list should include LP addresses, their current liquidity in USD, time-weighted liquidity in USD, and the duration of liquidity provision.
Trader Net P&L Improvement: The change in traders’ profit and loss accounts, reflecting on the platform’s fairness and attractiveness to traders.
Funding Rate Stability: Tracks the fluctuations in the funding rates, assessing the balance between long and short positions and market sentiment.
Liquidations: A daily time series measured in USD.
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan:
Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):
We have an advisory relationship with the following people / groups, we of course leveraged our network for the refinement of this application.
Serious People, Xiahong Lin (co-founder of Continue capital), Ted Yin (co-founder of Avalanche), Chainlink Build Program (We are in Chainlink Build program)
None of these groups will receive ANY of the incentives in this proposal, and therefore have no conflicts of interest.
SECTION 2b: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the protocol native to Arbitrum?:
Yes
On what other networks is the protocol deployed?:
ZKfair. However we only provide tech support for the dApp deployed on ZKfair.
What date did you deploy on Arbitrum mainnet?:
Nov 9th, 2023. [Transaction ID] Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?
$SEX token
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?:
We are currently incentivizing with a points program that can be seen here: https://app.substancex.io/rewards
More thorough detail about the point program will come later in the application.
Current Incentivization: How are you currently incentivizing your protocol?
Our reward program is presently in its third phase. During each phase, we distribute 2 million $SEX token points, culminating in a total distribution of 6 million $SEX token points. The overall supply of $SEX tokens amounts to 1 billion. The 6 million $SEX token points distributed through our program will not be eligible for conversion into actual $SEX tokens until the TGE.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? [yes/no, please provide any details around how the funds were allocated and any relevant results/learnings(Note: this does NOT disqualify an applicant)]
No
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
- $1m of liquidity currently in SLP token. (this is the token we take as liquidity)
- Average vol/week for past 18 weeks: $6,465,344.41
- Average vol/day = $923,620.63
- Average users/week for past 12 weeks: 210.69
- Average Fees/day over past 120 days: $719.14
We have reached 100 million total trading volume on Arbitrum and 600 million total trading volume on ZKfair. Our average daily volume is around 15th - 17th on Arbitrum, whereas our best is 8th - 9th. However, at our peak, we ranked top 4 among all DEX trading Volume on our ZKfair version and the protocol revenue we generated peaked at $140,000 USD/day.
Which was even higher than the entire Arbitrum chain, and just under Metamask, on that p day.
Substance exhchange：https://app.substancex.io/dashboard/overview
HyperionX: Hyperion Exchange
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
- We will announce the Option section before the end of April.
- We will support all chain liquidity before the end of June.
- We would like to provide basic yield for our LPs within 12 months (They can get yield from not only being our LP but Aave lending yield at the same time)
- A portion of our underlying assets, such as USDT and USDC, will be deposited into Aave in exchange for interest-bearing assets like aUSDT and aUSDC, and the majority of the profits generated will be distributed to users. Additionally, we will design a rebalancing strategy to balance interest rates and replenish the reserve pool to ensure the availability of user assets for redemption at any time.
Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]
Halborn Audit Report:
Damocles Audit Report
Security Incidents:
No incidents
SECTION 3: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size:
203,318 $ARB
Justification for the size of the grant:
The grant size we have requested is grounded in a comprehensive analysis of the effectiveness of different incentive programs using KPIs for perpetual trading platforms. By examining the outcomes of similar programs across several platforms, the analysis identifies the most efficient strategies for utilizing incentives to drive growth in volume, fees, users, and total value locked (TVL). Here’s a detailed breakdown of the reasoning:
STIP_Perp_Comparables_for_Substance_LTIPP.xlsx
Analysis of Comparable Programs
Our analysis included looking at platforms like Dopex, Jojo, Vela, and Gains (excluding GMX as it was considered an outlier). The KPIs focused on were TVL, volume, fees, and users, with a normalization process to ensure a fair comparison. This comprehensive approach ensures that the proposed program is based on proven strategies rather than speculation.
- Efficacy of Incentivizing KPIs Other Than TVL
- The analysis revealed that while incentivizing TVL can increase it, this strategy is less effective in boosting other critical metrics like volume, fees, and users. This insight led to the conclusion that the new program should prioritize these latter three areas to naturally drive TVL growth, reflecting a strategic pivot based on empirical evidence.
- Adoption of Gains’ Successful Strategies
- Gains’ program was identified as the most effective, making it a model we plan to emulate for our proposed initiative. Its success in using a relatively small portion of incentives for TVL, with the majority allocated to volume, fees, and users by focusing on innovative elements like PnL competitions, fee rebates, and loyalty points, serves as a strong precedent.
- Quantitative Goals and Resource Allocation
- Our goal is to 3x our volume to $2,770,861.89 per day (which we believe to be a reasonable goal given our current size) using PnL competitions, which would require a calculated amount of 87,317 ARB over 90 days, based on Gains’ volume per ARB metric ($1,904/$ARB).
- That would be an increase of $1,847,241.26 in comparison to our current daily volume.
- $1,847,241.2 / $1,904 = 970.18 ARB * 90 days = 87,317 $ARB
- We will offer fee rebates to encourage users to trade by offsetting the 0.08% fee with additional $ARB rewards.
- With the goal of increasing daily volume by an additional $1,847,241.26 we would need to rebate $1,477.79 in fees daily throughout the life of the program
- $1,477.79 * 90 days = $133,001.37 in rebates
- At an $ARB price of ~$1.75 that would require 76,000.78 $ARB in total
- The loyalty program requests 40,000 ARB to engage users over 12 weeks, replicating Gains’ successful approach but tailored to our platform’s specifics.
- Substance Exchange has employed a point system historically to engage users and incentivize specific activity from them.
- In the first phase of the Points event, a total of 1591 users participated. We distributed rewards totaling 441,885 $SEX according to a redemption rate of 1 point for 5 $SEX
- Some of the activities that will be incentivized in the loyalty program include TVL incentives, which is where we are looking to replicate Gains in their small allocation towards similar incentivization strategies
- For a full breakdown of the point system please see the attached spreadsheet: Substance Points System for LTIPP - Google Sheets
- Implement a 12-week incentive program with 12 epochs and a total of 40,000 $ARB allocated, distributing 3,333.33 $ARB per epoch.
- Reward distribution based on users’ proportional points share, e.g., a user with 50 points out of 20,000 total earns 8.33 $ARB for that epoch.
- Substance Exchange has employed a point system historically to engage users and incentivize specific activity from them.
- Our goal is to 3x our volume to $2,770,861.89 per day (which we believe to be a reasonable goal given our current size) using PnL competitions, which would require a calculated amount of 87,317 ARB over 90 days, based on Gains’ volume per ARB metric ($1,904/$ARB).
Grant Matching:
We plan to continue with the above mentioned point system so that active participants can be rewarded in $SEX tokens proportional to their total accrued points upon TGE.
Grant Breakdown:
- PnL Competitions (volume): 87,317 $ARB
- 7,276.41 $ARB per epoch
- Fee Rebates: 76,000.78 $ARB
- 6,333.39 $ARB per epoch
- Loyalty Program: 40,000 $ARB
- 3,333.33 $ARB per epoch
Funding Address:
0x2E3f9eEFCad1ab5861b676D97a6Ad0F14D6a5B27
Funding Address Characteristics:
Team Multisig wallet, the owner of all contracts
Treasury Address:
Safe: 0x2E3f9eEFCad1ab5861b676D97a6Ad0F14D6a5B27
Contract Address:
Upon confirmation of the grant we will be deploying a new contract the same as staked SLP contract, but for the $ARB token incentives: SubstanceProxy | Address 0x98c5ba89090076A4306540Cf6Ad295eB17FCe16f | Arbiscan
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
- Increase Trading Volume: Significantly boost the platform’s trading volume to achieve a targeted growth of 3x over the current levels, using the performance metric of $1,904 volume per ARB to inform the necessary allocation of resources.
- Enhance User Engagement and Growth: Drive an increase in the number of active users and their engagement through innovative incentive structures such as PnL competitions, fee rebates, and loyalty points programs.
- Optimize Fee Generation: Encourage more trading activities on the platform by reimbursing trading fees, aimed at stimulating an increase in overall volume and, by extension, fee generation from these trades.
- Promote Loyalty and Long-Term Participation: Establish a loyalty points system that rewards users for their ongoing engagement and participation, enhancing the sense of community and incentivizing sustained activity on the platform.
- Leverage Competitive Dynamics: Implement a PnL competition that rewards users based on their trading performance, creating a competitive environment that motivates higher trading volume and engagement.
- Minimize TVL Incentivization: Allocate a small portion of the incentives towards TVL to demonstrate its lesser efficacy in driving the primary goals of volume, fees, and user growth, based on the analysis of comparable programs.
- Ensure Efficient Use of Resources: Carefully calculate the allocation of ARB tokens to each component of the program to maximize impact and efficiency, drawing on the analysis of successful strategies from similar programs in the market.
- Adopt Best Practices from Market Analysis: Anchor the strategy to the insights gained from analyzing successful incentive programs, particularly the Gains program, to replicate and adapt proven mechanisms for enhancing platform performance
Execution Strategy:
Program Components and Allocation
- Volume Growth via PnL Competition:
- Objective: The primary goal is to triple the platform’s daily trading volume, leveraging the efficiency metrics observed in Gains’ program as a benchmark for success.
- Mechanism:
- Competition Structure: Conduct weekly PnL competitions over a period of 12 weeks. Participants are rewarded based on the profitability of their trades relative to other traders with positive PnL. This structure aims to stimulate not only an increase in trading activity but also skillful, profit-oriented trading behaviors.
- Eligibility Criteria: To qualify for rewards, traders must ensure their PnL is positive. Additionally, participants are required to complete a minimum of 3 trades and be active on at least 2 different days within each weekly competition period. This criterion ensures consistent and engaged participation across the trading community.
- Reward Determination: The share of the weekly reward pool allocated to each participant is directly proportional to their total profits compared to the combined profits of all eligible traders. This approach encourages traders to maximize their profitability, thereby contributing to the overall goal of increasing trading volume.
- Allocation:
- Total Allocation for Competition: The program allocates a total of 87,317 ARB to support the volume growth target over the 90-day period. This allocation is strategically designed to optimize the incentive’s impact on trading volume, drawing from the successful outcomes of the Gains’ model.
- Weekly Reward Pool: A fixed reward pool of 7,276.41 ARB is distributed each week among the qualifying participants. This consistent weekly incentive serves as a recurring motivation for traders to actively engage in the competition, contributing to sustained increases in trading volume throughout the 12-week period.
- Fee Rebate Program:
- Objective: The program is designed to boost trading activity by offsetting a portion of the transaction costs for users. By reimbursing trading fees, it aims to stimulate a substantial increase in trading volume, targeting an additional $1,847,241.26 in daily volume based on strategic incentives.
- Mechanism:
- Rebate Calculation: Rebates are calculated based on the fee/volume ratio of 0.08%, with a planned distribution of $1,477.79 in fee rebates daily. This approach ensures that the rebates are both significant enough to motivate increased trading activity and aligned with the platform’s economic model.
- Proportional Distribution: The amount of rebate each user receives is determined proportionally, based on the individual’s paid fees relative to the total fees collected by the platform within each epoch. This method ensures fairness and encourages traders to increase their trading frequency and volume to maximize their rebate potential.
- Limit on Rebates: In scenarios where the total fees generated are less than the reward pool, the program guarantees that rebates will not exceed a 1:1 rate with the fees paid. Any unused ARB from the rebate pool will be returned, ensuring the program’s sustainability and economic viability.
- Allocation:
- Total Rebate Allocation: An allocation of 76,000.78 ARB is set aside for the duration of the 90-day program to fund the rebates, translating into a weekly allocation of 6,333.39 ARB across 12 epochs. This structured allocation supports the objective of stimulating increased trading volume through fee rebates.
- Weekly Distribution: The weekly availability of 6,333.39 ARB for rebates ensures a consistent incentive for traders to maintain or increase their trading activities throughout the 12-week period. The clear, epoch-based distribution schedule allows traders to plan their trading strategies with the rebate program in mind, fostering sustained engagement.
- Loyalty Points Program:
- Objective: The primary goal of the program is to enhance user retention and incentivize ongoing engagement by rewarding users for their loyalty and active participation over time. It aims to build a more vibrant and committed community by recognizing and rewarding consistent use and support of the platform.
- Mechanism:
- Points Accumulation: Users accumulate points through various platform activities, which might include trading, achieving certain milestones, or participating in community events. This points system is designed to be comprehensive, ensuring users are rewarded for a wide range of engaging activities.
- Proportional Rewards Distribution: The ARB rewards are allocated to users based on the proportion of points they have earned relative to the total points awarded to all users during each epoch. This method ensures that rewards are distributed fairly, reflecting the level of each user’s engagement and contribution to the platform.
- Epoch Structure: The program is structured into 12 epochs, aligning with a 12-week period, to provide regular and predictable reward opportunities. This structure encourages continuous activity and engagement from the users, with each epoch offering a new chance to earn rewards.
- Allocation:
- Total Program Allocation: A total of 40,000 ARB is allocated to fund the loyalty points program, underlining the platform’s commitment to rewarding its most loyal and active users.
- Weekly Rewards Pool: Each epoch (or week) has an allocated rewards pool of 3,333.33 ARB. This allocation supports the objective of fostering sustained engagement by providing consistent incentives for users to accumulate and earn points.
- Example of Reward Calculation: For illustration, if a user earns 50 points in a week where the total points earned by all users is 20,000, they would receive 8.33 ARB for that epoch. This example demonstrates the direct link between the points earned and the ARB rewards, encouraging users to increase their participation to maximize their rewards.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
- Loyalty Points Program:
- By continuing to develop the points-based loyalty program where active participation on the platform is rewarded with points we will enhance stickiness; allowing these points to be redeemable for $SEX tokens at the TGE, making the rewards immediately tangible and valuable to the users.
- PnL (Profit and Loss) Competition:
- Utilize the weekly PnL competition to encourage users to actively trade and generate profits. Since the competition rewards users based on their profitability with $ARB allocations, by integrating a similar follow-up structure with $SEX token points will enhance participation rates and encourage traders to remain active on the platform to maintain or improve their rankings.
- Fee Rebate Program:
- The mechanism of reimbursing trading fees in proportion to users’ activity levels not only incentivizes increased trading volume but also encourages traders to stick with the platform due to the direct financial benefits. Making part of these rebates available in $SEX token points will further align users’ interests with the platform’s success.
- Proportional Reward Distribution Based on Points System:
- The already planned approach of distributing rewards based on users’ proportional weight in the total points or achievements will be emphasized to increase “stickiness.” This system rewards continuous and engaged participation, making users more likely to stay active to not lose out on potential rewards.
- Targeted Incentives for Various Platform Activities:
- The existing strategy of mapping out incentives for different activities (like trading volume increase, fee rebates, and loyalty points accumulation) already creates a diversified incentive structure. Ensuring these incentives are closely linked with the accumulation and potential utility of $SEX tokens can make participation more appealing.
- Targeted Incentives for Various Platform Activities:
- The already planned approach of distributing rewards based on users’ proportional weight in the total points or achievements will be emphasized to increase “stickiness.” This system rewards continuous and engaged participation, making users more likely to stay active to not lose out on potential rewards.
Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy.
- Volume Growth via PnL Competition:
- KPIs:
- Increase in daily trading volume compared to the baseline period.
- Number of unique participants in the PnL competition each week.
- Percentage increase in profitable traders compared to the baseline period.
- Source of Truth:
- Trading volume and participant data will be verified through the platform’s internal transaction records, auditable by smart contract events (when applicable) and platform analytics tools like OBL dashboards.
- KPIs:
- Fee Rebate Program:
- KPIs:
- Increase in total trading volume attributable to the rebate program.
- The proportion of trading volume contributed by rebate program participants.
- User retention rate before and after participating in the rebate program.
- Source of Truth:
- Fee and trading volume data will be sourced from the platform’s financial reporting and analytics systems, with transparency ensured through publicly accessible reports via blockchain verification.
- KPIs:
- Loyalty Points Program:
- KPIs:
- Growth in the number of active users participating in the loyalty points program.
- Increase in user engagement metrics, such as daily active users (DAU) and monthly active users (MAU).
- Redemption rate of points for rewards, indicating the value users place on the loyalty program.
- Source of Truth:
- User engagement and points redemption data will be collected and verified through the platform’s user analytics dashboard. Points system transactions and rewards distributions can be audited via a blockchain explorer due to its on-chain implementation.
- KPIs:
Grant Timeline and Milestones:
Week 1: Program Launch
- Official kickoff of the PnL competition, Fee Rebate Program, and Loyalty Points Program.
- Initial marketing and communication efforts to maximize early engagement.
Weeks 2-11: Active Program Execution
- PnL Competition: Weekly competitions run, with rewards distributed at the end of each week based on profitability and engagement criteria.
- Fee Rebate Program: Daily monitoring and weekly distribution of fee rebates to qualifying participants.
- Loyalty Points Program: Continuous points accumulation based on user activity, with weekly assessment and rewards distribution.
Milestones at the End of Each Week:
- Distribution of ARB rewards for the PnL competition and Fee Rebate Program.
- Calculation and distribution of loyalty points rewards.
- Weekly reporting on program engagement metrics and preliminary impact on trading volume and user activity.
Week 12: Program Wrap-up and Initial Evaluation
- Final week of competitions and rebates.
- Last distribution of rewards and points.
- Initial collection and analysis of data across all KPIs to assess the program’s impact on trading volume, user engagement, and platform growth.
- Gather user feedback for improvements and insights.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
- Accelerating Platform and Ecosystem Growth
- Increased User Engagement and Retention: By implementing a loyalty points program and PnL competitions, we can significantly increase both the engagement and retention rates of users on the platform. This, in turn, creates a more vibrant community within Arbitrum, driving network effects that attract more users and developers to the ecosystem.
- Enhanced Liquidity: The fee rebate program is designed to increase trading volume, which directly contributes to enhanced liquidity on the platform. Higher liquidity benefits the entire Arbitrum ecosystem by reducing slippage, improving trade execution, and attracting more sophisticated and institutional traders.
- Driving Innovation
- Innovative Incentive Models: By experimenting with different incentive models, such as rewarding based on profitability (PnL competition) and activity (loyalty points), the platform can provide valuable data and insights into user behavior and incentive mechanisms. These insights can inspire other projects within the ecosystem to adopt innovative approaches to growth and user engagement.
- Enhancing Arbitrum’s Visibility and Attractiveness
- Attracting New Projects and Partnerships: A thriving platform with active user engagement and high liquidity becomes an attractive partner for new projects looking to launch on Arbitrum. This can lead to collaborations and integrations that further enrich the ecosystem’s offerings.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?:
Yes
SECTION 5: Data and Reporting
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?: Yes, Peratx will own the dashboard requirements. No special considerations at this time.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?:
Yes, the team agrees to provide bi-weekly updates.
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains:
Yes, the team agrees to provide a final closeout report within two weeks of the program’s end.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:
Yes