SECTION 1: APPLICANT INFORMATION
Applicant Name: DangerExploit
Project Name: DefiEdge
Project Description: DefiEdge is a liquidity management protocol that specializes in optimizing concentrated DEX liquidity. Our project aims to enhance liquidity efficiency on the Arbitrum network by integrating with multiple DEXs and offering innovative strategies.
Team Members and Qualifications:
DangerExploit - Marketing Lead, Blockchain and Defi experience of more than two years
0xCroc - CEO and Defi experience of more than five years
0xAirboom - CMO with AI and Defi experience
Email: vansh@defiedge. io
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2: GRANT INFORMATION
Requested Grant Size: 200k ARB
Grant Matching: We don’t have our token that can match the rewards
Grant Breakdown: 40% of Funds will be distributed to the bluechip pairs on our partner DEXs on Arbitrum chain, 50% will be distributed to new pairs that will be onboarding their POL through DefiEdge and also to new protocols coming to Arbitrum, 10% will be distributed as incentives for new strategy managers that create innovative and better strategies for the ecosystem
Funding Address: 0x3644233730dD168E1db3373Cd27491edd5d8984f
Funding Address Characteristics: Gnosis Safe with 2/4 Multisig
Contract Address: You can check all the deployed contract addresses on arbitrum here Defiedge Contract Addresses For Dexes On the Arbitrum chain - Google Docs
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives: The primary objective of this grant proposal is to further enhance the Arbitrum ecosystem’s liquidity efficiency through DefiEdge’s integration with key DEXs like Camelot, Uniswap, Sushiswap, Arbitrum Exchange and Ramses. Specifically, we aim to:
Boost Liquidity Efficiency: Significantly improve the capital efficiency of liquidity providers on Arbitrum, making their assets work harder for them and reducing capital waste.
Increase User Adoption: Attract more users to the Arbitrum network by offering a more capital-efficient and attractive trading experience, driving growth in trading volume and user numbers.
Key Performance Indicators (KPIs):
To measure the success of this grant proposal, we will track the following KPIs:
Capital Efficiency Enhancement: By strategically integrating with prominent DEXs such as Camelot, Uniswap, Sushiswap, Arbitrum Exchange, and Ramses on the Arbitrum network, DefiEdge is poised to orchestrate a remarkable reduction in capital inefficiency. This integration not only bolsters liquidity but also elevates capital efficiency, contributing to our goal of optimizing over 70% of Arbitrum’s liquidity.
What sets our approach apart is the meticulous execution of strategies. While enhancing capital efficiency, our strategies simultaneously generate consistent fee earnings and minimize impermanent loss, ensuring that liquidity providers enjoy the best of both worlds. This multifaceted strategy empowers the Arbitrum network to thrive, attracting more participants, fostering innovation, and building a sustainable DeFi ecosystem.
Efficient management of v3 pools can get more volume and fees for the LPs and DEXs and that can be seen from the analysis that even with less than 50% of what is on camelot v2, v3 is having 2.5x more volume and also is quite similar in terms of the fees generated
Liquidity Growth: Increase the total liquidity on the Arbitrum network as a result of this integration, thereby expanding the network’s attractiveness to traders and liquidity providers. With our automised strategies that can actually make the rebalancing and user liquidity sticky
User Onboarding: Attract at least 100% more users to Arbitrum DEXs within the project’s timeline by offering a more efficient and appealing trading environment. Also with, these efficient strategies make POL more efficient and promote more protocols to launch pools on Arbitrum
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
Receiving this grant will enable DefiEdge to play a pivotal role in fostering substantial growth and innovation within the Arbitrum ecosystem, primarily through:
Promoting Permissionless Liquidity Management: Our grant empowers users and strategy managers to leverage our permissionless platform. Several strategy managers have harnessed this feature to create unique strategies, optimizing liquidity within concentrated liquidity DEXs. This permissionless approach sparks creativity and diversity in strategy deployment, which is fundamental for the growth of decentralized finance on Arbitrum.
Capital Efficiency Unleashed: DefiEdge’s integration with Camelot, Uniswap, Ramses, and more, amplifies the liquidity efficiency within these platforms. By allowing users to deploy assets more efficiently, we drive a surge in the capital locked in these DEXs, encouraging sustainable growth and resilience in the Arbitrum DeFi ecosystem.
Expanding Ecosystem Adoption: Our commitment to capital-efficient trading experiences will undoubtedly draw a wider audience to Arbitrum DEXs. As more users embrace these enhanced liquidity options, innovation and activity on the network will naturally follow suit. This, in turn, spurs further development and advancements within the Arbitrum ecosystem.
Driving Continuous Innovation: With our profound expertise in liquidity management and DeFi, DefiEdge is well-positioned to drive innovation within the Arbitrum landscape. We continually explore novel strategies and technologies to optimize liquidity further, setting the stage for a vibrant and ever-evolving ecosystem.
Justification for the size of the grant:
Integrating with leading DEXs on Arbitrum, we aim to enhance capital efficiency by leveraging over 70% of the liquidity present. Our automated strategies simplify the process of bringing on Projects (POL). A blockchain’s vitality is often gauged by its Total Value Locked (TVL) and liquidity. Our mission is to ensure that Arbitrum’s pools maintain robust liquidity, promote increased swaps, and foster a thriving, long-term ecosystem. With over 1,900 LPs and numerous permissionless strategy managers, we’re positioning Arbitrum as the go-to chain for market makers and users who prioritize efficient liquidity management.
Execution Strategy: We will begin by integrating with the identified DEXs on Arbitrum within the first month, followed by the creation and deployment of liquidity management strategies in the second month.
Month 1: Start incentivisation of bluechip pairs on arbitrum chain across integrated DEXs
Month 2: Start incentivisation of ecosystem tokens and create better liquid pools for them
Month 3: Analyse the performance of the strategies and create the roadmap for incentives ahead
SECTION 5: PROTOCOL DETAILS
Is the Protocol Native to Arbitrum?: No
On what other networks is the protocol deployed?: Our protocol is deployed on Ethereum, Optimism, Arbitrum, Polygon, BNB
Date deployed on Arbitrum: We had first deployed on arbitrum in January 2023
Protocol Performance: Our protocol currently manages over $10 million in total value locked (TVL), with a trading volume exceeding $1 billion. We have 1,900+ liquidity providers
Protocol Roadmap: We have an ambitious roadmap that includes further integrations with DeFi projects on Arbitrum, improved UI/UX, and enhanced automated liquidity management strategies.
Audit History: Our protocol has undergone six audits with successful results. We have been audited by Damian Rusinek from Securing, Lucash Dev, Mudit Gupta, ABDK, Watchpug, Riley Holterhauz Detailed audit reports can be found in our docs
SECTION 6: Data and Reporting
Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?: Yes, we have a team capable of creating Dune Spells and Dashboards to provide transparent reporting.
If not, how does your team plan to report grant data?: We will provide regular updates and reports on grant utilization, including progress on milestones, liquidity improvements, and other relevant metrics.