As a member of the Uniswap DAO and co-founder of OpenBlock Labs, I am submitting a proposal to build an objective-based incentive distribution framework to bootstrap organic trading volume on new venues.
Due to the recent license expiration, there have been a handful of proposals on bridging Uniswap V3 to various chains. Since the burden of bootstrapping these pools falls on early LPs, it is important that Uniswap quantifies this cost and distributes incentives appropriately. In the past, Uniswap Foundation has outsourced incentives to liquidity managers, but little analysis has been done on the success of this system.
OpenBlock aims to accomplish the following objectives:
The Uniswap DAO has been granted a large quantity of rewards from Arbitrum and Optimism. These two chains are showing a strong upward trend in TVL and volume during this market, which presents a unique opportunity for the DAO. If managed incorrectly, the Arbitrum and Optimism deployments can become an expensive liability, as mercenary liquidity providers will abandon the network when rewards dry up––the new pools may never reach escape velocity, and future LPs will pay the price.
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools. The research and analysis (Phase 1) will motivate a variety of ways for liquidity managers to consume these actionable analytics, which we outline in Phase 2. We believe a tailor-made incentive engine and systems analytics dashboard can significantly cut costs by rewarding participants through well-structured principles, rather than supporting ephemeral yield farmers.
The community has built an impressive set of liquidity analytics compared to most DAOs, but we believe mandating an external team such as ourselves can offer a novel perspective on a well-trodden problem. OpenBlock is committed to working with any pre-existing data frameworks, and iterating with other contributors to leverage insights from previous experiments. For instance, we look forward to building upon the incentive research conducted by Gauntlet and working with liquidity managers such as Gamma, xToken, and Arrakis to understand the mechanisms in which they distribute rewards.
Cost: To execute this project, OpenBlock Labs requests 200k ARB for six months. This will fund a dedicated team comprising 2-3 data scientists, 1-2 quantitative analysts, 1 frontend engineer, 1 product designer, and 1 project manager.
OpenBlock Labs is an R&D firm that empowers decentralized organizations with on-chain data insights for incentive optimization. OpenBlock is backed by notable figures in the crypto space, including Foundation Capital, Electric Capital, Circle Ventures, AlleyCorp, and others.
The team has backgrounds from Stanford, a16z, Carnegie Mellon, Meta, Palantir, and other top-tier institutions; the highly technical background of our team makes us confident that OpenBlock is uniquely positioned to tackle a problem of this nature.
OpenBlock looks forward to assisting in the design of a sustainable incentive model to grow volume across Uniswap deployments, starting with Arbitrum. This grant will be a great first step towards solidifying a productive relationship for both communities. We look forward to hearing the community’s thoughts, and answering any questions. Thank you for your consideration.
As a member of the Uniswap DAO and co-founder of OpenBlock Labs, I am submitting a proposal to build an objective-based incentive distribution framework to bootstrap organic trading volume on new venues.
Due to the recent license expiration, there have been a handful of proposals on bridging Uniswap V3 to various chains. Since the burden of bootstrapping these pools falls on early LPs, it is important that Uniswap quantifies this cost and distributes incentives appropriately. In the past, Uniswap Foundation has outsourced incentives to liquidity managers, but little analysis has been done on the success of this system.
OpenBlock aims to accomplish the following objectives:
The Uniswap DAO has been granted a large quantity of rewards from Arbitrum and Optimism. These two chains are showing a strong upward trend in TVL and volume during this market, which presents a unique opportunity for the DAO. If managed incorrectly, the Arbitrum and Optimism deployments can become an expensive liability, as mercenary liquidity providers will abandon the network when rewards dry up––the new pools may never reach escape velocity, and future LPs will pay the price.
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools. The research and analysis (Phase 1) will motivate a variety of ways for liquidity managers to consume these actionable analytics, which we outline in Phase 2. We believe a tailor-made incentive engine and systems analytics dashboard can significantly cut costs by rewarding participants through well-structured principles, rather than supporting ephemeral yield farmers.
The community has built an impressive set of liquidity analytics compared to most DAOs, but we believe mandating an external team such as ourselves can offer a novel perspective on a well-trodden problem. OpenBlock is committed to working with any pre-existing data frameworks, and iterating with other contributors to leverage insights from previous experiments. For instance, we look forward to building upon the incentive research conducted by Gauntlet and working with liquidity managers such as Gamma, xToken, and Arrakis to understand the mechanisms in which they distribute rewards.
Cost: To execute this project, OpenBlock Labs requests 200k ARB for six months. This will fund a dedicated team comprising 2-3 data scientists, 1-2 quantitative analysts, 1 frontend engineer, 1 product designer, and 1 project manager.
OpenBlock Labs is an R&D firm that empowers decentralized organizations with on-chain data insights for incentive optimization. OpenBlock is backed by notable figures in the crypto space, including Foundation Capital, Electric Capital, Circle Ventures, AlleyCorp, and others.
The team has backgrounds from Stanford, a16z, Carnegie Mellon, Meta, Palantir, and other top-tier institutions; the highly technical background of our team makes us confident that OpenBlock is uniquely positioned to tackle a problem of this nature.
OpenBlock looks forward to assisting in the design of a sustainable incentive model to grow volume across Uniswap deployments, starting with Arbitrum. This grant will be a great first step towards solidifying a productive relationship for both communities. We look forward to hearing the community’s thoughts, and answering any questions. Thank you for your consideration.
Thank you for the questions, @coltron.eth @0xkeyrock.eth!
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
Thank you for the questions, @coltron.eth @0xkeyrock.eth!
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
OpenBlock Labs is a core contributor to Delta One, which has a suite of products ranging from non-custodial liquidity provisioning to DAO dashboards. Most recently, OpenBlock Labs has collaborated with Lido to provide support in areas aligned with the scope outlined in this proposal. The first set of results will be released in the coming weeks.
Most team members will commence this project on a full-time basis, gradually transitioning to part-time as their responsibilities taper off. For example, the involvement of a designer will be more pronounced in the initial stages, while the latter phase will primarily focus on user experience feedback and maintenance.
How much ongoing support and maintenance after the initial six-month agreement will be necessary?
The dashboard's design aims for fluidity and independence, yet it may require maintenance due to factors such as upgrades in liquidity manager contracts, deployments on new chains, and additional asset listings.
Thank you for the questions, @coltron.eth @0xkeyrock.eth!
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
Thank you for the questions, @coltron.eth @0xkeyrock.eth!
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
OpenBlock Labs is a core contributor to Delta One, which has a suite of products ranging from non-custodial liquidity provisioning to DAO dashboards. Most recently, OpenBlock Labs has collaborated with Lido to provide support in areas aligned with the scope outlined in this proposal. The first set of results will be released in the coming weeks.
Most team members will commence this project on a full-time basis, gradually transitioning to part-time as their responsibilities taper off. For example, the involvement of a designer will be more pronounced in the initial stages, while the latter phase will primarily focus on user experience feedback and maintenance.
How much ongoing support and maintenance after the initial six-month agreement will be necessary?
The dashboard's design aims for fluidity and independence, yet it may require maintenance due to factors such as upgrades in liquidity manager contracts, deployments on new chains, and additional asset listings.
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools.
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools.
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
Cost: To execute this project, OpenBlock Labs requests 200k ARB for six months. This will fund a dedicated team comprising 2-3 data scientists, 1-2 quantitative analysts, 1 frontend engineer, 1 product designer, and 1 project manager.
Will this team be solely dedicated to this project?
Implement a regimen of regular monitoring of key performance indicators and market conditions, yielding consistently updated, data-driven recommendations adaptive to market evolution and pool performance dynamics.
How much ongoing support and maintenance after the initial six-month agreement will be necessary?
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools.
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
OpenBlock will conduct a three-pronged analysis on the current set of both market makers (LPs) and takers (volume) on Uniswap pools.
Can you provide links to the results of similar projects for those unaware of OpenBlock Labs?
Cost: To execute this project, OpenBlock Labs requests 200k ARB for six months. This will fund a dedicated team comprising 2-3 data scientists, 1-2 quantitative analysts, 1 frontend engineer, 1 product designer, and 1 project manager.
Will this team be solely dedicated to this project?
Implement a regimen of regular monitoring of key performance indicators and market conditions, yielding consistently updated, data-driven recommendations adaptive to market evolution and pool performance dynamics.
How much ongoing support and maintenance after the initial six-month agreement will be necessary?
Echoing the questions posted by @coltron.eth
Echoing the questions posted by @coltron.eth
