SECTION 1: APPLICANT INFORMATION
Applicant Name: Telcontar
Project name: Tigris Trade
Project Description: Tigris Trade is a liquidity-efficient decentralized leverage trading protocol. Our custom off-chain decentralized oracle powered by Pyth and synthetic liquidity allows for a wide range of pairs and leverage, instant execution and no slippage.
Our product offers:
- Synthetic liquidity across all pairs
- The option to autocompound provided liquidity
- Guaranteed Market Order prices
- Guaranteed Take Profit and Stop Loss price
- Guaranteed Limit order price
- Option to add and remove margin
- Option top open a position on top of another
- Option to partially close positions
- Chart trading
Team Members and Roles:
- GainsGoblin: Lead Dev, Co-Founder
- Haz: Lead Dev, Co-Founder
- Telcontar: Biz Dev
- Hederan: Frontend Engineer
- Chilly: Backend Engineer
- Henrystats: Data Analyst
- Junion: Biz Dev and Graphics
Project Links:
- Website: https://tigris.trade
- App: https://app.tigris.trade
- Twitter: https://twitter.com/TigrisTrades
- Docs: https://docs.tigris.trade
- Github: Tigris-Trade · GitHub
Contact Information
Point of Contact: Telcontar
Point of Contact’s TG handle: Telegram: Contact @telcontardefi
Twitter: @telcontardefi
Email: team@tigris.trade
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Tigris Core Team possesses extensive on-chain development and operational experience. The team has successfully launched Tigris in September 2022 with constant updates and new features.
Shipped in the last few months:
- Full website overhaul
- ETH as collateral
- Liquid LP staking
What novelty or innovation does your product bring to Arbitrum?:
Tigris is powered by the unique Distributed Signature-Based Oracle Network.
Oracle nodes are connected to the Pythnet price feed. The asset prices and other related data is signed and broadcasted directly to Tigris users, which is used to place market orders.
Upon placing a trade, price data and signature is included in the transaction input parameters, where the validity of the data and the signatures are verified on-chain.
This achieves:
Reliable prices with no slippage.
Instant order execution: the speed of the platform is only limited by Arbitrum block time.
On Tigris, Liquidity is provided through Liquidity Tokens (LTs): stablecoins pegged to a token and backed by it.
They are redeemable 1:1 for the native asset in its respective Liquidity Vault, allowing for a perfectly stable peg. The tokens are aimed at always being very overcollateralized.
Opening a trade on Tigris will automatically deposit the margin into the Liquidity Vault that supports it. When closing the position, the trader will be paid with the respective Liquidity Token.
Liquidity Vaults act as counterparties to traders on all pairs. Thanks to this Tigris has an high capital efficiency and can support a wide range of assets and pairs.
Is your project composable with other projects on Arbitrum? Liquidity Tokens can be staked or natively auto-compounded in the form of ERC-20 autoLTs. These tokens accrue value from trading fees and can offer utility across various protocols.
For example, a lending protocol could accept autotigUSD as collateral. This provides benefits beyond simply earning trading fees, attracting more liquidity providers and ultimately improving the trading experience for everyone on the protocol. By accepting autoLTs as collateral, lending protocols enable users to borrow against their staked liquidity positions, expanding borrowing options and fostering a more efficient lending ecosystem.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Comparable protocols:
- GMX: Fragmented liquidity in GM tokens which prevents the protocol from supporting a wide range of pairs.
- Gains Trade: Slower executions and slippage due to its Decentralized Oracle Network which requires Callbacks (double transaction).
- Vertex: Hybrid Orderbook-AMM model with slow execution and low leverage.
- Hyperliquid: Orderbook Model with fragmented liquidity and market making. Prone to price spiking.
How do you measure and think about retention internally?
We measure retention values via our Dune Dashboard.
The dashboard contains the following metrics (and many more):
- Daily Active Users
- Daily Trading Volume
- Daily Fees
- Daily Trades
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? No
SECTION 2b: PROTOCOL DETAILS
Is the protocol native to Arbitrum?: Tigris was first deployed on Polygon in September 2022 and on Arbitrum in October 2022.
On what other networks is the protocol deployed?:
- Polygon
- Meter
What date did you deploy on Arbitrum mainnet?: Oct-19-2022
Do you have a native token?: Tigris (TIG) is the protocol token that can be staked to receive trading fees and to vote on governance proposals. It was fair launched on June 1st 2023. Tokenomics
Past Incentivization:
We have utilized our own token to incentivize trading in the form of xTIG. Every 7 days (an epoch), 500 xTIG were distributed to traders.
By trading, xTIG is automatically credited to the user: After the epoch has concluded, the tokens can be claimed in the form of xTIG.
After claiming, a trader can either:
- Unlock it immediately for a 50% penalty.
- Wait the end of the epoch to unlock it and withdraw it as TIG.
- Leave it as it is, since xTIG earns trading fees like staked TIG.
The performance of the xTIG program is shown in the TIG Dune Dashboard.
Current Incentivization: We are currently distributing 1000 USDT and 100 TIG daily to Arbitrum traders (starting from 29th February 2024).
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? No
Protocol Performance:
Since its deployment on Arbitrum Mainnet, Tigris has achieved:
- Over $870m in trading volume across all chains (More than 90% of this volume from Arbitrum traders).
- Accrued and distributed more than $365k in fees.
- Onboarded 730 traders.
- Processed more than 21k on-chain trades.
Protocol Roadmap:
The next steps in the protocol roadmap are:
- Add ETH pairs
- Grow liquidity vaults
- Improve UX
- Attract more traders
- Add more trading features
Audit History & Security Vendors: Tigris Trade has been audited by Code4rena.
Security Incidents: Tigris has had two security incidents. The first one was due to a logical error in one of our contracts and the second was made possible by an architecture error.
In detail:
- The first incident was caused by a missed parameter check in one function related to the AddToPosition feature. Losses were around $15k and the contract was closed very rapidly before the exploiter was able to drain any more funds. The issue was found and batched.
After this exploit, all contracts have been audited in a large scale Code4rena public audit contest. - The second incident was caused by the previous oracle architecture, which made it possible to frontrun slightly delayed oracle prices. Losses were around $40k.
After this, the oracle architecture was completely redesigned without sacrificing trading speed by implementing a network of whitelisted keepers.
SECTION 3: GRANT INFORMATION
Requested Grant Size: 248,000 ARB.
Justification for the size of the grant:
Similar projects, focused on perpetual derivatives, have received grants in previous rounds. Tigris expands Arbitrum’s DeFi offerings further by providing an advanced and accessible trading experience.
With this grant, we will attract new users and increase trading volume, directly contributing the chain’s position as the leading DeFi hub.
We will use the ARB to:
- Host weekly trading competitions.
- Distribute daily rebates on trading fees
- Provide Incentives to Trading Vaults Liquidity Providers
Breakdown:
Grant matching: No
Grant breakdown: The grant will be entirely distributed to traders and trading liquidity providers.
- Weekly Trading Competition: Every week the 10 traders with the best relative PnL will receive 5,000 ARB. Ranking traders by sum of relative PnL will allow small traders to participate in the competition.
- Trading Fees Rebate: Every day, around 1,760 ARB will be distributed to traders as a rebate for trading fees paid to the protocol. This will allow more traders to participate in the competition. A daily distribution (instead of weekly), spreads out the rebates in order to avoid fee farming.
- Incentives to Trading Vaults LPs: Tigris currently supports tigUSD and tigETH Liquidity Vaults. 3,333 ARB will be distributed proportionally to tigUSD and tigETH stakers in order to increase the liquidity available to traders.
Funding Address: 0xF416C2b41Fb6c592c9BA7cB6B2f985ed593A51d7
Funding Address Characteristics:
This is our Arbitrum Multisig, which is also our Treasury address.
This address is a 2/3 multisig composed of core team members. All wallets are hardware signed with keys stored in cold storage. The multisig is able to accept and interact with ERC-721s.
The signers are:
- 0x8c807CDdB6fAADF96956353f70ea60D63fAb69D5
- 0xa77fEaE6752429a7ef263B40479Df84971F7d230
- 0xdfa65c5064087437bffa661bc3118fa8abd0e469
Treasury Address: 0xF416C2b41Fb6c592c9BA7cB6B2f985ed593A51d7
Wallets that hold DAO Funds:
- 0x8c807CDdB6fAADF96956353f70ea60D63fAb69D5
- 0xa77fEaE6752429a7ef263B40479Df84971F7d230
- 0xdfa65c5064087437bffa661bc3118fa8abd0e469
Contract Address: Not live yet.
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
The goal of the grant is to:
- Increase trading volume on Tigris Trade through trading competitions and rebates on fees.
- Attract more liquidity into the protocol and use the competition as a marketing flywheel for both the platform and Arbitrum.
Execution Strategy:
Trading competition prizes, fee rebates and liquidity incentives will have to be manually claimed by eligible users.
ARB will be available to claim at any moment after being awarded to the user.
60,000 ARB - Weekly Trading Competition
The weekly trading competition will be tracked through a leaderboard which will store all the trades made by all users from the competition’s beginning to its end. The data will also be available on Dune.
The 5,000 ARB for each week will be divided among the top 10 traders.
148,000 ARB - Daily Fees Rebates
Traders will earn a 70% rebate on fees, accrued in ARB tokens with a value matching their USD fee value.
Returning traders (from the previous week) will receive an extra 20% rebate, and traders using a referral code will receive an extra 10%.
Any unused ARB at a week will be added to next week’s allocation.
This model encourages both sustained usage and user-driven growth. Traders are incentivized to become repeat users, refer friends, and actively participate in the Arbitrum ecosystem, as these actions are necessary to maximize their rebates.
40,000 ARB - Liquidity Vaults LPs
Liquidity providers that are staking in the tigUSD or tigETH vault will receive ARB rewards proportionally to their share of the pool’s TVL. The 3,333 ARB weekly rewards will be distributed 50/50 between tigUSD and tigETH. In order to be eligible for each week’s rewards, a Liquidity Provider will need to remain staked for the full length of the week.
Any unused ARB at the end of the incentives period will be sent back to Arbitrum DAO.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
The trading competition will onboard users which will experience a superior trading platform. Also, the fee rebate design encourages users to come back to the platform week after week. This recurring chunk of traders will encourage liquidity to remain staking in the protocol. Is worth noting that in order to unstake from Liquidity Vaults with no penalty, stakers have to wait 7 days, further increasing “stickiness”.
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:
Our goal is to increase:
- Daily active users
- Trading Vaults Liquidity
- Trading Volume
All metrics will be published on Dune.
Grant Timeline and Milestones:
We plan to immediately utilize the ARB for the incentives as outlined above.
Ideal milestones:
Tigris is a small and less-known project, we has set significant and achievable milestones for our protocol. We plan to utilize ARB as a catalyst to accelerate Tigris’s growth. As trading volume increases, the protocol’s organic APR will also rise. This, in turn, is expected to enhance our TVL, enabling us to accommodate larger trade sizes and attract larger traders. Currently, our vaults’ TVL is insufficient for handling big trades, which is why larger transactions were not our target market. However, we are confident that ARB will push our growth and organic APR and that would ensure that both TVL and traders remain even after the incentives have concluded.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? Leveraged trading is on of the fastest growing sector in Decentralized Finance as people move away from CEXs.
Arbitrum has captured a large share of this TVL and need to protect its spot as the top L2 EVM chain for Derivatives.
We are confident to be able to retain users and liquidity thanks to our unique trading experience and platform. This will contribute to the growth of Arbitrum’s DAU and TVL.
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?
We agree to comply.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?
Yes, we will provide bi-weekly updates.
Our Dune dashboards already include all the data asked for and will be integrated with more queries specifically related to the ARB incentives distributed.
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? 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