Applicant Name: Good Entry Labs
Project Name: Good Entry
Project Description: Good Entry Labs is a community driven Arbitrum first day trading platform that matches volatility sellers with traders, who trade its protected perpetuals on a pay as you go basis. The unique advantage of trading with protected perpetuals is users cannot be liquidated by price. Traders have been successful in making money on Good Entry and reducing losses.
Team Members and Qualifications:
Jun: Co-founder (Growth). Jun has been a builder of multiple DeFi protocols, starting his career at ConsenSys. Most notably was Protocol Lead of DeFi Options Vault project Thetanuts Finance between October 2021 and July 2022. He scaled the vaults to ~60m TVL at its peak and worked with notable VCs.
Tobiko: Co-founder (Technical). Tobiko is a cryptography researcher with a professional background. Prior to Good Entry, Tobiko has worked as an independent contributor on various DeFi derivatives products.
Our Core Team also has one smart contract lead, two front end, one product manager, one designer, one community manager, one marketing
Github:GoodEntry · GitHub
Discord ID: masterbean
Team Discord: Good Entry
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: 200K ARB (Beacon Grant)
Grant Matching: NA
Grant Breakdown: The grant targets to distribute 200,000 ARB over a three month period to the Good Entry EzVaults with a rewards target at ~8% with an assumption of $10,000,000 TVL. Good Entry Ezvaults is one of its flagship product that allows liquidity providers
Funding Address: arb1:0xB36FAa35034dd0E6307258cfe38793D3A5254dD3
Funding Address Characteristics: Multisig, This will be 2/3 multisig with private keys securely stored.
Contract Address: To be determined
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.
Our Project’s goal to contribute to the ecosystem is to make Arbitrum the main Degen Hub. Even in an ongoing bear, there are many day traders still active. We aim to serve their needs. We do so by building more TVL with a target of 10m because this benchmark enables Good Entry Labs to achieve the following:
Interest: Generate sufficient interest and encourage more first time users to try Good Entry. Since our inception we have seen that TVL has remained sticky on our platform and traders have repaid our LPs with significant fees exceeding ~20% APY on stables or native assets. We would also like to increase the number of assets tradeable on our platform.
Rankings: At 10m TVL, Good Entry based on Defillama rankings would be a top 15 derivatives protocol across all chains and within top 10 on Arbitrum. Currently Good Entry is ranked 43 across all chains and rank 14 on Arbitrum. The rankings are an indicator for community members to meaningfully track its growth within the context of the current landscape and make judgments on its growth trajectory. Positive action will likely inspire or continue the flywheel effect.
Revenue: Generate revenue to demonstrate we are a real decentralized business that can thrive on chain. Earnings to be distributed to locked token holders.
Key Performance Indicators (KPIs):
- Revenue: Track TVL growth and Revenue earnings
- Rankings: Follow rankings on DeFillama across all chains and Arbitrum
- Interest: Track changes on total users, ezVault suppliers + Adding more Trading Pairs
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
We are the first notable V3 derivatives project deployed on chain across the narrative and have found product market fit. By receiving a grant, we are able to increase visibility and encourage new users to come into the platform in the short term.
One notable feature of Good Entry is our ability to create derivatives markets for Alts beyond the majors (BTC & ETH). This is an important solution because a major problem in both traditional (Deribit) and private markets (Market makers) is that it has been difficult to create option markets for tokens with good pricing. By incentivising the growth of new markets such as ARB and GMX on Good Entry, we demonstrate to the ecosystem that we can do so for other tokens. The benefits for these projects is that it increases leverage for traders to enter markets thereby creating more volume. The beginning of a flywheel for token scalability is volume. When there is no volume, even if a token has a high market cap, it cannot realize its value because traders cannot buy and sell at size, thereby stagnating the project.
When these projects see that it is easy to start their own derivatives markets very quickly with us. They will notice the rise in degen activity for them. That assumption is that more trading volume arises, more interest is sustained, a good momentum can be built for projects.
Justification for the size of the grant:
The grant is not intended to be the main source of yield for ezVault liquidity providers. It is meant as a bonus to incentivise first time users to participate in the platform. Data on our Dune shows that once users try Good Entry, they tend to stick.
We are Arbitrum first and exclusive. Our product is also the first of its kind and not a clone of a tradfi product. By supporting Good Entry, it is supporting the growth of a possible second GMX and DeFi focused innovation.
Further, Good Entry is also not supported by any VCs. It is community first. This means anyone participating with Good Entry does so on the same terms. The project would benefit significantly from this grant to increase its market share and scalability. As Arbitrum first, we are Arb Maxis, any notable success we gain will be associated with the ecosystem’s reputation.
The TVL target shared is reasonable and the APY is competitive at an 8% boost. The grant amount is the smallest and yet creates a significant impact in climbing the rankings.
Moreover Good Entry succeeds on Arbitrum, it would incentivise more teams to come to Arbitrum to list their tokens so that they benefit from the Ezvaults and facilitate their own token trading.
Good Entry will calculate ARB tokens to be disbursed off chain and distribute the airdrop on a month by month basis to ensure that only TVL that has been sticky is eligible.
- Announcement of successful grant
- Announcement of rewards programme and building awareness for 2 weeks.
- Incentive period: 12 weeks
- Prepare grant results: 4 weeks, for 30 days data post grant.
Good Entry is ready to go on an engineering front as we have an ongoing retro-mining scheme where token rewards are calculated off chain. This is reflected accurately on the front end.
Tokens can be distributed from ARB foundation on a monthly basis to users directly based on the team’s submission.
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
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
On what other networks is the protocol deployed?: NO
What date did you deploy on Arbitrum?: Good Entry was deployed on Arbitrum in March 2023.
- Total users: 1357
- Ezvault suppliers: 795
- Peak daily users: 186
- Peak Protocol transactions: 373
- Peak Protected Perpetuals Position: ~$300,000
- Total positions: 2024 as at 21 September 2023
- Peak TVL: ~1.72m
What we observe in our core stats is that the number of users continue to grow as they have made significant gains over their trading journey with us. Why they are interested is because our protected perpetuals product allows our users to trade with leverage safely. When they get it wrong, they are protected from the downside. They merely pay the funding rate, which can be ~0.009%/ hour. Nothing that can significantly affect their overall portfolio position. This works superbly for trading specific events such as the CPI print.
Good Entry has been 100% supportive of our community. As we started our pre-mining programme, we see that liquidity providers have remained sticky as organic yield is near 20% APY. We are confident that TVL remains sticky with Good Entry because even after we had a minor bug exploit in September, TVL remains in the project. There was not a flight to safety with massive withdrawals. We have since launched our production dApp and mitigated all known bugs as assessed with Code4rena.
Good Entry is working on creating a more predictable pricing mechanism for the protected perpetuals to ensure traders can better estimate pricing. In earlier iterations, swap fees were included and that can cause traders to take on losses when price chops at the entry price. This is most significant for institutional traders where the largest volumes are likely to come from.
We are looking to have further integration with Camelot to bring more composability within Arbitrum Maxi projects. Currently we have written code for it and conducting testing as shown above. With rigorous testing and more audits to be done. We estimate a Q1 2024 deployment.
Audit History: Peckshield, Protofire, Code4rena, Slowmist.
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.
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