Simple Summary

Revise the Kwenta referral program to reward both traders and affiliates with 30% of feesPaid, using feesPaid as the criteria for generating rewards. Rewards will be distributed weekly in OP until the 200,000 $OP from Kwenta’s OP grant are distributed.

Abstract

This KIP proposes an update to the Kwenta referral program to enhance user participation by rewarding both the Trader and the Affiliate with 30% of feesPaid, distributed weekly in OP. The “KWENTA” referral code will be ineligible for affiliate rewards, but users of the “KWENTA” referral code will be eligible for trading rewards.

Motivation

The change aims to increase participation in the Kwenta referral program by incentivizing both traders and affiliates in direct proportion to feesPaid with liquid rewards. By using feesPaid as the reward criterion, the program becomes simpler and more transparent. Additionally, the distribution aligns with the Kwenta VIP program, tracks feesPaid similarly to previous incentive programs allowing us to reuse design elements, and ensures that even wallets which self-refer and participate in the VIP program are still limited to a maximum of 90% of feesPaid returned as rebates, preventing wash trading and other attacks.

Specification

Referral Program Structure

• Reward Structure: Provide 30% of feesPaid to both the Trader and the Affiliate, distributed weekly in OP.
• Exclusion: Exclude the "KWENTA" referral code from earning affiliate rewards; only the trader will receive rewards in this case.

Referral Dashboard

• Update the dashboard to allow manual referral code input for traders, volume generated as a trader since the start of the program, and estimated rewards earned.
• Update the affiliate dashboard to show the total volume generated from referrals, the number of traders referred, and estimated rewards earned.
• Enable a claim of OP rewards in the UI and link or otherwise indicate the location of this claim in the referral dashboard.

Data Availability

In compliance with the terms of the Optimism grant, a dashboard should be created to show the number of traders and affiliates using the referral program, the daily and total volume being generated by referred traders, and the amount of OP tokens distributed.