Reward Programs Retrospective
Reward programs are deployed to incentivize our community to perform tasks to bootstrap the network and to bring value to the Jarvis ecosystem. They leverage from a snowball effect: when there are few participants, the rewards are shared between a small number, and are relatively large, attracting more participants leading to generate more value for the ecosystem.
In this article, we first remind you how our programs work, before to dive into some data including the return of investment (ROI) users have earned so far, and we will conclude by some information about future programs and changes.
Reminder
To date, Jarvis has launched two programs with Uniswap and Bancor for the first one, and Aave for the second:
- The liquidity program makes the JRT more accessible and more liquid so that everyone can buy or sell their tokens with little slippage; participants need to supply liquidity on Uniswap v1 and/or Bancor v1, with more protocols to come (Uniswap v2, Balancer and Kyber); the program will be extended to provide liquidity for our synthetic assets.
- The sponsoring program makes the network more accessible by helping to finance transaction costs in the ecosystem, for example offering free fiat-on ramp to synthetic assets and to DeFi; participants need to deposit stablecoin in Aave and to redirect their interests towards a wallet controlled by us.
The participant to each program share a reward pool of 70,000 JRT (around $2,000) every week funded by the Reward Funds, and as soon as the DAO is in place, they will also share 5% of the fees collected by the latter. These numbers may change in the future as the DAO will be in charge of the reward policy to adapt it to the needs and to the price of JRT.
If this is the first time you hear about our reward programs, we invite you to read articles on how to provide liquidity on Uniswap and Bancor, and how to participate in sponsoring pool on Aave. Keep in mind that depositing funds involves risks and may result in a partial or total loss of your deposit. Please read the warnings and risk disclaimer in every tutorial carefully.
Data
Deposits
So far, we are more than happy with the programs! The evolution of the deposit is beyond what was imaginable! And it increases each week. Uniswap pool holds almost $160K while Bancor’s holds around $50K; and Aave’s attracted $372K!
Altogether, the programs have attracted $572k of capital! Which is huge considering our size.
ROI
As you can see the ROI across the programs are pretty similar, except for Bancor due to the lower number of participants there, offering around 1% weekly, which corresponds to 55% yearly.
The more the deposits increase, the smaller the rewards; but the more the JRT price goes up, the bigger they are.
It worth to mention that because the DAO is not yet deployed, the participants to these programs do not yet receive part of the fee in Dai collected by the protocols. The ROI could be higher in the future, and will allow the DAO to reduce the number of JRT distributed, to extend the lifetime of these programs.
However, there is something important to mention that these data do not take into account:
- the fees collected by Uniswap and Bancor LP respectively increase the weekly ROI from 1.62% to 2.82% and from 5.11% to 5.14% for last week;
- and the impermanent loss, from which Uniswap and Bancor LP suffer (you can read this article to understand) and which is inherent to liquidity provision without tools for hedging, are eating the ROI, and could sometimes make it negative; however, data analysis show that the vast majority of LP have a positive ROI, as the rewards compensate the losses.
The latter greatly depends on when an LP started to supply liquidity: it depends of the price of ETH and JRT, of the price at which the user has bought their ETH and JRT (if they have bought it since many users are reinvesting their JRT rewards in the pool); a minority of LP are losing money (the one who joined recently), a minority of LP are making a lot of money (the one who joined early) and the vast majority of LP are making a reasonable amount of money as you can see it on this screenshot (if you speak Baguette).
In fact, it is not possible to estimate the real ROI per user, and it is also impossible to make projections.
Because of these additional risks that the Bancor and Uniswap programs carry, participants in such programs are less rewarded than the participants in the Aave’s in which there is no such risk of loss of JRT.
Consequently, they will be slightly changed to better rewards the participants to the Liquidity program, and to better reflect the risk they are taking.
Eventually, it may attract even more capital, whose JRT desperately needs.
Interests
The Aave program consists of redirecting the interests of users aDAI, aUSDC and aUSDT (we will be adding the other stablecoins in few days); you can track the evolution of the interests redirected to our address on Zapper.
To date we collected $770 worth of stablecoins which allows us to subsidize the fees of +$40k! In one month… if it keeps this trend, we could finance the pruchase of $700k worth of crypto per year within the Jarvis dApps, which will help to attract more users and therefore generate more fee for the DAO and for the liquidity providers.
What’s next?
There will be a few changes in the upcoming days:
- Moving from USDB-based pool to a BNT-based one: the USDB liquidity is too poor and does not make the JRT more liquid; Dex aggregators like Paraswap.io or 1inch.exchange can tap liquidity into multiple pools to have a way better price than on Uniswap or Bancor alone, but due to the USDB liquidity issue they do not provide better pricing than Uniswap alone.
- Launching a new program for a Balancer pool, one of our favourite projects.
- Increasing the rewards for the Liquidity program at the expense of the Sponsoring program, to better reflect the risks taken by liquidity providers.
- Splitting the rewards of Uniswap into Uniswap v1 and any Uniswap v2 pool.
- Adding SUSD, TUSD and BUSD to the Aave program.
Regarding the Sponsoring dApp, we will be integrating Blocknative’s notification and web3 onboarding library which supports Unilogin, hence our Jarvis wallet, and we will be adding the support of aToken in the latter in order to ease the user experience for our community.
Actually, it is done already :) go to visit https://5edbf8cc3846e0c91ea2356e--jarvis-sponsoring-pool.netlify.app/
Pascal (pascal.jarvis.eth on Twitter).
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⛔ Risk Warning: Investing in digital financial assets involves a high degree of risk and volatility and is not suitable for all investors; do not risk more money than you can afford to lose. Please consult an independent professional financial or legal advisor to make sure the product is right for you.
⛔ Disclaimer: This article contains text, data, graphics, photographs, illustrations and information (“Information”) connected with Jarvis International and/or other entities part of the Jarvis group ( “Jarvis”). Jarvis attempts to ensure Information is accurate, however Information is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. The publication of this article does not represent solicitation by Jarvis of buying the token “Jarvis Reward Token” and is not to be considered as a recommendation by Jarvis as to the suitability of any investment, if any, herein described. No action should be taken or omitted to be taken in reliance upon Information in this document. Jarvis accepts no liability for the results of any action taken on the basis of the Information.
