We are excited to announce that Perennial has been granted 750,000 ARB to distribute as incentives over the next 3 months. Traders & makers will be able to earn rewards in various ways throughout the protocol. We’re able to provide these incentives due to the support of the Arbitrum community on our STIP vote.
Starting on Monday we’ll kick off the 12 week incentive program focused on growing activity within the Arbitrum ecosystem. Below we’ll provide an overview of the incentives program & share details of the first week’s incentives.
Arbitrum’s Short Term Incentives Program
On the 13th of October, the Arbitrum community voted to grant Perennial with 750,000 Arbitrum to distribute to its users in an effort to incentivise growth & development of the Arbitrum ecosystem. In our grant post, we outlined various strategies we will implement to help grow the Arbitrum community.
We are excited to get started and contribute back to the ecosystem that supported us.
Perennial’s Incentives Program
The incentive program will be divided into 12 seasons over as many weeks. The 750,000 ARB will be distributed over this period, which will equal roughly 62k ARB per week. We’ll be dividing rewards between traders & makers on the protocol.
The exact split between makers & traders, vaults & pro makers, markets will be announced every week on Monday. We will adjust the rewards to ensure we are able to hit the various KPIs we outlined in our proposal. This dynamic approach will let us have the most impact with the rewards and prevent abuse. At the end of the week, users will be able to claim their rewards from the earlier week on the Perennial app.
While the program is designed to discourage abuse, we reserve the right to nullify rewards for users engaging in sybil attacks or other activities not in the spirit of the grant.
Season 1 — A new beginning…
The first week will run from noon UTC on the 6th of November til noon UTC on the 13th. Over the week we will allocate 62,500 ARB to various users of the the protocol.
Traders — 46,875 ARB (75%)
To kick off the incentive program, we are allocating the majority of this week’s rewards to traders on the protocol. This means that traders who go long or short on any of Perennial’s markets will get rewards allocated to them at the end of the week.
Time-Weighted Open Interest — 23,437.5 ARB (50%)
Over the week, traders will earn ARB in proportion to the time-weighted open interest of their positions across all markets. A minimum of 50% of taker rewards will be allocated here.
Fee Rebate — Up to 23,437.5 ARB (50%)
As you trade on Perennial, you’ll earn trading fee rebates in ARB, up to the full cost of base trading fees (4 bps for BTC/ETH, 6 bps for SOL/MATIC/TIA).
If the total trading fees paid on Perennial over the course of the week exceeds the $USD value of the ARB allocated here, ARB will be distributed pro rata traders based on fees paid. If after the week the fees rebated is less than the allocated amount of ARB, we will roll these rewards into the next season.
Makers — 15,625 ARB (25%)
For the LPs among us, we’ve carved out over 15,000 ARB to go to makers during the season. These rewards will go to users who provide USDC.e to the protocol as a maker. This can be done via Perennial Vaults or using the Pro Maker interface.
Vaults — 11,719 ARB (75%)
Users can make on Perennial using the Vaults product. The vaults are great for abstracting away the complexity of managing your maker positions across different markets. With vaults you deposit once and your liquidity is spread across similar markets to diversify your yield.
At present, Perennial has two vaults: Blue Chip & Large Cap. Rewards will be split between these two — 75% to Blue Chip LPs & 25% to Large Cap LPs. You can see the underlying assets and the expected rewards on the Earn page.
Pro Maker — 3,906 ARB (25%)
For more advanced users, you can provide liquidity directly to each market, as well as natively leverage your maker position to provide more liquidity and earn more yield. Rewards will be distributed pro rata to makers based on their time-weighted liquidity provided.
This season we are splitting up pro-maker rewards amongst markets in the following way:
- ETH/BTC — 60%
- SOL/MATIC — 30%
- Other markets (TIA) — 10%
When making leverage it is recommended to continuously monitor your positions to avoid your position being liquidated. To encourage pro makers with proper risk management skills, we will disqualify LP wallets that are liquidated while making during the season.
For a quick overview of all rewards, see this handy table:
Seasons 2, 3, 4…
Since this is the first season of the rewards program we will be closely monitoring the changes in trading volume, open interest, unique users, etc and adjust accordingly. We expect to be able to understand the impact of the incentives on the protocol within the first few weeks.
Once we properly understand them, we’ll start to tune them to further support our grant’s core objectives. From there, we’ll reach for the more exotic KPIs which we’ve outlined in the proposal.
Get started on Perennial
Now that you have the rundown of the incentives program and what to expect during the first week, get started on Perennial now!
App: https://app.perennial.finance/
Documentation: https://docs.perennial.finance/
Discord: https://twitter.com/perenniallabs
