Original author: Callen

Original translation: TechFlow

Wintermute announces plans to support the following applicants in the first round of the Arbitrum Short-Term Incentive Program.

Incentive Selection Criteria

Our selection process is based on the following core criteria. Selection Characteristics:

  • Alignment with STIP incentive program objectives – Applications should be aligned with the program’s objectives;

  • Innovative incentive design – Innovative incentive design is a plus as it will provide new data and insights;

  • Reasonable incentive size — Given the short time frame, the incentive size must be reasonable and have a clear outline of token distribution;

  • Potential long-term benefits – Incentive design has the potential to deliver long-term benefits.

However, a project does not necessarily need to meet all of the characteristics.

Selected applicants

We have selected the following 5 protocols that we plan to support once the first round of voting begins:

  • Vertex Protocol — 1.8 million to 3 million ARB

  • Balancer — 1.2 million ARB

  • Socket——1 million ARB

  • RabbitHole—— 1 million ARB

  • Angle Protocol — 200,000 to 700,000 ARB.

Reasons for selection

Vertex Protocol

Vertex Protocol has successfully demonstrated its ability to attract users, liquidity providers, and volume on Arbitrum by providing a highly professional trading experience. The incentive amount is high, but we like that it scales with the success of the program, and any unused funds will be refunded. Overall, the incentive goals are consistent with those of the short-term incentive program; Fee reduction will put Vertex ahead of CEX competitors and hopefully migrate users; Democratization of incentivized order book LPing adds another piece of infrastructure to Arbitrum in an already successful protocol.

We look forward to supporting Vertex’s grant applications!

Vertex Protocol Summary Statistics:

  • 4th largest derivatives DEX by cumulative volume — $8 billion

  • The eighth-largest agreement based on 30-day fees — $485,000;

  • A total of 6, 203 unique depositors.

Balancer

As the fifth largest protocol and third largest DEX by TOL on Arbitrum, Balancer has proven its value in the ecosystem. We appreciate Balancer's continued focus on fostering ecosystem-wide collaboration, such as the ve 8020 incentive program, interest rate pools, bonuses, etc., and the value that the veBAL economy brings to Arbitrum. The incentive goals outlined are consistent with those of the short-term incentive program, and we believe that the migration of veBAL to Arbitrum and increased participation will potentially lead to long-term increases in TOL, trading volume, and user base.

Balancer Summary Statistics:

  • The fifth largest protocol by total value locked — $96.51 million;

  • The second largest DEX by total value locked — $96.51 million;

  • 20th entity by 30-day users — 386,000;

  • 16th largest entity by 30-day transactions – 1.88 million.

Socket

Socket has proven to be one of the core components of Arbitrum infrastructure, being one of the protocols that has introduced the most users, transactions, and volume to Arbitrum. The outlined incentive distribution will provide valuable information and data on the effectiveness of incentivizing infrastructure projects and the value they bring to the Arbitrum ecosystem. We expect the rebate of cross-chain fees and improved user onboarding experience, as well as the integration of Socket with partners, will lead to increased user acquisition and total value locked for Arbitrum.

Socket Arbitrum Summary Statistics:

  • 12th entity by cumulative users — 854,000;

  • 17th entity by cumulative transactions – 2.8 million.

RabbitHole

RabbitHole's mission is directly aligned with the goals of the short-term incentive program, and it has successfully driven active user acquisition and trading on Arbitrum. Tasks gamify users to actively explore the Arbitrum ecosystem, and more importantly, provide infrastructure for new protocols to increase their growth by offering task rewards. We appreciate the clarity of specific KPIs, as well as the inclusiveness of the incentive program.

RabbitHole Summary Statistics:

  • A total of 1.5 million mission requests;

  • A total of 213,000 unique task wallets;

  • Each wallet completed an average of 7.4 tasks.

Angle Protocol

Angle Protocol adds diversity to the DeFi ecosystem through a Euro stablecoin and advanced liquidity mining enabled by Merkl. The incentive goals outlined align with those of the short-term incentive program and are designed to foster collaboration between Arbitrum native protocols. Additionally, Angle's focus on driving adoption of stEUR will provide important data and insights into demand for RWAs on Arbitrum.

Angle Protocol Summary Statistics:

  • The Euro stablecoin that accounts for the largest DEX trading volume since May 2022 — 64.4% in September;

  • The largest decentralized stablecoin by market capitalization ranks fourth — $20 million.