gTrade’s Arbitrum STIP Bridge Trading Incentives Kick Off

Exciting times for the gTrade community! The highly anticipated Arbitrum STIP-Bridge program is about to kick off, bringing a significant amount of rewards to gTraders, liquidity providers, and community builders. With 2.25 million $ARB secured, this program will run for a total of 11 weeks, from June 28 to September 12. The gTrade STIP-Bridge program is designed to reward trading activities, incentivize liquidity, and fund GCGP-Bridge, gTrade’s inaugural community grants program for innovative protocols building on gTrade.

This article will outline everything you need to know about how the trading rewards will be calculated and distributed. For comprehensive information on the GCGP-Bridge program, please refer to this article [link].

Overall STIP-Bridge Token Distribution

Here’s how the 2.25 million $ARB will be allocated:

• 1.8 million $ARB (80%): Reward trading activities on the gTrade platform.
• 337.5k $ARB (15%): Incentivize gToken liquidity pools and GNS DEX liquidity via third-party protocols.
• 112.5k $ARB (5%): Fund the inaugural GCGP (Gains Community Grants Program) — Bridge, supplying grants to innovative protocols building on gTrade.

Trading Rewards System

The gTrade team has crafted a trading rewards system, incorporating lessons from the previous Arbitrum STIP program. The goal is to incentivize high-volume trading, PnL performance, and consistent trading activities on the gTrade platform. Rewards are distributed across three categories:

1. Fees

The fee category incentives are distributed weekly based on open & close fee spending. Traders are rewarded a portion of the rewards based on their share of fees spent. The higher the fee share, the larger the reward.

Calculation:

• Trader rewards = traderWeeklyFees / protocolWeeklyFees * weeklyFeesIncentives
• Example: The weekly fee incentives are 139,091 $ARB. Trader A pays $500 in fees throughout the week. The protocol earned $250k fees in total. Trader A will receive 500 / 250000 * 139091 = 278.2 $ARB

*Fee category rewards are capped at the total amount of fees earned by the protocol. Market value of $ARB rewards is determined at time of weekly snapshot. So if weeklyFeesIncentives * ARB/USD > total fees, the distribution will be reduced accordingly.

**Borrowing fee is not included, only action based open & close fees

2. PnL Rewards

The PnL category incentives are distributed weekly based on PnL. Traders are rewarded a portion of the rewards based on their weekly profits. The higher the profit share, the larger the reward. If a trader PnL is negative for the week, it is treated as 0. The protocol weekly PnL is then the sum of all profitable traders, it is not the true PnL (since unprofitable traders PnL is treated as 0).

Calculation:

• Trader rewards = max(0, traderWeeklyPnl) / totalProtocolPositivePnl * weeklyPnLIncentives
• Example: The weekly PnL incentives are 16,363 $ARB. Trader A profits $5k in pnL throughout the week. The total protocol positive PnL was $250k. Trader A will receive 5000 / 250000 * 16363 = 327.3 $ARB

3. Loyalty Rewards

The loyalty incentives are distributed weekly based on trading frequency. Each day a trader trades, they earn points towards the weekly distribution. The more fees spent in a day, the more points earned.

Fees and Points Min Fee paid: $8 = 1 point Min Fee paid $40 = 5 points Min Fee paid $200 = 25 points Min Fee paid $400 = 50 points

Calculation:

• Trader rewards = traderWeeklyLoyaltyPoints / totalWeeklyProtocolLoyaltyPoints * weeklyLoyaltyIncentives
• Example: The weekly loyalty incentives are 8,182 $ARB. Trader A trades 6 days, 5 of which qualify for points, totaling 105 points throughout the week. The total protocol loyalty points was 12,754. Trader A will receive 105 / 12754 * 8182 = 67.4 $ARB

Trading Reward Distribution Weighting

The distribution weighting of rewards across the 11-week program is divided into two phases:

Epoch 1 to 4 (June 28 to July 25)

• Fees Paid: 85%
• PnL: 10%
• Loyalty: 5%

Epoch 5 to 11 (July 26 to September 12)

• Fees Paid: 100%

Rewards for each epoch are available on the Dashboard under “✨ Rewards” and can be redeemed at any time. Please note that all points will be reset at the start of each epoch. gTrade reserves the right to change the rules if necessary during the program.

Stay Updated

Follow the Arbitrum STIP-Bridge section in gTrade’s GitBook [link] for weekly details and updates throughout the program. Get ready for 11 weeks of rewards mania! 🚀 Follow gTrade’s Twitter account for announcements and leaderboard standings.

Join the excitement and take advantage of this incredible opportunity to earn rewards on gTrade and contribute to the growth and adoption of the Arbitrum ecosystem!