Overview
Whilst wider ecosystem efforts to onboard users and drive activity in Arbitrum has benefited Trader Joe resulting in uplifts to daily active users (DAU). The overall core metrics for TVL, Volume and Swap Fees have seen 14d reductions. This is largely been driven by overall lower transaction activity in the ecosystem. Notably core trading pairs in particularly have seen increased competition in recent weeks, with competing protocols lowering fees in some cases to accrue more trade flow.
This part of the grant program for Trader Joe takes a second and last review at Phase 2 market performance. The grant program aims to support the sustainable growth of Liquidity and analysis of Phase 2 Markets is being finalized. Any markets falling below a measured TVL threshold will receive bonus JOE rewards.
Trader Joe remains high conviction of native long tail tokens and new to Arbitrum long tail tokens by so far supporting 19 different projects with ARB rewards, helping to foster discovery and directly 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, VRTX and Treasure, 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. WINR and MAGIC will receive the last confirmed allocation of JOE rewards. VRTX will receive its 1st round of JOE rewards.
Summary of Phase 2 Market Performance
- Out of 6 markets in Phase 2:
- Three markets required further rewards post ARB
- Two markets have required no additional rewards post ARB
- One market has grown positively due to externally provided rewards post ARB
ARB Received Last Disbursement: 1,510,000
Amount of ARB to be distributed: 123,750 ARB
Contracts incentivized over the last 2 weeks:
Contract address label Form 2 3 completed for all addresses: YES
ARB left over: 332,000 (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 41k $ARB
- MM Rewards: Multi-Chain Tokens 6.25k $ARB
- MM Rewards: New-To-Arbitrum Tokens 500 $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://twitter.com/TraderJoe_xyz/status/1745854069971812387
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: $35.2m (-8.6% 14d) (+3% 30d)
Average 14D daily volumes: $33.4m (-39% 14d) (+74.1% 30d)
Average 14D unique user addresses: 17.8k (+39.3% 14d) (-78.1% 30d)
14D Avg Daily Transaction fees: $41.3k (-40.1% 14d) (+51.9% 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 27th of Jan to 9th of Feb
- MM Rewards: 37.5k $ARB
- Auto-Pool Yield Farms 64.5k $ARB
Summary of changes to the original plan:
None to report