[Tradao] 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: Wing

Project Name: Tradao

Project Description: Tradao is a Web3 Onchain Derivatives Data & Portfolio Platform that empowers traders with a comprehensive toolset, open and real onchain data, such as Copy-trading, Backtesting, Grid Trading Bot, etc.

Team Members and Roles:

Long - Founder - Product Lead

Wing: Co-founder - Head of Operation & Growth

Samuel: Co-founder - Core Developer

Patrick: Developer - Full-stack Developer

Wan: Designer - UI/UX

Project Links:

Website: Tradao-Best Web3 Derivatives Portfolio Tracker

Twitter: https://twitter.com/Tradaoperp

Github: Tradao · GitHub

Discord: Tradao

Telegram: Telegram: Contact @tradaoperp

TG Bot: Telegram: Contact @TradaoBot

Contact Information

Point of Contact: Wing

Point of Contact’s TG handle: wingperp

Twitter: tradaoperp

Email: wing@tradao.xyz

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]):

  • Long

Former Mytoken & Bcoin head of product, mod of Aplaca Finance, and Looksrare, 7 years product manager experience in different crypto project, Serial entrepreneur, former chief founding member of a B round Web2 project

  • Samuel

Used to work in Alibaba, was previously CTO of a Polkadot parachain, NFT fragmentation protocol & DEX, Omnichain project, and has five years of blockchain full-stack development experience.

  • Patrick

Used to work in Alibaba as a software engineer, Stepn & Gas Hero as full stack developer, and has 3 year blockchain development experience

  • Wing

Worked at venture capital as operation & growth manager, Former core contributor of an omnichain project, Deeply involved in the operation of many dapps from 0-1, especially good at user and community operation of defi.

  • Wan

Worked with various blockchain projects, like Mytoken, Bcoin, Coinversation, Kaco Finance, has 6 year UI/UX experience

We all start our Web3 journey for several years. Our team’s diverse experience across blockchain development, product management, UI/UX design, community operation, and venture capital provides a solid foundation for our project’s success. Especially the experience of Defi, Long started to do the product about CEX derivative data tracking and copy trading when he worked on Bcoin in 2018. We totally know the pain point of the traditional CEX derivative data and copy trade. That’s why we build Tradao

What novelty or innovation does your product bring to Arbitrum?

Tradao is not only the first data platform focused on on-chain derivative data, but we also built the first permissionless copy trading on Arbitrum. Tradao started with the vision to revolutionize the way traders interact with on-chain data and execute trades just like using CEX. Recognizing the challenges traders faced in accessing reliable data and executing strategies efficiently, we aimed to create a comprehensive platform that not only aggregates data from various sources but also introduces innovative trading tools include but not limited to copy trading, backtesting, and grid trading, etc. Our vision is to help every user access advanced trading strategies, making them available to traders of all experience levels, thereby leveling the playing field in the onchain derivative sector.

Is your project composable with other projects on Arbitrum? If so, please explain:

Yes, as Tradao is an onchain derivative data platform, we can compose with all derivative protocols on Arbitrum. At the moment, we have already integrated with GMX and support permissionless copy trading via GMXv2. All the functions can also be applied to other derivative protocols.

Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?

Yes, I would serperate the comparable protocols in two types. One is the dashboard and data analytics. The other one is the toolset for empowering trading.

From the dashboard and data analytics of onchain derivatives, there are Perps.ai, Copin, puppet.house, Chaoslabs.

From the toolset for empowering trading, there is Copin only. Although there are some other protocol mentioned they are also doing copy trading, like stfx, valio.xyz. However, they are more like asset management. Users can only follow and copy some specific trader on their platform, not a permissionless copy trading.

How do you measure and think about retention internally? (metrics, target KPIs)

In our quest to cultivate and maintain a vibrant community at Tradao, we deploy a sophisticated set of analytical tools and key performance indicators (KPIs) aimed at capturing the essence of user engagement and satisfaction. Our strategy for assessing and boosting retention orbits around a meticulously selected array of metrics:

Engagement Insights:

First-Time User Acquisition: We monitor the arrival of new members through initial interactions, be it through setting up an account or their first trading venture. This assists us in gauging our platform’s appeal and growth trajectory.

Active User Metrics (Daily and Monthly): Our analysis hinges on tracking both Daily Active Users (DAU) and Monthly Active Users (MAU) to paint a comprehensive picture of our platform’s daily and monthly engagement. A higher MAU to DAU ratio signals robust user retention, indicating our success in keeping users engaged over longer periods.

Trading Dynamics:

Trading Volume Analysis (Daily/Weekly/Monthly): We delve into the aggregate trading volumes to assess the market’s vitality and our platform’s role within it, offering a direct window into the economic activity and engagement on Tradao.

Protocol Revenue Streams: By examining the fees accrued from trading activities on a daily, weekly, and monthly basis, we will derive valuable insights into our platform’s financial sustainability and market footprint.

Transaction Count: The volume of transactions processed serves as a barometer for our operational capacity and user engagement, reflecting the active utilization of our services.

Continuous Evolution:

Leveraging direct feedback from our community through social channels enables us to align our platform’s evolution with our users’ needs and preferences. This iterative process of feedback and adaptation is critical for fostering a user-centric environment conducive to retention and loyalty.

Relevant usage metrics - Please refer to the OBL relevant metrics chart 29 . For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:

Category List of Metrics
General Metrics Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts. Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts. Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts. Daily Protocol Fee: A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users. Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts. Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics. Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.
Perpetuals For each tradable asset: Trading Volume: A daily time series, also measured in USD. Open Interest: A daily time series measured in USD. List of Traders: A comprehensive record of individuals or entities that have engaged in trading activities. This list should include trader addresses and the volume of trades executed. Trader Net P&L Improvement: The change in traders’ profit and loss accounts, reflecting on the platform’s fairness and attractiveness to traders. Liquidations: A daily time series measured in USD.

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):

No

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?: Yes

On what other networks is the protocol deployed?: No

What date did you deploy on Arbitrum mainnet?: [Date + transaction ID. If not yet live on mainnet, explain why.]

As an Onchain Derivative Data & Portfolio Platform, we have integrated GMX and started to serve the users with GMX data on 17 May 2023. Until 19 Jan 2024, we have deployed our first contract on Arbitrum for the copy trading function (Arbitrum Transaction Hash (Txhash) Details | Arbiscan), and updated on 5 Feb 2024 (Arbitrum Transaction Hash (Txhash) Details | Arbiscan)

Do you have a native token?: No

Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable? No Incentivization before

Current Incentivization: How are you currently incentivizing your protocol?

GMX Copy Trading Competition: Win Big with 30,000 ARB: Dive into Tradao’s Revolutionary Copy Trading Competition | by Tradao | Mar, 2024 | Medium

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)]

Yes, we have passed and will be able to receive 100k $ARB from GMX open grant. Here is how the funds were allocated and we received.

Milestone Details Amount Status
Copy-Trading Beginners-friendly. Follow, copy, automate, and earn by copying the trades from GMX top traders based on their real-time PnL. 20k $ARB Done, received
Backtesting Users will be able to do backtesting by setting the parameter with the GMX’s trader performance 10k $ARB Done, not received
Copy-Trading TG Bot Allow users to do copy-trading via telegram bot with AA wallet 10k $ARB Done, not received
Grid Trading Bot Allow trader to set up grid trading strategy on GMXv2 10k $ARB Done, not received
Audit Engage a reputable audit firm to ensure safety 20k $ARB Done, received
Trading Competition & Fee Rebates Campaigns for user engagement and rewards 30k $ARB Ongoing, not received

Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

There are two part of metrics, off-chain and on-chain data.

Off-chain Data

  • 12000 MAU, this MAU data came from Google Analytics(GA), Here is our GA sceenshot

Onchain Data

Contributed more than 60M trading volume to GMX: We have created 2 different code to count the trading volume. They are “Tradao” and “Tradaox”.

Check the code on GMX Referral: GMX Referrals

  • Code of Tradao: It’s the old code we used before our copy trading function live without any incentive.
    • Code created at: April 2023
    • Trading volume: 50,406,528
    • Traded: 1,366
    • Address: 60

  • Code of Tradaox: It’s the new code we used after our copy trading function live.
    • Code created at: Jan 2024
    • Trading volume: 27,920,792
    • Traded: 828
    • Address: 66

Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]

  • Release the trading reward page for the users who contributed to GMX (Released on 6 March)
  • Launch Backtesting (Released on 12 March)
  • Launch TG Bot to manage copy trading (Released on 14 March)
  • Launch Grid Trading Bot to empower users via GMXv2 (Released by 31 March)
  • Build a Dashboard for grant distribution, related metrics and KPI (Released by 31 March)
  • Integrated with other Arbitrum’s perp DEXs for more onchain derivative data
    • Synfuture (Integrated by June)
    • GNS (Integrated by July)

Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]

We have been audited by Peckshield. Here is our audit report

Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]

We don’t have security incidents before

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: 190k

Justification for the size of the grant 34 : [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]

  • AA(Account Abstraction) Trading Rebates (73.68% - 140,000 ARB):

    • Increase the total transacted volume via Tradao
      1. Currently at $2.56M daily volume with 78.6 daily transactions
      2. Targeting ~$5M daily volume (100% growth) with 150 daily transactions (100% growth)
    • Incentivize fee rebate → less cost to trade → more trades → more volume and likely users
    • Tradao’s permissionless copy trading (PCT) officially launched on 6 March 2024 but has already contributed 20m+ trading volume to GMXv2. The data can be checked above. As GMX is now offering up to 75% of open fee rebates, we hope to maintain this incentive for traders after GMX’s trading incentive ends, in case the traders are affected. Because all positions will be opened on GMXv2, those GMX users are Tradao’s potential users, too.
    • As Tradao is totally free to every user, we don’t charge any cost from users. This means all the costs are the gas fee and the fee charged by GMX. GMXv2 now applies the open fee of ~0.06% of the transacted volume and ~$2 execution fee (After Dencun update, previously ~$10). We want to rebate 80% of open fees and execution fees back to users. To achieve this, at a target of $5M daily volume and 200 daily transactions, across 12 weeks, it would require:
      • USD equivalent = ($5M * 0.06% * 80%+ 200* $2* 80%) * 365 * 12/52 = $279.65K
      • ARB amount = $279.65K / $2 = 139.8K ARB at $2
    • As the execution fee may be much lower after 18 Mar, 130,000 ARB will be distributed for open fee rebates based on the trading volume, and 10,000 ARB for the execution fee.
    • Achieving this level of volume and transactions on the platform should also greatly increase users. These newly acquired users, if retained, are likely to continue pushing volume and driving fees for GMX. As referenced above, this KPI achievement will grow our user base and reduce their cost, allowing for a strong return for GM providers on GMXv2 and incentivizing future deep liquidity.
  • Trading Competition (23.68% - 45,000 ARB)

    • Allocated for a trading competition, this fund aims to enhance user engagement by rewarding both top PnL copy traders and those whose strategies are most copied and profitable, thereby fostering a competitive yet collaborative environment. This strategy is expected to not only increase platform usage but also spotlight successful trading strategies, attracting more participants.
    • ARB/Per week = 45,000/12 = 3750 ARB
    • To achieve the above goal, we will reward 3 different top trader
      1. Top Profit Lead Trader (Copy trader): 1250 ARB
      2. Top Profit Copy Trader: 1250 ARB
      3. Top Loss Copy Trader: 1250 ARB
  • Wallet Generation Incentive (2.63% - 5,000 ARB):

    • Increase the total amount of AA wallet addresses to Arbitrum & GMX via Tradao
    • Prepaid AA Wallet Generation Fee → less cost before AA trade → more willing to try AA trades → more volume and likely users
    • We are not only targeting new user acquisition but also activating Arbitrum’s perpetual trader. This fund rewards users for creating an AA wallet and completing their first AA trade on Arbitrum. Given that the cost of wallet creation is approximately $0.5, we hope to pay a 100% AA wallet generation fee for users using the characteristics of AA.
      1. ARB value = $2 * 5,000 ARB = $10,000 ARB at $2
      2. No. Of AA wallet can be created: $10,000/$0.5 = 20,000 AA Wallet
    • 20,000 AA wallets are only ~6% of GMX’s total users. As Tradao has already provided service for the GMX community for almost a year, lots of GMX users trust and use Tradao. Also, there are ~6900 users following perpetual trader on Tradao, as you can see above. Therefore, we believe 20,000 AA wallets are realistic.
    • For the whole ecosystem, by using AA wallets, we can help users to pay their gas fees with ARB. That is a great use case for ARB

Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]

N/A

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

The grant proposal for the deployment of funds focuses on three primary areas: AA (Account Abstraction) Trading Rebates, a Trading Competition, and a Wallet Generation Incentive, with the overarching goal of increasing platform engagement, trading volume, and user acquisition on Tradao and GMX. Here’s a detailed breakdown of the planned use of funds:

  1. AA Trading Rebates (73.68% - 140,000 ARB)

The largest portion of the ARB token distribution is allocated to trading rewards. Users engage with Tradao’s toolset(Copy trading, Grid Trading, etc) and we will calculate and rebate 80% of the user’s open fee and execution fee in every transaction. All the distribution will be distributed by smart contract automatically and can be tracked on the block explorer.

  1. Trading Competition (23.68% - 45,000 ARB)

Allocated for hosting a trading competition, this portion of the budget is aimed at:

Increasing user engagement by rewarding top performers among both PnL copy traders and those with the most copied and profitable strategies. Allocating 3750 ARB per week to reward the top traders across three categories, thus fostering a competitive and collaborative environment on the platform. This approach is expected to spotlight successful trading strategies, attracting more users to the platform and encouraging active participation.

  1. Wallet Generation Incentive (2.63% - 5,000 ARB)

Dedicated to increasing the number of AA wallet addresses on Arbitrum & GMX via Tradao, this fund is designed to:

Covering the AA wallet generation fee will reduce the initial costs associated with AA trading, encouraging new users to engage in AA trades. Incentivize the creation of 20,000 new AA wallets, a figure that represents a feasible target given Tradao’s existing user base and the trust it has built within the GMX community. By facilitating AA wallet usage, this initiative also promotes the utility of ARB for gas fee payments, enhancing the ARB ecosystem’s value proposition.

Overall, this grant breakdown outlines a strategic allocation of funds towards initiatives that are expected to drive significant growth in trading volume, enhance user engagement, and expand the user base, all while fostering a supportive ecosystem for traders on Tradao.

Funding Address:

0xf831F2EcC34eBE96347268aE444dCE9d961842C7

Funding Address Characteristics: [Enter details on the status of the address; the eligible address must be a 2/3, 3/5 or similar setup multisig with unique signers and private keys securely stored (or an equivalent custody setup that is clearly stated). The multisig must be able to accept and interact with ERC-721s in order to accept the funding stream.

Safe wallet with 2/3 multisig

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

N/A

Contract Address:

0x51d36c03bfE0ACAe2b16bA149B3A2D987496bfA3

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: [Clearly state the primary objectives of the grant and what you intend to achieve]

The grant proposal aims to strategically enhance the Tradao and GMX ecosystems by focusing on user engagement, trading volume growth, and technological innovation. The primary objectives, designed to be specific, measurable, achievable, and realistic, are outlined as follows:

1. Significantly Increase Trading Volume and Transactions

  • Objective: Grow Tradao’s daily trading volume from $2.56 million to approximately $5 million and increase daily transactions from 78.6 to 150 within a 12-week period.
  • Justification: This growth targets a 100% increase in daily volume and a substantial rise in transactions, leveraging the Account Abstraction (AA) Trading Rebates. By reducing the cost of trading through fee rebates, we aim to incentivize higher trading frequencies, thus attracting more users and increasing overall platform activity.

2. Boost User Engagement through a Trading Competition

  • Objective: Implement a trading competition over 12 weeks, rewarding top performers among profit and loss (PnL) copy traders and those with the most copied and profitable strategies, to significantly enhance user engagement and platform participation.
  • Justification: By fostering a competitive yet collaborative environment, the trading competition aims to spotlight successful strategies, thereby attracting more participants and increasing platform usage. This initiative is expected to not only enhance user activity but also promote the sharing of high-performing trading strategies, benefiting the broader community.

3. Expand the User Base with Wallet Generation Incentives

  • Objective: Increase the total number of AA wallet addresses by incentivizing the creation of 20,000 new AA wallets on Arbitrum & GMX through Tradao, targeting a substantial percentage of the existing user base and new users.
  • Justification: By covering the wallet generation fees, this initiative aims to lower the entry barriers for new users and encourage existing perpetual traders on Arbitrum to engage in AA trades. This strategic move is designed to not only expand the user base but also promote the adoption of AA technology, demonstrating its benefits and enhancing the ecosystem’s utility.

4. Ensure Sustainable Growth and User Retention

  • Objective: Through the implementation of AA Trading Rebates and the Trading Competition, achieve a significant increase in platform users and maintain high engagement levels, with the goal of retaining newly acquired users through continued innovation and incentives.
  • Justification: The combination of reducing trading costs and rewarding trading excellence is anticipated to not only attract a large number of new users but also to foster a loyal user base that contributes to ongoing trading volume and platform growth. This approach aligns with the goal of creating a sustainable ecosystem that continuously attracts and retains users by offering tangible benefits and innovative features.

These objectives are designed to leverage the grant funds in a manner that maximizes impact on the Tradao and GMX ecosystems, driving growth, engagement, and technological adoption in a measurable and achievable way.

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.]

The execution strategy for utilizing the grant funds is designed to leverage ARB token distribution through a combination of trading rebates, competitive rewards, and AA wallet generation incentives to drive engagement, increase transaction volumes, and expand the user base on Tradao and GMX. Here’s a detailed plan covering token distribution methods, incentivization strategies, resource allocation, and risk management:

1. AA Trading Rebates (73.68%% - 140,000 ARB)

  • Token Distribution Method: The distribution of ARB tokens will now be conducted directly through an automated rebate system. Users engaging with Tradao’s diverse array of trading tools, such as Copy Trading and Grid Trading, will receive a rebate of 80% on both the open fee and execution fee for every transaction they make. This process is automated by smart contracts, ensuring a high level of efficiency, transparency, and trust. All rebates and transactions are verifiable in real-time via the block explorer, offering users clear insight into the incentives they are earning.
  • Incentivizing Strategy: The direct rebate system is designed to significantly reduce the trading costs for users, motivating an increase in both the volume and frequency of transactions on the platform. By directly reducing users’ trading expenses, this strategy aims to cultivate a more vibrant, active, and engaged trading community on Tradao.
  • Use of Funds: The allocated ARB tokens will be dedicated to fulfilling the rebates for the open and execution fees, directly incentivizing increased trading activity. This strategic investment is anticipated to bolster trading volumes and user engagement, thereby enhancing the liquidity and overall ecosystem health of Arbitrum & GMX.

2. Trading Competition (16.67% - 45,000 ARB)

  • Token Distribution Method: Funds allocated for the trading competition will be distributed as rewards to top performers in different categories: Top Profit Lead Trader (Copy Trader), Top Profit Copy Trader, and Top Loss Copy Trader. A total of 3750 ARB will be awarded per week over the duration of the competition.
  • Incentivizing Strategy: The competition is designed to incentivize users to engage more deeply with the platform’s trading strategies, fostering a competitive yet collaborative environment. This is expected to not only increase platform usage but also highlight successful trading strategies, attracting more participants.
  • Use of Funds: The ARB allocated for the competition will be used as prize money for the winners, serving both as an incentive for current users to increase their trading activity and as a marketing tool to attract new users to the platform.

3. Wallet Generation Incentive (1.85% - 5,000 ARB)

  • Token Distribution Method: This incentive focuses on reducing the entry barrier for new users by covering the cost of AA wallet creation. The fund will support the creation of 20,000 new AA wallets, with users receiving a 100% rebate on the wallet generation fee.
  • Incentivizing Strategy: By eliminating the initial costs associated with AA trading, this program aims to encourage new users to start trading on Arbitrum & GMX via Tradao. It targets not only new user acquisition but also the activation of existing Arbitrum perpetual traders.
  • Use of Funds: The allocated ARB will cover the AA wallet generation fees for users, facilitating an easier and more accessible entry point into the ecosystem. This approach is expected to significantly expand the user base, leveraging Tradao’s established trust within the community.

Risk Management and Monitoring

  • Risk Management: To mitigate risks associated with market volatility, regular and compliance checks will be conducted to ensure the integrity of the token distribution processes.
  • Monitoring and Adjustment: Performance metrics such as user engagement, transaction volume, and wallet creation rates will be closely monitored. Adjustments to the incentive structures will be made as necessary to ensure the programs achieve their intended outcomes without exceeding budget constraints.

This comprehensive execution strategy is designed to use the allocated funds efficiently to stimulate growth, enhance user engagement, and ensure the long-term viability of the Tradao and GMX platforms within the Arbitrum ecosystem.

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]

To enhance user engagement and retention, our incentive design integrates a “Lucky Bag Reward Mechanism” that offers tangible benefits while promoting continued platform interaction. This mechanism is meticulously crafted to ensure sustainability and attractiveness through diverse rewards and strategic funding sources. The most important thing is this mechanism does not rely on the ARB reward from LTIP; the reward is independent and sustainable. Here’s a breakdown of its implementation:

Tradao Lucky Bag: Tradao-Best Web3 Derivatives Portfolio Tracker

Lucky Bag Reward Mechanism

  • Design Detail: The Lucky Bag is a novel reward system aimed at providing users with a delightful and unpredictable reward experience. It’s structured to offset a portion of their trading costs, thereby incentivizing increased platform usage. Each Lucky Bag contains a curated mix of rewards, including USDC, and exclusive Tradao Points. This diversified reward pool caters to different user preferences and needs, enhancing the overall appeal of the Lucky Bag.

  • Sustainability and Funding: Tradao’s protocol income provides a portion of the Lucky Bag’s value, ensuring its sustainability beyond the initial grant period. Specifically, 40% of the referral rewards earned from GMX are allocated to the Lucky Bag pool. This approach not only makes the reward mechanism financially viable in the long term but also aligns it with Tradao’s operational success, creating a positive feedback loop that benefits both the platform and its users.

  • Attractiveness Without ARB Incentives: Even in scenarios where ARB incentives might fluctuate or diminish, the inclusion of USDC and Tradao Points ensures that the Lucky Bag remains a compelling reward. USDC adds a stable value component, appealing to users seeking predictable returns, while Tradao Points offer exclusive benefits within the ecosystem, such as access to premium features or discounts on trading fees.

  • Implementation and “Stickiness”: To foster long-term engagement (“stickiness”), the Lucky Bag rewards are structured to encourage regular platform interaction. For example, eligibility criteria could include reaching a certain trading volume or participating in community events, prompting users to stay active. Furthermore, the unpredictable nature of the Lucky Bag’s contents adds an element of excitement and anticipation, motivating users to continue trading and interacting with the platform to see what rewards they might receive next.

This incentive design, through its focus on sustainability, diversity of rewards, and strategic alignment with platform growth, is intended to not only attract new users but also ensure their prolonged engagement with Tradao. By making trading more cost-effective and rewarding, we aim to build a loyal user base that contributes to the platform’s vibrancy and success.

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.]

Considering the grant size mentioned previously, with an upfront allocation and specific KPIs in focus, let’s detail a strategy for estimating growth success across the program’s duration. This approach will ensure alignment with the grant’s objectives and efficient use of funds. We promise 100% of the grant will be used for user incentive.

Grant Size and Initial Allocation

  • Total Grant Size: 190,000 ARB
  • Upfront Allocation: 38,000 ARB (20% of total grant)

KPI Milestones and ARB Distribution Targets

1. Number of AA Wallets Created

  • Objective: Expand the ecosystem by increasing the number of AA wallets.

  • Upfront Allocation for Wallet Incentives: 2,000 ARB

  • Milestones:

  • 5,000 Wallets: Unlock 1,000 ARB.

  • 10,000 Wallets: Unlock additional 1,000 ARB

  • 20,000 Wallets: Unlock the final 1,000 ARB

2. Number of Transactions

  • Objective: Increase platform engagement through more frequent transactions.

  • Upfront Allocation for Trading Activities: 10,000 ARB

  • Milestones:

  • 6,000 Transactions: Unlock 10,000 ARB.

  • 15,000 Transactions: Unlock additional 10,000 ARB.

  • 30,000 Transactions: Unlock the final 15,000 ARB

3. Trading Volume

  • Objective: Boost the total trading volume, reflecting the platform’s liquidity and activity.

  • Upfront Allocation for Volume Boosting: 26,000 ARB

  • Milestones:

  • $50M Trading Volume: Unlock 33,000 ARB.

  • $100M Trading Volume: Unlock an additional 33,000 ARB

  • $200M Trading Volume: Unlock the final 48,000 ARB.

Verification Method:

  • We will build our own dashboard and dune dashboard for all the relevant KPI monitoring

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.]

The 12-week grant execution plan will emphasize rapid deployment and iteration of the ARB token distribution strategy, focusing on incentivizing trading activity, wallet creation, and platform engagement on Tradao.

Weeks 1-4: Launch Phase (38,000 ARB)

  • KPIs:

    • Create 5,000 AA wallets.
    • Reach $50M in total trading volume.
    • Achieve 6,000 transactions.
  • Milestone: Officially launch the automated ARB rebate system for trading fees to incentivize users to start or increase their trading activities using Tradao’s tools.

  • Justification: This initial phase is critical for establishing the incentive framework and generating early interest and activity on the platform. Given the direct incentive model and the platform’s existing user base, these targets are ambitious but achievable with focused marketing and user outreach.

Weeks 5-8: Growth Acceleration (70,000 ARB)

  • KPIs:

    • Increase to 10,000 AA wallets.
    • Achieve $150M in total trading volume.
    • Reach 20,000 transactions.
  • Milestone: Analyze and optimize the incentive structures based on early performance data and user feedback, enhancing the effectiveness of the ARB rebates and other incentives.

  • Justification: This period allows for the adjustment of strategies based on initial outcomes and user feedback, driving a more significant increase in platform engagement. The focus on optimization and active promotion should realistically double the initial achievements.

Weeks 9-12: Consolidation and Expansion (82,000 ARB)

  • KPIs:

    • Reach 20,000 AA wallets.
    • Achieve $300M in total trading volume.
    • Surpass 30,000 transactions.
  • Milestone: Expand the platform’s feature set and engage in strategic partnerships to broaden the value proposition and attract a wider user base, solidifying the growth trajectory.

  • Justification: With the platform’s incentives and user experience refined in the first two phases, the final phase aims to consolidate growth and lay the groundwork for sustained activity post-grant. This phase targets leveraging the momentum built in the first eight weeks and expanding the platform’s reach through partnerships and new features, making these ambitious yet feasible targets.

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]

  • Receiving a grant will significantly propel Tradao’s efforts to foster growth and innovation within the Arbitrum ecosystem. Our approach is multifaceted, focusing on enhancing user engagement, trading volume, and the overall vibrancy of the ecosystem. Here’s a detailed explanation, supported by data, on how the grant inputs will translate into substantial benefits for the Arbitrum DAO:

1. Trading Incentives and User Engagement: By allocating a significant portion of the grant towards trading rewards, competitions, and wallet generation incentives, Tradao aims to drastically increase user participation on Arbitrum. Given Tradao’s innovative features like copy-trading and grid trading, coupled with incentives for trading and new wallet creation, we anticipate a surge in both new users and daily transactions. For instance, with the planned distribution of 140,000 ARB for trading rebates alone, we project an increase in trading volume to exceed $400 million. This not only boosts the Arbitrum network’s transaction volume but also attracts a diverse user base, enhancing ecosystem liquidity and engagement.

2. Enhancing Platform Accessibility and Efficiency: Utilizing the grant to refine and expand our trading tools will directly improve the trading experience on Arbitrum. By lowering entry barriers through wallet generation rewards and facilitating high-volume trading with minimal costs via trading rewards, Tradao will make decentralized trading more accessible and efficient. This approach is expected to draw in traders from various demographics, thereby increasing the Arbitrum network’s accessibility and user diversity.

3. Fostering a Robust Trading Community: The introduction of a trading competition with a strategic allocation of 45,000 ARB in rewards is designed to cultivate a competitive yet collaborative environment among traders. This initiative not only incentivizes platform engagement and profit generation but also encourages the sharing of successful trading strategies, thereby fostering a knowledgeable and dynamic trading community within the Arbitrum ecosystem.

4. Data-Driven Decisions and Market Efficiency: Tradao’s commitment to leveraging data for enhancing trading strategies and decisions aligns with the goal of fostering a more efficient and informed trading environment on Arbitrum. By providing users with actionable insights and tools for better trading decisions, we contribute to the overall market efficiency, benefiting the ecosystem’s health and growth.

5. Long-Term Commitment to Arbitrum’s Growth: The grant will solidify Tradao’s dedication to developing on Arbitrum, allowing for a deeper integration of our services within the ecosystem. This not only demonstrates our long-term commitment to Arbitrum but also sets a precedent for future projects, signaling the ecosystem’s potential for growth and innovation.

In summary, the grant will enable Tradao to significantly contribute to the Arbitrum ecosystem’s growth and innovation. Through strategic investments in user incentives, platform development, and community engagement, supported by a data-driven approach, we are poised to deliver tangible benefits that will bolster the ecosystem’s vibrancy, liquidity, and overall market efficiency.

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 28. 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

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?

Yes

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. (NOTE: No future grants from this program can be given until a closeout report is provided.)

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

3 Likes

Hello @Wing ,

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.

1 Like

Hey @cliffton.eth , @raam ! Pls help me replace the “DRAFT” with “FINAL”!

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

1 Like

Thanks for your help!