Applicant Information
• Name: Athena
• Address (Headquarters): N/A (Decentralized Protocol)
• Country: Global / Decentralized
• Website: https://www.athenains.io/
• Github: Athena · GitHub
• Docs: https://doc.athenains.io
• Telegram: Telegram: Contact @Athenainsoff
• Twitter: https://twitter.com/Athenains_off
• Primary Contact: Axel Moulin (CEO)
• Email: athena@0xlabs.tech
Key Information
• Expected Yield: ~10-15% APY for liquidity providers
• Expected Maturity: No fixed maturity; dynamic and flexible coverage
• Underlying Asset: DeFi Insurance Coverage (on-chain)
• Minimum/Maximum Transaction Size: TBD based on user adoption and liquidity provisioning
• Current AUM for Product: N/A (Launching soon)
• Current AUM for Issuer: N/A (Protocol not live yet)
• Volume of Transactions LTM: N/A (Protocol not live yet)
• Source of First-Loss Capital: Protocol reserves and governance-controlled risk pool
Basics and Background
1. How will this investment improve Arbitrum’s RWA ecosystem?
Athena enhances security within Arbitrum’s DeFi ecosystem by providing on-chain insurance to protect users against financial risks such as smart contract exploits, oracle manipulations, and liquidity pool failures. This investment will:
• Attract more DeFi users and institutional liquidity by offering cost-effective and scalable risk protection.
• Improve capital efficiency for liquidity providers, ensuring higher and sustainable returns.
• Strengthen trust in the DeFi ecosystem, encouraging more users to engage with Arbitrum-based protocols.
2. Identify key management personnel and individual experience.
• Axel Moulin (CEO & co-founder): 12 years in entrepreneurship, experience in industrial services & insurance.
• Victor Blackwell (Lead Developer & co-founder): Dapps & APIs expert, cybersecurity-focused.
• Francois Renedo (Co-founder) : 9 years in IT infrastructure & security.
• Côme Pecorari (CTO): 10 years in software & blockchain development.
• Guillaume Aliaga (CIO): 12 years in HPC, finance, and security.
• Thao Nguyen (Blockchain Developer): Algorithm optimization & smart contract specialist.
3. Describe any previous work by the entity or its officers/key contributors similar to that requested.
• The Athena team has deep experience in DeFi, insurance, and smart contract security.
• The team has worked with DeFi projects to integrate risk management models and improve protocol security.
• Athena has already secured agreements with DeFi protocols to provide insurance coverage.
4. Has your entity or its officers/key contributors been subject to an enforcement action, sanction, or default on legal or financial obligations?
No. Athena’s team and organization have not been involved in any legal, financial, or enforcement disputes.
5. Describe any conflicts of interest for your entity and key personnel.
No known conflicts of interest exist among Athena’s management and contributors.
6. Insurance coverages, guarantees, and backstops
• Insurer/Guarantor: External Legal Team (DNA Partner) ensures compliance and governance oversight.
• Coverage Per Incident: Determined by the liquidity pool and user contributions.
• Aggregate Coverage: Defined by TVL (Target: $10M initial liquidity).
7. Historical tracking error in your proposed product, or similar to that being proposed
N/A – Athena is a newly launching protocol.
8. Brief reason for tracking error
N/A – Since the protocol is not yet live, tracking error does not apply.
9. Describe any experience your firm has in working with decentralized organizational structures
• Athena follows a decentralized governance model, ensuring community-led decision-making.
• The team has worked with multiple DeFi and Web3 projects requiring decentralized coordination.
• Athena integrates permissionless liquidity provisioning and trust-minimized insurance claims processing.
10. What is your entity’s current assets under management (AUM), assets held in trust, total value locked, or equivalent metric?
• Current AUM: Not applicable (pre-launch phase).
• Target TVL: $10M in the first six months.
11. How many of these assets are present on Arbitrum One, if any?
Athena will launch natively on Arbitrum, ensuring low-cost, scalable on-chain insurance services.
Plan Design
1. Please describe your proposed product
Athena is an on-chain insurance protocol that provides DeFi users with financial protection against:
• Smart contract vulnerabilities
• Oracle failures
• Liquidity pool insolvencies
Athena enables capital-efficient liquidity provisioning where liquidity providers (LPs) earn yield by underwriting policies. The dynamic pricing model optimizes insurance costs based on risk-adjusted factors.
2. Do investors have shareholder, investor, creditor, or similar rights?
• No traditional shareholder rights – governance is fully decentralized via the protocol’s token.
3. Describe the legal and contractual structuring
• Legal Structure: Decentralized smart contract-based risk pools.
• Regulatory Bodies: Engaged third-party legal counsel (DNA Partner) for compliance.
• Jurisdictions: Global / Decentralized.
4. Would Arbitrum’s assets be bankruptcy remote from your own entity?
• Yes. Funds are held in decentralized smart contract vaults.
• No exposure to centralized custody risks.
5. How are Arbitrum’s assets protected vis-à-vis the bankruptcy of a financial institution?
• Smart contract-based asset management ensures full transparency and segregation.
• No third-party custody or intermediary risks.
6. Does the issuer issue more than one asset? If so, what is the priority relationship?
N/A – Athena’s model is single-tier, focused on insurance liquidity pools.
7. Provide a detailed cash flow diagram
• ARB converted to stable assets
• Deposited into liquidity pools
• Policyholders pay premiums
• Claims processed via smart contract automation
• Liquidity providers receive yield
8. Anticipated tax consequences
• No direct tax liabilities at the protocol level.
• Users responsible for individual jurisdiction tax obligations.
9. Process and expected timeline for liquidation
• Claims settled automatically via smart contract validation.
• Liquidity withdrawals processed within protocol-defined settlement times.
10. First-loss equity provided for over-collateralization
• Initial reserves managed by protocol governance.
11. Liquidity & settlement times
• Instant policy issuance.
• Liquidity withdrawals processed within smart contract governance limits.
12. Blockchain risks & mitigations
• Smart contract audit pre-launch.
• Bug bounty program for ongoing security enhancements.
13. Does the product rely on derivatives?
• No, Athena provides direct insurance coverage with no derivatives involved.
14. List all third-party counterparties
• External Legal Team: DNA Partner.
• Auditor: TBD before launch.
15. Risk management policy
• Smart contract-controlled risk assessment & premium pricing.
• Actuarial model-driven underwriting.
Performance Reporting
1. Proposed performance benchmarks
• TVL Growth: Target $10M in first six months.
• Policies Sold: 1,000 policyholders in first six months.
2. Reporting format & cadence
• Monthly reports on capital efficiency, claims, and yield distribution.
• Real-time proof-of-reserves available via smart contract.
3. Performance reports
• Protocol self-generates performance metrics via on-chain analytics.
4. Audit process & timing
• Smart contract audit before launch.
• Bug bounty & security reviews ongoing.
Pricing
• Liquidity Providers: Earn 10-15% APY.
• Policyholders: Pay dynamic risk-adjusted premiums.
• Protocol Fee: A percentage of premiums (distributed to token holders).
Smart Contract & Architecture
1. How many audits have you had?
• A full security audit is planned before launch.
2. Is the project permissioned?
• No, Athena is fully permissionless & decentralized.
3. Cross-chain considerations
• Initially Arbitrum-native, with potential cross-chain expansion.
4. RWA tokens used in other protocols?
• Not applicable – Athena operates as an insurance provider.
5. Trusted roles/admins in the system
• Governance-controlled risk parameters & fund management.
6. Custom logic for RWA token?
• No RWA tokens – Athena operates via liquidity pools & policy smart contracts.
Supplementary
N/A