Kinto Launch Coalition LTIPP Proposal Final
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: @misterkeegan
Project Name: Kinto
Project Description:
Kinto is a new L2 built on the Arbitrum stack focused on providing users safe access to financial services by solving the two biggest challenges to crypto adoption: Safety and User Experience. We’ve achieved this by introducing network wide insurance, native account abstraction, and our innovative User Owned KYC to a modified Arbitrum network. With these modifications, we’re creating an environment that helps protect users from hacks, while also protecting their privacy and opening up new markets and new use cases that cross the oil and water separation between traditional finance and decentralized finance. With our native compliance tooling and invisible UX, we aim to bring new users and new use cases into the Arbitrum ecosystem.
Team Members and Roles:
CEO: Ramon Recuero
CTO: Victor Sanchez
CSO: Alan Keegan
CBO: Aaron Nassiri
Chief of Staff: Hannah Jones
Engineer: Federico Alconada
Project Links:
Docs: Welcome to Kinto - Kinto: The safety-first L2 for Finance
Twitter: https://twitter.com/kintoxyz
Medium: Kinto-xyz - Medium
Website: https://kinto.xyz/
Discord: Kinto
Join Kinto’s Pre-launch Program (during active phases): Kinto | The Safe L2 for Finance
Contact Information:
Point of Contact: Alan Keegan
Twitter: @misterkeegan
Telegram: @misterkeegan
Email: alan@mamorilabs.com
Do you acknowledge that your team will be subject to a KYC requirement?:
Yes, also all subgrant recipients will be required to perform KYB before deploying on Kinto.
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.
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 founders’ backgrounds combine experience at Open Zeppelin, multiple DeFi protocols, YCombinator, Google, multiple Web2 exits, and TradFi experience at Bridgewater Associates. At Babylon Ramon had extensive experience with incentive design, which can be expanded upon privately.
What novelty or innovation does your product bring to Arbitrum?
Kinto is the first new L2 licensing Arbitrum’s tech stack. After initially beginning our journey on Optimism, we got in touch with the Arbitrum foundation who gave us an opportunity to be one of the first new Arbitrum L2s. We went back to the drawing board and worked with Offchain Labs to build the network as part of the Arbitrum family: the most developed L2 ecosystem with the best tech and the best team. As part of the Arbitrum ecosystem, Kinto will be paying Arbitrum a portion of its sequencer fees.
Beyond directly contributing to Arbitrum through the shared fees, we hope Kinto’s success can act as an example to other new L2 teams that the backing of the Arbitrum community is invaluable.
With our native account abstraction, use of passkeys and User-Owned KYC, Kinto unlocks a safer, gasless experience. Kinto also gives new users the option to onboard to the Arbitrum ecosystem and create a non-custodial wallet without the barriers of private key and seed phrase management. User-Owned KYC makes onboarding to Real World Asset protocols significantly easier, and unlocks their utility as collateral or tradeable assets in DeFi. It also unlocks access to funds and firms whose compliance burden prevents them from operating on other open networks.
Is your project composable with other projects on Arbitrum? If so, please explain:
Kinto’s User-Owned KYC allows for compliance tooling that will make RWA protocols more composable with DeFi infrastructure. The KintoID can also be leveraged by protocols in the Arbitrum ecosystem for sybil resistance and increased safety when needed.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?]
While there are other L2s with partial KYC (such as Base) there are no other networks that combine the sybil resistance and compliance tooling enabled by universal User Owned KYC with an open network (no whitelist) alongside the benefits of account abstraction. The universality of user-owned KYC is necessary for unlocking the benefits of user safety, expanded design space for RWAs, and accessibility to large pools of capital currently unable to participate on open networks. Our innovative design allows users to access those benefits while maintaining privacy and sovereignty over their personal data.
How do you measure and think about retention internally? (metrics, target KPIs)
Our core KPIs are verified users, transactions, and TVL. Retention drivers vary by audience segment. Many funds (even crypto funds that have in the past run on-chain strategies) are not comfortable operating on other networks (from a counterparty compliance perspective) which increases their stickiness as Kinto users. On the individual side, users that come to Kinto as their first foray into crypto will never have to deal with gas or learn how to manage private keys and seed phrases, which should meaningfully increase the activation cost of them switching away. For long term retention of new-to-crypto users, funds, and native-crypto users, the key advantage of Kinto is enabling new design space around using RWAs as collateral and trading RWAs on-chain.
Relevant usage metrics - Please refer to the OBL relevant metrics chart 35. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
See above
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
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, we are an Arbitrum L2
On what other networks is the protocol deployed?:
N/A
What date did you deploy on Arbitrum mainnet?:
This is not directly applicable as we are an L2 built on the Arbitrum stack. We can provide the date and transaction of deploying the L2 if needed.
Do you have a native token?:
Issuance of a native token will be decided by holders of Engen Credits (non-transferrable credits earned during pre-launch program). A draft proposal around the structure of a token can be found here in the litepaper.
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
N/A
Current Incentivization: How are you currently incentivizing your protocol?
Details on our pre-launch Engen program can be found here.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
No
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
Mainnet is currently restricted to KYC verification and wallet creation. We have just over 25,000 verified users and will be opening up Phase IV of our Engen program in March, which will allow additional users to sign up and will allow Engen participants to deploy capital to the bridge.
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
We have already started our pre-launch program, which you can join here during active phases.
As of the submission of this proposal we have verified >25,000 KYC’ed users, who we are excited to onboard to the Arbitrum ecosystem.
Mainnet is currently limited to User-Owned KYC verification and wallet creation. In Engen Phase IV (mid-March), we will begin onboarding pre-launch capital with mainnet becoming fully live ~60 days from the initiation of Phase IV (meaning mid-May). Phase IV is not yet open at the time of writing, but may be open at the time you are reading this.
We’ve already assembled a coalition of over 20 launch partners, and the format of this grant will be a coalition grant given to Kinto to distribute to an eligible subset (11) of those launch partner protocols on the Kinto Network according to a combination of technical and growth milestones as described below.
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.]
We have audits from Certora, Mixbytes, and Pessimistic. Mixbytes and Pessimistic audits can be found here.
We’re integrating with Hypernative to anticipate any behavior that looks like a lead up to an exploit and temporarily freeze the offending wallet to allow for further investigation. We are also integrating Chainalysis to examine capital entering and leaving the bridges for any AML risk.
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]
N/A
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:
The total coalition grant request is for 802,000 ARB tokens.
Justification for the size of the grant 35: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]:
The grant will be recieved by Kinto and distributed as subgrants to certain projects launching on Kinto based on technical and growth milestones (below). For every project, the first technical milestone is deployment on Kinto, which will unlock the first tranche of ARB tokens to use as incentives distributed to users to bootstrap ecosystem liquidity. As a coalition application, the nominal grant ask is naturally high versus other applications. This magnifies the need to make sure the ARB incentives are used judiciously. We are introducing two mechanisms to help ensure that:
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Any tokens earmarked for project milestones that have not been achieved by the end of the Arbitrum rewards distribution period will be returned to the Arbitrum DAO. For example if a project has unlocked their technical milestone grant, but not hit their growth target milestone by the end of that period, the ARB earmarked for that growth target will be returned to the DAO.
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All sub-grantees distributing ARB to pools in their protocols will be asked to enforce a 50% APY limit on those distributions.
Grant sizes were arrived at by working with each of the launch partners, and anchoring around comparable STIP grant size guidelines for earlier stage vs growth stage protocols. Projects that have more traction were also given higher growth milestones. The ballpark metric was sizing around approximately 8% APY for 12 weeks if a target hit both their technical and growth milestones but did not exceed growth milestones (assuming an ARB price of $2). Tokens will be used as liquidity incentives for capital providers and users of the projects.
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
While there is no matching per se, Kinto also would provide its own tokens as incentives for Launch Partner Protocols alongside ARB, pending the Kinto DAO’s approval of the draft Token Mining Proposal after mainnet governance initiation ceremony. All protocols included in sub-grant would be eligible for Kinto Token Rewards. For example, the first quarter of draft Token Mining Proposal curve would reward about 1.4% of Kinto tokens distributed across the launch partners included in this proposal as well as some others that have not been included.
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
The grant will be distributed as subgrants to certain projects launching on Kinto based on technical and growth milestones (below). Any tokens earmarked for milestones that have not been hit at the end of the rewards distribution period will be returned to the Arbitrum DAO. All distributed tokens are to be used as liquidity incentives based on TVL for pools within the subgrantee’s protocols. We intend to enforce a 50% APY cap for ARB incentive to prevent wasteful incentive distribution.
Grant and Sub-Grant Overview (Amounts and Milestones)
Launch Coalition Projects
Project Information: Anemoy
Incentivized Product/Pool(s): Anemoy Liquid Treasury Fund
Anemoy Capital SPC Limited is a BVI-licensed fund manager. Its first fund is the Anemoy Liquid Treasury Fund 1 (the “Fund”) and is open to non-US Professional Investors. The Fund is a fully on-chain actively managed Daily US Treasury Yield Fund. Balanced monthly, offering daily liquidity, holding US T-Bills < 6-month duration, and focused on minimizing interest rates and price risk. Daily redemptions are available and fees are 0.15% management fee annually. The regulated BVI structure is bankruptcy remote and fully compliant; US T-Bills are held directly by the fund and the individual fund holdings are readily viewed on-chain. Fund shares are held as tokens and investments & redemptions denominated in USDC.
The Fund is a pool on the decentralized RWA protocol Centrifuge. Founded in 2017, Centrifuge is the institutional platform for credit on-chain. Notable firsts include minting MakerDAO’s first real-world asset, structuring the first on-chain securitization, launching the RWA Market with Aave, and bringing the first credit fund’s operations on-chain with BlockTower. Centrifuge provides both the infrastructure and ecosystem to tokenize, manage, and invest into a complete, diversified portfolio of real-world assets - from Treasury bills, to private credit, real-estate and carbon assets.
Centrifuge and Anemoy will be launching the Fund pool on Kinto.
Twitter: https://twitter.com/centrifuge
Website Centrifuge: Website Terms of Use | Centrifuge
Website Anemoy: https://www.anemoy.io/
Docs: https://docs.centrifuge.io/
Fund pool on Centrifuge: https://app.centrifuge.io/pools/4139607887
Sub-Grant Allocation & Milestones
Project Information: Revest/Resonate
Incentivized Product/Pool(s): T-Bill Vaults Accepting Anemoy Collateral
Resonate allows financial institutions to receive future yield upfront on their fixed income and private credit instruments (e.g. treasuries, bonds, etc.). By tokenizing these assets and using Resonate financial institutions can gain digital asset exposure, or even participate directly in DeFi in a way that is compliant, positive-sum, delta-neutral, and principal protected. Resonate combines TradFi protections with DeFi returns.
Twitter Revest: https://twitter.com/RevestFinance
Website Revest: https://app.revest.finance/
Website Resonate: https://app.resonate.finance/
Revest Docs: https://docs.revest.finance/
Resonate Docs:https://docs.resonate.finance/
Sub-Grant Allocation & Milestones
Project Information: Zoth
Incentivized Product/Pool(s): Trade Finance Receivables (Invoice Cactoring) & US T-Bills
Zoth is a DeFi RWA ecosystem reimagining cross-border trade finance from emerging markets, bringing high yield fixed income opportunities for accredited investors and institutions. Zoth enables SMEs in emerging markets to access faster and more affordable capital for their growth and expansion needs. The ecosystem acts as a bridge between lenders and businesses seeking new-age capital.
Zoth protocol is meticulously designed to guarantee both regulatory adherence and optimal capital utilization. To fortify off-chain assets and provide investors with an unprecedented level of security, Zoth employs dedicated Special Purpose Vehicles (SPVs) situated in Luxembourg, through a custodian bank and a licenced administrator.
The asset class (invoice factoring) is the safest form of trade finance (historically sub 1% NPAs). Zoth employs various risk mitigation strategies like over collateralization; insurance coverage; first loss coverage/ CG/ PG/ UCC Lien; Undated Cheque as security; Corporate Assurance letter; Recourse factoring on suppliers etc. thereby eliminating any possibility of capital loss for lenders even during the edge cases.
Twitter: https://twitter.com/zothdotio
Website: https://zoth.io/
Docs: Welcome to ZOTH - Zoth
Sub-Grant Allocation & Milestones
Project Information: Mimo
Incentivized Product/Pool(s): Any bond / KIBT (T-Bills, Bitcoin Mining, AI Compute)
Mimo is deploying two protocols on Kinto: Kuma and Parallel
Mimo’s mission is to help its users through varying market cycles. Its European-regulated arm issues EEA compliant RWA-backed NFTs, and the DAO, governed by MIMO token holders, controls two protocols.
- The KUMA Protocol provides ERC-20 interest-bearing tokens backed by Real-World Assets, giving users access to traditional assets in a DeFi-compatible and permissionless way, providing an alternative and solid source of yield in varying market conditions.
VCs, Hedge Funds, Foundations, Protocols, Exchanges, Treasuries, or Individual Wallets that have USD (fiat or stablecoin) are hedging inflation by buying our tokenized assets such as US Treasury Bills and other types of sovereign bonds, corporate bonds, etc. that yield between 5% and 15%. We will also be introducing assets yielding up to 60%.
KUMA’s Key Advantages:
- Tokenization of RWAs in the form of Regulated NFTs
- Tokenization of RWAs in the form of Interest-Bearing Tokens
- Permission and Permissionless pools
- Regulated & KYC solution for Institutions or Individuals
- No KYC is needed for protocol users
- No Management or Brokerage fee
- Financial Audit by Grant Thornton
- Technical Audit by Hacken & Code4Arena
- Multichain, Composable, Transparent, On-Chain
Twitter: https://twitter.com/KumaProtocol
Website: https://kuma.bond/
Docs: Introduction - Kuma Protocol
The Kuma protocol is currently deployed on Mainnet, Polygon, Linea, and Telos.
- The Parallel Protocol is a CDP protocol that allows users to leverage their assets by giving them immediate liquidity without selling. Instead, it allows users to mint multiple price-stable currencies against collateral. All minted tokens are over-collateralized.
- PAR: The PAR token is a price-stable token pegged to the Euro
- paUSD: The paUSD token is a price-stable token pegged to the US Dollar
Twitter: https://twitter.com/ParallelMoney
Website: https://www.mimo.capital/
Docs: Introduction - Parallel Protocol
The Parallel protocol is deployed on Mainnet, Polygon, and Fantom with $25M TVL.
Sub-Grant Allocation & Milestones
Project Information: tfBILL (TrueFi)
Incentivized Product/Pool(s): tfBILL
Adapt3r and TrueFi will be launching the tfBILL treasury product on Kinto. The tfBILL approach to on-chain treasury bill exposure prioritizes operational security, compliance, and simplicity, making this fund an attractive choice for institutional investors seeking to safeguard fiduciary capital at scale. tfBILL is a tokenized representation of ADAPT I LP, an actively managed US treasury fund structured as a bankruptcy-remote, BVI-licensed Professional Fund. tfBILL and its issuer, Adapt3r Digital, comply with both US and non-US financial regulations while hosting the underlying asset flow within regulated, US financial institutions. Relative to other on-chain treasury bill products, the issuer adopts a conservative stance toward regulatory compliance, reflecting the principle that the strength of tokenized assets is anchored in the issuer’s regulatory standing.
In contrast with on-chain ETF exposure, holders of tfBILL hold sole recourse to a portfolio of 0-6 month US Treasury Bills held at a regulated broker-dealer. This simple structure minimizes complexity, mark-to-market risk, operational risk, and ensures a transparent fee structure for investors. tfBILL’s underlying holdings, continuously re-invested and rebalanced, are monitorable in real time.
tfBILL Twitter: https://twitter.com/Adapt3rDigital
tfBILL Website: https://www.adapt3r.com/
tfBILL Docs:Welcome to Adapt3r Digital’s Docs - Adapt3r Digital Docs
TrueFi Twitter: https://twitter.com/TrueFiDAO
TrueFi Website: https://truefi.io/
TrueFi Docs: What is TrueFi? - TrueFi Docs
Sub-Grant Allocation & Milestones
Project Information: Atlendis
Incentivized Product/Pool(s): USDC LPs
Atlendis revolutionizes private credit investing by seamlessly bridging DeFi with asset-backed lending opportunities. Our fully compliant capital-efficient credit origination protocol empowers FinTechs and loan originators to establish dedicated revolving credit pools, facilitating the creation of private credit. Leveraging a best-in-class legal framework, Atlendis utilizes dedicated SPVs in Delaware to safeguard off-chain assets, offering unparalleled security for investors.
Twitter: https://twitter.com/AtlendisLabs
Website: https://www.atlendis.io/
Docs: Introduction - Atlendis v2
Sub-Grant Allocation & Milestones
Project Information: TProtocol
Incentivized Product/Pool(s): CSOP’s USD MMF
TProtocol is a permissionless DeFi ecosystem hub backed by US treasury bills, corporate bonds, real estate, and other unique assets. Bridging DeFi and TradeFi for stability and a new risk-free rate on-chain. Their lending protocol offers a 100% LTV, flexible interest rates, and maximized capital utilization. Unique silo pools let users choose risk/reward levels, with a liquidation mechanism to address bad debt. They issue lending certificate tokens (ERC-2000) for each pool, providing returns from underlying assets. Enhancing flexibility and creating a modular system for DeFi integration. TProtocol has close collaboration with major RWA issuers and plans to bring all of them to Kinto.
Twitter: https://twitter.com/TProtocol_
Website:https://www.tprotocol.io/
Docs: TProtocol V2 Documentation - TProtocol V2 Documentation
Sub-Grant Allocation & Milestones
Project Information: Hashnote (USYC)
Incentivized Product/Pool(s): USYC
Hashnote is an investment manager making transparent, secure, and simple blockchain-based investments available to institutions. Hashnote’s principals are professionals with a combined 50+ years in traditional finance/banking, options trading, software engineering, and blockchain technology at global trading and investment companies. Hashnote’s team has been an active participant and pioneer in the institutional digital asset markets. Our mission is to build what finance will look like in ten years.
Hashnote Short Duration Yield Fund invests in short-term U.S. Treasury Bills and performs repo / reverse repo activity as the underlying asset of the USYC token. USYC earns short-term risk-free rate returns. Our clients can mint or redeem in USDC, Fiat, USDT, and PYUSD with the minting process being atomic and instant on the blockchain. Hashnote guarantees T + 1 redemptions and in many instances are redeemed T +0. Our platform offers institutional investors a secure environment free from the everyday risks linked to credit intermediaries because we do not provide loans. Hashnote US and offshore funds are regulated by the CFTC and CIMA, respectively, and Hashnote Management is a member of the National Futures Association.
We adhere to strict regulations set by the CFTC and CIMA, ensuring our operations meet institutional investment standards. Assets are protected through segregated custodial accounts at BNY Mellon. This straightforward and secure approach gives investors the confidence to focus on their investment goals. Trust and transparency are the pillars of our service, making us a dependable partner in the digital asset market.
Twitter: https://twitter.com/Hashnote_Labs
Website: https://www.hashnote.com/
Docs: https://usyc.docs.hashnote.com
Sub-Grant Allocation & Milestones
Project Information: Backed
Incentivized Product/Pool(s): bIB01
Backed issues fully backed, tokenized real-world assets. Backed has developed a compliant solution for issuing freely transferable tokenized versions of tradable securities, such as equities and ETFs. Backed is creating composable tokenized assets that will be the building blocks of on-chain finance.
Backed’s bTokens are offered under an approved EU prospectus and benefit from the Swiss Distributed Ledger Technology (DLT) Act, which allows the existence and transfer of digital assets on permissionless venues. This means that holders of bTokens are the legal owners of the structured product, and also have the primary claim to the collateral value.
Transparency and security are paramount to Backed. All underlying assets are owned by a special-purpose vehicle separate from the company’s balance sheet. The assets are held in licensed Swiss custodian banks. In the unlikely event of bankruptcy, a third-party security agent is legally obligated to act in the interest of the bToken holder. This ensures a high level of bankruptcy remoteness and a firm foundation for bTokens to be the building blocks of new apps, protocols, and products.
Backed has integrated Chainlink’s Proof of Reserve (PoR) to provide users with a transparent and trust-minimized means to confirm the collateralization of their tokenized assets. Chainlink Price Feeds are available for bIB01, bIBTA, bC3M, and bCSPX.
Backed and its products are trusted by leading industry players such as Angle, Aragon, Gnosis, Morpho, Blueberry, and many more.
Backed has natively supported Arbitrum since July 2023. Backed welcomes such an initiative to grow TVL & activity for RWAs on Arbitrum.
Backed has multiple products that can be deployed on Kinto. The proposed first three are:
The Backed CSPX Core S&P 500 (ticker symbol: bCSPX) is a tracker certificate issued as an ERC-20 token. bCSPX tracks the price of the iShares Core S&P 500 UCITS ETF USD (the underlying).
The Backed Assets bIB01 (ticker symbol: bIB01) is a tracker certificate issued as an ERC-20 token, which tracks the price of the iShares $ Treasury Bond 0-1yr UCITS ETF (the underlying).
The Backed Assets bIBTA (ticker symbol: bIBTA) is a tracker certificate issued as an ERC-20 token, which tracks the price of the iShares $ Treasury Bond 1-3yr (the underlying).
[Not for the distribution to any U.S. Person or any person or address in the United States. Backed DOES NOT sell its tokens to U.S. Persons or for the account or benefit of U.S. Persons, and tokens are not marketed, offered, or solicited in the U.S. or in any other prohibited jurisdiction. For a full list of prohibited and restricted countries and review of legal documentation, please visit Access Restricted - Backed Assets. Backed Finance AG and its subsidiary Backed Assets GmbH are not affiliates of or licensed by BlackRock Inc, BlackRock Fund Advisors and any of its affiliates (“BlackRock”) or S&P Global and any of its affiliates (“S&P”), and neither BlackRock nor S&P are responsible in any way for bCSPX, bIB01, bIBTA or bC3M products.]
Twitter: https://twitter.com/BackedFi
Website: https://backed.fi/
Docs: https://docs.backed.fi/
Sub-Grant Allocation & Milestones
Project Information: Collar
Incentivized Product/Pool(s): Collar
Collar Protocol is the first ever liquidation-free, capital-efficient borrowing protocol. Collar helps borrowers get high LTV stablecoin liquidity against digital assets without losing sleep. This is achieved by non-custodially connecting users with market makers who help “Collar” client assets using their proprietary hedging strategy. Collar turns token wealth management from an oxymoron into a reality.
Twitter: https://twitter.com/CollarProtocol
Website: https://www.collarprotocol.xyz/
Docs: What We Do - Collar Protocol
Sub-Grant Allocation & Milestones
Project Information: Ethena
Incentivized Product/Pool(s): USDe
Ethena is a synthetic dollar protocol built on Ethereum that provides a crypto-native solution for money not reliant on traditional banking system infrastructure (USDe), alongside a globally accessible dollar denominated savings instrument - the ‘Internet Bond’ (sUSDe).
Ethena’s synthetic dollar, USDe, provides a scalable and stable crypto-native solution for money achieved by delta-hedging staked Ethereum collateral. USDe is fully backed, transparently on-chain, and free to compose throughout DeFi.
USDe peg stability is ensured through the use of delta hedging derivatives positions against protocol-held collateral alongside a mint and redeem arbitrage mechanism.
USDe TVL sits at $420m as of 23 Feb 2024 while being less than a week out on public mainnet.
Twitter: https://twitter.com/ethena_labs
Website: https://ethena.fi/
Docs: Ethena Labs Overview - Ethena Labs
Sub-Grant Allocation & Milestones
Funding Address: [Enter the specific address where funds will be sent for grant recipients]
0xf152Abda9E4ce8b134eF22Dc3C6aCe19C4895D82
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.
Address is a 3/5 multisig. Further information on key security can be shared privately.
Treasury Address: [Please list out ALL DAO wallets that hold ANY DAO funds]
The DAO will be live in less than two months, address can be provided then.
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
N/A
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]
The intention of the grant is to help bootstrap the Kinto Ecosystem as the one of the first new L2s leveraging the Arbitrum stack.
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.]
All funds will be used as liquidity incentives distributed to LPs of eligible pools/products of sub-grantees. Any incentives distributed to Kinto will not be released to sub-grantee protocols to use as liquidity incentives until those sub-grantees have met the milestones for which those ARB are earmarked. Any ARB earmarked for milestones that the sub-grantees have not hit by the end of the ARB rewards distribution period will be returned to Arbitrum DAO.
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]
The stickiness of users on Kinto will primarily come from a differentiated UX, increased user safety, and new use cases. The sub-grants will be used as liquidity incentives for Launch Partner protocols to help bootstrap adoption.
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.]
Key KPIs will be new Kinto Wallet users, TVL, and transaction count. A good indicator of success would be if the ARB incentives unlocked by hitting technical milestones for subgrants are sufficient to allow them to reach their growth milestones, and that the growth milestones’ incentive unlocks allow them to double their TVL from that point. As a high level grant, success would be the Kinto ecosystem becoming a top ten Layer 2 in both transaction count and TVL by the end of 2025. This would be a powerful signal to new L2 teams, and drive meaningful revenue for Arbitrum through our sequencer fee sharing.
For source of truth we can easily prove the ownership of each protocol as they will perform KYB before deploying, and can provide transactions for each sub-grant. We would be happy to provide a dashboard.
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.]
Milestones are laid out above, and vary by the stage of each protocol in question (in cooperation with their teams), while being anchored on comparable STIP grant sizes.
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]
As mentioned above Kinto’s unique design unlocks
- New use cases (interoperable and composable RWAs)
- Access to new users (new users to crypto as well as funds with counterparty requirements)
- Differentiated UX (improved user safety, gaslessness, native account abstraction)
And we will be sharing sequencer fees with Arbitrum as laid out in our licensing agreement.
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?
We accept a linear distribution if that is the preferred method for the Arbitrum DAO. Kinto will enforce milestones on top of that before distributing to sub-grantees, such that any ARB received from the DAO treasury that was earmarked for a technical or growth milestone of a sub-grantee that was not hit before the end of the distribution period will be returned to the Arbitrum DAO.
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 32. 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?
Happy to conform to reporting standards to the degree possible, obviously as a coalition grant based on a new L2 this may take some coordination with Arbitrum as well as sub-grantees.
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
*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.)
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