The tokens will flow to WOOFi users over the coming months, trickling through all features of the DEX
Background
The proposal to backfund successful projects from round one of the Arbitrum STIP has passed, and that means WOOFi is set to receive a whopping 1M ARB. To give you ample time to prepare so you can make the most of this opportunity, we’re outlining in detail how these incentives will be distributed, down to the very last ARB.
To start with, here’s a quick breakdown of how the ARB will be allocated.
Please note: ARB rewards for WOOFi Pro, simple swaps, and cross-chain swaps will be calculated at the end of each week, and be available to claim the following Monday from a new claim button in the WOOFi app. For WOOFi Earn and Stake - rewards can be claimed as usual from their respective pages.
WOOFi Earn
200,000 ARB tokens will be streamed evenly between WOOFi’s ARB, ETH, USDC.e, and WBTC vaults on Arbitrum. Once a user has deposited and staked their WOOFi Earn LP tokens, rewards will begin automatically accruing each block and can be claimed at any time. For a guide on how to deposit, check out our docs.
WOOFi Pro
To incentivize new traders, 25 random wallets that deposit onto WOOFi Pro via Arbitrum and trade $250 volume in the same week as they deposit will be picked every Monday to each receive 50 ARB. These winning wallet addresses will be recorded in our GitBook.
10,000 ARB will be distributed pro rata each week to reward existing traders based on volume. Higher volume = higher share of the pot. Finish within the top 5 traders by volume each week for an additional bonus prize:
- 1st place: 1,500 ARB
- 2nd place: 1,250 ARB
- 3rd place: 750 ARB
- 4th place: 450 ARB
- 5th place: 184 ARB
WOOFi Stake
All stakers will earn a share of 200,000 ARB proportionate to the size of their total staked WOO and multiplier points. These rewards will be distributed in addition to 80% of WOOFi swap fees and WOOFi Pro net revenue. Not yet staked on WOOFi? We’ve prepared a step-by-step guide for you here.
WOOFi swaps
11,538 ARB will be used as incentives each week to lower fees for WOOFi swaps on Arbitrum. All swaps that use WOOFi’s sPMM liquidity will be eligible whether executed through the WOOFi app or via aggregators. Incentives in the pool will be awarded to users based on their total fees paid during each week.
User A’s rewards = (fee paid by user A / total fees collected from sPMM liquidity pool)* total ARB incentives for the week
WOOFi cross-chain swaps
To encourage more users to explore the ecosystem, all cross-chain swaps into Arbitrum from Ethereum, Optimism, BNB Chain, Polygon, Avalanche, and Base will have the following fees refunded using the ARB token:
- Destination gas fee
- Bridge fee
- Swap fee on the source chain
Refunds will be given each week and calculated according to the daily close price of ARB the day before distribution. We will closely monitor cross-chain activity and alert users if the cap is going to be hit, dynamically adjusting the ARB allocation each week.
Cross-chain carousel
WOOFi’s cross-chain carousel will feature one Arbitrum protocol each week for 13 weeks. 25 lucky users who cross-chain swap any asset from any chain into $20 or more of the featured project’s token of the week will be picked to each win 230 ARB.
Example: It is the first week of January, and Lisa cross-chain swaps ETH from Optimism into $20 of JOE on Arbitrum. Lisa now has a chance to win.
Quests and widget
50,000 ARB will be used to fund Arbitrum-specific quests in partnership with Layer3 as we strive to shine a spotlight on budding protocols in the ecosystem.
Another 50,000 ARB will be reserved for builders who integrate the WOOFi Widget - a white-labeled product embeddable into any protocol that allows users to cross-chain swap any tokens. These ARB tokens will be used to incentivize cross-chain swaps into Arbitrum only.
The content above is neither a recommendation for investment and trading strategies nor does it constitute an investment offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.
The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.
