• Launch : August 2021
• Token : ARB
• Token type : Governance
• Token Launch : March 23rd 2023
• Max supply - 10b
• Circulating supply - 1.28b
• Market cap : $2.23b
• Founders : Ed Felten, Steven Goldfeder, and Harry Kalonder

Takeaways:

• We see that overall TVL of the grantees has increase significantly from $518M (pre-incentives) to $605M (post-incentives).
• The graph on the right shows the TVL change of the grantees normalized by the amount of ARB tokens they received. The top gainer was Silo Finance who gained $43.9M in TVL despite receiving only 1M ARB tokens.

The Arbitrum STIP is a one-time initiative coordinated by Arbitrum DAO and token holders, originally designed to distribute 50 million ARB tokens, funded by the DAO, to support active Arbitrum Protocols. The main objective of the program is :

1. Support Network Growth: It aims to drive growth in the ecosystem by accelerating the distribution of incentives to Arbitrum decentralized applications (dApps).

2. Experiment with Incentives: The STIP aims to explore new incentive distribution strategies to increase user engagement, transaction volume, and number of new users to enhance liquidity and overall activity in the Arbitrum ecosystem.

3. Generating Data: The program intends to collect data on the effectiveness of the distribution of incentives, informing future incentive programs and designs.

Takeaways:

• Just like TVL and Volume, the number of daily avergae users has also increased for the protocols since STIP.
• The biggest gainer was camelot whose DAU has increase by 4186 since STIP.
• The graph on the right shows the number of new users making their first transaction in Arbitrum. We see that, number of new users often spiked on dates when the large protocols initiated distributed incentives.

Takeaways:

• We see that the volume of transaction has increased for the grantess post-incentive compared to pre-incentive
• The graph on the right shows the volume change in transaction of the grantees normalized by the amount of ARB tokens they received. The top gainer was Vertex protocol who gained $260M in transaction volume.

• Following a community vote, the ARB tokens ended up being distributed to 29 out of 90+ protocols that had applied to the STIP program, across a series of different use-cases. The distribution of the ARB tokens is shown on the image on the left above.
• The STIP incentives to the grantees are distributed periodically. The grantees started receiving the incentives early Novemeber and are expected to receive the entire amount by end of March. The graph on the right above shows the amount of ARB claimed by the grantees in blue and the remaining amount to be claimed in red.

Takeaways:

• The graphs above show the fees and revenue of different protocols since STIP.
• We see that both fees and revenue have been trending upwards despite fluctutations since STIP.

• Bearish : Gamma, Radiant
• Bullish for GMX, Silo Finance, Camelot, Trader Joe and Pendle
• Neutral for MUX, Abracadabra