[WINR Protocol] [FINAL] [STIP - Round 1]

Archive Short Term Incentives Program (STIP) Round 1
1

SECTION 1: APPLICANT INFORMATION

Applicant Name: WINR Protocol
Project Name: WINR Protocol
Project Description: The WINR Protocol is an infrastructure protocol for on-chain gambling and gaming.

Developers can use the WINR Protocol’s smart contract game engine for rapid game development with 1-second finality and propose their games to the WINR DAO for integration into the WINR Liquidity Pool.

Our ecosystem offers transparent incentives to players, decentralized oracles for randomness, and ensures the security of liquidity provided by investors without any centralized ownership.

To bootstrap the WINR Protocol, we are launching three gaming products on top of the protocol. JustBet is a decentralized casino, offering a wide variety of games including roulette, poker, and slots. Launching imminently this September 2023, DegensBet is a perps-trading platform in the style popularized by Rollbit, offering 100x-1000x leverage on ETH and BTC. 0xsportsbet is a decentralized sports betting platform, launching in Q4 of 2023.

Team Members and Qualifications:

WINR Jack - Head of BD & Growth; Jack is a results-driven business development expert and a strong history of forging strategic partnerships. As BD Director at WINR Protocol, Jack identifies new business opportunities, conducts market research, and negotiates partnerships to drive revenue growth and market expansion. His ability to spot emerging trends and cultivate key relationships has been pivotal in WINR Protocol’s success.

WINR Wizard - CMO; Wizard has over 6 years of blockchain marketing experience and produces innovative ideas. Wizard leads a dynamic team responsible for brand development, market research, digital marketing, and user engagement. His data-driven approach and creative thinking have significantly increased WINR Protocol’s brand visibility and market share.

WINR Joker - CTO; Joker is a technology visionary and a track record of innovation. As CTO at WINR Protocol, Joker is responsible for technology strategy, product development, and technical operations. He guides the research and development efforts, ensuring it stays at the forefront of technological advancements. Joker’s expertise has been instrumental in WINR Protocol’s development of cutting-edge solutions.

Moreover, +8 other team members consisting of developers and marketing people.

Project Links:
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 500,000 ARB
Grant Matching: N/A
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]

A high-level breakdown of the grant is as follows (detail provided in Section 3):

  • 200K ARB to bootstrap WLP liquidity
  • 150K ARB for 3 mos. JustBet gaming competition
  • 150K ARB for 3 mos. DegensBet trading competition

Total: 500K ARB

Funding Address: 0x221b0439B50DBCA3F6Fc698d74636caBeAF96307
Funding Address Characteristics: Safe Multisig with 2/3 owned by the team members.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:

WINR Protocol aims to be the premier infrastructure protocol for decentralized gaming.

Compared to existing, centralized platforms where account balances and game mechanics are not independently verifiable, WINR Protocol mechanisms are on-chain, open-source, verifiable and provably fair.

In seeking to build a truly decentralized gaming ecosystem, the WINR Protocol plans to use its Arbitrum grant to bootstrap both sides of its protocol.

The objectives are therefore two-fold:

  1. Acquire game players - Onboard new users to WINR Protocol’s three products, JustBet, DegensBet, and 0xsportsbook, which are all unified under the same universal wallet and account balance.

  2. Attract house liquidity - All WINR products use the same liquidity pool (WLP) as the house liquidity. Scaling this is necessary to onboard large numbers of users. The WLP pool needs to be bootstrapped, but on an ongoing basis, fees will fuel LP returns.

Key Performance Indicators (KPIs):

  1. Acquire game players*

    a. Daily active users over time
    b. Daily new users over time
    c. Daily bet volume over time
    d. Daily bet value over time (USD)

  2. Attract house liquidity

    a. Total value locked in WLP: 3.700.000 USD
    b. WLP APR % (excluding incentives): 11.9%

  • KPIs apply to WINR Protocol as a whole, but will also be separated individually for JustBet, DegensBet, and 0xsportsbet

  • Incentivizing players by giving them extra rewards is very important in the gaming and gambling industry. As a result of the vWINR incentive campaign we conducted approximately 2 months ago, we experienced up to 20x increase in the number of new players, bet volume, and transactions. With the Arbitrum grant that we will use for 3 months, we aim to reach;

    • Over 5000 players
    • Over $100M bet volume
    • Over $8M TVL.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
  1. Attract attention and liquidity to Arbitum
  • The success of gambling protocols such as Rollbit, which recently reached a peak market cap of ~$700M, has shown that gaming and gambling have a clear product-market fit
  • WINR Protocol’s products are superior in that they are fully decentralized, on-chain and provably fair
  • Moreover, WINR Protocol is built not only for the web3 user but also for the web2 user. Users can create an account simply with an email address, and will eventually be able to fund/onramp money directly to their Arbitrum wallet
  • WINR’s success can draw hundreds of millions of dollars of TVL and transaction volume to Arbitrum — a rising tide that will lift all boats
  1. Provide Arbitrum builders with a high-quality base layer for gaming
  • WINR is not a closed protocol; just the opposite, it is intended to be an open protocol for other builders in the Arbitrum ecosystem to easily develop and deploy games without needing to bootstrap liquidity or customer acquisition
  • Gaming is an ideal use case for Arbitrum’s technology, and WINR Protocol will provide key gaming infrastructure and liquidity for Arbitrum builders and entrepreneurs
  1. Create a new liquidity building block on Arbitrum in WLP
  • WINR Protocol model allows users to be the house via WLP, creating yield opportunities even for people who don’t want to play the games
  • Real yield opportunities create more word-of-mouth and marketing for the protocol and for Arbitrum (Ex: In the case of GMX, GLP became a liquidity building block for several other products such as JonesDAO’s vault)
  • With WINR’s growth, WLP will create more yield opportunities for capital on Arbitrum and more possibilities for the ecosystem to build on top of WLP
  1. Promote the functionality and utility of Arbitrum Orbit
  • WINR Chain is planned to deploy using Arbitrum Orbit
  • Success with this deployment would be a great proof point for the Arbitrum ecosystem, significantly as Optimism furthers its “superchain” narrative
Justification for the size of the grant:

  • Meets requirements: WINR meets the requirements for a Siren 500K ARB grant:

    • Deployed on Arbitrum mainnet in April 2023
    • Volume of $63M on WINR’s first product, JustBet
    • TVL is almost $4M in WINR’s liquidity pool, WLP

  • Demonstrated track record: WINR has demonstrated a history of shipping high-quality products and features, and a commitment to deployment solely on Arbitrum (see Section 5 for more details)

  • Attacking a massive opportunity for Arbitrum: The incumbent gaming and gambling protocol, Rollbit, is a large centralized player (with market cap and revenues orders of magnitude larger) – demonstrating both the size of the opportunity for WINR Protocol, but also the capital required to attract attention and liquidity

Execution Strategy:

Acquiring New Players for JustBet and DegensBet through competitions and increasing TVL.

JustBet
For months 1-3
Top Players By Volume:
  • 1st place - 10,000 ARB
  • 2nd place - 7,000 ARB
  • 3rd place - 3,000 ARB
  • 4th-6th - 1,000 ARB
  • 7th-10th - 500 ARB
Top Players By P&L:
  • 1st place - 10,000 ARB
  • 2nd place - 7,000 ARB
  • 3rd place - 3,000 ARB
  • 4th-6th - 1,000 ARB
  • 7th-10th - 500 ARB
DegensBet
For months 1-3
Top Players By Volume:
  • 1st place - 10,000 ARB
  • 2nd place - 7,000 ARB
  • 3rd place - 3,000 ARB
  • 4th-6th - 1,000 ARB
  • 7th-10th - 500 ARB
Top Players By P&L:
  • 1st place - 10,000 ARB
  • 2nd place - 7,000 ARB
  • 3rd place - 3,000 ARB
  • 4th-6th - 1,000 ARB
  • 7th-10th - 500 ARB

200,000 ARB will be distributed as WLP rewards for 3 months

Grant Timeline:

JustBet and DegensBet three-month trading competitions will commence immediately, shortly after receiving the grant.

WLP liquidity incentives will launch coinciding with the trading competitions for JustBet and DegensBet.

SECTION 4: PROTOCOL DETAILS

Is the Protocol Native to Arbitrum?: Yes
On what other networks is the protocol deployed?: WINR Protocol is solely deployed on Arbitrum, with no plans to deploy on other chains.

Instead, we are currently working with Socket to implement deposits from any chain directly into users’ Account Abstraction wallet on Arbitrum. Anyone with a balance on any major EVM will be able to deposit to their Arbitrum wallet with either a one-click transfer or using the same address.

What date did you deploy on Arbitrum?: April 2023
Protocol Performance:

Q1, 23:

  • January: Launched incentivized testnet
  • February: Started audit process
  • March: Launched JustBet on mainnet

Q2, 23:

  • April: Launched Mines games on mainnet
  • June: Launched Roulette games on mainnet
    Refund module for failed bets
    Social share and chatbox

Q3, 23:

  • Launched Account Abstraction wallets and web2 (email) single-sign-on onboarding
  • Launched Horse Racing, Keno, Baccarat, and Video Poker games on the mainnet
  • Launching DegensBet, 100-1000x perps for ETH and BTC in October
Protocol Roadmap:
  • Unity deployment: All existing and future games are being built on Unity for a shiny user experience
  • Cross-platform gaming: Games released on WINR Chain will be usable on any platform launching on the chain, similar to how iGaming providers operate in centralized casinos
  • On-chain slots: New games similar to Sweet Bonanza with dynamic multipliers
  • ZKP-based game launch: New games such as player-vs-player poker
  • Dynamic Verifiable Random Function (VRF): Deployment of VRF on WINR Chain will open the gates for swift card-picking games like Blackjack
  • Provider migration: Discussions are ongoing with existing providers to migrate their games onto the chain.
Audit History:

A list of audits of WINR Protocol tokens and contracts are found below:

Audits for WINR Protocol smart contracts are ongoing. The auditors are Paladin and WatchPug.

SECTION 5: Data and Reporting

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:

WINR Protocol’s JustBet already has a Dune Dashboard tracking bet volume and the size of our liquidity pool (WLP).

With the launch of DegensBet and Sportsbet, additional Dune dashboards will be built by either the team or our community to track our grant performance KPIs.

8 Likes
2

Way to go. WINR is a shining example of protocols that should definitely get a grant.

2 Likes
3

WINR has shown impressive execution and growth over their first months of activity and I’m very excited to see what impact this grant would have on their KPIs. Would also be a net positive for Arbitrum itself.

2 Likes
4

So far we have mostly seen proposals from projects that have barely contributed or focused on Arbitrum. Winr on the otherhand is one of the most promising protocols Arbitrum has to offer.

The betting scene is clearly one of the most notable narratives at the moment, and whilst WINR has less hype and reach than competitors like Rollbit, I am impressed by how decentralised and onchain it actually is.

This is one of the few apps that has market-fit and could genuinely bring in new users into Arbitrum. This is the type of protocols I think we should be incentivising.

I will be voting FOR, for these reasons:

  • WINR is Arbitrum native
  • The product is not a fork, appears to be well built and audited by reputable names
  • Whilst the numbers are somewhat low, the market-fit appears to be evident
  • Arbitrum will benefit significantly from having one of the best gambling protocols, this narrative is clear and it would be a shame for other ecosystems to lead (Rollbit is the obvious example)
  • The incentives are clearly allocated with justified size, WLP is a model that works and it is great to see it applied for a casino and not just perps
4 Likes
5

I believe your comment is way too optimistic.

First and foremost, this grant will support two products that haven’t even been launched yet.

WINR seems to intentionally stir up numbers here - the TVL they claim to have is on Camelot. In fact WINR does not have any TVL technically, so doesn’t meet the TVL requirement.

Additionally, according to DefiLlama it’s less than $4M, not more:

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image893×156 17 KB

And the volume requirement for Siren grant also hasn’t been met. I can clearly see that in the proposal there is more than $40M 30D volume requirement (link below), and WINR has $62M TOTAL volume. What is the 30 day volume than? Well I bet way lower than $40M

https://snapshot.org/#/arbitrumfoundation.eth/proposal/0x5e0057920df9a278918e4de4ee1e6de7e2415d2af985e40a6c7a1a4b47a4ce01

Well, the only requirement they meet is being longer on Arbitrum than 4 months.

I don’t support this proposal, because:

The protocol seems to intentionally play with numbers that are inaccurate
The protocol falsely claim to meet the requirements
Even if met, 750k ARB is way too much considering current protocol performance

2 Likes
6

I can’t disagree since in honesty I did not deep dive into the numbers.

And also, the volume number you’re referencing is just a “soft recommendation”, and I would never compare the volume of a casino versus the volume of a DEX for perps or spot. That is apples to oranges and doesn’t make any sense, which is exactly why it is a suggested metric and not a strict hard number to achieve.

My support was/is basis the product itself, which I believe to be one of the best gambling protocols Arbitrum has.

7

I agree, the volumes for DEX and casino can’t be compared, however it’s more about claiming that the project met the requirements where in fact it didn’t. Twice.

It’s just a simple data manipulation, yet most likely majority of the readers would fall for it. And I simply don’t like such approach.

1 Like
9

[Reposting bc the formatting on the prev attempt was wonky for some reason].

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This is a strong proposal.

Several thoughts here.

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Regarding meeting parameters:

I feel the proposal does fall within the parameters of the desired and recommended ranges for the Siren grant. To address some of the issues raised thus far…

  • The protocol is relatively new but has already generated considerable volume. They did reach the desired 30-day threshold, just not over the last 30 days, as volumes/activity have been falling off across Arbitrum, considerably.

  • The WLP TVL value fluctuates along with the price of its underlying constituents (BTC and ETH, most notably) and has bandied between 3-5m TVL this year since launching.

  • They are currently deriving that volume via only one of their three existing/planned products.

  • The 2nd product, Degenbets, goes live within two (2) weeks and long before the receipt of any potential grant funds.

  • This 2nd product alone will likely further bolster volumes close to (or exceeding) any desired threshold.

The Siren category is by far the appropriate choice over any of the other options. Given the disparity between requirements for Beacon (or Lighthouse), it would be illogical to apply for either of those other categories.

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Regarding use of rewards:

  • The scale of rewards will directly incentivize both TVL bootstrapping and more TX activity/volume generation through betting contests they’ve announced.

  • With volumes declining on Arbitrum, incentives are needed to accomplish both aims.

  • WINR is already providing in-house incentives.

  • WINR has thus far been successful generating increased volume through this contest structure, but an injection of ARB grant funds should greatly augment and accelerate these returns. Value add.

We will be seeing a lot of “new” plans from proposals in the days and weeks ahead, but I am more confident that funding existing working models that know how to apply incentives will be more successful meeting KPIs and achieving growth.

~~

Regarding the general merits:

  • WINR possesses a well-organized team, having launched via one of our own native DEXs, Camelot, where they house their liquidity exclusively.

  • They are fully audited, having used credible parties, and fully disclose, for both transparency and fairness, audited codework. All platform metrics are verifiable on-chain.

  • By building WINR chain using Arbitrum ORBIT, and by currently using Arbitrum ORBIT-enabled tech to offer Account Abstraction to users (a service that is already live), they are in fact already showcasing Arbitrum technology — offering gas-less transactions and enticing new users to migrate from other chains.

  • They are adding and incentivizing on-ramp deposits that would directly inject new capital into our ecosystem.

  • The gambling/gaming niche is ideally positioned, given its high target value audience, to draw users and activity to Arbitrum.

Not sure what more we could want in terms of deliverable outcomes.

~~

FD: While I am an investor in WINR, I am also a major investor in many of Arbitrum’s protocols. In fact, I am a self-disclosed Arbitrum Maxi, and I solely invest in projects building on Arbitrum. My hope is that every eligible protocol submits a grant proposal, but I find WINR positioned to achieve what I feel are the most desired outcomes — increased activity & the recruiting of new users and builders to our ecosystem.

I feel this proposal warrants serious consideration, and I support it.

4 Likes
10

WINR totally deserves the grant!

11

I see that Winr Protocol has not contributed much to the Arbitrum ecosystem.

Therefore I do not support this proposal

12

We need different varieties of protocols for our incentives program to be successful and grow the ecosystem. The more Arbitrum has to offer, the more it will attract users, TVL, and be able to compete with other ecosystems. From a quick glance at about 30 grant applications I see mostly yield strategies (8), DEXs (7), money markets (6) and bridges (3).

This is a chance to support the best gambling/gaming protocol we have which has demonstrated clear PMF, impressive growth, has a great team and is also one of the first planning to build on Arbitrum Orbit. Similar protocols on other chains are thriving (cf. Rollbit). The net impact on Arbitrum’s user base and TVL from supporting such a protocol is much larger than another DEX or money market protocol, and I think this warrants a more lenient interpretation of grant requirements when looking at TVL conditions etc.

3 Likes
13

I don’t think they lied about TVL. They had more than 4M. They don’t have it atm, at least not in WLP.
But most of the liquidity on Camelot is POL, they used a large part of the funds raised during IDO to have deep liquidity from day 1. GLP + POL is definitely more than 4M.

Anyway, I don’t think this should be an issue. The proposal is well-written and it has clear objectives. They are asking for a reasonable amount. WINR team is one of the first to build Arbitrum Orbit chain. They deserve support.

5 Likes
14

I also think the WINR team is trying to build something unique which can attract new users to Arbitrum. The proposal is well formulated and reasonable.

The requirements of the STIP are no strict criteria but more like soft guidelines. I would personally be in favour of this proposal from the WINR team.

6 Likes
15

This is a great point. My calcs didn’t even factor token liquidity TVL.

16

Hi @WINRProtocol , @axlvaz_SEEDLATAM.eth here, part of @cattin @seedlatam delegation.

I have some questions about your proposal:

According to Defillama it does not meet the volume. Although I know that gambling protocols are beneficial to any ecosystem.

Can you describe what the incentive programme to attract liquidity will look like and whether you envisage any mechanisms to limit aggressive farming?

1 Like
17

Hello @WINRProtocol thank you for submitting!

Please note grant funds may only be used to incentivize Arbitrum contracts and can not be used for incentivizing social engagement as per the following.

2 Likes
18

Hello, I’m not familiar with the complete terms and conditions but could you elaborate on how using tokens for trading competitions doesn’t incentivise Arbitrum contracts (or on how does it equate to funding operational costs)?

19

I’m missing something here, could you explain a little deeper Matt?
The quote you added doesn’t say anything about social engagement. Is it the bootstrapping liquidity or the trading contest? The trading contest would require interacting with arbitrum contracts so the incentives would go to incentivize the contracts, no? What is the difference in the trading contest versus every transaction gets x ARB?
Thanks!

1 Like
20

@Permanent @acidhoe You are allowed to reward the competition players/winners with the ARB. However, you may not use it for rewarding twitter posts as this is not an Arbitrum Contract.

3 Likes
21

Ah ok, I missed that part when I read it. Thanks for pointing that out!

Fully agree, it definitely should be removed in the next draft/edit. Looks like the only other concerns/reservations I have are already brought up.

2 Likes