## Rabbithole Grant Bi-Weekly Update #3

GMX Grants Reports
1

Rabbithole Grant Bi-Weekly Update #3

Date: January 10, 2023

I. Executive Summary:

Rabbithole was funded with 100K ARB to develop the infrastructure and deploy Quests on behalf of GMX.

RabbitHole received its initial 25K ARB grant from the GMX Grant multisig on December 11, 2023.

To date, Rabbithole has created 11 quests on behalf of GMX’s STIP grant and 1 quest with an NFT Reward for RabbitHole’s Holiday Quest. RabbitHole has driven significant traffic to Arbitrum using quests. RabbitHole network performance has performed dramatically, including the protocol as one of Arbitrum’s top contracts in January

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a) Roadmap Progress

  • Development of the GMX plugin (I.e. GMX integration on Rabbithole) was completed prior to receiving the grant, in the weeks leading up to December 12, 2023.
  • December 12, 2023: Rabbithole received 25K/100K ARB from GMX.
  • December 12, 2023: Began development of a Dune Dashboard for the GMX community to use in tracking the effectiveness of the granted ARB.
  • December 12, 2023: RabbitHole announces first Quests on Twitter.

RabbitHole has continued to refine its GMX quests to support GMX V2 exclusive quests, in addition to further development towards perpetual swap plugin support and “Open Position” action types.

On January 6, 2024, in a proactive move to align with changing market dynamics and user demand, RabbitHole proposed an update to the roadmap to the GMX team which introduced the deployment of the Perpetual Swap Action type, and the migration of Quests in Phase ⅔ from the GMX V2 Swap contract to the GMX V2 perps contracts.

While the quests volume is low, we have noted that fee generation for GMX is likely to be extremely profitable. Assuming an estimated 0.0014 ETH fee on GMX swaps per completions, GMX has generated $18,637.36 in protocol revenue on just $11,374.20 in distributed ARB.

Despite quest profitability, RabbitHole has proposed to introduce the following changes to raise quest completions in the grant period:

  • Our analysts have observed that the combination of higher than anticipated fees, on both the network and GMX V2 Swaps, have created a lower quest completion rate than previously anticipated.
  • RabbitHole recommends taking adaptive measures to increase the reward rate to accommodate these fees, by raising the reward rate for the remainder of Phase 1, and increasing the reward rate to in Phases 2 and 3 to accommodate the fees present in completing quests following the GMX Perpetual Swap plugin.
  • While these changes have led to a reevaluation of our Phase 1 KPIs, showing a ~13% decrease, and a 55.6% decrease in Phase 2 and 3 KPIs, we view this as an opportunity to recalibrate and focus on long-term sustainable growth.

Week 5

The Quest breakdown for the fifth week of GMX Quests is as follows:

  • Quests:

    • Trade on GMX V2

      • Allow List: Historical GMX Users.
      • Total Allocation: 1,125 ARB.
      • Maximum Claimers: 750.
      • ARB per Claimer: 1.5.

    • Trade on GMX V2

      • Allow List: New Users.
      • Total Allocation 3,000 ARB.
      • Maximum Claimers: 2,500
      • ARB per Claimer: 1.2.

Week 4

The Quest breakdown for the fourth week of GMX Quests is as follows:

  • Quests:

    • Trade on GMX V2

      • Allow List: New Users.
      • Total Allocation: 1,500 ARB.
      • Maximum Claimers: 1,000
      • ARB per Claimer: 1.5.

    • Trade on GMX V2

      • Allow List: New Users.
      • Total Allocation 3,600 ARB.
      • Maximum Claimers: 3,000
      • ARB per Claimer: 1.2.

Week 3

The Quest breakdown for the third week of GMX Quests is as follows:

  • Quests:

    • Trade on GMX V2

      • Allow List: New Users.
      • Total Allocation: 2,250 ARB.
      • Maximum Claimers: 1500.
      • ARB per Claimer: 1.5.

    • Trade on GMX V2

      • Allow List: New Users.
      • Total Allocation: 4,800 ARB.
      • Maximum Claimers: 4000.
      • ARB per Claimer: 1.2.

Week 2

The Quest breakdown for the second week of GMX Quests is as follows:

  • Quests:

    • Trade on GMX V2

      • Allow List: Historical Users.
      • Total Allocation: 3,000 ARB.
      • Maximum Claimers: 2,000.
      • ARB per Claimer: 1.5.

    • Trade on GMX V2

      • Allow List: Historical Users.
      • Total Allocation: 4,800 ARB.
      • Maximum Claimers: 4,000.
      • ARB per Claimer: 1.2.

Week 1

Rabbithole has agreed to release the ARB granted in the form of weekly quests. The Quest breakdown for the first week of GMX Quests is as follows:

  • Quests:

    • Trade on GMX V2

      • Allow List: New GMX users (excludes current GMX users)…
      • Total Allocation: 250 ARB.
      • Maximum Claimers: 250.
      • ARB per Claimer: 1.

    • Trade on GMX (New + Existing Users)

      • Allow List: New & existing GMX users.
      • Total Allocation: 4,000 ARB
      • Maximum Claimers: 5,000
      • ARB per Claimer: 0.8

    • Trade on GMX (New Traders)

      • Allow List: New GMX users (excludes current GMX users).
      • Total Allocation: 2,500 ARB
      • Maximum Claimers: 2,500.
      • ARB per Claimer: 1.0

b) Milestone/KPI Achievements

Target Objectives

Objective Description KPI
Objective #1 Drive new users to GMX and create sustainable ecosystem growth. We’ll use allowlist targeting functionality such as whitelist/blacklist to accomplish this objective. 7,500 new wallets
Objective #2 Drive incremental usage to GMX by engaging existing users and reactivating dormant ones. 27,500 monthly unique wallets, 8,500 re-engaged wallets, 85,000 transactions driven to GMX
Objective #3 Provide GMX a detailed CPA (cost per action) & fees generated for each quest as well as the overall program to measure efficacy of the effort. Dune Dashboard
Objective #4 Create a GMX Plugin to deploy quests to specify minimum amounts and specific tokens, which can be used by anyone in GMX community GMX Plugin for Quest Protocol

Target KPIs (Adjusted)

Phase 1 (Experiment) Phase 2 (Iterate) Phase 3 (Scale)
KPI Month 1 Month 2 Month 3
Transactions or Actions Driven 15,000 10,000 20,000
Monthly Unique Addresses 5,000 3,333 6,667
New GMX Addresses 1,333 889 1,778
Reactivated Users 1,500 1,000 2,000
Grant Distributed 25,000 25,000 50,000

Performance To Date

Quest Number Status Claims Available Reward Unique Questors Number of Claims Total Rewards Claimed Percent Completions
11 Ongoing 2500 1.2 1 1 1.2 0.04%
10 Ongoing 750 1.5 122 122 183 16.27%
9 Completed 3000 1.2 600 600 720 20.00%
8 Completed 1000 1.5 169 169 253.5 16.90%
7 Completed 4000 1.2 522 522 626.4 13.05%
6 Completed 1500 1.5 196 196 294 13.07%
5 Completed 2000 1.5 201 201 301.5 10.05%
4 Completed 4000 1.2 750 750 900 18.75%
3 Completed 250 1 250 250 250 100.00%
2 Cancelled 5000 0.8 286 632 505.6 12.64%
1 Cancelled 2500 1 1001 2468 2468 98.72%

Performance details available on Dune here.

c) Dune Dashboards

The Rabbithole community dashboard is available [here]([ https://dune.com/rabbithole/quest-protocol-gmx-quests).

The RabbitHole STIP dashboard is available here: https://dune.com/rabbithole/stip.

II. Current Progress:

Current Quest Progress:

Active

Completed

III. Community Engagement:

Twitter Post: 3
Email Promotions: 1

IV. Partnerships and Collaborations:

  • RabbitHole included GMX in its Holiday Quests to drive an additional 935 Questors to GMX.