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: Granary Finance Core Contributors
Project Name: Granary Finance
Project Description: Granary Finance is a decentralized lending protocol deployed on Arbitrum that offers adaptive interest rates + risk assessment models to maximize capital efficiency and security for users.
Team Members and Roles: [List team members and their roles/responsibilities]
| Menace | Co-Founder / EthSec Developer |
|---|---|
| Goober | Lead Developer |
| Bongo | Senior EthSec Developer |
| CJ | Front End Developer |
| Crow | Front End Developer |
| Azrium | Marketing Lead |
| A S | Operations Manager |
| Deantoshi | Dev Ops / Analytics |
Project Links:
Website: https://granary.finance
Twitter: https://twitter.com/GranaryFinance
Contact Information
Point of Contact: Crypto A S
TG handle: Telegram: Contact @useitonceandagainv12
Twitter: https://twitter.com/Crypto_A_S
Email: andrew@bytemasons.com
KYC Acknowledgement: Yes
# SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability:
Since inception in 2021, our team at Granary Finance has demonstrated profound security expertise and resilience. We are a multichain lending protocol that rapidly gained traction, peaking around $70 million Total Market Size in 2023.
Our journey has been marked by navigating through some of the most challenging industry events over the last few years. Notably, we successfully managed the repercussions from major security breaches such as the Harmony bridge exploit, Multichain bridge exploit, and other bridge vulnerabilities as they arose. These events tested our protocols, security, risk DevSecOps, and operational resilience, but we emerged strong and better prepared to tackle new challenges.
Granary’s dynamic incentive plan stands as one of our most significant achievements. We’ve innovated a system where incentives are not static but adapt based on real-time data on user activity. This approach has allowed us to fine-tune our incentive distributions, ensuring they are both attractive to our users and sustainable for our protocol. The feedback from our user base has been overwhelmingly positive, highlighting appreciation for our sensitivity to incentive spend and the adaptability of our model to ensure incentives align with user demand.
Granary Finance stands as a cutting-edge lending protocol that spans multiple blockchains, offering users unparalleled flexibility and access to liquidity. Our product is designed to cater to a wide range of audience segments, from individual retail investors to institutional participants, ensuring inclusivity and accessibility to all. Our multichain approach ensures that we address the needs of users across different blockchains, enhancing our protocol’s access to users, TVL, and market demands.
Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):
The Granary Team, otherwise known as Conclave or colloquially as the Byte Masons, is an engineering firm that has been dedicated to web3 and DeFi product development since 2020. Our growing cast of engineers are some of the most experienced in the industry (includes yAcademy Fellows, Kernal0x Fellows, among other notable Fellowships), and have worked on or operated DeFi protocols managing nearly 11 figures in AUM over the last several years.
The team has 36 full time contributors, several apprentices, and a sizable network of developers via our training programs, bootcamps, and industry relationships. We strive to engineer positive, sustainable outcomes for blockchain teams and foundations who seek to build out DeFi on their networks.
Granary (a part of Conclave) has a non-profit foundation legal entity with doxed individuals on our board of directors but our team members prefer to stay anonymous to the public.
What novelty or innovation does your product bring to Arbitrum?
Granary Finance utilizes an adaptive interest rate model that dynamically adjusts based on market demand and supply, alongside several risk management frameworks that evaluates collateral quality in real-time, reducing the likelihood of liquidation events and enhancing capital efficiency for users. Additionally, it is built to be compatible as a foundation to be built upon by other Arbitrum ecosystem developers.
Is your project composable with other projects on Arbitrum? If so, please explain:
Our protocol is designed to integrate seamlessly with existing DeFi ecosystems on Arbitrum and already utilizes ChainLink price feeds to monitor collateral prices on chain, liquidity conditions, and other relevant data. Our team co-builds with Ramses and is one of their earliest partners. We also worked with GMX and Camelot on co-marketing strategies in their early GTM stage. Additionally, our team played a significant role in the development of another tier one protocol on Arbitrum (more info available upon request depending on NDAs/contractually sensitive information) and our engineering firm frequently operates on Arbitrum.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
While inspired by Aave v2, Granary Finance distinguishes itself through its focus on Arbitrum’s unique capabilities, offering optimized gas fees, faster transactions, and an innovative risk assessment model tailored to the Arbitrum user base.
How do you measure and think about retention internally? (metrics, target KPIs)
We prioritize user experience and platform security to ensure high retention rates. Our KPIs include daily active users (supply and borrow), asset utilization rates, asset interest rates over time, TVL growth and many more (as shown by our Dune Dashboard: https://dune.com/bytemasons/granary-finance).
Goals for 2024 include driving increased daily active users and TVL growth via upgrading our current UX, releasing new features, releasing Granary v2, and continuing to build a strong, vibrant user community.
Relevant usage metrics - Please refer to the OBL relevant metrics chart 1. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
|Category | List of Metrics | General Metrics | (Applies to all)
Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts.
Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts.
Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts.
Daily Protocol Fee: A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users.
Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts.
Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.
|Lending | For each asset:
TVL: A daily time series expressed in USD, calculated as deposits minus borrows.
Withdrawals: A daily time series expressed in USD for the amount of net withdrawals out of the protocol
Borrowed Amount: A daily time series measured in USD for each asset and in total.
Daily Borrowing Volume: A daily time series measured in USD for each asset and in total.
Daily Deposits Volume: A daily time series, presented in USD for each asset and in total.
List of Depositors: A list of current and past participants who have deposited during the incentivized period to the protocol. The list should include depositor addresses, their current deposits in USD, time-weighted deposits in USD, and the duration of their deposit participation.
List of Borrowers: A list of current and past participants who have borrowed from the protocol during the incentivized period. The list should include borrower addresses, their current borrowings in USD, time-weighted borrowings in USD, and the duration of their borrowing participation.
Utilization Ratio: Optimize the ratio of borrowed to available assets, indicating healthy demand and potential for higher interest revenue.
Loan Origination Volume: Track the volume of new loans created to measure growth and market penetration.
Default/Liquidations: Minimize the rate of defaults to ensure platform trust and financial health.||
Do you agree to remove team-controlled wallets from all milestone metrics AND exclude team-controlled wallets from any incentives included in your plan: [Yes/No]
Yes
Did you utilize a grants consultant or other third party not named as a grantee to draft this proposal? If so, please disclose the details of that arrangement here, including conflicts of interest (Note: this does NOT disqualify an applicant):
No
SECTION 2b: 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/No, and provide explanation]
No, it was first deployed on other networks.
On what other networks is the protocol deployed?: [Yes/No, and provide chains]
Yes, Avalanche, Base, BNBChain, Ethereum, Fantom, Linea, Metis, Optimism
What date did you deploy on Arbitrum mainnet?: [Date + transaction ID. If not yet live on mainnet, explain why.]
Date: December 9th 2022 UTC (initial DAI market deployment)
Txn IDs: Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?: [Yes/No/Planned, link tokenomics docs]
Yes, GRAIN. Token contract: $0.008 | Granary Token (GRAIN) Token Tracker | Arbiscan
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
GRAIN has been utilized to incentivize several markets on Arbitrum. Current incentives are focusing on Native USDC and USDT.
In the aftermath of the Multichain exploit, Granary had to work with bridge providers to support the GRAIN token as it is native on every chain. Unfortunately, GRAIN is ahead of its time as Axelar, Layer Zero, and other leading bridges have not supported native tokens on multiple networks until recently. In order to not incentivize markets with GRAIN on networks with little GRAIN TVL, GRAIN incentives were dramatically reduced. In recent weeks GRAIN bridging has become available which will allow for GRAIN incentives to ramp back up.
Dune Dashboard: https://dune.com/bytemasons/granary-finance
Current Incentivization: How are you currently incentivizing your protocol?
Low reserve factor (less borrow/lend spread) and via GRAIN incentives for supplying & borrowing collateral
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? [yes/no, please provide any details around how the funds were allocated and any relevant results/learnings(Note: this does NOT disqualify an applicant)]
No, this application represents our first request for external funding to accelerate our growth on Arbitrum.
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
Total DAUs 2/22/24: 688
Dune Dashboard: https://dune.com/bytemasons/granary-finance
Arbitrum Granary Dune Dashboard: https://dune.com/bytemasons/arbitrum-granary-finance-protocol-dashboard
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
- Deployed Initial Market on Arbitrum Date: December 9th 2022 UTC (initial DAI market deployment)
- 07/07/2023 Granary Dune Dashboard Deployed
- 10/18/2023: Integrated OpenZepplin Defender
Upcoming:
- Integration with Axelar / LayerZero
- New features (one click looping/unlooping)
- Overhauled UI (w/ enhanced analytics)
- GRAIN LP Staking
- Repay with collateral
- Granary v2 (nearing audit with a top tier audit firm):
- Protocol-to-Protocol Lending
- Isolated Pools & LTVs
- Liquidation Value Capture (via API3’s OEV)
- Time Based Risk Parameters
Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details around your security implementation including any advisors and vendors.]
Granary v2.0 audit with a top tier firm is currently ongoing. Granary v2.0 will also likely receive a Code4ena audit.
Arbitrum Oracle Provider
Granary exclusively uses Chainlink to secure its markets with accurate price feeds.
Arbitrum Multisig
The Granary employs a 3/6 safe with non-custodial permissions to maintain the Granary Protocol.
Arbitrum Timelock
All administrative actions from the multisig are constrained by a Timelock contract with a 48 hour delay.
Timelock: 0xF957262DB8B35181A0aB8F034eC8CE73A7531F9B
Ownership Transaction hashes:
| Contract | Tx Hash |
|---|---|
| Provider | 0x3283d10edb30f4fbf9016e8b904ae907ae0e3ba69698bcb9254fa82f285840bc |
| Registry | 0xb713eedadb7bd1bb87f87a64158bc5a1b556b970e5db9d84c6f37e32c9e7e0cc |
| Lending Rate Oracle | 0xdc857e03df2f78c46a1585e92b14407389c8313359fd7413bef2ecb81385e836 |
| Oracle | 0x8486456a1451722cb8ef8391dd5f7384993dea9a110028a0f241d71257deed77 |
| Rewarder | 0x101e4ce947748bce5ea99507705f4adb374b889bf521eb0e6b41c57b5a0890b5 |
| Treasury | 0x7d65c504d1e93de71152df2093d0a074f73d5f1959a0c43f0603508b0b29f6d3 |
Security Incidents: [Has your protocol ever been exploited? If so, please describe what, when and how for ALL incidents as well as the remedies to solve and mitigate for future incidents]
No
SECTION 3: 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: [Enter Amount of ARB Requested]
115,000 ARB
Justification for the size of the grant 1: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]
Current Arbitrum TVL: $900,000
Growth Arbitrum TVL: $4,000,000
Grant ARB Allocated to Lending Markets: 90,000
Grant ARB Allocated to Points / Quest Program: 25,000
Utilizing Collateral Supply and Borrow Incentives, goal APRs listed below (note: grainETH is supplied ETH, vETH is borrowed ETH):
| Collateral | Collateral Token Price | Goal Supply | Value (USD) | Total $ Value Allocated | Total ARB Allocated | Emissions Per Second (EPS) | Emission Per Month (EPM) | Emissions Per Year (EPY) | APR |
|---|---|---|---|---|---|---|---|---|---|
| grainETH | $3,708 | 225 | $834,300 | $3,000 | 1,500 | 0.00056004 | 1,500 | 17,661 | 4.23% |
| grainwstETH | $4,296 | 225 | $966,600 | $3,000 | 1,500 | 0.00056004 | 1,500 | 17,661 | 3.65% |
| grainUSDC | $1.00 | 300,000 | $300,000 | $3,000 | 1,500 | 0.00056004 | 1,500 | 17,661 | 11.77% |
| grainARB | $2.00 | 300,000 | $600,000 | $3,000 | 1,500 | 0.00056004 | 1,500 | 17,661 | 5.89% |
| vETH | $3,708 | 110 | $407,880 | $12,000 | 6,000 | 0.00224014 | 6,000 | 70,645 | 34.64% |
| vwstETH | $4,296 | 110 | $472,560 | $12,000 | 6,000 | 0.00224014 | 6,000 | 70,645 | 29.90% |
| vUSDC | $1.00 | 150,000 | $150,000 | $12,000 | 6,000 | 0.00224014 | 6,000 | 70,645 | 94.19% |
| vARB | $2.00 | 150,000 | $300,000 | $12,000 | 6,000 | 0.00224014 | 6,000 | 70,645 | 47.10% |
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
During the Grant Program Period of Performance, Granary plans to utilize generated protocol fees for incentivized markets to buy GRAIN off the market to distribute alongside ARB incentives. The team has committed to setting up a multisig at the beginning of the Grant Program to capture protocol fees. Once a week during the 12 week program the Granary team will use generated fees to buy GRAIN off the market. Acquired GRAIN will then be distributed across ETH, wstETH, USDC, and ARB markets on both the supply and borrow sides. The team reserves the right to distribute GRAIN in a dynamic fashion depending on market utilization (if certain markets are more highly utilized during the Grant Program then a higher proportion of GRAIN incentives will be allocated to those specific markets to drive optimal capital efficiency).
Fee Capture Utilization Strategy:
- Before ARB token distribution begins, we will clear our fee capture wallet to establish a starting point for fee generation during grant distribution.
- Granary then will set reserve factors for incentivized markets to 20%.
- Generated fees will be used to buy GRAIN off the market.
- The purchased GRAIN will be added to lending market incentives, complementing ARB rewards, and effectively increasing the grant’s effectiveness in driving blue chip asset yield on Arbitrum.
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
Allocated ARB will be utilized to incentivize collateral markets on the Arbitrum Granary deployment. Allocations per collateral market will be (utilizing $ estimate for ARB price of $2.00):
| Incentivized Tokens | Total $ Value Allocated |
|---|---|
| grainETH | $9,000 |
| grainwstETH | $9,000 |
| grainUSDC | $9,000 |
| grainARB | $9,000 |
| vETH | $36,000 |
| vwstETH | $36,000 |
| vUSDC | $36,000 |
| vARB | $36,000 |
Funding Address: [Enter the specific address where funds will be sent for grant recipients]
GRAIN Treasury ARB arb1:0x4F8B86ff37c5Cdb8Df2Bfacd481266Cb91eDd975
Funding Address Characteristics: [Enter details on the status of the address; the eligible address must be a 2/3, 3/5 or similar setup multisig with unique signers and private keys securely stored (or an equivalent custody setup that is clearly stated). The multisig must be able to accept and interact with ERC-721s in order to accept the funding stream.
Mulsig Safe that will be used will comply with the 3/5 setup as listed in the requirement above.
Treasury Address: [Please list out ALL DAO wallets that hold ANY DAO funds]
| GRAIN Bribes ARB | arb1:0xd356fa245B62562B15309e0C9C6a7bf4A1C72aC7 |
|---|---|
| GRAIN Bribes AVAX | avax:0xB39343f48c07294e6fB3B6a76743DCb51B6E9662 |
| GRAIN Bribes BNB | bnb:0xb880842FE342dEBEEC548E3Aa405bf63017b34da |
| GRAIN Bribes FTM | ftm:0xFA8059110F608A134b41dd377bc2817a12678393 |
| GRAIN Bribes OP | oeth:0xB39343f48c07294e6fB3B6a76743DCb51B6E9662 |
| GRAIN Treasury ARB | arb1:0x4F8B86ff37c5Cdb8Df2Bfacd481266Cb91eDd975 |
| GRAIN Treasury AVAX | avax:0x060e95881F4fC62F4146ebe53535267D9fe33dC7 |
| GRAIN Treasury Base | base:0xbdB399dD6F66609303D906D90765E432c04F77a4 |
| GRAIN Treasury BNB | bnb:0x0bA2504eAd26F10DEC40CF277BB8d5b2338Bae2A |
| GRAIN Treasury FTM | ftm:0x95D3c4ED2D40ac99E726B975611361305784aC65 |
| GRAIN Treasury Linea | 0x0d75BD85F718681C55829f8f9170B12A9e2e75Be |
| Grain Treasury Matic | matic:0x3749A9BA90c6503435997B50e058E3638f6671E2 |
| Grain Treasury Metis | metis-andromeda:0x993d0325853DcFBf035E66c259320FCc2fBD0df0 |
| GRAIN Treasury OP | oeth:0xf6fD4c5cb0D2a92fbF8E08E6C2A27Ca7fe39FDCc |
| Granary Emergency Safe ARB | arb1:0x195E8EA61621d0D2BF6Ad6DF8eA3835AC9012956 |
| Granary Emergency Safe AVAX | avax:0x79f15A2a0C3F60b392234F30D368FD93a12513D4 |
| Granary Emergency Safe BASE | base:0xb2Adf47eCBC8236FF2097075A3f080dfd79b583A |
| Granary Emergency Safe BNB | bnb:0xE0919d23fEcC572a7EABc12DB85cAd2b54a078FD |
| Granary Emergency Safe ETH | eth:0x4a0241978A0FD92Dd0Cd3b183Ab50fa4d66238C3 |
| Granary Emergency Safe FTM | ftm:0xe8ebCa6E11617AC636Ea5Ff2f0e06dBE1bD0Bfbb |
| Granary Emergency Safe Metis | metis-andromeda:0xFF2C443e4Dc7B1785239912A7e6a770b05387dFf |
| Granary Emergency Safe OP | oeth:0x581C4a57197f0fC6ff9340267dC2F82f4a2Fe1C0 |
| Granary Fee Capture Arbitrum | 0xb17844f6e50f4ee8f8fec7d9ba200b0e034b8236 |
| Granary Fee Capture Ethereum | 0xd93e25a8b1d645b15f8c736e1419b4819ff9e6ef |
| Granary Fee Capture Optimism | 0xc01a7ad7fb8a085a3cc16be8eaa10302c78a1783 |
| Granary Fees Arb | arb1:0x5DeABE360E66140981316B631D1A8Fb6bb2c085D |
| Granary Fees ETH | eth:0x858057d06F829E044716e066B60A17c3a0d366e2 |
| Granary Fees FTM | ftm:0x06a0174C879f0624Dd9C2ACeD9c6C7d23fDf8313 |
| Granary Fees OP | oeth:0x2CF0A0d01fE1ED7423EAa14B9052de0282A3867C |
| Granary Treasury ETH | eth:0xA15AA70706D56aC83491aB90Ea6A3Ec3f47639ab |
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
Contract Rewarder: 0x7A191973Eaf8cdcC4dE683d10C1E11c5a5bc717D
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.
Objectives: [Clearly state the primary objectives of the grant and what you intend to achieve]
Objectives of Granary Finance’s Grant Proposal:
Granary Finance is dedicated to enhancing the DeFi landscape on Arbitrum by focusing on sustainable liquidity provision, optimizing yield generation strategies, and fostering a robust lending and borrowing ecosystem. Our primary objectives through this grant are:
- Expand and Stabilize Liquidity: Leverage the grant to boost liquidity across key asset pairs, aiming for a strategic increase in Total Value Locked (TVL) by at least 50% within the next quarter. This expansion will not only attract more users but also ensure the stability and resilience of our markets against volatile conditions.
- Enhance Yield Optimization Strategies: Implement advanced yield optimization strategies that cater to a wide range of user preferences, from conservative to aggressive, thus broadening our appeal. The goal is to increase the yield on blue chip assets making our platform a go-to for users seeking efficient capital allocation.
- Promote Lending and Borrowing Activities: Encourage a more dynamic lending and borrowing environment by introducing incentivized loan programs and diversified lending pools. This will aim to increase the loan issuance volume by 30%, thereby facilitating more economic activities within the Arbitrum ecosystem.
- Drive User Engagement and Growth: Through targeted marketing campaigns and community engagement initiatives, we plan to double our user base and increase daily active users by 100%.
Execution Strategy: [Describe the plan for executing including token distribution method (e.g. farming, staking, bonds, referral program, etc), what you are incentivizing, resources, products, use of funds, and risk management. This includes allocations for specific pools, eligible assets, products, etc.]
Execution Strategy for Granary Finance:
- Token Distribution and Incentivization:
- Liquidity Mining: Implement a liquidity mining program to incentivize users to supply liquidity to our key asset pairs. Tokens will be distributed based on the proportion of liquidity provided, with higher rewards for pairs identified as strategic to our growth.
- Resource Allocation and Products:
- Allocate resources towards the development and continuous improvement of user-friendly interfaces and backend systems that ensure scalability, security, and efficiency while continuing to offer some of the best lending yield available on Arbitrum.
- Use of Funds:
- Capital Acquisition and Retention: Allocate funds to drive users and TVL to grow on Arbitrum, ensuring competitive yields and user retention remain the focus from the outset.
- Risk Management:
- Conduct thorough due diligence on all listed assets and partners to ensure alignment with our risk appetite and compliance standards.
- Allocations for Specific Pools and Eligible Assets:
-
Prioritize allocations to lending markets that support the most liquid and widely used assets within the Arbitrum ecosystem, ensuring they are appealing to both retail and institutional participants.
-
Regularly review and adjust allocations based on market conditions, user demand, and strategic objectives to maintain competitiveness and attractiveness of our offerings.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? [Provide relevant design and implementation details]
Granary Finance is committed to implementing a multifaceted incentive design aimed at fostering “stickiness” among users and liquidity providers, with a focus on long-term engagement and sustainability within our ecosystem. Our approach involves creating a dynamic and balanced incentive structure that rewards ongoing participation and contributions, rather than solely initial actions. Here are the revised key mechanisms and design details:
- Onchain Quests
Our team has built an in-house custom point system that will be utilized to reward users based on their level of activity and achievements during the Grant program. This system is designed to incentivize users to deepen their engagement and investment in Granary Finance, promoting long-term loyalty and driving increased DeFi activity on Arbitrum. Points will be awarded utilizing various criteria, for example $ allocated over a specific time frame for a particular collateral market (ex: $100 of USDC over 24 hours), completing quests, or other onchain activity through the Granary protocol.
- Implementation Details: Activity-Based Rewards: Users advance through tiers by engaging in activities such as lending, borrowing, and completing quests during the grant program.
- Duration-Based Bonuses: We will reward users for their prolonged participation, offering bonus points for continuous engagement with the platform throughout the grant distribution period.
- Liquidity Mining 2.0
Our liquidity mining program will be strategically designed to adjust rewards in alignment with the total liquidity in the protocol and the duration of liquidity provision. This method aims to mitigate reward dilution and encourage sustained liquidity provision.
- Implementation Details: Dynamic Reward Adjustments: Reward rates will automatically adjust based on liquidity levels to ensure that incentives remain compelling and sustainable.
- Loyalty Multipliers: Introduce multipliers for users who consistently provide liquidity over extended periods, thus rewarding long-term liquidity providers.
Specify the KPIs that will be used to measure success in achieving the grant objectives and designate a source of truth for governance to use to verify accuracy. [Please also justify why these specific KPIs will indicate that the grant has met its objective. Distribution of the grant itself should not be one of the KPIs.]
Granary Finance will utilize a set of Key Performance Indicators (KPIs) to meticulously measure the success and impact of the grant objectives. These KPIs are chosen to reflect the core goals of enhancing the protocol’s utility, fostering user engagement, and promoting sustainable growth within the Arbitrum ecosystem. The designated source of truth for verifying these KPIs will be our smart contract data on the Arbitrum blockchain, audited transaction records, and analytics platforms that track DeFi protocol metrics. Here are the KPIs and their justifications:
- Total Value Locked (TVL)
- KPI Description: The total amount of assets deposited in Granary Finance’s protocols.
- Source of Truth: Blockchain analytics platforms (e.g., DeFi Pulse, DeBank, Dune, etc) and our smart contract data on Arbitrum.
- Justification: TVL is a fundamental indicator of user adoption. An increase in TVL signifies that more users are engaging with the protocol, indicating successful alignment between the protocol and the larger Arbitrum community.
- User Growth Rate
- KPI Description: The rate at which new users join and existing users remain active on Granary Finance.
- Source of Truth: User registration and activity data verified by smart contract interactions on the Arbitrum blockchain, Dune Dashboard
- Justification: A growing user base and high retention rates are direct indicators of successful user engagement strategies and the protocol’s increasing appeal in the DeFi space.
- Number of Transactions
- KPI Description: The total number of transactions conducted on Granary Finance, including lending, borrowing, and liquidations
- Source of Truth: Arbitrum blockchain transaction records, Dune Dashboard
- Justification: An uptick in transaction volume demonstrates the protocol’s utility and efficiency, showcasing effective use of grant resources in improving platform operations and user experience.
- Liquidity Mining Participation
- KPI Description: The level of participation in liquidity mining programs and other incentive structures.
- Source of Truth: Smart contract data detailing participation rates and incentive distributions, Dune Dashboard
- Justification: Increased participation in liquidity mining and incentive programs indicates effective incentive design, driving both liquidity provision and long-term user engagement.
- Quest Participation
- KPI Description: The number of achievements / quests completed by participants throughout the program.
- Source of Truth: Point Leaderboard, Dashboard on Granary.finance, or Dune Analytics Dashboard
- Justification: DeFi users have shown a substantial desire to complete onchain quests, activities, and farm points across the multichain ecosystem lately. Aligning and offering a system they are familiar with could potentially increase overall user adoption.
Grant Timeline and Milestones: [Describe the timeline for the grant, including ideal milestones with respective KPIs. Include at least one milestone that shows progress en route to a final outcome. Please justify the feasibility of these milestones.]
Granary Finance proposes a strategic timeline and set of milestones for the deployment and utilization of the grant, focusing on fostering growth and sustainability within the Arbitrum ecosystem. This approach is designed to maximize the impact of the grant on key performance indicators (KPIs) that directly reflect the project’s success and contribution to the ecosystem.
Grant Timeline and Milestones:
Please find below the breakdown of the proposed Lending Market Incentive Milestones and Onchain Quest Milestone (using 115,000 ARB across three phases):
Phase 1: Foundation and Growth Acceleration
- Timeline: Weeks 1-4
- Grant Allocation: 38,333 ARB
- Objectives: Initiate liquidity incentives, optimize protocol features for Arbitrum, and enhance user experience.
- Milestones by End of Phase 1:
- TVL: Achieve $2 million, indicating successful initial engagement.
- User Base: Increase to 100 active users in lending markets & onchain quests
Phase 2: Momentum Building and Expansion
- Timeline: Weeks 5-8
- Grant Allocation: 38,333 ARB
- Objectives: Scale up daily active users utilizing the protocol and drive increased DeFi activity onchain.
- Milestones by End of Phase 2:
- TVL: Reach $3 million, showcasing sustained growth.
- User Base: Expand to 200 Increase to 100 active users in lending markets & onchain quests
Phase 3: Sustainability and Deepening Engagement
- Timeline: Weeks 9-12
- Grant Allocation: 38,333ARB
- Objectives: Solidify the protocol’s position within the ecosystem and continue to drive DAUs on Arbitrum
- Milestones by End of Phase 3:
- TVL: Surpass $4 million, reflecting a robust and growing protocol.
- User Base: Exceed 400 active users via lending markets or onchain quests, illustrating deepened market penetration and user adoption
Justification for Feasibility:
The proposed timeline and milestones are based on Granary Finance’s experienced team, proven track record over the last several years, and the strategic planning of resource allocation to ensure impactful outcomes. The phased approach allows for adaptive strategies to market conditions and ecosystem developments, ensuring that each phase builds upon the successes of the previous ones and are feasible. By focusing on tangible metrics such as TVL and user growth, Granary Finance aims to transparently demonstrate the effective use of grant resources in achieving substantial progress towards becoming a pivotal component of the Arbitrum ecosystem.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem? [Clearly explain how the inputs of your program justify the expected benefits to the DAO. Be very clear and tangible, and you must back up your claims with data]
Receiving a grant will empower Granary Finance to significantly contribute to the Arbitrum ecosystem’s growth by driving increased lending opportunities and point based quests on-chain. This strategic focus will enable us to directly support the scalability and efficiency of DeFi operations on Arbitrum and increase DAUs for the protocol.
Moreover, the grant will support our efforts to tailor our dynamic incentive model for the Arbitrum community. By creating incentives that resonate with Arbitrum users’ specific needs and behaviors, we can significantly enhance user engagement and protocol adoption on the network while simultaneously offering bluechip growth opportunities for users. This approach will not only drive additional liquidity to Granary Finance but also to Arbitrum as a whole as we can pull our multichain users to Arbitrum to capture yield and explore other on-chain DeFi protocols.
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]
Yes
SECTION 5: Data and Reporting
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL . Along with this list, please answer the following:
Is your team prepared to comply with OBL’s data requirements for the entire life of the program and three months following and then handoff to the Arbitrum DAO? Are there any special requests/considerations that should be considered?
Yes
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? [Please describe your strategy and capabilities for data/reporting]
Yes. Our main reporting instrument will be a dune dashboard tracking the aforementioned metrics.
*First Offense: In the event that a project does not provide a bi-weekly update, they will be reminded by an involved party (council, advisor, or program manager). Upon this reminder, the project is given 72 hours to complete the requirement or their funding will be halted.
Second Offense: Discussion with an involved party (advisor, pm, council member) that will lead to understanding if funds should keep flowing or not.
Third Offense: Funding is halted permanently
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? This report should include summaries of work completed, final cost structure, whether any funds were returned, and any lessons the grantee feels came out of this grant. Where applicable, be sure to include final estimates of acquisition costs of any users, developers, or assets onboarded to Arbitrum chains. (NOTE: No future grants from this program can be given until a closeout report is provided.)
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]
Yes