The application is FINAL.
SECTION 1: APPLICANT INFORMATION
Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name: Katia Banina
Project Name: Bebop
Project Description: Bebop is an app and an API suite that brings seamless and efficient token trading in DeFi to everyone. Bebop offers confidence for every trade: best execution, guaranteed pricing, top security, industry leading reliability, alongside carefully crafted user and developer experience.
Team Members and Roles:
Katia Banina, CEO
Mo Nokhbeh, CTO
Aleksandr Vorobev, Smart Contract Developer
Kat Fore, Product Manager
Daria Shakhbazova, Business Development
Project Links:
Website: https://bebop.xyz/
Docs: https://docs.bebop.xyz/
Medium: Bebop — Seamless and efficient crypto trading for everyone - Medium
Twitter: https://twitter.com/bebop_dex
Discord: Bebop
FAQs: Bebop | Help
Contact Information
Point of Contact: Katia Banina
Point of Contact’s TG handle: @katiabanina
Twitter: @katiabanina
Email: hello@bebop.xyz
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Team
Bebop is being built by a diverse team of veteran DeFi traders, developers and degens,as well as TradFi and web2 “graduates”. We leverage our experience in the DeFi universe to offer game-changing improvements to execution capabilities. For the bebop.xyz app we use the best practices from outside of DeFi, which we believe is instrumental to building a truly accessible product for wider user adoption.
Our educational background spans computer science, economics, design, MBA and more. We used to work at Wintermute, Consensys, Citadel Securities, Amazon, EY, LSEG, Vogue, Goldman Sachs, Skyscanner and more
https://www.linkedin.com/in/kbanina/
https://www.linkedin.com/in/katharinafore/
https://www.linkedin.com/in/mohammad-nokhbatolfoghahai-9909a471/
https://www.linkedin.com/in/atanasbozhkov/
https://www.linkedin.com/in/liamgkelly/
What novelty or innovation Bebop brings to Arbitrum
Bebop uniquely combines the two most efficient trade execution mechanisms to deliver the most favourable outcome for every trade. The first mechanism, Bebop’s advanced Request-for-Quote engine, provides access to the highest quality private liquidity on-chain at minimal gas costs. The second mechanism, Bebop’s proprietary solver auction system, JAM, finds the best execution by tapping into the widest range of on-chain liquidity sources.
As a result, traders receive unique benefits:
- Unprecedented quality pricing with no negative slippage
- Support for any token
- Support for trades of size
- Simple and multi-token trades
At the same time, the Arbitrum ecosystem enjoys:
- Access do deeper private liquidity
- Aggregation of higher number of deployed liquidity pools
Bebop’s web app has a strong focus on user experience that follows the “trade with confidence” principle. On top of delivering guaranteed prices, the app provides users with token insights as they trade, for more informed decision making.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes. Projects on Arbitrum such as wallets or dApps can leverage Bebop APIs to enable swap functionality within their applications.
Velvet Capital, Unidex, Mean Finance and solvers operating on other intent protocols and others have already integrated Bebop APIs on Arbitrum.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
Bebop is the only platform that uniquely combines the two best execution models in DeFi: Professional Market Makers RFQ and Solver Auctions.
- Solver systems available on Arbitrum: 1inch Fusion
- PMM RFQ on Arbitrum: Hashflow
How do you measure and think about retention internally? (metrics, target KPIs)
Primary KPIs:
- Volume
- Number of users
Secondary KPIs:
- Quantity and quality of partner integrations
- Liquidity quality
- Product quality
Relevant usage metrics
- Volume
- Number of users
- Liquidity providers
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan:
Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):
We received feedback from the Wintermute Governance team. Bebop was incubated by Wintermute, and Wintermute Governance currently sits on the Arbitrum LTIPP Council and will not participate in voting on Bebop’s application due to the conflict of interest.
SECTION 2b: PROTOCOL DETAILS
Is the protocol native to Arbitrum?:
Arbitrum was among the first 3 supported chains.
On what other networks is the protocol deployed?:
Ethereum, Polygon PoS, BNB Chain, zkSync, Blast
What date did you deploy on Arbitrum mainnet?:
January 4, 2023 (see launch post here).
Do you have a native token?:
No
Past Incentivization:
N/A
Current Incentivization: How are you currently incentivizing your protocol?
0 protocol fees on all trading
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No
Protocol Performance:
DEX Metrics dashboard: https://dune.com/hagaetc/dex-metrics
Bebop Dune Dashboard: https://dune.com/alekss/bebop
Volume growth on Arbitrum for the last 3 months
Average, cumulative volume, number of trades over the past 3 months on Arbitrum.
Volume growth across all chains for the last 3 months:
Average, cumulative volume, number of trades over the past 3 months across all chains.
The goal is to grow Arbitrum volume as defi focused L2 as currently it is only 6 % of daily volume for Bebop.
Protocol Roadmap:
Roadmap for Q1-Q2 2024 includes:
- Web app revamp (launched 22 Feb)
- Improvements to PMM RFQ:
- partial fills
- positive slippage
- gas optimisation
- Smart Orde Router improvements
- Improvements to partner monetisation
- Reputation system for JAM solver auction to ensure best possible quality of execution and reliability
- Partner protocol integrations
Audit History & Security Vendors:
Bebop undergoes audits and penetration testing by reputable third-party auditing firms. Details here.
Security Incidents:
N/A
SECTION 3: GRANT INFORMATION
Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.
Requested Grant Size: 400K ARB
Size of the grant is based on the following components:
- Integration costs that solvers & PMM require to go on a new chain
- End user incentives
Grant Matching: No
Grant Breakdown:
| Objective | Amount |
|---|---|
| Increase number of solvers and PMMs on Arbitrum to improve liquidity and pricing quality | 60K ARB |
| End user incentives (swap incentives - 280K ARB, gas compensation - 60K ARB) | 340K ARB |
| Total | 400K ARB |
Funding Address:
0xD59743314ba847c21E50cA90Bd56EB6d9F518992
Funding Address Characteristics:
Characteristics: 2/3 Gnosis safe multisig
Treasury Address:
Contract Address:
0xD59743314ba847c21E50cA90Bd56EB6d9F518992 (we will use only this to disburse ARB)**
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
Our goal is to increase the reach and adoption of the protocol on Arbitrum by:
- Improving liquidity and pricing quality by attracting new private market makers and solvers (this will also drive Bebop’s market share in price sensitive API integrations)
- Incentivising web app users by providing gas rebates and gamifying the experience
In a nutshell, we aim to attract both the supply and demand side to the Arbitrum ecosystem as it’s continuing to establish itself as a leading DeFi L2.
Execution Strategy:
Liquidity providers - 60K ARB:
Bebop will incentivise solvers and new market makers to go on Arbitrum. Each team going live on Arbitrum with Bebop will receive a grant depending on the coverage of functionality (e.g. multi-token trades), sizes and tokens. The grant can also be applied retroactively to recent integrations.
The grant will be awarded specifically for going live on Arbitrum. The typical costs for solvers / PMMs for going on new chains include: run nodes, maintain some balances for fees and integrate liquidity providers.
Solvers / PMMs will be rewarded depending on integration complexity and coverage:
Solver / PMM can get up to 15K ARB per integration.
We aim to add 4 solvers / PMMs on Arbitrum to ensure even stronger liquidity provision.
The key factor to retain solvers / PMM engagement is user flow, which comes from Bebop trading app and Bebop API integrators. Bebop trading app will be promoted through direct user incentives and 0 fees, and we expect a large number of users to stay loyal to Bebop after it. Additionally we have a solid pipeline of integrations on API side that will help to strengthen demand for solver / PMM liquidity on Arbitrum.
Timeline: 11 weeks. All incentives not committed within this period will be moved to user incentives item, specifically will go to Mystery Box for the week 12.
User incentives - 340K ARB
Gas Refund (up to 60K):
All transactions, with the exception of stable swaps, on Bebop web app are gas-free, Bebop will cover gas fees up to a max amount from the ARB allocation.
Bebop will cover gas fees per transaction, so users don’t need to make any extra actions to collect the rebate. Gas fees will be covered automatically for up to 60K ARB over 3 months, with transactions above 25$ in value (excl stable pairs) eligible for reimbursement.
Daily amount of trades on Arbitrum via Bebop web app over last 30 days: 500
Estimated gas fee after Dencun Upgrade per swap (average between RFQ and JAM): 0.25$
Max estimated increase in daily number of transactions considering user incentives campaign in place: 10x (we take high estimate to cover for best case scenario, but any unused funds from this budget would be distributed to users as part of mystery box instead).
Current ARB price: $1.80
Required ARB: 500 trades * 7 days a week * 12 weeks * 0.25 gas fee * 10 growth / 1.8 ARB price = 58,333 ARB (we round to 60K ARB). If a part this allocation remains unused, it will be added to the final mystery box.
Swapping without fees: Bebop isn’t charging any platform fees. No ARB budget required.
Mystery box: 280K ARB
We intend to implement mystery box mechanics for trading incentives. Users who trade on Arbitrum on Bebop will get access to prizes that will include Arbitrum tokens.
- Every week a new mystery box will become available.
- All the user needs to do is to place a trade of $25+ (excl stable swaps) on Bebop on Arbitrum to retrieve the weekly mystery box.
- Increased activity, including trades and volume, enhances the mystery box’s chances of containing bigger prizes.
- At the end of each week, the user opens the mystery box and redeems the rewards.
- User places a new trade and claims next week’s mystery box
Boxes will contain some amount of ARB, from $1 of ARB to Jack pot in ARB (eg 10k ARB). If the number of boxes dropped becomes very high, more of the boxes won’t contain any ARB and instead will contain soulbound NFTs provided by Bebop. Any unclaimed prizes from the boxes will return to the prize pool after a period of time.
Anti-sybil measures: wallets eligible for mystery boxes should be at least 1 month old t from the date of the campaign announced on Twitter. However, because the mystery box programme will favours users with more activity on individual wallets, sybil or discouraged by design.
Similar programme is already running for Blast Gold Points airdrop: Blas Airdrop Crates
Timeline: 12 weeks
Key Performance Indicators (KPIs):
- Trading volume and number of unique users, including brand new users for Arbitrum
- New solvers and market makers on Arbitrum
User retention: We believe that users will stay and continue trading on Bebop on Arbitrum as a result of the following:
- Onboarding new PMMs and solvers increases price quality providing benefits to price sensitive users
- Liquidity improvements will also boost growth of API integrations that will bring volume from across the ecosystem dapps
- We receive consistently positive feedback on Bebop’s UX and have a loyal community that stays with us once they discover Bebop
Key Performance Indicators (KPIs):
End user adoption
Current state of the protocol on Arbitrum:
Average daily volume (last 30 days) - $600K$
Cumulative unique wallets ARB: 22K
Target state:
Target trading volume for 12 weeks: approx 350M$ (assuming gradual ramp-up from 0.6m to 6m daily volume).
Target cumulative number of wallets on ARB: 44K
Liquidity:
Current and target state of PMMs / Solvers specifically on Arbitrum on Bebop:
| Metric | Current | Goal | Growth |
|---|---|---|---|
| PMM Token coverage | 6 tokens (15 pairs) | 12 tokens (66 pairs) | 2x tokens, 4x pairs |
| Number of solvers | 2 | 4 | 2x |
| Number of PMMs | 1 | 3 | 3x |
Solvers already are able to cover any token and any size available on chain, so we do not have specific liquidity depth KPIs.
Overall ROI:
Ask: 400K ARB - approximately 720K USD for 12 weeks
Investment: 0.002$ per 1$ of trading volume
Grant Timeline and Milestones:
12 weeks
The user incentive and gas refund programmes will start straight away. The PMM and Solver bounties will be distributed upon successful completion of each project.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Over the past year, the paradigm shift towards intent-based design in swap systems has replaced the conventional direct submission of transactions by users on the mainnet. So far, the Arbitrum ecosystem has only partially benefited from it, with only a limited number of players participating in intent-base systems.
Bebop attracting more PMM and solvers to Arbitrum will fill that gap, boost liquidity by the virtue of more PMMs and solvers will benefit the entire ecosystem, incl. depth and quality of pricing.
Moreover, Bebop growing as an intent-based protocol within Arbitrum, will open more opportunities for dApps, wallets and users with benefits such as gas-free trading, MEV protection and complex DeFi actions (eg swap and mint and index).
Current and target state of PMMs/Solvers specifically on Arbitrum on Bebop:
| Metric | Current | Goal | Growth |
|---|---|---|---|
| PMM Token coverage | 6 tokens (15 pairs) | 12 tokens (66 pairs) | 2x tokens, 4x pairs |
| Number of solvers | 2 | 4 | 2x |
| Number of PMMs | 1 | 3 | 3x |
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Yes
SECTION 5: Data and Reporting
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?
Yes
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? [Please describe your strategy and capabilities for data/reporting]
Yes, we have onchain and offchain tracking capabilities
*First Offence: In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offence: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offence: Funding is halted permanently
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)
Yes
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?
Yes