Hi everyone, below is a draft for a new CVIP, feel free to give any feedback. CVIP-006 - $ARB for CVI traders. Background.
14 May 2023, 11:09
Hi everyone, below is a draft for a new CVIP, feel free to give any feedback!
CVIP-006 - $ARB for CVI traders
Background
As we gear up for the next big developments for CVI (The Hedging vault and the flagship product-line of the leveraged volatility tokens) a transitory incentive could fit well to get more traders acquainted with CVI.
The GOVI DAO has recently received 75K $ARB tokens from the Arbitrum foundation.
This proposal’s goal is to allocate an initial small amount of $ARB as incentives for the short term.
Specification
- Allocation of 5K $ARB tokens to be distributed to $CVI traders
- Utilize Chainlink VRF to create a verifiable on-chain raffle, in which 3 winners will be determined.
- Overall prizes to the winners will be: 2.5K $ARB, 1.5K $ARB, 1K $ARB
- Each participant’s chance to win will be determined by their trading volume (swap/mint/burn), adjusted to keep chances high for heavy traders but also give a chance for everyone to win.
- Only 1 prize will be granted per wallet
- The chance to win will be determined by a “volumeScore”, with the following simple logic:
In case the trader's volume < 10K, then volumeScore = the trader’s volume
In case the trader’s volume > 10K, then volumeScore = 10K + (user’s volume - 10K) * 0.5
Each trader’s chance to win will then be his volumeScore / total volumeScore
This will give traders with a high volume a bigger chance to win, with a decreasing added chance for bigger amounts, thus giving all traders a fair shot.