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: Cryptex Finance
Project Name: Cryptex Finance
Project Description: Cryptex Finance is a DeFi protocol deployed on the Arbitrum network. The protocol develops crypto native perpetual markets. The protocol uses Ethereum smart contracts, Perennial derivatives vaults and Chainlink data oracles to provide secure and trustless trading. CTX is a protocol governance token currently available on Coinbase, Gemini, Huobi/HTX and CamelotDEX.
Team Members and Qualifications: [List team members and their qualifications, roles, and responsibilities]
Joe Sticco:
Co Founder and Core Contributor
Trader and Asset Manager with 15+ years of experience.
Crypto Since 2016
Thomas Matzner:
Co Founder and Core Contributor
Strategic Planner and Brand Builder with 13+ years of experience
Crypto since 2013
Blockchain Lead
12+ years of development experience
Crypto since 2017
Voith Mascarenhas:
Solidity developer
8+ years of development experience
Crypto since 2017
Jorge Destephen:
Full Stack Developer
7+ years of development experience
Crypto since 2017
Cullen Wright:
VFX Artist
20+ years of experience
Crypto since 2020
Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.]
Website: https://cryptex.finance/
Dapp: https://v2.cryptex.finance/
Twitter: https://twitter.com/CryptexFinance
Github: Cryptex Finance · GitHub
Email: admin@cryptex.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2: 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: 1.3M ARB
1.2 million ARB direct for Coinbase Earn Campaign to reward $5-10 in ARB to 70,000-140,000 of their users who bridge USDC to Arbitrum and make a trade using Cryptex V2.
100k ARB directly to the Cryptex protocol to incentivize maker liquidity.
= 1.3M ARB
Grant Breakdown: This grant seeks to bridge USDC from 70,000-140,000 Coinbase users to Arbitrum and have them interact with the Cryptex protocol via a Coinbase Earn campaign we will establish.
It is important to note 1.2M ARB of our grant request will be sent directly to Coinbase to reward Coinbase Earn users who complete Earn campaign tasks with ARB tokens.
To acquire these users from Coinbase, we seek to deploy this grant as follows during the allotted 3 month time period.
- 1.2m ARB deployed directly to a campaign that will incentivize Coinbase users and be visible to millions of Wallet and Exchange users on their platform until depleted.
These ARB will be rewarded to Coinbase users upon:
A. Bridging USDC to Arbitrum
B. Making a trade using TCAP, a perpetual market built by Cryptex that provides directional exposure to Total Crypto Market Capitalization.
- Deploy 100k ARB in maker liquidity incentives to Cryptex’ TCAP/Total Crypto Market Capitalization Perpetual, running concurrent with the Coinbase campaign during the allotted 3 month time period.
It is important to note 100k ARB is what we are requesting on the protocol level.
100k ARB for direct Cryptex protocol maker incentives that we will deploy concurrently with the influx of users bridging USDC to Arbitrum for trading on Cryptex V2.
1.2 million ARB will be deployed directly to Coinbase from which we seek 70-140k users bridging USDC to Arbitrum.
Funding Address: 0x8705b41f9193f05ba166a1d5c0771e9cb2ca0aa3
Funding Address Characteristics: 2/3 Safe controlled by Cryptex Finance Core Contributors
Contract Address: 0x938F145D5f3ABf681618Dcc5c71f095B870747Ba
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.
Objectives: Our primary objectives are to create, deploy and scale cutting edge perpetual markets for Arbitrum users. Since Cryptex V2 deployment on June 6, 2023, we have:
- Launched Cryptex V2 on Arbitrum, starting with Total Crypto Market Cap Perpetuals.
- Announced partnership with Perennial Finance
- Deployed 3 Perpetual Markets to Cryptex V2 (PEPE/USDC, ETH/USDC, ARB/USDC)
- Continued work to grow the presence of CTX governance not only on CEX’s like Coinbase, Gemini and Huobi, but within the Arbitrum ecosystem via our recent partnership with CamelotDEX
If we are able to bridge 70,000-140,000 users to Arbitrum, we can try to create a win win scenario for not only Cryptex, but for the ecosystem as well. Once executed, this campaign will not only be viewable and accessible to millions of Coinbase Wallet users, but tens of millions of Exchange users as CTX is currently a listed asset on the Coinbase Exchange. Once these users complete bridging and making a trade on TCAP, there are no limitations to what other protocols/dapps they can interact with inside the Arbitrum ecosystem thereafter.
Key Performance Indicators (KPIs): All Arbitrum community members and delegates can monitor unique system usage on Cryptex V2 via our Dune analytics dashboard and track actual results. All results are fully public at all times via our Dune dashboard. All results of these programs will be shared biweekly with the Forum.
https://dune.com/sashimiboi/cryptex-v2-dashboard
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: Bridging 70,000-140,000 users to Arbitrum and having these users make a trade with a Total Crypto Market Cap Perpetual. TCAP is only available on Cryptex and Cryptex V2 is only available on Arbitrum.
Justification for the size of the grant: 1.2 million ARB (1M USD) is the minimum sizing needed to do this campaign with Coinbase. 100k ARB (33.3k per month) for TCAP maker side liquidity incentives that run concurrent with Coinbase users placing a trade on the Cryptex dapp.
Execution Strategy: [Describe the plan for executing including resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
- Cryptex DAO Core Contributors will create this campaign with the Coinbase team, executing both the 1.2 million ARB program and the specific actions required for users to earn the tokens as per this proposal. The specific actions to earn ARB tokens are as follows:
-
User bridges USDC to Arbitrum
-
User makes a trade using TCAP on Cryptex
-
Once these actions are executed by the user, Coinbase will reward each user who completes the above tasks between $5-$10 in ARB tokens.
-
Cryptex DAO Contributors will deploy 100k of ARB liquidity incentives in the TCAP Perpetual Market, running concurrent with the Coinbase Wallet incentive program.
Grant Timeline: 90 Days
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 4: PROTOCOL DETAILS
Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.
Is the Protocol Native to Arbitrum?: Yes, the Cryptex V2 system we are seeking a grant to incentivize is currently native to Arbitrum.
On what other networks is the protocol deployed?: Cryptex V1 is deployed on Ethereum.
What date did you deploy on Arbitrum?: We deployed Cryptex V1 to Arbitrum on February 7th 2023 (JPEGz NFT Index and CTX Governance)
Source: https://x.com/CryptexFinance/status/1623039263796240384?s=20
Cryptex V2 was launched on June 6th 2023.
Source: https://twitter.com/CryptexFinance/status/1666119073753595904?s=20
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
Since deploying V2 on June 6th, the system has seen over 3.3mm of notional USDC volume from 1,884 unique takers and 67 unique makers. We understand delegates may view this activity as relatively small in comparison to others on the network, which is the key reason we are looking to scale system usage via the allocation of resources proposed in this campaign designed for bridging USDC to Arbitrum and interacting with Cryptex.
Since June 6th, we have launched or deployed a total of 4 perpetual markets to the Cryptex V2 system, with the goal of launching 3 new markets in Q4.
Currently, protocol liquidity for each perpetual market available via V2 is as follows:
- TCAP/USDC= $74,291/3,000,000.
*Note: Launched 6/6/23. This market has been incentivized via received ARB airdrop proceeds that the Cryptex DAO voted to deploy back to Arbitrum users over a 3 month period in exchange for bootstrapping initial V2 system usage at launch.
Source: Snapshot
Source: https://www.tally.xyz/gov/cryptex/proposal/11
Source: GnosisSafeProxy | Address 0x8705b41f9193f05ba166a1d5c0771e9cb2ca0aa3 | Arbiscan
- PERPE/PEPE Perpetual= $8,868/3,000,000
*Note: Launched 8/10/23. This perpetual is not yet incentivized.
- ETH/USDC= $2,574,220/$3,000,000
*Note: Launched 8/24/23. This pair is powered by Perennial Finance through our partnership.
- ARB/USDC = $297,247/$500,000
*Note: Launched 8/31/23. This pair is powered by Perennial Finance through our partnership.
-
Total Cryptex V2 system liquidity available to Arbitrum users: $2,954,626
-
Total system volume since June 6th deployment: $3,309,450
-
Total Makers/Takers: 1,951
All protocol data analytics are public and accessible for view at all tines via our Dune dashboard.
https://dune.com/sashimiboi/cryptex-v2-dashboard
Protocol Roadmap:
Our near term roadmap is as follows:
Q423:
-
Deploy 3 new perpetual markets on the Arbitrum Network and use 100k ARB to incentivize TCAP for the 3 month period, running concurrent with the Coinbase campaign.
-
Integrate Ethereum Push Notifications for notifying users when their position crosses a certain threshold.
-
Build and deploy a bonding mechanism for having protocol owned liquidity to provide initial liquidity for new markets.
-
Build role based schemes for allowing a council of fund managers to fine tune market parameters and deploy protocol owned liquidity.
-
Continue to reduce oracle latency across new and existing markets.
Q124:
-
Research and build vaults with various trading strategies (spread trading, breakout trading, etc).
-
Build/Integrate contracts for allowing users to hedge their positions.
-
Add support for trading new tokens other than USDC.
-
Deploy 3 new perpetual markets.
Q224:
-
Build calculators for simulating trading strategies.
-
Research and migrate security council on Arbitrum for CTX protocol governance.
-
Build a mobile version of the app.
-
Make the app more decentralized by deploying IPFS and getting rid of the backend by building better subgraphs.
-
Deploy 3 new perpetual markets.
Audit History: Audits | Cryptex
SECTION 5: Data and Reporting
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Dashboards for your incentive program?: Yes
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? Yes. On chain analytics showing relevant metrics to program progress.
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