The Arbitrum Foundation previously launched the Long-term Incentive Pilot Program (LTIPP), which aims to drive greater network participation by enabling ArbitrumDAO to direct protocol funds as liquidity incentives to Arbitrum-based collaborative projects. Awarded LTIPP grants will be redistributed to the Arbitrum community as liquidity incentives through the recipient’s agreement. This incentivizes Arbitrum users to try emerging applications and generates greater online activity.
Allocations under the program total about $30 million, with most projects funded through September. Stephen, the founder of DeFi Dojo, took stock of the income of each project.
Factor
Most incentive strategies are either the LRT Silo Labs Leverage Strategy or the LRT Penpie LP Strategy.
Yields range from 22% to 93%, but Factor has a relatively low TVL, so be aware of dilution and safety risks.
Yield: 22%-93%
TVL in Vault: <$2M
Gearbox
Gearbox is launching lending campaigns first, but will soon launch incentivized trading and incentivized Renzo leverage. In their new STIMMIES campaign, you can earn not only $ARB rewards but also $GEAR rewards. Current borrowing yield:
$USDC：15%
Ethereum: 14%
One thing to look forward to is the subsidy for $ezETH leverage, but you’ll have to wait a week to see the full details. You can also leverage LSTs like $rETH, $wstETH, and $cbETH to mine, benefiting from LTIPP-subsidized low borrowing rates.
Source: PANews
Trading on $PURE will also have STIMMIES.
Source: PANews
Contango
DeFi protocol Contango has seen significant $ARB flows into leveraged Ethereum positions. In comparison, these can handle large amounts of Ethereum. Yields range from 20-30%, and some strategies can in principle handle over $2 million. Using Contango will also generate some points that will be used for TGE airdrops in about a month.
Source: PANews
Silo Labs
While both Factor and Contango aggregate silo opportunities, there are other opportunities that should be noted.
$WOETH collateral currently has a lending rate of -7.4% on Ethereum.
Source: PANews
This means you can get paid for borrowing Ethereum.
At maximum leverage, this equates to an annual interest rate of 63%, although almost all is paid in $ARB.
Be careful to continue growing your collateral by selling $ARB to get more $WOETH.
Source: PANews
Merkl
Merkl has a lot of LTIPP incentives, as big projects like Lido, PancakeSwap, and Camelot use Merkl as an incentive layer for LTIPP campaigns.
Source: PANews
However, so many choices can be overwhelming.
The author tends to like stablecoin pairs and Ethereum pairs (and occasionally Ethereum/Bitcoin if yield > 30%).
Ethereum rate of return:
$WETH / $ETHx：45%
$wstETH / $ETHx：37%
$ezETH / $WETH：21%
$uniETH / Ethereum: 46%
Stablecoin yield:
$fUSDC / $USDC：52%
$USDe / $USDT：43%
$GRAI / $USDC：40%
$USDC / $USDC：25%
Note: These are average APRs; many of them are less liquid, so pay special attention to dilution.
Curve 和 Convex
Curve and Convex use $ARB rewards to subsidize some interesting pools. Likewise, the author prefers Ethereum, Bitcoin or stablecoin pools.
Stablecoin pool:
$crvUSD / $sUSDe：41%
$usdd / $fraxbp：38%
$sUSD / $FRAXBP：32%
Source: PANews
Ethereum and Bitcoin Pools:
$2BTC-nq：27%
$WETH / $weETH：18%
$frxETH / $afETH：26%
Source: PANews
Timeswap
Lending protocol Timeswap has an interesting Pendle marketplace where you can earn $ARB rewards by lending.
Here, you can earn 30% by lending $PT-weETH and 9% by borrowing $WETH with collateral.
Note: Since this is an emerging market, there is interest rate liquidity available for borrowing and lending.
Source: PANews
Trader Joe
Trader Joe’s also has some interesting farms running LTIPP right now.
There are some crazy APRs out there, but it’s important to note that the APRs advertised on Trader Joe’s assume single Bin (Tick) liquidity.
Source: PANews
This means any reasonable liquidity will receive a lower APR. You can quickly calculate the average APR for your pool. For example ($WBTC/Ethereum):
Claimed APR: 2,065%
TVL: $331,000
24-hour trading volume: $441,000
Fee: 0.04%
Reward: 214 $ARB/day ($173 USD)
therefore:
Average fee APR: 19.45%
$ARB Incentives Average APR: 19.08%
Overall average APR: 38.53%
There is a big difference from the advertised single tick APR.
RAMSES
The Ramses, much like Trader Joes, like to advertise APRs for single-tick liquidity.
These are very unrealistic for ordinary miners, but at least they can know where the incentives are going.
Source: PANews
The author likes to sort by "EPOCH REWARDS" to see where all the $ARB incentives are.
Source: PANews
Then, if you look at a token pair like Renzo's $ezETH/Ethereum, you can get a better idea of what a reasonable yield actually is.
With 5 ticks of liquidity, an 18% APR can be obtained (pictured below).
Source: PANews
For stablecoin miners, the attraction may be $USDC/$USDT, for which miners can set an interval of 8 ticks and receive 73% APR.
Source: PANews
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reproduced with permission from: "PANews"
Original author: Stephen, founder of DeFi Dojo
