ARB DAO STIP REPORTING
Overview
Trader Joe has successfully reached the six-week mark in distributing ARB incentives, aligning with the midpoint of ‘Phase 2’ in our outlined plan. Recently, the DEX has continued to see strong volume, fee generation along with a steady and consistently increasing number of daily active users.
TVL has seen a slight decrease, observed over a 14-day period. This is attributed partly to reduced ARB incentives during this recent timeframe and possibly to heightened level of competition within the ecosystem, that is offering users a variety of high-yield options to choose across.
Overall, Trader Joe metrics for volume, fees, and user engagement have shown positive trends. Trader Joe has effectively utilized the grant to maximize value return to the Arbitrum Ecosystem whilst also priortising and focusing the large % of ARB rewards by supporting builders.
Grant Program and TVL Support Strategy
Our grant program includes a framework to support TVL in markets after ARB rewards have been distributed. If TVL falls below a predetermined threshold (25% of the peak 7d average) within 28 days post-reward distribution, additional JOE rewards will be allocated. This TVL KPI is evaluated using a 7-day rolling average compared against the highest average during the reward period.
As illustrated in the attached graph below, markets like GMX, LODE, and GRAIL will receive JOE rewards, having crossed the -75% TVL threshold. Conversely, ALP, WOO, and GMLP have shown TVL growth post-ARB rewards.
For markets like PENDLE and LBR, despite a decrease in TVL post-ARB rewards, they remain above the threshold. This trend is encouraging, as 5 out of 8 markets have successfully retained or increased their TVL post-rewards, a positive indicator for the ecosystem’s resilience amidst varied high-yield opportunities whilst also showcasing the ability for Liquidity Book to generate sustainable fees to retain liquidity.
ARB Received Last Disbursement: 862820
ARB Utilized as Incentives in the Last Two Weeks: 186,500
Contracts incentivized over the last 2 weeks:
Contract address label Form 2 3 completed for all addresses: YES
ARB left over: 813,500
Plan for leftover ARB:
- Maker Rewards and Auto-Pool Yield Farms - no changes
- Full program viewed in high level here: https://x.com/TraderJoe_xyz/status/1720101440855945700?s=20 1
Summary of incentives:
The below ARB being utilized will be distributed over the dates 1st of December to 15th of December
• MM Rewards: Native Tokens 86.5k $ARB
• MM Rewards: Multi-Chain Tokens 12.5k $ARB
• MM Rewards: New-To-Arbitrum Tokens 12.5k $ARB
• Auto-Pool Yield Farms 72.5k $ARB
Full Phase Overview: https://x.com/TraderJoe_xyz/status/1720529281774653615?s=20 2
Full Program Overview: https://x.com/TraderJoe_xyz/status/1720101440855945700?s=20 1
Recent Epoch Overview: https://x.com/TraderJoe_xyz/status/1725572325280481395?s=20
Additional Info / Disclosures to Multisig: N/A
STATS
Average 14D TVL: $35.8m (-1.1% 14d) (+23% 30d)
Average 14D daily volumes: $27m (-35.6% 14d) (+31.1% 30d)
Average 14D unique user addresses: 2.8k (+10.6% 14d) (+12% 30d)
14D Avg Daily Transaction fees: $38.6k (+41.4% 14d) (+37.6% 30d)
Link to our full reporting dashboard:
STIP KPI Dashboard | Trader Joe | Flipside 7
Plan For the Next Two Weeks
Amount of ARB to be distributed: 145k ARB
Contract address label Form 2 3 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 between 1 hour and 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 utilized will be distributed over the dates 16th of December to 29th of December to finish Phase 2 of the program.
• MM Rewards: Native Tokens 48.5k $ARB
• MM Rewards: Multi-Chain Tokens 10k $ARB
• MM Rewards: New-To-Arbitrum Tokens 14k $ARB
• Auto-Pool Yield Farms 72.5k $ARB
Summary of changes to the original plan:
- Change #1 - Adjustment to ARB Allocations
We have strategically decreased the allocation of rewards across several markets, resulting in a total reduction of 41,000 ARB for this coming Epoch. The reductions come from the Maker Incentives segment of the incentives, scaling down from 99,000 to 58,000. The adjustments are detailed below, starting with the markets experiencing the most substantial changes:
DPX-ETH: halting rewards due to poor performance ~13x reward-to-fees ratio (details below)
WINR-ETH: Reward allocation halved, from 20,000 to 10,000.
GNS-ETH: Slight reduction, from 12,500 to 10,000.
MAGIC-ETH: Slight reduction, from 37,500 to 35,000.
SVY-ETH: Slight reduction, from 4,000 to 3,000.
These adjustments are a response to heightened ecosystem activity during Phase 2, which resulted in suboptimal performance in TVL growth. This has consequently affected volume and fee generation for some of these markets. Notably, certain markets, such as DPX, have been distributing rewards at a rate over ten times their relative fee earnings.
Trader Joe has adopted a meticulous and strategic approach in this scenario, aiming to recalibrate and scale down rewards in markets where a significant imbalance in the fee-to-rewards ratio is observed. This decision is pivotal in safeguarding the value return within the Arbitrum ecosystem and ensuring sustainable growth and balance in the incentive structure. Trader Joe continues to support a wide range of builders, focusing the majority of incentives to long-tail assets.
For direct queries please reach out to https://t.me/blueclarity 2 delegation lead for the Trader Joe Governance Council