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: Rhett Shipp
Project Name: Gravita Protocol
Gravita is an Ethereum-centric lending protocol based on Liquity. Borrowers mint GRAI using ETH and LSTs as collateral. Gravita seeks to support all high quality LSTs and also play a role in attracting up the LST and ETH liquidity from mainnet to L2.
Team Members and Qualifications:
Rhett Shipp - Founder, Project Lead
Dante Filho, Smart Contract Lead
Cory Cleaver, Lead Front end Dev and Creative Lead
Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.]
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: 250k ARB
Grant Matching: NA
Grant Breakdown: All funds will be used to incentivize liquidity between GRAI and stables as well as ETH and LSTs. Deepening GRAI liquidity enables Gravita to onboard more ETH and LSTs to Arbitrum by growing the borrower base as well as support the peg stability of GRAI.
Funding Address: 0x6F8Fe995422c5efE6487A7B07f67E84aaD9D4eC8
Funding Address Characteristics: A 3/6 multisig with private keys securely stored
Contract Address: 1. 0x7EE02ce5ccce84B892DC42d9FE3B938AcA9C2933
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]
- Increase GRAI liquidity on Arbitrum paired with both stablecoins and ETH/LSTs
- Attract ETH and LSTs to Arbitrum by increasing Gravita borrowing on the Arbitrum instance
Key Performance Indicators (KPIs): [Specify the KPIs that will be used to measure success in achieving the grant objectives]
- GRAI DEX liquidity on Arbitrum
- Minted GRAI on Arbitrum Gravita instance
- TVL on Arbitrum Gravita instance
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
Gravita’s key bottleneck is GRAI DEX liquidity. Borrowing activity cannot grow faster than new liquidity is sourced without causing volatility in the GRAI price. Using this grant to increase GRAI liquidity will enable us to increase mint caps more quickly and onboard more borrowers to Arbitrum. An increase in migration of ETH and LSTs onto Arbitrum and growth in the CDP sector will benefit the growth of Arbitrum both in TVL and activity.
Justification for the size of the grant:
The goal is to source liquidity and sustain that liquidity on Arbitrum. This is an amount that we can use very efficiently to grow and sustain GRAI liquidity.
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.]
Gravita will use the funds to incentivize GRAI liquidity on multiple Arbitrum DEXs and paired with both stablecoins and ETH/LSTs.
We will incentivize on multiple DEXs and for multiple assets paired to GRAI to give liquidity providers optionality, but will channel the most resources to the DEXs where we can get the best TVL per dollar spent. This will include both direct liquidity incentives and bribes depending on the DEX.
Risk Management: Gravita will vet both the DEX partners as well as assets to pair to GRAI by reviewing protocol audits, mechanisms and any bad debts that may exist. Gravita will carefully choose pairs and DEXs that have a low risk profile for liquidity providers.
Grant Timeline: [Describe the timeline for the grant]
The grant timeline runs through January 31, 2024. Gravita will distribute funds to liquidity providers roughly linearly with a ramping up period to allow liquidity providers some time to adjust to the new incentives from October 2023 through January 2024.
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?: No, as a friendly fork of Liquity, we found it necessary to launch on Ethereum mainnet first. Soon after mainnet launch, we deployed on Arbitrum as our second instance.
On what other networks is the protocol deployed?: Ethereum mainnet
What date did you deploy on Arbitrum?: June 26, 2023
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
Gravita has no bad debt on either the mainnet instance or the Arbitrum instance
TVL growth - Gravita Arbitrum TVL has grown by 43% over the last month. It is the only CDP platform in the top 7 that has not shrunk in the last month.
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application.]
-Onboard all LSTs that pass a quality threshold and are censorship resistant as collateral assets
-Onboard LST-LST and ETH-LST liquidity positions as collateral on Gravita
-Deploy structured products built on top of Gravita. Examples include auto-managed leverage positions, zero net leverage positions that generate yield on the minted GRAI
Audit History: [Provide historic audits and audit results]
Hats Finance audit competition (no official report)
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]
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 provide bi-weekly updates that will display analytical findings/performance of the ecosystem matching program, $ARB liquidity enhancement, and other relevant information.
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