Summary

A portion of the DAO treasury revenue from trading fees will be used to continue the trader incentives on Arbitrum that were introduced with the LTIPP program. Initially, 1500 ARB tokens will be purchased weekly, which will then be distributed as follows:

• USDC swaps Arbitrum: 1000 ARB
• wstETH swaps Arbitrum: 500 ARB

The Economics Workgroup is empowered to decide on the duration, extension, terms and modification of the program.

Theme/Problem/Issue

Trader incentives have proven to be a very successful means of increasing the use of the IPOR protocol. Since the beginning of the LTIPP program, cumulative trading volume has increased by over $70M. The wstETH pool and the USDC pool generate a high real yield (wstETH: 5% APR; USDC: 17% APR).

Solution

The use of existing reward smart contracts enables a seamless transition following the LTIPP program and requires little development effort.

Empowering the Economics Workgroup:

The decision within the Economics Workgroup is made with a simple majority.

Pros/Cons

Pros:

• higher trading volume and higher real yield for LPs

Cons:

• costs

KPIs

To evaluate the success of this proposal, the following should be taken into account:

• Trading volume
• Real yield
• Costs

Timeline/Steps

Discussion: Discussion in the open governance forum for 3 days.

Vote: After this period the proposal will be moved to #formal-governance and a Snapshot vote will be held.

Implementation: as soon as possible

Monitor and evaluate the changes: After the changes have been implemented, it will be important to monitor their impact on IPOR and the community. This will involve tracking the KPIs mentioned earlier.

Resources

Technical

• Development tools
• Testing and deployment infrastructure

Financial

• Development budget

Skills/Budget

Skills

• Solidity and smart contract development skills
• Familiarity with DeFi protocols and concepts such as lending and borrowing and IRS
• Experience with Ethereum and the IPOR protocol

Budget

• Development costs for implementing the updates
• Marketing budget

Cost Estimation

The IPOR Labs team has already signaled that the costs considered for implementing these proposals fall within the software development scope and services rendered and paid for from the protocol’s initial funding.

The weekly cost for the DAO treasury is approximately $780 (assuming an ARB price of $0.52).

Commitment

Transparency: The contracted developer will have a commitment to being transparent about the development and implementation of the proposal. This will include providing regular updates on the progress of the changes and sharing any relevant data or information with the community.

Community engagement: The contracted developer will actively engage with the IPOR community throughout the development and implementation of the proposal. This will include soliciting feedback from the community and incorporating their suggestions and concerns into the proposal.

Responsiveness: The contracted developer will be responsive to any questions or concerns raised by the IPOR community about the proposal. This will include providing timely and accurate responses to any inquiries from the community.

Accountability: The contracted developer will be accountable for the impact of the proposal on the IPOR Protocol and its community. This will include tracking the KPIs mentioned earlier and making any necessary adjustments based on the results.