Tide Protocol STIP Addendum

Information about STIP/STIP Backfund

  1. Can you provide a link to your previous STIP proposal (round 1 or backfund)?
  1. How much, in the previous STIP proposal, did you request in ARB?

80k ARB

  1. What date did you start the incentive program and what date did it end?

Incentive started Jan 8th 2024 and ended March 30th 2024

  1. Could you provide the links to the bi-weekly STIP performance reports and Openblocks Dashboard?

Dashboard:

https://dune.com/five_elements_labs/tide-arb

  1. Could you provide the KPI(s) that you deem relevant for your protocol, both in absolute terms and percentage change, month over month, for the first of each month starting from October 2023 until April 2024, including the extremes? If you don’t know what KPI might be relevant for you or how to properly define them, please refer to the following document:

Number of protocols involved: 10 (Zaros, Flood, Magpie, 1inch, Swaap, Interport, Unstoppable, RhinoFi, LandX, Bungee)

Unique arbitrum users: 13775

Gas fees 2063 ETH

Please check our Dune dashboard for more insights: https://dune.com/five_elements_labs/tide-arb

ARB distributed: 64202

Remaining ARB: 15798

The remaining ARB tokens are a result of the time it took us to complete the development of the feature called Cycles (Cycles). We built a new way that will allow users to earn ARB tokens on a regular basis by completing quests and collecting points. However, the feature development took longer than expected and was later impacted by the Hedgey hack. We are working hard to re-enable the feature so that users participating in Tide campaigns can receive ARB tokens on a daily or weekly basis.

  1. [Optional] Any lessons learned from the previous STIP round?

The previous STIP round revealed some valuable lessons. Initially, our strategy for distributing rewards was cumbersome and slow to implement. We found that contacting projects and coordinating quest campaigns on Tide, with Tide rewarding users with ARB tokens, involved extensive back-and-forth communication before each campaign launch. However, as the program progressed, we refined our approach. We introduced a series of campaigns called “Tsunami”, organized entirely by Tide on behalf of partner projects. Each campaign would require on-chain actions on Arbitrum. This streamlined process proved to be highly successful, with over 11 thousand unique participants in just one week. We collaborated with 10 major projects in the ecosystem, distributing a total of 44k ARB tokens (Join this Space on Tide).

New Plans for STIP Bridge

  1. How much are you requesting for this STIP Bridge proposal?

100K ARB

  1. Do you plan to use the incentives in the same ways* as highlighted in Section 3 of the STIP proposal? [Y/N]

N

  1. [Only if answered “no” to the previous question] How will the incentive distribution change in terms of mechanisms and products?

We are going to use the incentive in a similar way as highlighted in section 3. We will organize a series of campaigns where multiple projects will have one campaign organized by Tide on our platform. An example of this is the Tide Tsunami campaign series. (Join this Space on Tide) . We would like to launch more series like the Tide Tsunami (two of 50k ARB distributed) with more protocols involved.

We are planning to distribute the remaining tokens from the previous STIP (around 15k) together with this new STIP Addendum for completing the following:

  • launch 2 series of Tsunami campaigns of around 40/50K ARB each with old and new partners that are building on Arbitrum.

The remaining ARB will be utilized to incentivize Tide community engagement via Tide’s innovative new feature, Cycles. Cycles enable projects to periodically distribute tokens based on users’ accumulated points. This engagement tool holds significant potential benefits for projects. Benefits include better and longer engagement as users are rewarded on a daily or weekly basis. Users are therefore incentivized to use protocols more often because the only way to be eligible to earn rewards is by completing quests every day/week to collect points. Points are then translated into ERC20 rewards.

Moreover, projects that use Cycles distribute the rewards more efficiently and effectively during the campaign period. This allows projects to constantly improve their campaign strategy.

Tide is also working on building sybil resistant campaigns using allow lists, the integration of Gitcoin Passport and the Humanode discord role verification task. Therefore, projects on Arbitrum will benefit from our sybil resistant solutions linked to Cycles

So far the quest model is not flexible (do X get Y), Tide is making it more sophisticated combining actions with continuous rewards.

Our sybil protection mechanisms also prevent bots and low quality users.

Tide will utilize all remaining ARBs to reward users through Cycles. The STIP represents an opportunity for Tide to introduce a novel distribution method. Users will be able to claim daily or weekly ARB rewards from their favorite projects. Only users gaining points through quests completion and campaigns are eligible.

Tide allows projects to launch campaigns and simple quests that ask users to complete social (Twitter and Discord) and on-chain tasks such as verifying swaps, liquidity providing, NFT holding, minimum balance, minimum number of transactions and more. Every task completion rewards users with points that add up on a leaderboard. Tide’s leaderboard, therefore, is now not only a gamification and competition tool but also a way to reward users that participate in campaigns and quests. All of this is possible with Cycles and this STIP addendum plays a fundamental role in allowing the testing of this feature with ARB rewards.

Example of Cycle campaign tasks:

  • Daily swap with project X on Arbitrum
  • Hold TVL on Arbitrum for n days
  • Bridge to Arbitrum every day
  • Deposit on a landing protocol on Arbitrum
  • Mint NFTs on Arbitrum
  • Hold Gitcoin passpord/Humanode credential
  1. Could you provide the addresses involved in the STIP Bridge initiative (multisig to receive funds, contracts for distribution, and any other relevant contract involved), and highlight if they changed compared to the previous STIP proposal?

Grant Breakdown: Using the funds to launch acquisition and retention campaigns on Tide

Funding Address: arb1:0xe199d0CA24306cFA5BAee371b821fE5B1edF3456

From the funding address we would send part of the funds to projects that would then distribute the funds as rewards to users. With Tide Tsunami campaigns the funds were moved to a wallet address managed by Tide in order to smooth the operational processes.

This is the address used for Tide Tsunami (that distributed 44k ARB to users): 0xCac1B96a81414BE3579F064aFa36282cdD126B33

Here is a summary of all the campaigns sponsored by the STIP:

Campaign Project Contract Address Arb Sent
1inch Sprint 1 1inch 0x5aD77aDa160B89CB13126F31FCDBF0F06Cc0d055 2000
1Inch Sprint 2 1inch 0x4E90961d2c1dEDEa92db68BE8338aD8642531A93 2000
Join Monitok, Enjoy Self-Custodial Trading Monitok 0x6d2AA69F8e5439141c0eA33DEd480445e0262284 200
Deposit and claim ARB tokens Swaap 0x249ea73a75559adcdb0D85C556A268EE4A2cCd0a 1500
1Inch Sprint 3 1inch 0x513949023a11D9EBBda6dbC8cca93BbE8e94320E 2000
Zaros: The Quest Zaros 0x45D553a50Eb7e8B3d9146FBEFfC17F1dD2eaA022 400
Exclusive Quest Zaros 0xD6F291767af145e8040e50A1e72AFEf152D008B8 1000
Zaros Super Giveaway Role Zaros 0x2c2CAc8e5B380120C139ae8F7c6f8980052E222b 100
The Flash Campaign - Testnet Waitlist Zaros 0x090F8519EFA3Aaa4490fD46A542B9104f670F8cA 500
Last Zaros Campaign (to launch soon) Zaros 1000
Landx Harvest Quest Landx 0xe36101fFa7E6ac8b00E9B2cE8E9Cce43aA7657e9 1000
Error balance campaign points Magpie 600
Magpie’s Arbitrum Adventure Magpie 0x046e0B5A609a9B499baE58d5b64f61ae86298293 2000
Flight to Arbitrum: 2000 ARB Prize Pool Magpie 0xcda9018841bad4031C4829ED1B6DA77e4481Ac6C 2000
Hodl LNDX to Win Landx 0xe36101fFa7E6ac8b00E9B2cE8E9Cce43aA7657e9 1000
Last LNDX Campaign (to launch soon) Landx 1000
Interport Interport 0xFdCd28aaD0baa8C11dac402FE5F34bD5C18b0694 500
Skyward to Arbitrum: Win 2000 ARB Magpie 0x8B853c534945597B9036524a10D4526fc0AE8259 2000
Arbitrum TSUNAMI below
Zaros Zaros 0xa94164b51e7aEc9d4DD7ef17562BE97d091A499D 3000
Flood Flood 0x45eb92fFF50c9cd4cA45d85CfF223c84c4506D03 3000
Magpie Magpie 0xc2F1793dd24A96aBEafA7dDf82a94EF63D59F970 3000
1inch 1inch 0x7B1b6e13830223701fD5aa021459396f6B0497EA 5000
Swaap Swaap 0x134038a53798457e2236a001cf44738526D594f6 5000
Interport Interport 0x5590e4050870Fa0daDEd9cE55ef07BA7170D8b77 5000
LandX LandX 0xc76566BC58Ee84e8E7CeD08A84301Eb5529cFddb 5000
Rhino.fi Rhino.fi 0xEF1bD616fa15166d8B77D35A5a1D3af05103E7C1 5000
Unstoppable Unstoppable 0xb6fDeb12925486D186001D9591D0dC2E4A9Bc20D 5000
Bungee Bungee 0xf22D429B1EDDD66FDb08cf6E201139C25fc5A87A 5000

Tsunami Series Recap

Project Name ARB distributed Total Claims Sessions Average Wallet Age Avg Tx Count Campaign Start Time End Time
Flood 3k 402 1210 01/10/2021 1.3k 21/03/2024 29/03/2024
1inch 5k 535 1198 09/10/2021 1.3k 21/03/2024 29/03/2024
Tide NFT 1657 3295 28/10/2020 5.2k 20/03/2024 29/03/2024
Unstoppable 5k 517 1229 09/10/2021 1.3k 21/03/2024 29/03/2024
Rhino.fi 5k 484 1114 24/02/2022 1k 21/03/2024 29/03/2024
Magpie 3k 920 1528 16/02/2021 3.8k 21/03/2024 29/03/2024
Swaap 5k 260 902 17/10/2018 13.3k 21/03/2024 29/03/2024
LandX 5k 799 1356 18/10/2021 1.3k 21/03/2024 29/03/2024
Zaros 3k 780 1314 30/09/2021 1.5 21/03/2024 29/03/2024
Interport 5k 489 1068 02/05/2019 11.3k 21/03/2024 29/03/2024
Bungee 5k 561 1403 22/05/2019 10.8k 21/03/2024 29/03/2024

ARB distributed: 64800
ARB left : 15200

Two campaigns need to be launched yet: one by LandX (1k ARB) and one by Zaros (1k)

Address that received the STIP: 0x234ac2bc4ed77819de16634e172c8014024773b7

Funding Address Characteristics: Multisig 2/3

Contract Address: ERC20 factory. 0xfB51d25c88819E25EEA78933c82D3985835Eda95

  1. Could you share any feedback or suggestions on what could be improved in future incentive programs, what were the pain points and what was your general evaluation of the experience?

Pain point: there is the Arbitrum forum, however the communication is often not clear. We’d like to have some reference people that are responsible for keeping contact with companies that received the STIP and are available in case of doubts or questions.

Incentive programs for web3 marketing platforms like Tide are very useful as they promote activity on projects working on Arbitrum while rewarding many participating users with small rewards. For example, the series of the Tide Tsunami campaigns was able to reward more than 11k users with chunks of 100ARB each. This was done in one week, however if the campaign would have lasted longer we believe numbers would also be higher. This spreads the ARB tokens to many users instead of just a few.

Hey @Matt_StableLab
could we at Tide kindly have an advisor?

Hello @clis ,

Thank you for your application! Your advisor will be @JoJo.

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.

1 Like

On behalf of the Arbitrum community members who delegated their voting power to us, we’re voting Against this proposal.

While Tide Protocol achieved some notable metrics in the initial STIP like involving 10 protocols, attracting 13.8K unique users, and generating over 2K ETH in gas fees, it’s unclear how much of this activity was a direct result of the incentives vs. organic growth of the platforms. The fact that 20% of the ARB allocation remains undistributed due to product delays also raises concerns about efficient capital deployment.

The pivot to hosting streamlined “Tsunami” campaign series was a smart iteration that boosted participation to 11K users in a single week. However, simply repeating this for the majority of the 100K ARB bridge request without clearer projections of the marginal impact leaves me uncertain of the potential ROI for the DAO.

The new “Cycles” rewards system for campaign and quest participants does sound promising as a novel ongoing distribution method with some sybil resistance measures. But with it still being untested, I’m hesitant to dedicate significant additional funding to it at this stage.

Overall, while Tide has undoubtedly made some positive contributions to Arbitrum adoption, I don’t feel there is sufficient evidence that doubling down with another large grant is the optimal use of limited resources right now. I would prefer to see the remaining 15.8K ARB from the initial round be used to demonstrate the efficacy of the new strategies before potentially revisiting further funding in the future.

Savvy DAO has voted FOR the Tide Protocol Proposal

I’ve voted FOR Tide Protocol STIP Addendum.