Vertex Protocol Bi-Weekly Update (March 22, 2024)
Recap of the Previous Two Weeks
Protocol incentives and the launch of $VRTX have created powerful flywheel for Vertex’s growth. Arbitrum STIP grant was conducive to increased taker flow, decentralized market making via Elixir Vertex Fusion Pools, and ultimately, more volume and users on Vertex and Arbitrum. Per the DAO’s approval to extend the STIP grant duration, $ARB rewards on Vertex for takers were extended to Feb 28, 2024, and $ARB rewards for Elixir Fusion LP extended to end of March 2024.
ARB Received Last Disbursement: Fully redeemed (34,667.3 ARB leftover since prior update)
ARB Utilized as Incentives in the last 2 weeks:
- Vertex Trading Incentives: 0 (fully distributed per plan)
- Elixir Liquidity Incentives: 23,710.86
- Total: 23,710.86
Contracts incentivized over the last 2 weeks: 0x1bDB4C119225ABACa0bfe12610789902851221ab
Contract address label Form completed for all addresses: Yes
ARB left over: 10,956.4
Plan for leftover ARB: Will be fully allocated over the following weeks (until March 31, 2024) as per latest STIP plan (specifically for Vertex Elixir Fusion Pool LP)
Summary of incentives: 3m total ARB across 16 weekly epochs to be distributed to:
- 2.55m - Vertex Trading incentives
- 450k - Elixir Liquidity Incentives
Additional Info / Disclosures to Multisig: N/a
STATS
Average daily TVL: $71,576,790
Average daily transactions: 105,296
Average daily volumes: $396,243,792
Number of unique user addresses: 941
Transaction fees: $1,084,289
Link to Dashboard showing metrics: https://dune.com/frijoles/vertex
Plan For the Next Week
Amount of ARB to be distributed: 10.9K
Contracts that will be incentivized:
0x1bDB4C119225ABACa0bfe12610789902851221ab
Contract address label Form completed for all addresses: 0x75A99528b5FC4D328473032c9f390db7C8BabdF1
Mechanism for distribution incentives:
Taker Rewards: Trading expenditure on taker fees is measured over the course of a weekly epoch. Once each epoch is completed we will build a merkle tree and register the merkle tree with the contract so that users can claim their ARB tokens using the proof.
Summary of incentives plan:
Up to 111.1k ARB to be distributed per week to price takers on Vertex with maximum determined as 75% of trading fees. (calculated using ARB value at end of weekly epoch)
Up to 19.6k ARB to be distributed to LP on Elixir with maximum determined as a 15% APR on TVL (calculated using ARB value at end of weekly epoch)
Summary of changes to the original plan: Distributions are being made weekly until March 31, 2024
**Please note that as of March 1, 2024, there are 44,792.69 ARB remaining claimed yet undistributed. These are leftover allocations from the Elixir LP portion as TVL was < 10M at times since the start of the STIP distribution phase. The remainder will be distributed weekly solely for the Elixir LP Program throughout March 2024 or until ARB is fully distributed, whichever is earlier.