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oARB Incentives Program
Details on how to earn and use oARB rewards
Thanks to the Arbitrum community's vote, we were one of the projects selected to receive an $ARB grant as part of the STIP. The grant will be used to incentivize liquidity growth on Dolomite so the protocol can underwrite loans for larger positions, enabling more hedging and looping strategies.
Thanks to the Arbitrum community vote, Dolomite has received 1,000,000 ARB to be used to incentivize TVL growth on Dolomite. This is being done by rewarding users who hold USDC, ETH, WBTC, ARB, or LINK on Dolomite with oARB tokens. These tokens can be used to get ARB tokens at a discount from the market rate. Read below to learn how to earn, claim, and vest oARB.
Earning oARB is very straightforward. Simply, holding USDC, ETH, WBTC, ARB, or LINK on Dolomite will earn you oARB. To begin earning, deposit one or more of these assets on the Dolomite Balances page. If you already have any of these assets on Dolomite, you have already begun earning oARB! Alternatively, you can borrow any of these assets using the Borrow page, which will add the asset to your Dolomite Balance.
You will earn rewards regardless of where your assets are on Dolomite. They can be in your available balance, added to a Dolomite liquidity pool, or acting as collateral in a Dolomite borrow position, and you will still earn oARB.
You can track your total balance deposited to Dolomite of each of the assets on the Rewards page in the "Earn oARB" panel (shown in the image above). That balance reflects the total amount you hold on Dolomite, across all borrow positions, available balance, and liquidity pools.
The amount of oARB you earn will depend on several factors. Every week 90,000 oARB is distributed based on the weights shown in the Earn oARB panel, with 40% going to USDC liquidity providers, 25% to ETH providers, and so on. The oARB for each asset is then distributed among users based on the amount of liquidity that they provide. For example, a user holding half of the USDC on Dolomite would receive half of the oARB going to USDC liquidity providers.
The APR shown for each asset is based on the expected return a user would receive if they were to take the oARB they earned and vest it for the maximum period of four weeks.
Claiming oARB can be done on the Rewards page once per week. oARB rewards accrue over the course of a week, and on Thursday the amount of oARB that you've earned is shown on the "Claim oARB" panel on the right under "Claimable". To claim available oARB, click the green "Claim" button and sign the transaction from your wallet. This will add any claimable oARB to your oARB balance, which is displayed on the left side of the panel under "Your oARB Balance".
Please note that your claimable oARB balance only updates once per week on Thursday. If you've just added assets to Dolomite and don't see any oARB accruing, just wait until Thursday and it will update to display the amount you've earned, at which point you can claim it.
There is a minimum of at least 0.1 oARB for claiming. If you did not earn at least 0.1 oARB for the given week, your claim amount will be shown as 0.
Once you have claimed oARB and have an oARB balance, you can begin vesting. This can be done from the "Vest oARB" panel on the Rewards page.
Vesting turns your oARB into discounted ARB, allowing you to get ARB at a price cheaper than market rate. The size of the discount is based on how long you choose to vest for. Vesting for one week allows you to purchase ARB at a 2.5% discount from market rate, two weeks gives a 5% discount, three weeks a 10% discount, and four weeks a 20% discount. The discount is applied when vesting is complete and you "execute" your vest, using the market rate at that time.
For example, if you were to begin vesting 100 oARB on November 2, and chose to vest for four weeks, you would be able to execute your vest starting on November 30th, at which point you would be able to buy 100 ARB at a 20% discount from the market rate at the time you execute your vest on November 30th or later.
To vest, go to the Rewards page and find the "Vest oARB" panel. Enter the amount of oARB you would like to vest into the input field. You will need to pair your oARB with ARB from your Dolomite Balance. So for example, if you wanted to vest 100 oARB, you would need to hold 100 ARB that you can pair with it for the duration of the vesting period. Until vesting completes, the ARB will be locked along with the oARB. After vesting, the paired ARB will be returned to your Dolomite Balance.
After entering an amount of oARB, select your vesting period. A longer vesting period provides a larger discount at the time that the vesting completes and is executed.
After you have entered an amount of oARB and selected a vesting period, click the "Vest" button. This will bring up a panel that will provide a summary of your vest. Review the information carefully and then click submit, and approve the transaction from your wallet. This will begin vesting your oARB.
Keep in mind that when the vesting period completes, you will have one week to execute your vest. When executing you will need to have enough ETH to purchase the discounted ARB. If you do not execute your vest within that period you will face a detonation penalty and will forfeit your oARB and discount.
It is recommended you claim and vest regularly, as there is a limited amount of ARB available in this program and it is first come first served at the vesting step. You can see the amount of ARB remaining in the rewards pool in the "Vest oARB" panel. You will only be able to begin vesting as long as there is enough ARB remaining in that pool. Once you begin vesting, ARB will be allocated for your vest, regardless of the vesting lockup period, so you will always be able to execute any vest your begin.
You can see oARB that you have currently vesting in the "Currently Vesting" section of the Rewards page. Each vest shows the amount of oARB being vested, the discount that will be received, and the amount of time remaining until the vest can be executed.
When the vesting period has completed, you have one week to execute your vest. You can do so by clicking the "Execute" button for the completed vest. Doing so will bring up an Execution Summary, shown below.
The execution summary shows what will be sent when you execute, which will be the Vesting NFT for that specific vest and the amount of ETH that it takes to purchase the vested ARB at the discounted price. The discount is based on the market price at the time of execution. Details of the cost and discount are displayed in the execution summary. The ETH to complete the transaction will need to be in your Dolomite Balance in order to execute the vest.
The execution summary also shows what you will receive, which is the ARB that you locked up when you began vesting as well as an equivalent amount of ARB that has been vested from oARB and is being purchased at a discounted rate. After execution, these will be added to your Dolomite Balance and can be withdrawn to your wallet if you wish, or held on Dolomite to earn more oARB.
To execute your vest, click the "Execute" button on the execution summary panel and approve the transaction from your wallet. When the transaction completes, the ETH will be removed from your Dolomite Balance, the ARB will be added to your Dolomite Balance, and the vest will be shown in a "Completed Vesting" section below any active vests.
Make sure you execute your vest within a week of it completing or you will forfeit your discounted ARB that has vested from oARB. The locked ARB will be returned to you minus a detonation penalty. This mechanism is necessary to ensure that Dolomite can meet its distribution obligations.
This rewards program was designed specifically to distribute ARB while avoiding mercenary ARB farming that is harmful to the Arbitrum ecosystem and ARB market, and to instead reward users who are committed to the long term health of ARB. We believe that Dolomite's growth shouldn't come at the expense of ARB. Pairing oARB with ARB during the vesting period and using a discounted ARB model aligns the reward incentives with the health of the ARB market and Arbitrum ecosystem while providing incentives to users who help Dolomite grow in TVL.
We're excited for you to try out this program and start earning ARB rewards!
Last modified 18d ago