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: Margaret Yao
Project Name: dForce
Project Description: dForce is a decentralized stablecoin powered by an integrated DeFi matrix (lending, trading, bridge). dForce is also the 4th largest lending protocol by TVL on Arbitrum.
Team Members and Qualifications:
- Mindao Yang, Core Contributor & Founder
- Snow Ji, Core Contributor
- Margaret, Core Contributor
- Andrea Dicorato, Core Contributor
- Awan, Core Contributor
Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.]
- Website: https://dforce.network/
- dApp: https://app.dforce.network/
- GitHub: dForce · GitHub
- Twitter: https://twitter.com/dForcenet
- Telegram: Telegram: Contact @dforcenet
- Discord: dForce
- Forum: https://forum.dforce.network/
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
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: 1,000,000 ARB
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
dForce was among the initial protocols launched on Arbitrum.
dForce has initiated liquidity mining from September 2021 and remains as one of the few protocols consistently offering sustained rewards to drive DeFi lending and borrowing activities on Arbitrum. To date, we have disbursed more than 28 million DF tokens, with a value exceeding $2m, to users on Arbitrum.
We will maintain our commitment to incentivizing Arbitrum users through liquidity mining efforts to draw in more participants. Meanwhile, we believe that a combination of ARB and DF rewards will better motivate participants to further the expansion of both the dForce and Arbitrum ecosystems through various marketing initiatives.
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
This grant will be utilized to boost the adoption of dForce and contribute to the diversity and resilience of the Arbitrum ecosystem:
60% of the grant will be utilized to unveil more use cases for USX across the Arbitrum ecosystem. For instance, collaborating with our partner protocols to improve DEX liquidity, increasing more tailored assets as collateral to mint USX, and onboarding a selection of Real-World Assets (RWA) (i.e., sDAI) to unlock high-yield opportunities for USX holders, etc.
40% will be utilized to incentivize lending and native minting of USX on Arbitrum.
Funding Address Characteristics: [Enter details on the status of the address, eligible address must be a 2/3 multisig with private keys securely stored]
Arbitrum Treasury 2/3 multi-sig controlled by core contributors at dForce DAO
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
dForce Liquidity Mining contract for fund disbursement on Arbitrum: 0xc0Dc7C5057141C9065bd9bedf79fd4E9EA69a739
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: [Clearly state the primary objectives of the grant and what you intend to achieve]
Arbitrum remains the top priority in dForce’s multichain expansion strategy. We believe that Arbitrum has the potential to sustain its leading role among various Layer 2 solutions in the long term. This is not only due to its Optimistic rollup technology but also because of its vibrant and active ecosystem that features a broad array of projects.
With this grant, we aim to increase the adoption of USX, enhance dForce’s collaboration with other DeFi protocols, and onboard more new users from other blockchains to Arbitrum.
Key Performance Indicators (KPIs): [Specify the KPIs that will be used to measure success in achieving the grant objectives]
USX is #5 stable on Arbitrum with a total supply of 8.5m (USX natively minted on Arbitrum) as of today. Our KPI are mainly around the adoption of USX on Arbitrum:
|Increase the adoption of USX
|Grow USX’s total supply by 50% on Arbitrum to 13m
|dForce Dapp or Defillama
|Add diversity to Arbitrum’s decentralized ecosystem
|Support various LSD assets, including wstETH, rETH, etc on Arbitrum.
|Collateral assets supplied to dForce Lending & Vaults
|Improve USX’s usage
|USX’s trading volume against other stablecoins on Arbitrum.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?: [Provide details]
With this grant, we aim to:
boost collaboration among projects on Arbitrum through community-driven, incentive-based initiatives. We will offer liquidity mining incentives and marketing support for projects that integrate or collaborate with dForce, in the form of liquidity mining rewards, grants, or bootstrapping liquidity.
increase the adoption of USX and bolster the robustness of the Arbitrum ecosystem. For instance, dForce DAO has recently greenlit the use of Rocket Pool’s rETH as collateral on Arbitrum. This move is geared towards providing users with options among various LSD assets (wstETH, rETH, etc) to better align with their investment approaches, and boost liquidity for various LSD assets across the Arbitrum ecosystem.
onboard more users from other blockchains. This ARB grant will augment the existing DF liquidity mining program to provide a modest interest rate that promotes sustainable growth, aiming to encourage users to make their initiate move to Arbitrum.
Additionally, we plan to introduce real yield to USX holders on Arbitrum by onboarding high quality Real-World Assets (RWA) as collateral to mint USX. This will enable users to leverage DeFi’s efficiency and composability while tapping into real yields within the Arbitrum ecosystem.
We also plan to implement sUSX (Saving USX), a new feature that enables USX holders to generate a steady passive income in USX. This systemic interest will be sourced from various avenues, including RWA. We envision to bring the most accessible RWA real yield to Arbitrum users.
Justification for the size of the grant: [Enter explanation]
The grant will be utilized for a measured and focused incentive campaign to ward off short-term capital.
dForce will focus on enhancing USX’s adoption by both unlocking more use cases and yield avenues for Arbitrum users, and disbursing rewards through liquidity mining to eligible participants.
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.]
ARB grant will be utilized to reward activities around USX (integration, lending, trading, etc) on both dForce and other DeFi protocols across the Arbitrum ecosystem.
The rewards will be distributed with our battle-tested staking contract and grant.
The deployment will focus on USX/USDC pools targeting deepen liquidity, Vaults holding LSD assets, and boosting the adoption of these assets on Arbitrum. Additionally, on the lending front, incentives will be provided for USX, USDC, USDT, and DAI liquidity.
Grant Timeline: [Describe the timeline for the grant]
Liquidity mining: rewards will be disbursed in a linear fashion (i.e., 3-month) to eligible participants.
Partnerships and integrations with dForce will be assessed individually and disbursed through various marketing campaigns, including liquidity mining or other co-incentivizing initiatives to end users.
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/No]
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/No, and provide explanation]
Yes, dForce was natively deployed on Arbitrum since 2021, which is the largest market for dForce today.
dForce is also currently live on a number of L1/L2 chains, including Ethereum, Optimism, BSC, and Base. Arbitrum remains our primary focus. We have implemented a full suite of dForce protocols on Arbitrum and initiated a long-term liquidity mining campaign there since September 2021.
On what other networks is the protocol deployed?: [Yes/No, and provide chains]
Yes - dForce is live on Ethereum, Arbitrum, Optimism, BSC, Polygon, KAVA, Conflux, and Base.
What date did you deploy on Arbitrum?: [Date of deployment]
11 June, 2021
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
dForce (https://dforce.network/) is a decentralized stablecoin protocol featuring an integrated DeFi matrix (assets, lending, trading, and bridge). dForce is supported by a number of world-class investors, including CMBI, Multicoin Capital, Huobi Capital.
dForce has a TVL of $30.2m, according to DeFiLlama, with 30% of that amount coming from Arbitrum. As of September 2023, the cumulative trading volume of USX on Arbitrum has reached $53m, as per data from the Dune Dashboard.
dForce Lending currently ranks as the 4th largest lending protocol and USX is the 3rd largest decentralized stable after DAI and Frax (DeFiLlama). dForce is also the 11th largest holder of Lido’s wstETH on Arbitrum. In addition, we plan to extend collateral support to other LSD assets, with Rocket Pool’s rETH being the next on our list - we aim to bring the most popular LSD assets to Arbitrum.
dForce has received grants from a number of prestigious partners, including:
- OP Cycle 11 - 200,000 OP ($300K)
- OP Phase 1 - 300,000 OP ($450K)
- Lido Finance - 8,000 LDO ($16,000)
- KAVA grant - 3,448 KAVA ($3,200)
- SSV grant - $70,000 in USDC
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application.]
- dForce Lending will be upgraded with enhanced features, i.e., efficient mode for peg-asset and broaden the use cases for USX.
- More LSD assets will be onboarded to further expand the collateral portfolio of USX.
- We are also planning to enable USX holders to leverage DeFi’s efficiency and composability while tapping into RWA yields within the Arbitrum ecosystem.
Audit History: [Provide historic audits and audit results]
All dForce protocols have undergone extensive smart contract review by world-class auditors, including Trail of Bits, ConsenSys Diligence, CertiK, and Certora (click here to see all reports). We have also partnered with Immunefi and CertiK to launch bug bouty programs, and InsurAce to provide a comprehensive insurance coverage as an additional safeguard for our users and their funds. We also have two ongoing audits on our latest upgrades from MixBytes and Certora.
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?: [Please describe your answer]
Yes - we will create Dune Dashboards to track USX trading volume on Arbitrum in accordance.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread? [Please describe your strategy and capabilities for data/reporting]
Yes - we will share updates on integration and collaborations, product development, marketing plan, and data performance (trading volume, TVL) pertaining to USX on the Arbitrum forum thread.
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?: [Y/N]