Overview
Since initiating ARB incentives, Trader Joe has witnessed significant growth, as indicated by several key metrics such as Total Value Locked (TVL), trading volume, and fees accrued to Liquidity Providers (LPs). These metrics have reached new heights or maintained consistent strength well above previous averages. Further, there is a growing interest from builders in deploying new protocols and/or tokens on Arbitrum which is a testament to this program and Trader Joe’s position to drive this area of growth for the ecosystem. Trader Joe extends thanks to the Arbitrum DAO, acknowledging that the performance to date is directly attributable to the received incentives grant.
ARB Received Last Disbursement: 431430
ARB Utilized as Incentives in the Last Two Weeks: 252.5k
Contracts incentivized over the last 2 weeks:
Contract address label Form 2 completed for all addresses: YES
ARB left over: 1257500
Plan for leftover ARB:
- Maker Rewards and Auto-Pool Yield Farms
- Full program viewed in high level here: https://x.com/TraderJoe_xyz/status/1720101440855945700?s=20
Summary of incentives:
The below plan covers Phase 1 (4 weeks) which runs up to the 1st of December.
- MM Rewards: Native Tokens 270k $ARB
- MM Rewards: Multi-Chain Tokens 90k $ARB
- MM Rewards: New-To-Arbitrum Tokens 25k $ARB
- Auto-Pool Yield Farms 120k $ARB
Full Phase Overview: https://x.com/TraderJoe_xyz/status/1720529281774653615?s=20
Full Program Overview: https://x.com/TraderJoe_xyz/status/1720101440855945700?s=20
Additional Info / Disclosures to Multisig: N/A
STATS
Average 14D TVL: $35m (+ 31%)
Average 14D daily volumes: $28m (+ 95%)
Total 14D unique user addresses: 16k (+36%)
14D Avg Daily Transaction fees: 41k (+ 145%)
Transaction fees:
Link to our full reporting dashboard (please be aware that some metrics are currently calculated incorrectly (14d rolling comparison) and some tabs are incomplete. All expected Dashboard development will be finalized for the next DAO report):
Plan For the Next Two Weeks
Amount of ARB to be distributed: 257.5k ARB
Contracts that will be incentivized:
Contract address label Form 2 completed for all addresses: YES
Mechanism for distribution incentives:
Maker Incentive Program that measures Liquidity Providers total fees accrued over the defined Epoch duration of 14 days and ranks them according to fees accrued. The top 30 in each respective Liquidity Pool will share the rewards based on a power function (power=0.7). Rewards are retroactively distributed in the following days after the defined Epoch and can be claimed directly on the UI via a smart contract. Rewards vest over 7 days.
Auto-Pool Yield Farms distribute the planned incentives in a linear fashion and can be collected at any time by all participants in an Auto-Pool Yield Farm. Rewards are shared proportionately to all users in the Auto-Pool Yield Farm.
Summary of incentives plan:
The below ARB being utilised will be distributed over the dates 18th to the 1st of December to finish Phase 1 of the program.
• MM Rewards: Native Tokens 135k $ARB
• MM Rewards: Multi-Chain Tokens 45k $ARB
• MM Rewards: New-To-Arbitrum Tokens 17.5k $ARB (+5k added)
• Auto-Pool Yield Farms 60k $ARB
Summary of changes to the original plan:
- Change #1 - New Market Opened
+5k ARB allocated to ‘New to Arbitrum Tokens’ segment for the $USDV - $USDC Market. This is a new DeFi stablecoin and has just launched on Arbitrum, making its home on the Trader Joe DEX.
- Change #2 - Wash Trading Ban
Trader Joe will implement an immediate and strict enforcement of fair play rules to ban and prevent any wash trading activity from receiving any ARB rewards, following the report of a Liquidity Provider (that has been directly linked to a small cluster of wallets). This measure is crucial to prevent any future instances of wash trading for incentives. The behavior exhibited was aimed at gaming the system to unjustly acquire a larger share of Liquidity Provider incentives.
To safeguard the interests of genuine Liquidity Providers who contribute significantly to market making, such manipulative practices will henceforth result in exclusion from receiving rewards for this current Epoch and future Epochs. As Maker Incentives are retroactively distributed following an off-chain calculation and validation process, the program can be preserved to its fullest integrity. It is imperative to emphasize that these actions are in direct contradiction to Trader Joe’s core principles of fairness and transparency. Furthermore, they violate the standards and expectations set by the Arbitrum DAO regarding the appropriate use of grant. Our commitment to upholding the integrity of our platform remains unwavering, and we will continue to take necessary actions to ensure an equitable and transparent trading environment for all participants.
For full disclosure, 3 wallets (linked) have been identified and will be banned from receiving rewards. Full evidence and disclosure of said addresses will be provided to the DAO on request.
For direct queries please reach out to https://t.me/blueclarity delegation lead for the Trader Joe Governance Council
