[DefiEdge] [FINAL] [STIP - Round 1]

Archive Short Term Incentives Program (STIP) Round 1
1

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

Project Links:

Website: https://app.defiedge.io

GitHub:

Twitter: DefiEdge

Contact Information:

TG: @DangerExploit

Twitter: @0x_vd

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.

1600Ă—790 137 KB

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.

Grant Timeline:

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.

5 Likes
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Hello @DangerExploit thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

Just a note your attached website URL is broken.

4 Likes
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DefiEdge is, unfortunately, not a very well known protocol.
I say unfortunately because I had the pleasure to have a few calls with them, and check their product. Which is awesome to be honest, and can facilitate the building of very complex strategies in liquidity provisioning with a relative small effort from other DAOs or even single users.

They definitely deserve the grant because they can be a very handy tool for other builders and portfolio managers.

4 Likes
4

These guys are actively building new tech on top of other arbitrum projects and should be supported.

3 Likes
5

Please can you add the details of where these incentives will be distributed?

Please can you provide more data for your performance.

Without this information, I cannot make a confident judgement and therefore will need to vote AGAINST for the time being.

6

Hey @Matt_StableLab Thanks, I have updated the link

1 Like
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Premia has partnered with DeFi Edge and has deployed mid 6 figures of LP through their platform. I agree they may not be a name you hear daily, but we spent a lot of time with them before deciding to deploy capital to be actively managed on their platform. Their engineering team knows AMM design better than most in the space, and as a side note, they definitely have their ears to the ground as it pertains to Macro. Quite a few features they were the first to market with, and in our experience they are quick to add quality-of-life improvements on their platform. Just wanted to pop-in and give my two gwei as I have worked with them extensively this year.

2 Likes
8

I never knew about your project despite following Arbitrum for the past 2 years.

Obviously, I do not support this proposal

9

Very reasonable ask for a protocol not well known publically but well used in the background. I’m obviously a large uniswap v3 bull and generally more competition in the management space for v3 is a good thing and will help lead to more efficient liquidity provision all around. Also i’ve had a chance to speak with the team on a few occasions and they clearly care about the ecosystem and thats also shown in this proposal

I support this proposal.

3 Likes
10

Reasonable. + vote from me.

3 Likes
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Hey @JoJo Thanks for the support bud
With partners like you we are sure to scale this to wider audience and improve the capital efficiency of protocol liquidity and also provide the best solutions to real users like you

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Thanks @wavebender and yes we have partnered with most of the arbitrum dexes like camelot, uniswap, pcs, ramses, arbidex and are also integrating with new and upcoming dexes , with our complete focus on arbitrum chain having more than 50% TVL from arbitrum ecosystem

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Hey @0xGDucky hope this proposal brought our project to your eye level and surely we’ll have your support in coming weeks :slight_smile:

14

Thanks bud, these numbers are posted keeping in mind the sustainable ecosystem developments and also the initial push that is required and with our strategies that we create that actually beat HODL returns, we are +ve to keep the LP numbers high and support the growth of arbitrum ecosystem and also get partners like you

15

Hey @dk3 thanks for putting these points here and highlighting the efforts, really appreciate this bud
Hope to keep supporting Premia and have a thriving ecosystem with great partners like you

1 Like
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Thanks @0xWenMoon You have noticed us now and we now rest assured that the community will also check this and take the ecosystem to the moon

1 Like
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Hello @DangerExploit,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

1 Like
18

Hey @DangerExploit , A pleasure to greet

Do you want to tell me the main differences/innovations of the protocol compared to Arrakis or Gamma.

19

Hey @eli_defi @stonecoldpat @cliffton.eth our proposal is final and we have reviewed everything, pls change the status to final

Thanks guys, tagging all three bcoz the deadline is close

1 Like
20

Post has been marked FINAL and locked.

1 Like