[SX Bet] LTIPP Application - FINAL

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:
Andrew Young

Project Name:
SX Bet

Project Description:
SX Bet is a peer-to-peer web3 betting exchange that allows all users to both offer and take bets. This is different from traditional sportsbooks, where users can only take bets offered by the company running the site. This peer-to-peer model of betting leads to better odds and removes the ability of owners to exploit the users for profit.

Team Members and Roles: [List team members and their roles/responsibilities]

  • Andrew Young (Co-Founder & CEO)
  • Julian Wilson (Co-Founder & CTO)
  • Jake Hannah (Co-Founder & COO)
  • Dan - Lead Architect
  • Lakshan - Director of Engineering
  • Akshar - Engineer
  • Artem - Engineer
  • Declan - Business Development
  • Jay - Product Manager
  • Jeremy - Operations
  • Kay - Marketing
  • Konstantin - Engineer
  • Mike - Engineer
  • Antoine - Engineer
  • Mauricio - Engineer

Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.)]

Twitter: https://twitter.com/SX_Bet
Website: https://sx.bet/popular
Discord: SX Network
Youtube: https://www.youtube.com/@SXNetwork

Contact Information

Point of Contact (note: this should be an individual’s name, not the name of the protocol):
Andrew Young

Point of Contact’s TG handle:
@youngstax

Twitter:
https://twitter.com/AndrewYoung_SX

Email:
andrew@nextgenbt.com

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 (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):

  • Team has been working full-time on SX since January 2018
  • Prior to that, founding team worked at major Canadian banks in trading and ops
  • CEO (Andrew Young) and CTO (Julian Wilson) were trading ETFs and structured products at Bank of Montreal (BMO).
  • COO (Jake Hannah) worked at Canadian Imperial Bank of Commerce (CIBC) in operations
  • Total team size is 15 people, primarily consisting of engineers.

What novelty or innovation does your product bring to Arbitrum?
Our protocol’s novelty is in the utilization of a betting exchange model, as opposed to traditional betting automated market makers (AMMs) or the “house pool” model. This distinction is significant because in the traditional AMM/house pool model, economies of scale or network effects are virtually non-existent, meaning that as these platforms grow, they don’t necessarily become better or more efficient for their users.

However, our betting exchange model introduces a “liquidity flywheel effect” to the Arbitrum space. This effect is a virtuous cycle, where the increasing participation of bettors on our platform incentivizes more market makers to join and provide liquidity. The presence of more liquidity on the platform leads to improved odds for bettors, making it an even more attractive destination for bettors. As more bettors are drawn to the platform due to these more attractive odds, the cycle repeats, further enhancing the platform’s appeal through even greater liquidity and better odds. This approach not only benefits the users in terms of better odds and more liquidity but also strengthens the overall Arbitrum ecosystem by attracting more users and market makers, fostering a more vibrant and dynamic betting environment.

Is your project composable with other projects on Arbitrum? If so, please explain:
SX Bet offers prediction markets on the price of crypto tokens, including $ARB. SX plans to collaborate with other protocols to launch native prediction markets on these coins, including some smaller projects.

SX is also looking into integrating other currencies beyond USDC to bet with on SX Bet. SX has explored creating a universal liquidity model wherein users can bet in whichever currency they desire, but all bets are actually settled in USDC. This would entail integrating a DEX such as Camelot to facilitate atomic swap-and-bets into the model such that a user could bet with $WETH into the main $USDC liquidity pool, and on the back-end, the bettors’ $WETH is being swapped into $USDC and bet, all in the same transaction.

Finally, the open interest on SX could very easily be plugged into lending platforms on Arbitrum, such as Aave or other similar platforms. Despite this being a possibility, it is not currently a priority on our roadmap.

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
The most comparable products to the SX Bet on Arbitrum are Azuro, Justbet, Overtime Sports, and Betswirl; however, they offer far fewer betting markets, much lower betting limits, and less favorable odds for users. They also generate far less betting volume than SX; for context, SX is nearing $440m in total bets since inception, a multiple of all these competitors combined.

How do you measure and think about retention internally? (metrics, target KPIs)
We track retention using a 30-day retention curve to see if new users that bet on Day One, are still actively betting by Day 30. We also track other metrics, such as completion of KYC, registration, creation and usage of customized promo codes, and/or creation of any affiliate links. Our product depends on the network effects generated by users, active usage of the platform is paramount. We also prioritize growing our user base by offering incentives via referrals. Lastly, we want to make sure our products are refined before adding new ones, because people definitely notice the small details - especially when betting with their hard-earned crypto.

Relevant usage metrics - Please refer to the OBL relevant metrics chart 43. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

General Metrics

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 a network of advisors and investors that we rely upon to offer feedback and insights when it comes to everything, including grant writing.

Sandeep Nailwal, Alexander Pack, Josh Hannah, Hart Lambur, Jack Herrick, Serious People, Alex Tapscott

None of these advisors 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?:

No, SX Bet is deployed to our own native dApp-chain, with Arbitrum being our first cross-chain expansion. SX Bet on Arbitrum is fully cross-chain, meaning SX Bet on SX Network and SX Bet on Arbitrum work together in a seamless fashion. SX bet uses USDC liquidity to facilitate betting and open interest, to ensure we don’t need single sided deposits on every chain, fragmenting liquidity, we built SX Network to act as a liquidity hub for betting capacity. When a user bets on SX Bet on Arbitrum, the bet is relayed over atomically and placed on SX Bet on SX Network as well. This means that all bets on Arbitrum take place at the same time on both chains. This enables us to access all of our liquidity from SX Network on Arbitrum, rather than fragmenting our liquidity and having to bootstrap new liquidity on Arbitrum. This also means that bettors on Arbitrum will be getting all of the same liquidity as bettors on SX Network, but get to do so from the comfort of Arbitrum. This is also why we are spending 100% of our requested grant on growth incentives as Arbitrum users immediately have the same access to betting liquidity as users on SX.

This does require the SX team to put up funds to facilitate this cross-chain relaying model. We have put $200k of USDC, split between the contract on SX Network (0x49E11807cdB710133CF760C62d2b016326CBb432) and Arbitrum (0x99Dd65a547981f662Ef8Ba0893BED966d3D78C9a) to facilitate this.

On what other networks is the protocol deployed?:

  • Currently on the SX Network app-chain
  • SX Bet on SX Network though is primarily used by institutional bettors and market-makers due to the high friction of bridging assets to the chain and the lower trust/security of it compared to more established chains like Arbitrum
  • SX Network is currently built on Polygon Edge. However, while the chain continues to function properly, the Edge SDK is no longer a focus of the Polygon team. SX is exploring migrating the underlying infrastructure to other infrastructure, including Arbitrum Orbit.
  • We see SX Bet on SX Chain as being the chain used by non-crypto native professional bettors and market-makers, while SX Bet on Arbitrum will be used by mainstream crypto-native retail bettors.

What date did you deploy on Arbitrum mainnet?:

Do you have a native token?:

Yes.

SX token docs: SX Token | SX Network
SX CoinGecko page: https://www.coingecko.com/en/coins/sx-network

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?

  • SX has been running a weekly SX bet mining program since 2021, having awarded over 20M SX since inception
  • SX gave away free bets to IDEX users on February 2022, driving 5,000 new bettors to SX for the 2022 Super Bowl in one day
  • SX has given away over $600,000 USDC in free bets and welcome bonuses to new users to use SX since inception

Current Incentivization: How are you currently incentivizing your protocol?

  • SX gives away 70,000 SX per week
  • SX runs monthly betting tournaments with prize pools of $10,000 - $50,000
  • SX offers a $1,000 welcome bonus + $20 free bet to all new users as well

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:

  • SX is the largest web3 betting dApp in the world by a significant margin, having surpassed $438,844,188 of betting volume as of 03/17/2024, roughly 5x the next closest web3 competitor.
  • SX offers the tightest odds in the world for NBA and NHL betting markets, as determined by 3rd party odds comparison tool OddsJam.
  • SX will be the first and only web3 betting front-end dApp on Arbitrum to have an official gaming license, having secured it in 2020, prior to the founding of many of our competitors.
  • SX is the only web3 betting dApp to have in-play live betting, having launched it in 2020
  • For context, Rollbit, Shuffle, and Stake are not included in these competitor analyses as their entire infrastructure is fully off-chain and custodial, and not web3-native nor are their numbers verifiable.
  • SX betting volume tracker: https://sx.bet/stats/performance

Protocol Roadmap:

Non-Custodial Control Enhancements

  • Cross-Chain Betting Platform: Launch SX Bet on Arbitrum, enabling users to bet from the blockchain that they already have funds on.
  • Launch SX Token on Ethereum: Introduce the native SX Network token on Ethereum by Q1 2024, facilitating broader accessibility and non-custodial benefits.

Better Odds and Betting Experience

  • Reduce Pre-Game Vig to <2%: Achieve this milestone by Q2 2024 to establish SX as offering the best odds worldwide.
  • Cashout Feature: Implement the ability to cash out bets before settlement in H1 2024, enhancing betting flexibility.
  • Reduced Fees: Propose and implement reductions in Taker and Maker fees by Q2 2024, making SX the most cost-effective betting exchange.
  • New Market Makers: Significantly increase the number of active market makers, especially for live betting, by H2 2024.

Development Platform Expansion

  • Large Developer Community: Expand the developer ecosystem to include +20 third-party projects by Q4 2024, focusing on unique applications using SX Bet.
  • Betting Tools Development: Release new betting tools, including Titan Echo, SX-Edge, and SX Quantzone, throughout 2024, with major releases planned for Q2 and Q3.
  • SocialFi Initiatives: Introduce SX-Lab, the world’s first tokenized tipster protocol, in Q1 2024, enabling new community-driven betting strategies.

Audit History & Security Vendors:

SX Bet smart contract audit: smart-contracts/decenter-sportx-audit.pdf at master · sx-bet/smart-contracts · GitHub

Security Incidents:

None

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: 498,000 ARB

We want to apply three incentive mechanics:

Referral Mechanic: 300,000 $ARB

  • Goal is to attract new users on Arb. Run for each of the three months.

Betting Tournament: 138,000 $ARB

  • We plan to run our own tournament for month 1 to kickstart
  • Leverage the ARB to run the tournament for months 2 and 3, split evenly between the two months.

$SX Liquidity Mining: 60,000 $ARB

  • Biggest liquidity mining campaign to date to make ARB the premier place to trade SX tokens.

Justification for the size of the grant: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]

Breaking down the three mechanics above, we can back up each section with tangible data from our existing metrics on the platform.

First, the referral mechanic to attract new users on Arb. As stated we plan to run this for each of the three months, asking for a total of 300,000 $ARB.

Our historical CAC has been around $155, but this has been refined on our previous chains. However, we currently live only on our own app chain - SX Network - which has big barriers to adoption, particularly for smaller bettors. This makes it likely that the CAC for SX Bet on Arbitrum will be far less as users already have assets on Arbitrum, it’s much easier to bridge to, and is more trusted. This is also in line with typical Web2 betting platforms like Fanduel and Draft kings, where new user promos range from $150 - $500.

We believe that 60 ARB is a reasonable referral amount given these comps. Setting them up in a give 30 / get 30 ARB referral system. Keep in mind, all Arbitrum users will be awarding both our $1,000 USDC Welcome bonus + $20 USDC free bet bonus.

With 60 ARB / user, we can leverage 100,000 ARB to conservative attract ~1,667 new users each month to SX Bet on Arbitrum.

SX Bet currently has a ~25% retention rate on new users after 1-month, so our goal will be to retain ~416 users at the end of each month.

If we run the referral campaign for 12 weeks we should be able to attract +5,000 new bettors, with a goal of retaining close to 1,250 of those users at the end of the program. This would align with our current MAU’s we are seeing on other chains.

Second, we have the tournaments in month 2 and 3 of the overall campaign, seeking 138,000 $ARB split evenly between those two months focused on increasing betting volume.

It’s worth noting - we already have announced our own tournament for month 1 to help kickstart things! We have $69,420 of prizes ready for this pool!

Regarding volume, our goal would be to work towards 15M in total monthly bets at the end of month 3. We plan to do this through two month long tournaments, starting in month 2 and 3 of LTIPP.

Historically, for every $1 of incentives, we have been able to produce $50 in betting volume. We think it’s reasonable to assume on a new chain we can double this and achieve similar results. So for every $1 of incentives we can produce $100 of volume.

We plan to run two tournaments, one each for month 2 and 3 of LTIPP. The focus will be to retain the users coming from the referral campaigns.

With 69,000 ARB, at $1 incentives / $100 bets we can target to incentivize a minimum of roughly $7,000,000 of bet volume on Arbitrum in month two.

We then can follow that up with another 69,000 ARB, with similar metrics again targeting a goal of roughly $7,000,000 of bet volume in month three.

We also plan to remove 100% of our barrier to entry by removing our fee for at least the first three months so we can increase the likelihood of successfully hitting these metrics on Arbirum. We believe that this is a great way to show goodwill to Arbitrum and its users on SX bet’s dime.

Lastly, we plan to give SX rewards so we would like to kickstart liquidity on Arbitrum for our token. We figured a simple liquidity mining campaign over the 90 days distributing 60,000 ARB, 20k each month will do the trick.

Looking at current incentives for the SX token, we can pull live data from the SharkSwap farm we have. We are seeing 17% ‘TVL / Incentives APR’ on that farm. If we take the 60,000 ARB and spread it evenly across the 90 days we would have roughly $40,000 of incentives each month for SX/WETH liquidity on Arbitrum. $40k/17% give us roughly $2.8M of liquidity over those 90 days. With the fluctuation of ARB targeting $2M as a goal here should be reasonable. For a $55M MCAP token that is an adequate amount of liquidity.

Grant Matching:

We have lowered our fees to 0% to decrease the barrier to entry to our platform during this campaign!

We also are airdropping $1,000,000 of free bets to 10,000 users on Arbitrum this week. We specifically are targeting wallets that have used a web3 betting apps in the past.

Additionally we already have announced our own tournament for month 1 to help kickstart things. We have already announced that we are giving away $69,420 USDC of prizes for the first tournament, irrespective of this grant. All Arbitrum users will also be eligible for the standard $1,000 USDC Welcome Bonus and $20 USDC free, which means SX will be spending up to an additional $6,000,000+ USDC in bonuses for new Arbitrum users across all these initiatives.

Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]

We want to apply three incentive mechanics:

  1. Referral Mechanic: 300,000 $ARB - 100,000 each month
  2. Betting Tournament: 138,000 $ARB - 69,000 for tournaments in month 2 and 3
  3. $SX Liquidity Mining: 60,000 $ARB - 20,000 each month

Funding Address: [Enter the specific address where funds will be sent for grant recipients]

0x654AE05b5f3917DC56F0De2AA66Ae00479d42c43

Funding Address Characteristics:

Will be ⅔ multisig

Treasury Address: [Please list out ALL DAO wallets that hold ANY DAO funds]

0xc47f72D3fa9477847e95BbA37A1a55D9Ccd44988

Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]

We will deploy it before receiving any streamed grant funds, but waiting to see if the grant is approved and for how much before deploying.

SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES

Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.

Objectives:

  • Increase User Base: Utilize the referral campaign as a mechanism to significantly grow the user base by incentivizing both new and existing users.
  • Enhance User Engagement: Encourage active participation and engagement on the platform through the mutual benefit of referral bonuses.
  • Increase bet volume: Leverage the tournaments to bootstrap bet volume on Arbitrum, encouraging participation in the various bet markets we have available.
  • Boost Platform Testing: Leverage the increased traffic from new users to gather valuable feedback and insights, helping to refine and improve the platform’s offerings.

Execution Strategy: [Describe the plan for executing including token distribution method (e.g. farming, staking, bonds, referral program, etc), what you are incentivizing, resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]

Referral Program: Allocate 300,000 ARB for a referral initiative, rewarding new users with a give 30 / get 30 ARB bonus. We already have both an affiliate program (with 74 affiliates signed up) and promo codes set-up on SX, which have already been working really well with proper link tracking and attribution. See below for the New User registration on SX for an example:

We plan to have an available referral pool of 100,000 ARB each month. In order to qualify for the bonus and be eligible to give out their own referral codes, users will need to fully KYC to do so. We already require KYC to utilize the platform, so we naturally have a mechanic baked in to ensure users cannot easily farm this referral system. This is the only reason this type of referral system can work without being gamed as if we didn’t have the KYC, then this type of referral system would be incredibly easy to abuse and sybilled very easily. We utilize Jumio for our KYC, which requires users to submit an ID and requires a liveness check (i.e. a selfie):

This mechanism makes our referral and affiliate system far more bullet-proof than the majority of on-chain referral systems. With 300,000 ARB allocated to this, this promo should drive a minimum of 5,000 new, fully-KYCed users to SX Bet on Arbitrum.

Betting Tournaments: We will use another 138,000 ARB to host two massive betting tournaments, incentivizing competitive participation with ARB token prizes.

We already run betting tournaments on a regular basis so we have all the infrastructure to track and reward users. As we noted we are running our own $69,420 USDC tournament for our Arbitrum launch to help kickstart things. Our current Arbitrum tournament already has 456 people signed up for it before it’s even begun:

You can see a breakdown of the tournament here - we plan to run a similar kind of tournament in months 2 and 3 with the ARB rewards. As you can see we already have everything ready and have been promoting the tournament and our expansion to Arbitrum already!

SX Liquidity Mining: Incentivizing a new SX/WETH pairing on Arbitrum. We plan to collaborate with one of the leading DEX’s to distribute these rewards, likely Camelot or Sushiswap. Both have the infrastructure to offer incentives and a liquidity mining campaign like this is pretty vanilla. Rewards will be claimable on a rolling basis, standard for a program like this with users will receive their proportional rewards based on their liquidity / total liquidity in the pool.

Risk Management:

  • Abuse Prevention: We have a new user verification process already set-up to authenticate identity of new users and prevent multiple accounts from the same individual from being used, utilizing the KYC system by Jumio.

  • Tournament Integrity: Establish clear rules and monitoring systems for betting tournaments to prevent any form of manipulation or unfair advantage, preserving the integrity of competitions. We have this infrastructure in place as we run a lot of betting tournaments as is.

What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? [Provide relevant design and implementation details]

In an effort to align with Arbitrum growth metrics, SX Bet will be launching on Arbitrum with a 0% take rate fee to encourage new betting! We will keep this 0% fee for the duration of the Arbitrum Incentives, potentially longer, to keep users on the platform and increase the stickiness of everything we are doing.

Additionally, we feel the following also helps with stickiness:

  • Competitive Engagement: We will continue to host a series of betting tournaments with our own token prizes encouraging active and continuous participation. The competitive nature of tournaments, coupled with tangible rewards, increases user engagement and encourages repeat participation.
  • Diverse Participation: Catering to different user segments, from casual bettors to more competitive ones, ensures a broader appeal, increasing the likelihood of participants finding value and continuing to engage with the platform.
  • Continuous Improvement Feedback Loop: Utilizing increased platform activity to gather user feedback for continuous improvement of platform features and user experience. This direct involvement in the platform’s development process increases user investment and loyalty.

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. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]

Looking at current performance indicators, we have the following data on the SX Bet platform:

  • We currently have ~228.6 WAU (Past 12 wks)
  • We currently are seeing about 4000 tx / day
  • We were generating ~$100,000 in revenue / month, prior to cutting our fee to 0%.
  • We historically have a 2% take rate on profits. (We will be starting with 0% on ARB)
  • We currently generate roughly $13m Monthly betting volume, a multiple of the next highest web3 sports betting dapp.

Our goals are as follows:

  • Users: Gain +5,000 new users via the referral campaign, retaining a minimum of 25% of those to ultimately get 1,250 active users at the end of the program.
  • Cumulative Bet Volume: Specifically with the ARB we are targeting $40,000,000 of cumulative bet volume by the end of the program. Please note, we did make our milestones higher given we are putting our own money up for the first month’s tournament which should give us a boost on hitting the overall milestones!
  • $SX Liquidity: $2M of liquidity over the 90 days. Our math above shows a slightly higher number, we wanted to be a bit more conservative here given ARB price fluctuation and this being a new chain.

Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]

Milestone 1 - Weeks 1-4: Launch and Initial User Onboarding

Objective: The goal is to bring on 1,667 new users to engage with the platform using 100,000 ARB tokens for referral rewards and keep them engaged with both the $69,420 USDC tournament already scheduled and paid for.

ARB Needed: 100,000 ARB for referral campaign
20,000 ARB for liquidity mining
= 120,000 ARB total

Activities:

  1. Deploy referral program to attract new users.
  2. Deploy traditional liquidity mining farm.
  3. Set up onboarding process that includes educational resources about Arbitrum and how to use SX bet
  4. Distribute incentives to users who sign up and meet predefined activity criteria.
  5. SX to run first Arbitrum Betting Tournament using $69,420 of prizes from SX Bet

Expected Outcome: Reach a betting volume of $5 million by the end of Month 1 ($167,667/day). This would instantly make the SX Bet on Arbitrum the largest GambleFi Dapp on Arbitrum or any Ethereum layer 2.

Milestone 2 - Weeks 5-8: Expansion and Sustained Growth

Objective: Build on the initial momentum to incentivize additional users, aiming for cumulative adoption of 5,000 users by the end of this period.

ARB Needed: 100,000 ARB for referral campaign
20,000 ARB for liquidity mining
69,000 ARB for betting tournament
= 189,000 ARB total

Activities:
Analyze data from the first phase to refine the referral program if needed.
Kickstart the first Arbitrum $ARB incentivised tournament.
Continue educational outreach to improve user engagement and retention.

Expected Outcome:
Increase cumulative betting volume to $15 million by the end of Month 2. At this level of volume, SX Bet on Arbitrum would rival SX Bet on SX Chain as the largest GambleFi dapp in the world by betting volume. It would likely far surpass SX Bet on SX Chain by number of users, as SX Bet on SX Chain is mostly used by institutional bettors and market-makers, whereas SX Bet on Arbitrum will be mostly used by retail bettors.

Milestone 3 - Weeks 9-12: Consolidation and Scaling

Objective: Solidify user base and push for higher engagement levels, targeting a total of 10,000 engaged users.

ARB Needed: 100,000 ARB for referral campaign
20,000 ARB for liquidity mining
69,000 ARB for betting tournament
= 189,000 ARB total

Activities:
Analyze data from milestone 2 and adjust the referral program if needed
Kickstart the second Arbitrum tournament
Continue educational outreach to improve user engagement and retention.

Expected Outcome: Reach a final cumulative betting volume of $30 million by the end of Month 3.

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? [Clearly explain how the inputs of your program justify the expected benefits to the DAO. Be very clear and tangible, and you must back up your claims with data]

With more volume and users than any of the other betting platforms on Arbitrum, we believe that the 498,000 ARB will be a great investment for the DAO. We plan to migrate as many users and volume to Arbitrum as possible, this grant will make the conversion process much easier. We believe that this product fits perfectly into the Arbitrum ecosystem, filling a much needed gap and replicating the success that we’ve been able to achieve on SX Network. Our goal is to make Arbitrum the premier chain for crypto-native retail bettors.

We believe we have strong backing to our ask, using tangible data from our ecosystem and validating further with web2 comparables. We also are bringing a lot to the table to support this migration, including removing fees, doing our own tournament for month 1 (with more to come after the ARB ones), bootstrapping $SX liquidity on Arbitrum, and spending heavily on our own marketing campaigns.

All that plus this grant should give us a huge boost as we come onto the stage. We are also very excited as this is our first cross chain move away from our native dapp chain, making Aribtrum our first real home. We want to thank you for the opportunity to apply for support and making all this possible!

In summary:

  1. We plan to use 300,000 ARB for referral mechanics, with a goal to attract a minimum of 5,000 new bettors.
  2. We plan to use 138,000 ARB for tournaments, with the goal to increase bet volume to a cumulative total of $15,000,000 by the end of the 12 weeks.
  3. Between both mechanics, our goal is to have a 25% retention rate, keeping 1,250 users post program.
  4. 60,000 ARB over 90 days for traditional liquidity mining to establish Arbitrum as the primary trading venue for $SX with the deepest trading pool and only WETH pair available exclusively on Arbitrum.

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

OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 40. Along with this list, please answer the following:

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, no special requests/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! We will be closely monitoring the program, ensuring it meets all reporting requirements. We have the resources in place dedicated to meeting these criteria.

First Offense: *In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.

Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.

Third Offense: Funding is halted permanently

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

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

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Hello @AndrewYoungSX

Thank you for your application! We can confirm your application has been submitted and you will be assigned an advisor shortly.

Hello @AndrewYoungSX ,

Thank you for your application! Your advisor will be Castle Capital @Atomist.

Please join the LTIPP discord and ping your advisor in the general chat so they can create a new channel and start communicating with you.

This grant application has been finalized. Please assist in updating the name to reflect its status more accurately @cliffton.eth @Matt_StableLab

Tagging @AndrewYoungSX for confirmation.

Hey there I’ve amended the title post to reflect that this proposal is FINAL. All the best!

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We reviewed the feedback on the SX Bet proposal, noting overall positive sentiments from both GFX and Karel Feedback. They commended the proposal’s clarity and well-structured plan, highlighting its justified costs and clear objectives. However, there was a shared concern regarding the potential of the incentives to divert users away from Arbitrum towards SX’s own chain. Despite this concern, the proposal was considered worthy of approval due to its overall merit. Karel Feedback also emphasized the need for additional data for review by the DAO.

Considering the strengths of the proposal and the potential risks involved, we believe it aligns with our objectives and thus recommend its approval.

Hey Arbitrum Community,

Just as a small update - we’ve create a multi-sig on Arbitrum to receive the grant here: 0x325dCA7453357EeaC0F6591B1164A25D84691eFa

Thank you,