Team Lampros DAO - LTIPP Research Bounty Reports - Final Reports and Resources
TL;DR
We are excited to present the final comprehensive reports for the Long-Term Incentive Pilot Program (LTIPP) Research Bounties. Our research spans two major research topics: a detailed Analysis of Incentive Program Effectiveness for LTIPP Participating Protocols on Arbitrum and an examination of the Effects of Growth Incentives on Non-Recipient Protocols.
Research Outputs
1. Research Reports
We have prepared four in-depth research documents that provide comprehensive insights into the Arbitrum ecosystem. Research Report 1 offers a full analysis of incentive program effectiveness, diving deep into the mechanisms and impacts of the LTIPP. The accompanying Statistical Analysis Report 1 provides rigorous statistical evaluation, including T-tests, cluster analysis, correlation analysis, and regression analysis to support our findings.
Research Report 2 explores the dynamics of growth incentives on protocols that were not direct recipients of the incentive program. The accompanying Statistical Analysis Report 2 includes detailed correlation coefficient analysis and synthetic analysis, offering a refined understanding of ecosystem-wide effects.
2. Interactive Dashboards
To make our research more accessible and interactive, we have developed two comprehensive dashboards. Our Dune Dashboard focuses on sector growth, user interaction, and incentive effectiveness, leveraging the powerful data visualization capabilities of Dune Analytics. This dashboard provides insights into the key metrics that define the Arbitrum ecosystem’s performance.
Accompanying the Dune Dashboard, our Python Dashboard for Research Report 1 and Research Report 2 offers a more comprehensive visualization experience. It encompasses visualizations from all sections of our analysis, providing an intuitive and interactive way to explore our research findings. Each visualization is accompanied by brief descriptions to aid in interpretation.
3. ARB Distribution Tracker
We have created a detailed Google Sheet offering unprecedented ARB token distribution transparency. This comprehensive dataset tracks the journey of ARB tokens across the ecosystem, providing granular details about each protocol’s token allocation. The spreadsheet includes critical information such as total ARB requested and claimed, distribution timelines, and tracking of recipient, intermediary, and distributor addresses.
4. Key Takeaways Document
Understanding that not everyone has the time to dive into lengthy research reports, we’ve synthesized our key findings into a concise document. This Key Takeaways document presents the most important insights from our research, offering a quick yet comprehensive overview of our research and implications for the Arbitrum ecosystem.
Some Key Takeaways from the reports for each question that we want to share are -
1. Research Report 1 -
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Sector Growth, User Interaction, and Incentive Effectiveness -
The Long-Term Incentive Pilot Program (LTIPP) demonstrated substantial growth across multiple blockchain sectors, including Wallet, Bridge, RWA, and Gaming/Gambling. The campaign significantly increased daily active users, transaction counts, and transaction volume, with notable variations in user retention rates across different sectors. Sectors like Options and Oracles showed higher user retention, while Stables/Synthetics and Gaming/Gambling experienced lower retention during the incentive period.
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User Actions with ARB Rewards and Unintended Incentivized Actions -
Users primarily utilized ARB rewards through selling and trading (over 50%), with diverse strategies across different sectors including lending, liquidity provision, and governance participation. Platforms like Paraswap and Uniswap were predominantly used for ARB reward transactions, revealing complex user behaviors. The analysis identified unintended actions such as circular transactions and immediate sell-offs, suggesting the need for refined incentive mechanisms to encourage more meaningful ecosystem engagement.
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Funding Mechanisms and Dollar-Cost Average of Incentives and High-Velocity Incentive Systems and Total Value Returned (TVR) -
The incentive funding mechanisms showed varied effectiveness in generating Total Value Locked (TVL) and user engagement. The Proprietary TVL category emerged as the most successful, achieving $12,509.95 TVL per ARB token and attracting 81.83% of ecosystem users. Volume-based and miscellaneous incentives demonstrated different levels of efficiency, with liquidity incentives through integrated partner protocols showing particularly strong performance in driving ecosystem value.
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Mercenary Users and Multi-Protocol Engagement -
Mercenary user behavior was characterized by multi-protocol engagement, with 7.80% of users interacting across different protocols. Dodo and Across emerged as key platforms in users’ strategic interactions, though governance participation remained low at 17.6%. Despite limited governance involvement, mercenary users still influenced proposal outcomes, highlighting the need for sophisticated governance mechanisms to balance short-term reward-seeking behaviors with long-term ecosystem development.
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Reward/User Ratio and Market Demand -
The analysis revealed that ARB rewards alone are insufficient for sustained user engagement, showing weak correlations with daily active users and transaction counts. Short-term transaction spikes aligned with reward peaks, but these effects were transient. The findings underscore the importance of developing comprehensive strategies beyond monetary incentives to maintain meaningful and consistent user participation in the blockchain ecosystem.
2. Research Report 2 -
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Effects of Growth Incentives on Non-Recipients Protocol in STIP & BSTIP -
Incentivized protocols across various sectors demonstrated significant growth during the Short-Term Incentive Program (STIP). Decentralized exchanges, bridge protocols, and perpetual trading platforms experienced notable increases in Total Value Locked (TVL), user activity, and transaction volumes. Some non-incentivized protocols also showed organic growth, indicating that while incentives are powerful, individual protocol characteristics and intrinsic value play crucial roles in ecosystem development and user attraction.
Team
Lampros DAO remains committed to fostering transparency in the Web3 ecosystem. Our dedicated research team brought diverse expertise to this project. @Euphoria coordinated and managed the research, ensuring clear communication throughout the research bounty. @Blueweb conducted in-depth on-chain data analysis, tracking critical metrics that form the backbone of our research. @ARDev097 specialized in data warehousing and ETL processes, creating interactive dashboards that breathe life into our data. @jason42 applied advanced statistical and econometric modeling to provide critical assessments.
Find the links to the reports and other resources below -
Reports -
- Research Report 1 on Analysis of Incentive Program Effectiveness and Value Generation for LTIPP Participating Protocols on Arbitrum.
- Statistical Report 1 on Analysis of Incentive Program Effectiveness and Value Generation for LTIPP Participating Protocols on Arbitrum.
- Research Report 2 on Effects of Growth Incentives on Non-Recipients Protocol.
- Statistical Report 2 on Effects of Growth Incentives on Non-Recipients Protocol.
Other Resources -
- Dune Dashboard
- Python Dashboard for Research Report 1
- Python Dashboard for Research Report 2
- ARB Distribution & Tracking for Individual Protocols Sheet
- Key Takeaways Doc.
We view this research as a collaborative effort and warmly invite all delegates and community members to review our reports and provide feedback. Your insights are crucial and will help in working on future research projects.