Final Report
Summary of incentives
| Distribution Form |
Total ARB |
% Split |
| Market Maker Incentives |
655,000 |
91.98% |
| New To Arbitrum Builder Allocation (Market Maker Incentives) |
50,000 |
7.02% |
| Growth/Marketing Campaign |
50,000 |
7.02% |
| Total |
755,000 |
100.00% |
Additional Info / Disclosures to Multisig
The 50,000 allocated to the growth / marketing campaign has been sent to an EOA (Delegate wallet) to then distribute via Community incentives in the form of quest rewards.
High Level
Key Metrics
Following the conclusion of incentives, TVL experienced a ~30% decline. Trading volume remained relatively stable throughout, peaking mid-program. However, user activity and fees generated gradually decreased over the course of the campaign.
Ecosystem And General Take on Performance
During the program, the DEX landscape was highly competitive, with multiple platforms offering similar incentive structures. For LFJ (Trader Joe), attracting user attention proved challenging compared to the first STIP program, even with the incentives offered.
One notable difficulty was the absence of wider ecosystem integration via other programs or supporting services such as ALMs or other ARB rewards on top of LFJ pools, due to Liquidity Book’s unique DLMM architecture. Combine this with a broader DEX landscape offering comparable yields, the result was stronger headwinds for liquidity acquisition on the LFJ DEX, despite its unique approach to concentrated liquidity. As a result, several markets struggled to reach a self-sustaining size, even with attractive yield opportunities.
Moreover, intense competition and limited liquidity growth across the ecosystem led to fee reductions across many DEX platforms in an effort to capture trading volume. Over the duration of the program, a consistent trend emerged as platforms continually lowered fees with many core pools such as ETH-USDC set to 1bp.
Community Campaign
50,000 ARB was allocated towards a user campaign which focused on supporting the overarching incentives by introducing a creative edge (Arbitrum Galactica) that provided a small additional side of gamification to the normal process of accruing ARB rewards from providing Liquidity.
45,000 ARB from the 50,000 ARB was allocated to points, which were accrued by providing liquidity around a +2/-2% market depth of the active bin. Selected LPs had the Galactica tracking, which was facilitated over 3, 4 week epochs. Markets rotated across each epoch. The additional 5,000 was distributed through expeditions (Riddles that were hosted on QuestN). This riddle was a progressive story, connected to the overarching Arbitrum Galactica Theme.
Galactica Campaign User Acquisition & Flow
- Initial Conversion: Mint the Galactica Onboarding badge (Zora via Arbitrum): 2011
- Secondary Conversion: Minted Badge + Joined Community: 784
- Third Conversion: Minted Badge + Accrued Galactica Points via LPing: 155
User Guide: Notion Page
Full Galactica Points Tracking: Spreadsheet
Galactica Points Track: Flipside
LFJ (Trader Joe) returned unused ARB (1.5): Arbitrum One Transaction Hash: 0x72720f2406... | Arbitrum One
