Original author: Stephen, Founder of DeFi Dojo

Original Compilation: Felix, PANews

The Long-Term Incentive Pilot Program (LTIPP) launched by the Arbitrum Foundation aims to promote greater network participation by incentivizing the ArbitrumDAO to channel protocol funds as liquidity incentives to collaborative projects based on Arbitrum. The granted LTIPP funding will be redistributed to the Arbitrum community as liquidity incentives through the recipient's protocol. This incentivizes Arbitrum users to explore emerging use cases and generates greater network activity.

The total amount of funding for the project is approximately 30 million US dollars, and most projects will be funded until September. Stephen, the founder of DeFi Dojo, took stock of the returns of each project.

Factor

Most incentive strategies are LRT Silo Labs leverage strategy or LRTPenpie LP strategy.

The yield ranges from 22% to 93%, but Factor's TVL is relatively low, so dilution and security risks should be taken into account.

• Yield: 22% -93%
• TVL in Vault: <200 million dollars

Gearbox

Gearbox first launched lending activities, but will soon introduce incentive trading and incentivized Renzo leverage. In their new STIMMIES activity, you can not only receive ARB rewards, but also GEAR rewards. Current lending yield:

• USDC: 15%
• ETH: 14%

It is worth looking forward to the subsidy for ezETH leverage, but the complete details will not be available until next week. You can also leverage mining with LSTs such as rETH, wstETH, and cbETH, and benefit from the low borrowing interest rates subsidized by LTIPP.

Trading on PURE will also have STIMMIES.

Contango

The DeFi protocol Contango has a large flow of ARB into leveraged ETH positions. In contrast, these can handle a large amount of ETH. The yield ranges from 20-30%, and some strategies can theoretically handle over 2 million USD.

Using Contango will also generate some points, which will be used for the TGE Airdrop in about a month.

Related reading: 9 hot events and airdrop opportunities you need to follow this week

Silo Labs

Although Factor and Contango both aggregate Silo opportunities, other opportunities should also be noted.

WOETH Collateral currently has an interest rate of -7.4% on ETH.

This means that borrowing ETH can yield returns.

At the maximum leverage ratio, this is equivalent to an annual interest rate of 63%, although almost all of it is paid in ARB.

Please note that you can acquire more WOETH by selling ARB to further increase your collateral.

Merkl

Merkl has many LTIPP incentives, as major projects such as Lido, PancakeSwap, and Camelot use Merkl as the incentive layer for LTIPP events.

However, so many choices may be overwhelming.

The author tends to prefer stablecoin pairs and ETH pairs (if the yield rate is >30%, occasionally there will be ETH/BTC).

ETH yield"

• WETH/ETHx: 45%
• wstETH/ETHx: 37%
• ezETH/WETH: 21%
• uniETH/ETH: 46%

Stablecoin yield:

• fUSDC/USDC: 52%
• USDe/USDT: 43%
• grai / usdc: 40%
• usdc / usdc: 25%

Note: These are average APRs; many of which have lower liquidity, so special attention should be paid to dilution.

Curve and Convex

Curve and Convex use ARB rewards to subsidize some interesting pools. Similarly, the authors like ETH, BTC, or stablecoin pools.

Stablecoin Pool:

• crvUSD/sUSDe: 41%
• usdd / fraxbp: 38%
• sUSD/FRAXBP: 32%

ETH and BTC Pool:

• 2B TC-nq: 27%
• WETH/weETH: 18%
• frxETh/afETH： 26%

Timeswap

The lending protocol Timeswap has an interesting Pendle market, where ARB rewards can be obtained through borrowing and lending.

Here, you can earn 30% return by lending PT-weETH, while borrowing WETH with collateral earns you a 9% return.

Please note: Due to being an emerging market, there is interest rate liquidity available for borrowing.

Related reading: In-depth analysis of Timeswap: Detaching the time value of tokens, creating a new paradigm for lending protocols

Trader Joe

Trader Joe now also has some interesting farms running LTIPP.

There are some crazy annual interest rates here, but it is worth noting that the annual interest rates advertised on Trader Joe are based on the assumption of the liquidity of a single Bin (Tick) (which can be understood as a box for storing liquidity).

This means that any reasonable liquidity will receive a lower APR. You can quickly calculate the average APR of the pool. For example (WBTC/ETH):

• Claimed APR: 2065%
• TVL: $33.1k
• 24-hour volume: 44.1 thousand dollars
• Cost: 0.04%
• Reward: 214 ARB/day (173 USD)

Therefore:

• Average Cost APR: 19.45%
• ARB Incentive Average APR: 19.08%
• Total average APR: 38.53%

There is a big difference from the advertised single tick APR.

RAMSES

Ramses and Trader Joes are very similar, they like to promote APR with single-tick liquidity.

These are very unrealistic for ordinary miners, but at least you can know where the incentives are going.

The author likes to click on "EPOCH REWARDS" to sort and see where all the ARB rewards are.

Then, if you look at token pairs like Renzo's ezETH/ETH, you can better understand the actualized APY.

In the liquidity of 5 ticks, you can get an APR of 18% (as shown in the figure below).

For stablecoin miners, what may attract them is USDC/USDT, miners can set 8 ticks as an interval and get 73% APR.