Do you have a mechanism to avoid duplication of incentives with Perp DEX who also applied for a grant?
3 Likes
I have followed Unidex and their team for a while now.
The team has always delivered on their promises and has steadily built a continuously improving product.
Unidex is a bit the dark horse amongst perp dex exchanges and deserves its day in the sun.
It has never really been able to get itâs name out and thatâs a shame.
An arbitrum grant could do exactly that and from there on anything can happen with this project.
To say that the KPIâs are feasible would be an understatement.
It could definitely generate the activity worthy of a 750k grant.
I fully support this request.
5 Likes
Hello @KrunalUniDex ,
Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:
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@KrunalUniDex Here is the updated process for changing your title.
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Firstly, thank you for your proposal and for showing such a keen interest in contributing to the Arbitrum ecosystem.
Introduction and Rationale
UniDex, a DeFi aggregator launched in 2020, is seeking a grant of 750k ARB, which represents 1.5% of the total 50M ARB available for the program. The grant would be allocated across native UniDex liquidity pools, other Arbitrum perp DEXs, liquidity provider rewards, and positive slippage. With a track record of over three years and $1 billion in cumulative trading volume, UniDex has proven its worth. We appreciate the multi-pronged approach of the proposal for increasing usage and believe it could serve as a positive feedback loop for the growth of both UniDex and the broader Arbitrum ecosystem.
Major Concerns
Concern Regarding Grant Allocation
- Majority of the grant should focus on their aggregator
- The requested grant size relative to UniDexâs current TVL and volumes on Arbitrum is large
- Our recommendation for change: We suggest focusing more of the grant towards trades routed to other perps and consider reducing the grant amount.
Summary
Castle Capital appreciates the value that UniDex brings to the DeFi space, especially in the role of an aggregator. However, as it currently stands, we recommend that UniDex reassess the distribution of incentives to better serve the Arbitrum ecosystem. Additionally, we believe the grant size should be more aligned with the current state of UniDex on Arbitrum.
Our recommendations are:
- Refocus the grant towards external perps
- Reevaluate the total grant amount based on current volumes and TVL
We hope that our comments serve to strengthen your proposal and are seen as constructive for the benefit of both UniDex and the broader Arbitrum ecosystem. Thank you for your time and effort; itâs clear that youâre passionate about what youâre doing, and thatâs something we always appreciate.
3 Likes
Agreed with most of your feedback.
But, as with MUX, I donât think TVL is per se the right metric to use to determine the grant size for an aggregator. I would base it more on the way the Arbi ecosystem can benefit from protocols like UniDex, and because of that I think UniDex is one of the few (maybe even only one) that has requested a very reasonable grant size. I mean, what other protocol connects and enables so many other protocols in the ecosystem? What other protocol letâs you trade unique listings while having the choice of using ETH, DAI, ARB (!) or 10+ other tokens as collateral? Theyâre also providing a great service for FREE by giving people access to their Obsidian RPC aggregator and I think that just shows how great this team is for the arbitrum ecosystem.
Please also keep in mind that based on the Grant recommendations, they couldâve applied for the 1.95m ARB grant, as they would qualify for that. The fact that they didnât tells you everything you need to know about this team.
750k sound more than reasonable to me
3 Likes
Interesting Herr Castle,
As a user of the protocol I just wanted to say
At the moment routed perps are incentivized with 25% of proposed grant, on top of that spot aggregation is also incentivized by 12.5%. Thatâs 37.5% routed through other protocols.
At 50% going to Unidex Pool trades, Iâd just like you to know the ecosystem advantage of this.
-Unidex uses $arb as collateral, encouraging holders to both LP and trade. This is not in a basket, this is a straight single sided stake
-Unidex has custom, arb friendly listings. Pairings like arb/op, arbindex, defiindex etc. These are not available anywhere else, extremely fun, and allow you to support your native chain. The unidex pool incentivizing on these unique pairings is a draw to the dAPP, with a ripple effect of entering a position aggregated as they continue to use the protocol.
Unidex collateral swaps are coming, where once again, the spot aggregator is utilized for gasless swapping routing through the native Arbitrum exchanges.
With these attractive pairings/indices, the fact that $arb is collateral, along with the implementation of collateral swapping routed through arbitrum dexâs itâs important for these features to be highlighted through the grant.
Wouldnât you say the more unique features, that separate from the other need to be highlighted a hair more ( only 12.5% more in comparison to the aggregation incentives ) through the incentive system?
3 Likes
Iâd like to thank you for taking the time to read through and understand our history while returning the favor with my own thoughts.
âgrant size should be more aligned with the current state of UniDex on Arbitrumâ
This statement is quite the ironic catch-22 isnât it? You want to gain volume and TVL, but its suggested not to do things that would gain you volume and TVL. The underlying architecture and performance is not so much different from one network to another. If users on another chain for the same product are enjoying it to a much larger dominance than the compared to chain, incentivizing usage and attracting users should allow the same result on arbitrum.
These incentives could very well make the products that we built out available on Arbitrum, the benchmark for what a DEX should be on Arbitrum. We have actually incentivized usage specifically on arbitrum with our dao airdrop allocation and we were pulling roughly 20m in daily volume while also contributing to our protocols all time high in daily fees collected. (roughly $32,000)
This was all done with roughly $20,000 of incentives over 2 weeks making the short-term incentives we ran extremely successful with an amount almost 3x smaller (if ran with the same time/size proportion) than the current ask. Also remember that we DO qualify for a larger asking amount already, so the amount weâre requesting is roughly half the maximum limit the Arbitrum DAO has already laid out. So consider this asking amount already reduced for our current position on Arbitrum.
We believe this is proof people enjoy using the platform and enjoy the savings it currently brings, but our current state on arbitrum can be due to a lack of general awareness, or its not enough of a reason for our users on other chains to switch onto arbitrum. This 750k we ask for can directly address both of these issues.
On the topic of the allocation of rewards, what percent of rewards do you believe can be shifted from native LP rewards to aggregated volume?
3 Likes
Unidex has been building for years, providing value along the way. Yet regardless we are just about to see the fruits of all these labor, with their perp dex aggregator really starting to shine, check the stats, just in case you think this is fluff. In the month of August a trading comp on arb has shown the potential. Despite relatively small TVL, it achieved over 100 million in volume, testament to how capital efficient the protocol is .
People new to this protocol need to understand that the team has been building with the larger ecosystem in mind, lifting other protocols up trough aggregation or by offering whit label services and an sdk that allows other to build on it. They also offer a rpc aggregator, just because its useful.
The incentives are well thought out, tailored to max the benefit all the partner protocols.
As example, the best place to trade on GMX, is Unidex, already today !
I have not even covered the value their swap aggregator with gasless limit orders has brought to investors who enjoy making a good entry with max liquidity to their disposal ! Fragmented liquidity adios, enjoyers call unidex, the nasdaq of crypto,⌠they are on to something !
I will keep it here, yet hope this proposal will be accepted. The Team is super hard working, always willing to help, with a product that just fits perfectly into the $arb landscape, and incentives aligned, so they will benefit the broader community !
3 Likes
Appreciate the replies @Preach @KrunalUniDex!
Apologies if things came off a little rash, we were in a bit of a rush last night expecting forums to close.
We agree that UniDex is building a key piece of the perp stack and should be qualifying for incentives. It is also great to learn more about what is happening in the internal liquidity.
UniDex is also generally well-aligned with the governing values we are working towards with respect to these grants.
Despite this, the 30d volume is still low in compassion to other perp aggregators.
Re: allocation of rewards, we believe UniDex should focus on incentivising and improving their aggregator product, potentially swapping to a 50% aggregator and 25% native.
Despite all of the above, we do concur with most of your feedback and are open to supporting a grant in the 500k-750k range, with a preference for the lower end.
4 Likes
Hello @KrunalUniDex friendly reminded to complete the following:
@stonecoldpat @cliffton.eth @eli_def Weâve adjusted comments from the base post and marked the proposal as final. We believe that we are ready to proceed as is and awaiting the next stage of the STIP.
1 Like
Post has been marked FINAL and locked.
2 Likes
We appreciate the in depth proposal and the interest shown on the program. Even though the aggregator features bring good opportunities with it, like having people connect with each other. We would also like to thank Unidex for taking care of their âpublic goodsâ policy in some areas and providing impact for the ecosystem. However as ITU Blockchain, we find the budget requested to be more than necessary. Therefore, we vote against this proposal.