What is this about?

Stella, a leading leveraged farming protocol on Arbitrum, has been implementing the STIP incentives to foster growth and attract more users. The protocol has seen a 253% increase in Total Value Locked (TVL) since the start of the incentives, reaching $5.8M. Stella received 186,000 ARB for the STIP incentives, with 120,000 ARB allocated for lending pools and 66,000 ARB for profitable leveragoors. The incentives are designed to enhance lending liquidity and provide an additional 20% profit to leveragoors on their profitable positions. Stella has utilized 23,757 ARB of the received 53,144 ARB in the last two weeks, with the remaining ARB to be rolled over to the next epoch or returned to the Arbitrum DAO if unused by January 31st, 2024. The protocol's lending pool TVL has reached $4.96M, and the cumulative TVL, including leverage, is $4.8M, with leveragoor yields surpassing $132k, excluding incentives.

How is the community reacting?

The community's engagement with Stella is robust, with the number of unique user addresses reaching 559. The average daily TVL is reported to be $5.5M, with an average of 61 daily transactions and daily volumes of $200,000. Transaction fees have amounted to $3,100. Community members are encouraged to provide feedback and suggestions on the STIP or other matters, with Apoorv9 available for direct communication on Telegram and Twitter.

Why this is positive?

• Stella's protocol has shown significant growth, with a substantial increase in TVL and positive yields for leveragoors.
• The STIP incentives have successfully increased lending liquidity and provided additional profits to leveragoors.
• The distribution of 18,100 ARB across several contracts in the next two weeks is expected to further incentivize participation.
• Stella is the largest protocol in its category on Arbitrum according to DeFillama, indicating strong market positioning.

Why this is negative?

• All $ARB rewards have a 30-day vesting period, which may limit the immediate liquidity for some participants.
• Any ARB remaining after January 31st, 2024, will be returned to the Arbitrum DAO, which could be a concern for community members.
• The full allocation of ARB for leveragoors has not been distributed yet due to open positions, which may delay the expected increase in distribution.

Next actions

No next action has been determined.