A look at the 5 projects supported by Wintermute in Arbitrum’s first round of incentive plan

Original author: Callen

Original compilation: Deep Chao TechFlow

Wintermute has announced 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. Select features:

• Alignment with STIP Incentive Program Objectives – Applications should be consistent with the objectives of the program;

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

• Reasonable incentive sizing — Given the short time frame, the incentive sizing must be reasonable and have a clear overview of token allocation;

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

However, projects do not necessarily need to meet all 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.

Reason for selection

Vertex Protocol

Vertex Protocol has successfully proven its ability to attract users, liquidity providers and trading volume on Arbitrum by providing a highly professional trading experience. The incentive amount is higher, 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; the fee reduction will put Vertex ahead of CEX competitors and hopefully migrate users; the democratization of the incentive order book LPing adds another piece of base for Arbitrum to an already successful protocol facility.

We look forward to supporting Vertexs grant applications!

Vertex Protocol summary statistics:

• DEX, the fourth largest derivatives by cumulative trading volume - US$8 billion;

• Eighth largest agreement by 30-day fee – $485,000;

• Total 6,203 unique depositors.

Balancer

As the fifth largest protocol and third largest DEX by total value locked on Arbitrum, Balancer has proven its worth in the ecosystem. We applaud Balancer’s continued focus on promoting ecosystem-wide collaboration, such as the ve8020 incentive program, interest rate pools, bonuses, etc., and the value that the veBAL economy brings to Arbitrum. The outlined incentive goals are consistent with the goals of the short-term incentive plan, and we believe that veBALs migration to Arbitrum and increased participation will potentially lead to long-term increases in total value locked, transaction volume, and user volume.

Balancer summary statistics:

• Fifth largest agreement by total value locked – $96.51 million;

• The second largest DEX in terms of total value locked—$96.51 million;

• No. 20 entity by 30-day users – 386,000;

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

Socket

Sockets have proven to be one of the core components of Arbitrums infrastructure, serving as one of the protocols with the highest number of users, transactions and transaction volume introduced to Arbitrum. The outlined incentive distribution will provide valuable information and data regarding the effectiveness of incentive infrastructure projects and the value they bring to the Arbitrum ecosystem. We expect that the rebate of cross-chain fees and improved user onboarding experience, as well as the integration of Socket with partners, will lead to an increase in Arbitrum user acquisition and total value locked.

Socket Arbitrum summary statistics:

• No. 12 entity by cumulative users – 854,000;

• The 17th-ranked entity by cumulative transactions – 2.8 million.

RabbitHole

RabbitHoles mission directly aligns with the goals of the short-term incentive program, and it has successfully aggressively driven user acquisition and transactions on Arbitrum. Tasks take the form of gamification to allow users to actively explore the Arbitrum ecosystem and, more importantly, provide the infrastructure for new protocols to increase their growth by providing task rewards. We appreciate the clarity of specific key performance indicators and the inclusiveness of the incentive program.

RabbitHole summary statistics:

• A total of 1.5 million mission requests;

• A total of 213,000 independent task wallets;

• Each wallet completes an average of 7.4 tasks.

Angle Protocol

Angle Protocol adds diversity to the DeFi ecosystem with Euro stablecoins and advanced liquidity mining via Merkl. The outlined incentive goals are consistent with the goals of the short-term incentive program and are designed to promote collaboration among Arbitrum native protocols. Additionally, Angles focus on driving adoption of stEUR will provide important data and insights into the demand for RWA on Arbitrum.

Angle Protocol summary statistics:

• Euro stablecoin, which accounts for the largest DEX trading volume since May 2022 - 64.4% in September;

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