ARB DAO STIP REPORTING
Overview
As Phase 2 of our ARB Incentives plan concludes, Trader Joe is transitioning into the third phase.
During the festive season, we achieved record-breaking daily trading volumes and fee generation, largely driven by increased activity around the ARB token. While these achievements have positively impacted our high-level DEX metrics, it’s important to note that the TVL (Total Value Locked) in ARB reward pools did not experience similar growth, remaining relatively static over the past two weeks.
Despite this, the overall metrics for Trader Joe continue to show positive growth, with a noticeable increase in trading volume and user engagement. As we enter Phase 3, our primary goal is to refine our approach to more effectively align with the Arbitrum ecosystem’s needs. This refinement includes adjusting the ARB reward allocations to ensure a more equitable and impactful distribution of incentives. Further details on these adjustments are provided in the following sections of this update.
KPI Tracking and TVL Support Strategy
Our grant program includes a mechanism to sustain Total Value Locked (TVL) in markets after distributing ARB rewards. Here’s how it works:
- TVL Threshold: If TVL drops below 25% of its peak 7-day average within 28 days after ARB reward distribution, additional JOE rewards will be allocated.
- Evaluation Method: We use a 7-day rolling average to evaluate TVL, comparing it against the highest average during the reward period.
Phase 1 Market Analysis with ARB Rewards
We’ve analyzed the markets from Phase 1 that received ARB rewards using a color-coded system (traffic light colors) to indicate changes in TVL. This analysis was conducted 28 days following the ARB reward distribution.
- Graph Insights: Markets like GMX, LODE, and GRAIL, which fell below the TVL threshold, have already received JOE rewards in the previous epoch (19) and are slated to continue receiving them in the upcoming epoch (20).
- TVL Changes: The next graph illustrates TVL changes from the end of Epoch 18 to the end of Epoch 19. Here, we observed:
- Green indicates positive growth for GRAIL and LODE following additional JOE rewards.
- GMX market experienced a decline in TVL despite additional JOE rewards.
Summary of Phase 1 Market Performance
- JOE Rewards Necessity: Out of 8 markets in Phase 1, three required JOE rewards to bolster their TVL post ARB rewards.
- Stable Markets: Three markets managed to maintain satisfactory TVL levels, with minimal or no additional JOE rewards.
- Independent Growth: Two markets exhibited positive growth without the need for extra JOE rewards.
ARB Received Last Disbursement: 1,078,575
ARB Utilized as Incentives in the Last Two Weeks: 144,500
Contracts incentivized over the last 2 weeks:
Contract address label Form 2 3 completed for all addresses: YES
ARB left over: 647,140
Plan for leftover ARB:
- ARB will be extended over February and March
- 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 has been distributed over the dates 16th of December to 29th of December
• MM Rewards: Maker Incentives 58k $ARB
• MM Rewards: New-To-Arbitrum Tokens 14k $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/1735654599577514031?s=20
Additional Info / Disclosures to Multisig: N/A
STATS
Record daily highs for fee generation, volume and local highs for daily active users
Average 14D TVL: $34m (-1.9% 14d) (+3.3% 30d)
Average 14D daily volumes: $29.7m (-14.5% 14d) (+17.5% 30d)
Average 14D unique user addresses: 2.4k (+11.8% 14d) (-1.7% 30d)
14D Avg Daily Transaction fees: $39.9k (+7.5% 14d) (+14.7% 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: 106k 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 - Phase 3 Market Adjustment
We continue to optimise the distribution of ARB rewards and will be reducing the amount of markets that receive ARB rewards in Phase 3. The aim is to drive a higher concentration of LPers into ARB reward markets by reducing the options LPers have. The optimal amount of markets managed ranges between 1 and 4 and therefore Phase 3 will have a smaller selection of markets to fit that offering.
Any Market intended originally for Phase 3 will be pushed to a Phase 4, starting end of January.
Markets moved from Phase 3 to Phase 4
- JONES-ETH
- STG-ETH
For direct queries please reach out to https://t.me/blueclarity 2 delegation lead for the Trader Joe Governance Counci