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Arbitrum x Perennial Labs
Recorded: Oct. 31, 2023 Duration: 0:53:54Space Recording
Full Transcription
And, you know,
Wow, many, many stuff in the making of the things that you're cooking there.
So, yeah, very cool to see.
Also, Arbinauts, if you would like to learn more about Perennial,
you can find more information here in the Asapin content here.
You can find everything about the V2 and also in their X account.
And, yeah, Jacob, you also mentioned a very important thing
that have recently happened in the Arbitrum ecosystem.
So, yeah, we recently witnessed the short-term incentives program
that it was a proposal on the Arbitrum DAO.
And you were selected or voted by DAO to be part of the projects
that will get this steep.
So I would like to get to know more about it.
It's like you received a grant of 750K ARB.
So can you walk us through that?
Can you tell us more about how that process went?
Yeah, most definitely.
I think, yeah, we were just sort of glad to be involved
within such a vibrant DeFi ecosystem that exists on Arbitrum.
But in terms of, yeah, actually securing the grant,
it was a bit of a crazy week, I would say.
A lot of hustling, different Arbitrum delegates jumping on,
you know, random Twitter spaces and podcasts and live streams,
promoting the upcoming V2 launch, as well as, you know,
reaching out to protocols that we'd had promising conversations with
during our V1 phase.
And just really rallying votes for the team.
You know, we were fortunate enough to secure the SCIP proposal,
you know, within probably the last couple of hours that voting was live.
So I think it's great that this Arbitrum ecosystem is willing to,
you know, promote up and coming protocols,
not sort of existing kings on the chain and support innovation
within Perennial V2 specifically.
I think it's an incredibly bullish one for Arbitrum.
And yeah, we're obviously excited to see the level of usage
that both Perennial and Arbitrum at large can obtain
with some additional ARB incentives.
Nice, yeah, that was a very interesting week.
Those were very interesting weeks where everyone were, yeah,
we were witnessing that.
And yeah, getting to see the Arbitrum DAO getting together
and vote on all the projects was very, very cool to see.
And all the delegates analyzing all the 95 proposals of each project.
Well, it was very, very cool.
So, yeah, I would like to get to know more about
how those Perennial plan to use those phones.
What are you going to do now with that?
Sorry, you were asking how we're going to use the funds for SCIP.
Is that correct?
Yeah, yeah, yes.
That's, I don't know, my internet, can you hear me?
Perfect, yes, yeah, sorry.
It might have been on my end.
But, yeah, so I think, so we outlined this a decent amount.
And maybe I can start with this one.
And then, Louie, if you want to take over.
We sort of outlined this a bit in the proposal.
Though, you know, at the time, I think there was a lot of sort of like open questions,
I think, that we were still trying to figure out.
And the goal from the beginning was always, you know,
here's sort of our original plan.
You know, we know there's going to be some split between makers and takers.
We know we want to sort of prioritize long-term fundamental users of perennial and of the
Arbitrum ecosystem.
And most importantly, we want to keep an iterative process so that, you know, we're kind of keeping
things on a swivel.
So we're sort of trying out experiments, seeing what works and what doesn't, and then shifting
rewards and direction of those that are most effective for the perennial protocol.
So, you know, I think we have some ideas of kind of where we're going to start.
But I think the core focus here is that we sort of maintain flexibility and are able
to move.
And that's kind of what we've been busy doing the past, call it, you know, a couple weeks
is kind of getting ourselves set up to be able to sort of maintain that flexibility once
the distributions start.
Louie, do you want to talk through some more of the sort of specific distribution?
Maybe not.
Louie may be having some.
Yeah, for sure.
Oh, yeah.
So we're looking to, yeah, sorry, a little bit late.
Yeah, we're looking to run this in, to.
Sorry, I don't know if it's my internet.
Yeah, I can't hear him either.
All good, all good.
I can sort of hop in and give this piece and Louie can hop in after.
But, yeah, as Louie was saying, you know, we kind of have three months to distribute
rewards.
We're sort of going to start somewhere.
The idea is that I think, you know, what.
My wife keeps on muting itself.
You can do it.
All good, all good.
Yeah, what Louie was getting at is, you know, I think the goal for Perennial is to, based on
where we're sitting at right now, we've launched V2.
We launched a couple markets.
We just launched trigger orders.
We're really excited to get a lot of traders on board.
So I think, like, when we start with kind of week one and two, the goal is that we're
going to sort of go a little bit.
We're sort of going to mix up the incentives between makers and takers, but we're really
going to put an emphasis, I think, on onboarding traders.
And this will be this will coincide with probably some new market launches and hopefully soon
after the launch of V2.1, which I think will bring forth a lot new functionality.
So yeah, so the idea is that, you know, we'll kind of do this in seasons effectively
or some sort of, you know, periodic distributions where, you know, each week you'll be able
to check back and claim some rewards from trading over the week.
We'll use sort of like an off-chain algorithm that'll be, you know, pretty simple.
I mean, we'll sort of make clear the inputs, but I think that, you know, there'll still
be some sort of like general uncertainty on the back.
And that'll give us a little bit of flexibility to sort of target that, you know, sort of
the right users, right?
People are using the protocol in fundamental ways and who are sort of, you know, doing
things that we like to see, like recurring usage, for example.
So I think on the trader side, most of our rewards will probably be in the form of trade
rebates, but we'll also be doing some sort of like open interest rewards for people who
sort of like recurring users in terms of OI over time.
And then on the maker side, we'll have two different, there's going to be two different
ways to earn rewards.
One is just by being a vault LP.
So this will receive one rewards.
And then the other thing is, you know, you can also sort of LP directly into the protocols
of ProMaker.
And this is functionality that we think that we're quite excited about and also think is
like pretty unique for perennial.
So we're thinking about doing rewards specifically for this group.
And then may also, this is still TBD, but just an idea we're considering is attaching some
sort of bonus for those who are using some sort of modest leverage, basically like taking
advantage of some of the core functionality that I think sort of sets perennial apart.
And yeah, and you know, from there, the goal is basically just to get the flywheel started
and then kind of iterate from there.
Onboarding a lot of takers will lead to higher maker APYs, which are driving liquidity.
And, you know, we'll kind of continue to sort of oscillate rewards back and forth to make
sure that flywheel keeps going.
Maybe the one other thing to mention is that, as we mentioned in the STIP proposal, the goal
is to kind of correlate some of the rewards that we release with what we view as like big
moments or big new things.
So, I mean, we have a lot of exciting market launches.
I think that are just down the road.
I think maybe AJ and Louis will touch on them after I finish up here.
But within the context of those market launches, I think the goal is to use some of these incentives
as like a short term jolt to help bootstrap the market, you know, seeding some, you know,
having like a short term, call it like a week or a two week boost to some new market we're
launching, whether it be, you know, currencies or NFTs or something else that's kind of in the
pipeline that'll help sort of bootstrap that market.
And then from there, we can kind of weed off and let them let the market kind of exist,
exist in its own.
I think the whole goal of this STIP program for Arbitrum on a broad basis and certainly
the focus that we have at Perennial is like these rewards are intentionally short term.
So the goal is to the goal is not to get usage in the next three months.
The goal is to retain usage over the next, you know, couple of years post incentives.
So the our real focus is trying to figure out what what what ways can we sort of use these
incentives to sort of like lower onboarding costs, reduce friction and help bootstrap these
markets into some state that sort of has that is sustainable and can, yeah, can continue activity
after after this incentive program is done.
Yeah, very exciting to see, like, to be honest, this is going to boost the Arbitrum ecosystem in
general and for sure perennial lab.
So so, yeah, very exciting to see.
And I do have a lot of plans.
So so, yeah, that's very cool to see.
And we are looking forward to see what's next and also to to see your to see your growth
hearing through your news that you share on X.
And yeah, maybe we can have a new AMA when when there are more things ready, ready to share.
And well, now I would like to to ask you, like, why why are you using perennial?
Why why why take the Arbitrums should start using it?
Yeah, yeah, for sure.
Well, I guess basically you should come and come and try out perennial v2 for a few main
reasons.
I think we've gone through the protocol pretty well.
But if I was going to, like, drop it into a few dot point forms, it's that, you know,
we'll have the highest rewards per unit of activity, you know, being a smaller and new
perp decks and still receiving a grant.
Additionally, we're on the cusp of releasing a heap of new unique markets, a lot of longer
tail stuff, you know, some NFTs looking into FX and commodities as well.
And of course, some or your favorite digital assets.
Additionally, we've got, you know, some of the lowest fees on Arbitrum across perp deckses.
And we've got some comparison tweets within our Twitter at the moment as well.
If you want to check out an example trade, how much you would save on perennial.
And then, yeah, we also have a couple of new interfaces launching on top of perennials as
well, some of the decks aggregators you've come to know and love, as well as some yield
aggregators that could be leveraging perennial on the back end.
And yeah, for early adopters of the protocol, some additional incentives later in the year.
But yeah, I guess more on that later.
Fantastic.
Thank you for sharing it.
And as well, I would like to know, like, what's the best way for the community to get involved
with perennial labs?
And maybe, like, for sure, following you on X, joining to check your website.
And yeah, what else?
It's there for the community.
Yeah, totally.
I mean, I think you nailed it.
Jump into the Discord.
Follow us on Twitter for more consistent updates.
We'll be releasing articles on Medium as well.
But yeah, Discord and Twitter is going to be the primary hub for the short term.
Fantastic.
Yeah, Discord is where everything's happening, I guess.
Where the community can get involved more.
Cool.
Well, thank you so much, Levi, Jacob, AJ, and Arjun for joining us today to share about
perennial labs, what you're building, what you have Albury built, and also more about
what's coming next.
And yeah, well, we're about to finish this AMA, so wondering if you would like to share
something else to the community or, or yeah, like a small cap to action for them.
Yeah, I think call to action, come and try perennial v2, lowest fees on Arbitrum.
We're about to kick off incentives.
And yeah, I hope to see you guys in the Discord soon.
So, yeah, thanks for having us and excited to be a part of this ecosystem and enjoy Arbitrum
autumn.
Woo-hoo!
Yeah, Arbitrum autumn.
Yeah, cool.
Thank you, AJ.
Very cool to have you here in the Arbitrum ecosystem for sure.
Thanks, guys.
Thanks, everyone.
Pleasure talking to you guys.
Thanks, everyone.
Thanks.
Have a fantastic Tuesday.
Ciao.
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