ClipperDEX: +2500% TVL and +320% LPs Boost through an Incentive Campaign

What is ClipperDEX?

Clipper is a decentralized exchange optimized for blue-chip tokens, designed to minimize impermanent loss.

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The Challenge

In June 2024, Clipper successfully secured a significant STIPP grant from the Arbitrum Foundation, with the mission of boosting and strengthening the participation of liquidity providers, both new and existing. As a central strategy to maximize the impact of this grant, an incentive campaign was identified, specifically designed to reward loyal liquidity providers (LPs) and significantly increase the protocol’s Total Value Locked (TVL).

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The Solution

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Clipper partnered with Fuul to execute its ambitious incentive campaign, strategically distributing 174,308 $ARB tokens, granted through the subsidy, via weekly airdrops. The rewards are aimed at users who provide liquidity in the Arbitrum pool. Additionally, those who refer other users to deposit liquidity in Arbitrum will receive additional incentives in $ARB, thereby multiplying earning opportunities and further strengthening the liquidity network.

Conversion Events

- Deposit liquidity in the Arbitrum Core Pool

- Referred User

Payout Rules

- 6,167 $ARB distributed proportionally among all LPs based on daily snapshots of liquidity. In total, 74,308 $ARB tokens will be distributed.

- 8,333 $ARB distributed proportionally among past Clipper LPs who participated on other chains. In total, 100,000 $ARB tokens will be distributed.

- 1 $ARB for every $100 of referred liquidity deposited in the Arbitrum pool per day.

Incentives Hub

The program was hosted on a Fuul page, created by the Clipper team using Fuul's no-code editor. Users can view eligible conversion events, check their reward history and leaderboard status, and claim rewards directly to their wallets.

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Results: +2500% Growth in TVL and +320% in LPs

In the first 45 days of launching the incentive campaign, Clipper not only attracted new liquidity providers (LPs) to its Arbitrum pool but also experienced unprecedented growth. The protocol’s Total Value Locked (TVL) surged by over 2500%, while the number of LPs increased by an impressive 320%.

The most noteworthy aspect of this campaign was the transformative impact of the referral program. Of this spectacular increase in TVL, an astonishing 37% can be directly attributed to referrals, highlighting the effectiveness of the strategy designed by Fuul to expand the community through well-distributed rewards. Additionally, the growth in the number of LPs also reflected the program's success, with 10% of new liquidity providers coming from recommendations by current users.

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Conclusion

Clipper’s case study demonstrates the effectiveness of the Fuul platform in strategically aligning incentives with user needs. Through meticulous reward distribution and an exceptional referral program, Clipper significantly increased the adoption of its network on Arbitrum.

This success underscores the importance of a well-designed and executed incentive strategy. The collaboration with Fuul enabled Clipper not only to achieve its growth objectives but also to strengthen its community of committed users, establishing a replicable model for future adoption and expansion initiatives.