[ZKasino] [FINAL] [STIP - Round 1]

DAO Grant Programs Incentive Framework (Round 1)
1

SECTION 1: APPLICANT INFORMATION

Applicant Name: 0xetwas
Project Name: Sixdegree
Project Description:

  • Sixdegree is the leading onchain data research company

  • We are ranked number 1 on Dune Analytics and have worked with 25+ protocols on their data strategy, including Lens, ZKasino, Gnosis Safe among others and received grants from Dune Analytics as well as the Ethereum foundation

  • We focus on user growth leveraging onchain data to drive retention / cac / cohort analysis and give actionable recommendations to increase onchain adoption

Team Members and Qualifications:

  • 0xetwas, co-founder, Bd & research

  • Louis, co-founder, Lead researcher

  • Spring, co-founder, Lead data wizards

  • Julyan, co-founder, ML & Data wizards

  • 0xbi, co-founder, Senior Data wizards

Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.]

Contact Information:

  • TG: oxgummy

  • Twitter: @SixdegreeLab

  • Email: contact@sixdegree.xyz

  • 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:

    • 300k ARB

  • Grant Matching:

  • Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]

    • The entire grant will be distributed through Quest Protocol to users as rewards for completing onchain quests on ZKasino deployed on Arbitrum.

      • The entire grant distributed through quest protocol for growth of Zkcasino

      • Extensive literature has been written about the quest protocol and one can read further [here]

  • Sixdegree will also fund the development of the discovery page that our team will market to our Asian and Western communities

  • All quests will be available on the portal of Quest Protocol and others using the Quest Protocol infrastructure

  • Funding Address: [Enter the specific address where funds will be sent for grant recipients]

    • arb1:0x6C35179E09aD5EC7bCe17f62AD811F3a62b769fC

  • Funding Address Characteristics: [Enter details on the status of the address, eligible address must be a 2/3 multisig with private keys securely stored]

    • Multisig (SAFE)

  • Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]

    • QuestFactory contract: 0x52629961F71C1C2564C5aa22372CB1b9fa9EBA3E

SECTION 3: GRANT OBJECTIVES AND EXECUTION

  • Key Performance Indicators (KPIs): [Specify the KPIs that will be used to measure success in achieving the grant objectives]

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  • Below is a summary of potential network fees and average CPA

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  • Note, the above table is based on assumptions using extrapolation of current user base and forecast. Please refer to (Source_1) and (Source_2) for more information.

    • The number of transactions per user per month has historically been between 10-25.

      • We use 10-15 in our assumption as base case

    • Number of users per month for ZKasino has been up to 4,000 users per month across chains

      • We use 3-5k in our assumption as base case as the onchain quests will sput growth

    • The average network fee per action is $1.

  • How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: [Provide details]

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  • Sixdegree Lab has been working with Quest Terminal by RabbitHole, a platform allowing high-velocity experiments called “quests”for few quarters. We have written an extensive analysis of our decision a few months ago available here.

  • The table gives an overview of the difference between Quester Terminal and traditional CeFi solutions

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  • Sixdegree reviewed airdrops in recent research and found that airdrops have a churn up to 80% after only four months and with an average customer acquisition costs between 5-20k per airdrop holder in another research [Link].

    • Hence, one-time airdrops have been proven to be not a great way to acquire and retain onchain users.

    • On the other hand, iterative data-driven airdrop such as Optimisim ones and now Arbitrum ones have shown to have great success.

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  • This grant will create the opportunity to bootstrap RabbitHole’s Arbitrum Quest Gateway with a proper token distribution program and to support Sixdegree onchain user behaviour analysis.

  • We plan on deploying quests to incentivize specific actions +25/-25% the price of gas cost, ensuring that we can grow the number of new users, engaging existing ones, and re-activating dormant ones.

  • When Quest Protocol grows, projects in the Arbitrum ecosystem grow alongside it and reap the benefits.

  • We will deploy quests to the Quest Protocol for the following projects with the following allowlist strategies:

    • Note, for each application we will do a user segmentation and for each sub group select different onchain actions to increase DAU and onchain fees

    • Below is an overview of how we score onchain user activity using activity and maturity with ParaSwap as example

  • Justification for the size of the grant: [Enter explanation]

    • Based on past 30-days data and for all chains (L1s & L2s), ZKasino is ranked 5th top grossing gambling application based on onchain volume with $15m [Source] of which c. 30% of its volume is on Arbitrum

    • Based on past 30-days data on Arbitrum, ZKasino is the top gambling app with $4m+ onchain volume and 260+ number of unique active wallets (UAW) interacting or performing a transaction with a dapp’s smart contracts over a period of time.

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  • As ZKasino is expanding fast its product suite and the Quest protocol has gotten amazing traction, we think it gives a perfect opportunity to use this grant to drive sustainable growth for Arbitrum and ZKasino.

  • Despite Arbitrum being a key market for Zkasino, only 6% of the total ZKasino UAW is from the Arbitrum ecosystem.

  • With only 260 users on Arbitrum, ZKasino has only 0.2% of the total onchain gambling market with a size of 150k active users (source: DappRadar)

  • As such, we believe there is a tremendous opportunity to acquire some Polygon ZKasino users, with a total of 4,000+ users base, and from the 150k+ onchain gambling market

  • A 300k ARB grant will drive at least 5k+ ZKasino users. Onchain gambling users have some of the highest LTV per user and ZKasino will be their first entry to the Arbitrum ecosystem

  • Lastly, we will use some of the grants to help acquire users from Asia where ARB has yet to expand fully

  • Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]

    • We plan on deploying weekly/bi-weekly quests over the next 3 months while iterating on strategy each month to make sure we’re accomplishing our goals

    • We will focus on ZKasino with some examples of tasks below

      • Dice Master: Roll the dice 10 times.

      • Coin Toss Champion: Flip the coin 10 times.

      • Plinko Pro: Drop the puck 10 times.

      • Slots Superstar: Spin the slots 10 times.

      • Rock Paper Scissors Ruler: Play 10 rounds.

      • Video Poker Virtuoso: Play 10 hands.

      • Mines Maestro: Play 10 rounds.

      • Starter’s Luck: Wager $100.

      • Rising Star: Wager $500.

      • High Roller’s Club: Wager $1000.

      • ZKasino Elite: Wager $5,000

      • Ultimate Player: Wager $10,000

      • Daily Dare: Wager $100 daily for a week.

      • Multi-bets do not count towards these missions.

      • Only 1 transaction on-chain will be considered as 1 bet.

  • Grant Timeline: [Describe the timeline for the grant]

Our plan for the grant is to experiment using our existing plan, iterate on the strategy, and scale the strategy.

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  • Funding Tranches: [Enter the number of funding tranches and percentage of total grant amount for each tranche]

    • Please see above for the funding tranches and percentage of total grant amount for each tranche

  • Milestone Descriptions: [Provide a brief description of the milestones for each funding tranche]

    • Please see above for milestones and each funding tranche

SECTION 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

  • Is the Protocol Native to Arbitrum?: [Yes/No, and provide explanation]

    • Zkasino and Quest Protocol are deployed across multiple chains.

  • On what other networks is the protocol deployed?: [Yes/No, and provide chains]

    • ZKasino: Arbiturm, Polygon. It is planning to expand to go live zkSync Era when a VRF becomes available and later to go live on StarkNet and Polygon zkEVM as well.

    • Quest protocol: Base, Ethereum, Optimism, Polygon

  • What date did you deploy on Arbitrum?: [Date of deployment]

    • ZKasino: Q2 2023

    • Quest protocol: May 23rd, 2023

  • Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]

    • ZKasino

      • Zkasino is the most successful gambling protocol deployed on Arbitrum

      • 5.6m games played since inception

      • 29k+ users since inception

      • 500k+ transactions since inception

      • $260m+ wagered on the platform since inception

      • $5m+ profits since inception

      • Dune dashboard

    • Quest protocol

  • Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application.]

  • ZKasino

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  • More info on the roadmap here

    • Certik documentation available here

  • Quest protocol

  • Audit History: [Provide historic audits and audit results]

    • Codearena results are here

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

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

    • Yes, as the number 1 team on Dune, we will drive transparency and create Dune Spells and Dashboards

  • If not, how does your team plan to report grant data?:

    • n.a

  • Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?:

    • Yes

  • Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:

    • Yes
2

Please can you provide links for ZK Casino in your proposal, as this is for the ZK Casino protocol, it is hard to understand or review that protocol when all links point towards ‘Sixdegreelab’

1 Like
4

This project is linked to heavy racist @Derivatives_Ape that also stole $150k to @Pancakesbrah by never paying for his work.

This deserves to get 0 ARB

1 Like
5

Thank you for your message.

Sixdegree is the team working on onchain research. We have all the information about us in the background.

ZKasino is the application we want the grant and we have added information about them in page 3 and 4 including smart contract, audit, KPIs etc…

We are open to add more information but it would be helpful to have a more pointed list of missing items.

Thank you

6

Hi and thank you for your message

  • Gambling is one of the fastest segment in crypto in this bear market

  • Most users starts their journey using gambling applications and then discover other applications and hopefully stay onchain

  • ZKasino is the most successful application in the Arbitrum ecosystem with only 300 MAU on ARB in a market with 150k+ TAM users. Hence, there is a phenomenal opportunity to drive more users and let them discover the ARB ecosystem

  • We appreciate that gambling may be taboo and something some users do not want to support. However, we would like to note that the team at ZKasino has been actively building for a long time on ARB, have been using some new technology such as metaplay (Metaplay©: Revolutionising Betting on ZKasino with One-Click Gasless Transactions | by ZKasino | Medium) and also having one of the best prevention tools for players (e.g. Self Exclusion - ZKasino Documentation ).

  • CEX gambling is already one of the biggest crypto use case with companies such as STAKE and Rollbit among others. We think DEX gambling with companies such as ZKasino being one of the leader.

  • We are open to answer any questions you may have on our proposal.

7

Thank you for your message.

We do not have much information on this topic.

Our focus is on onchain data and finding applications that can support the growth and development of the ARB ecosystem.

We think in this current ecosystem, onchain gambling applications are one of the best gateaway to attract users onchain.

Do not hesitate if you have any questions on our proposal. Thank you

8

While I don’t believe in personal beliefs chiming in on decisions, I think it must be disclosed that ZKasino is the project that tweeted a video of a hit-and-run murder and joked about it;

ZKasino on X: “An apology on the previous post: The intern, who is now removed from his position, thought that reposting an already viral video while addressing the sheer horror of its contents in a dark manner, would be a proper way of bringing attention to the spike in hit-and-run incidents.…” / X (twitter.com)

ZachXBT on X: “@ZKasino_io Stop blaming it on an intern here’s your core team member also joking about it (tweet now deleted) https://t.co/13l1Etj014” / X (twitter.com)

Given the nature of said events, I believe it’s something that must be brought up.

Delegates are free to make their own informed choices and support the protocols they believe contribute to the chain, as they represent the DAO.

2 Likes
9

Thank you for sharing this.

The entire Sixdegree team do not support any hate nor racism videos or messages. We take a very strong stand on this topic.

Our proposal is focus on finding applications with great product market fit and with a huge potential for user growth.

We do also think that onchain gambling is one of the few segment to grow fast in this bear market.

The combination of (i) onchain market trend with onchain gambling, (ii) leadership position with ZKasino being #1 on ARB and (iii) opportunity to reach 98% of TAM users as ZKasino has only 300 MAU vs 150k MAU total seems a great combination.

We are open to any comments on our thinking, analysis and proposal. Thank you

10

Thanks for sharing

I think the stance for delegates to take is clear based on these actions

1 Like
11

Thank you for your message.

Do not hesitate if you have any questions on our proposal.

12

Grants should not be used for marketing purposes.

I also have serious concerns that other users have shared, from Zkcasino’s recent twitter posts.

13

Hello @0xetwas thank you for your application! Please make the following changes to your proposal to comply with the program rules.

  1. The funding address you provided is not a multisig as seen on Arbiscan. Funding addresses must be a multisig per the following program stipulation.
  1. The Funding Tranches piece of the incentives framework has been replaced by funds being streamed biweekly. Please update your proposal to reflect this.
1 Like
14

A couple of queries here.

1, the grant is going to be used to incentive Zealy Quests. Is this not a derivation of using the grant monies for social media, not to far afield from incentivizing the same kind of activity on Twitter? Similar components have been shot down on other proposals.

2, given the low amount of TVL, there does not appear to be another mechanic being offered as a means to utilize the grant.

3, can you please address previous/historical concerns of the usage of bots and wash trading on the platform. Think this information would help color your definition of “the most successful application” in the Arbitrum community.

1 Like
15

Thank very much for your message. Please see below some follow ups

  1. We are not using Zealy and onchain quests are different from traditional CeFi quest support.
    We have written extensively about our choice to use onchain quests as a user acquisition method.
    You can find the full articles here https://sixdegree.substack.com/p/how-does-sixdegree-use-onchain-quests and below and snapshot of the key difference.

The grant is not for social media use case.

We will look to incentive users that either (i) are active on other chains than Arbitrum and use onchain quests to attract them, (ii) are active on Arbitrum but with low frequency / low value and (iii) are active on ARB but do not know ZKasino.

As mentioned above, our goal is to support Arbitrum growth ecosystem. We think onchain gambling is a great gateaway and a way to attract new users who then will likely have higher retention and stay in the ecosystem longer.

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  1. TVL is not the right way to assess ZKasino. It it about Wagered amount, total onchain trading volume and profitability of ZKasino for Arbitrum. ZKasino onchain users have some of the highest LTV in the onchain user ecosystem.

WIth only c. 300-500m MAU users, ZKasino has generated $4m+ in monthly onchain trading volume. There are 150k onchain gambling users, hence, there is a tremendous opportunity to reach more TAM.

  1. Can you confirm any links or data support about this affirmation? We can look further in details with the team.

We really appreciate you taking the time to answer these questions.

Sixdegree team is really eager to support the Arbitrum ecosystem in the best way possible. Thank you

16

Hello @Matt_StableLab

Thank you very much for your message. We are huge fan of Stable and very excited in participating in this ARB grant opportunity.

Please find below our answers. Do not hesitate if something is not clear!

  1. The funding address you provided is not a multisig as seen on Arbiscan. Funding addresses must be a multisig per the following program stipulation.

Our previous address was a multi-sig but deployed on ETH.

We added a new multi-sig (SAFE Wallet) deployed on Arbitrum.

  • arb1:0x6C35179E09aD5EC7bCe17f62AD811F3a62b769fC

Link: GnosisSafeProxy | Address 0x6c35179e09ad5ec7bce17f62ad811f3a62b769fc | Arbiscan

  1. The Funding Tranches piece of the incentives framework has been replaced by funds being streamed biweekly. Please update your proposal to reflect this.

Thank you for this update. We have made changes to the amount. Below the update.

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17

Thank you for making these changes! Your submission now meets all requirements to be considered for a snapshot vote.

1 Like
18

Thank you very much for the confirmation.

19

Hello @0xetwas ,

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:

Please complete the following steps required for your application to proceed to Snapshot:

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

2 Likes
20

@0xetwas Here is the updated process for changing your title.

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

1 Like
21

Hi @eli_defi @stonecoldpat @cliffton.eth

Sixdegree team wants to notify you that our proposal is ready to proceed from [Draft] to [Final] status.

Please let us know if you have any questions. Thank you