Recap of the Previous Two Weeks
Since the previous bi-weekly update, Thetanuts Finance has finalised the plan for distributing $ARB rewards to the Thetanuts Finance community.
To enable users to go long and short on on-chain options, all three components of Thetanuts Finance v3 need deep liquidity – thus forming the basis of how $ARB should be distributed over the v3 Incentivized Alpha.
Users on Add Liquidity Module: 85%. The Add Liquidity Module provides liquidity to all three components of the Thetanuts Finance v3 ecosystem. Given the importance of the Add Liquidity Module in enabling users to go long and short on on-chain options, we intend to overweight $ARB rewards for the Add Liquidity Module at 85%.
Users with Long Positions: 10%. A long position on Thetanuts Finance v3 is achieved by depositing trade collateral (i.e. $ARB) on the lending market – with a flash loan being performed at a 20x leverage (i.e. for $ARB-C) and then sold on the AMM (i.e. for $ARB). Long positions on Thetanuts Finance v3 provide liquidity in the lending market and the AMM, and such should be incentivized with $ARB rewards. However, taking into account the leveraged nature of long positions on Thetanuts Finance v3, we intend to underweight $ARB rewards for long positions at 10%.
Users with Short Positions: 5%. A short position on Thetanuts Finance v3 is equivalent to a position on a Basic Vault. Given that the majority of liquidity on Thetanuts Finance v3 is already from the Basic Vaults, we intend to underweight $ARB rewards for short positions at 5%.
The above are intended to be the initial weights for distributing $ARB rewards to the Thetanuts Finance community – wherein Thetanuts Finance should have the flexibility to move higher weights to components of Thetanuts Finance v3 depending on liquidity needs.
$ARB rewards will be distributed on a weekly basis, with allocations determined based on contribution to time-weighted TVL for the particular week. Users will be able to claim their $ARB rewards for the week on the new “Rewards” page every Friday.
Plan For the Next Two Weeks
ARB Received Last Disbursement: 28,571 $ARB
ARB Utilized as Incentives in the Last Two Weeks: n.a.
Contracts incentivized over the last 2 weeks: n.a.
Contract address label [Form 18] (ARB STIP Transparency) completed for all addresses: Yes
ARB left over: 114,285 $ARB to claim
Plan for leftover ARB:
We intend to distribute the 200,000 $ARB equally over a period of 8 weeks. The first tranche will commence on 2 February, with the final tranche to be distributed by the week of 29 March – in line with Arbitrum Foundation’s guidance on when the $ARB incentives should be distributed by.
Summary of incentives:
25,000 $ARB distributed on a weekly basis for 8 weeks between:
- Users on Add Liquidity Module: 85%
- Users with Long Positions:10%
- Users with Short Positions: 5%
Weights are subject to change at the discretion of Thetanuts Finance.
Additional Info / Disclosures to Multisig: n.a.
Stats
7D Average daily TVL: $368k
7D Average daily transactions: 482
7D Average daily volumes: $169k
Number of unique user addresses (Since Inception): 41,249
7D Avg Transaction fees: $25
Link to Dashboard showing metrics:
https://dune.com/thetanutsfinance/thetanuts-finance-v3
https://dune.com/thetanutsfinance/thetanuts-finance-arbitrum-stip-reporting