Overview
The DEX has continued to see significant uplift in Volume, Fee generation and also Daily Active Users. This is primarily driven from continued ARB token trading activity in the ecosystem and as such, Trader Joe will take action, highlighted in the changes section of this report, to help facilitate this increased trading demand for the ARB token.
Additionally, this part of the grant program for Trader Joe takes a first review at Phase 2 market performance. The grant program aims to support the sustainable growth of Liquidity in markets and analysis is now being taken for Phase 2 markets, with any markets falling below a measured TVL threshold will receive bonus JOE rewards.
This program by Trader Joe remains high conviction of native long tail tokens and new to Arbitrum long tail tokens to foster and support the builders that are contributing to Arbitrums success.
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 2 Market Analysis with ARB Rewards
We’ve analyzed the markets from Phase 2 that received ARB rewards using a color-coded system (traffic lights) to indicate changes in TVL. This analysis was conducted 14 days following the ARB reward distribution.
- Graph Insights: Markets WINR, have fallen below the TVL threshold and will therefore receive JOE rewards equal to a total of 10% of the value to the allocated ARB rewards distributed over 2 successive Epochs. Starting this Epoch 21 and ending Epoch 22.
- The remaining markets from Phase 2 are holding average TVLs that remain within the TVL Threshold and are therefore NOT receiving JOE rewards based on the grant program conditions.
Summary of Phase 2 Market Performance
- JOE Rewards Necessity: Out of 6 markets in Phase 2, one has required JOE rewards to bolster their TVL post ARB rewards.
- Stable Markets: Four markets have managed to maintain satisfactory TVL levels, two of these Markets have received no rewards in the measured period and two have received rewards in the measured period.
- Independent Growth: One market, GNS, has exhibited positive growth but this has come via Gains Network team providing their own rewards indepedndant of the STIP from Trader Joe.
Full Analysis in the next update to provide clear bi-weekly changes to TVL and volume generated across all participating markets through the grant program.
ARB Received Last Disbursement: 1,294,290
ARB Utilized as Incentives in the Last Two Weeks: 106k ARB
Contracts incentivized over the last 2 weeks:
Contract address label Form 2 3 completed for all addresses: YES
ARB left over: 400,000 (excluding the coming 2 week period)
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:
- 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
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/1740784397970759820?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: $36.6m (0% 14d) (-1.5% 30d)
Average 14D daily volumes: $55.1m (+81.9% 14d) (+75.1% 30d)
Average 14D unique user addresses: 13.1k (+392% 14d) (-1.7% 30d)
14D Avg Daily Transaction fees: $69.2k (+67% 14d) (+60% 30d)
Link to our full reporting dashboard:
STIP KPI Dashboard | Trader Joe | Flipside 7 1
Plan For the Next Two Weeks
Amount of ARB to be distributed: 123,750 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 13th of Jan to 26th of Jan to finish Phase 3 of the program.
- MM Rewards: Native Tokens 48.5k $ARB
- MM Rewards: New-To-Arbitrum Tokens 2,750 $ARB
- Auto-Pool Yield Farms 72.5k $ARB
Summary of changes to the original plan:
- Change #1 - Market Adjustments
We continue to optimise the distribution of ARB rewards to help serve the ecosystem and market demand where needed. We have therefore added a new market to our core Maker Incentive plan which is ARB paired with USDC.e.
- Change #2 - Retroactive rewards
Upon launch of the ARB rewards to Auto-Pool Farms, there were users that didn’t interact with farm resulting in attributed but unclaimable ARB rewards. This has resulted in the need to retroactively distribute rewards of 2993 ARB to 48 individuals that are unable to claim them. These rewards will be taken from the rewarder and distributed via the ARB multisig directly.
The reward data from flipside and script used for this:
https://gist.github.com/pecio222/877da56e60e17ec82531cee9c588024a
https://gist.github.com/pecio222/877da56e60e17ec82531cee9c588024a
For direct queries please reach out to https://t.me/blueclarity 2 delegation lead for the Trader Joe Governance Counci