SECTION 1: APPLICANT INFORMATION
Applicant Name: Anurag Dixit
Project Name: Kunji Finance
Project Description: Kunji Finance is a social asset management platform built on Arbitrum that solves the problems of millions of web3 users not proficient in trading by allowing them to deposit liquidity into the vaults that replicate and scale the portfolio of expert traders on the platform seamlessly while retaining full custody of their funds. The platform is integrated with multiple spot and derivatives DEXes, offering hassle-free trading to traders and other users can mirror these portfolios by depositing funds in the vaults with a 1-click process. Kunji Finance not only helps users with limited trading skills but also adds value to the partner ecosystem through TVL and trading volume growth that comes from these new segments of users. A case in example, Hyperliquid Vault TVL grew from $ 7 MM to $195 MM in the last 5 months, but we can do better because
- Hyper liquid has a single vault mechanism and carries a very high regulatory risk due to pooled investments, Kunji’s dual vault mechanism has no regulatory ambiguity
- Hyperliquid vaults have access to 117 perp pairs and $206 MM liquidity, while Kunji vaults can trade on 172 perps and 73 spot pairs with $682 MM liquidity
- Hyperliquid vault trader risks are managed through 5% skin in the game, while in Kunji the traders can scale up faster by garnering community support through a token use case
- Complicated user exit process on Hyperliquid takes up to 4 days, users on Kunji can withdraw within 3 hours with no socialization of returns
- Hyperliquid has a fixed fee structure of 10%, while traders on Kunji can differentiate from competition by selecting their fees
Team Members and Roles:
Anurag Dixit: CEO and Founder
Vivekanand Pandey: COO & Co-founder
Harivadan Pandya: CFO & Co-founder
Dmitriy Chizhevskiy: VP, Engineering
Anurag Agrawal: Principal, Investment Strategy
Sangam Bharti: Chief of Staff
Shrey Paharia: Solidity Developer
Diego Bale (Protofire): Solidity Developer
Maksim Korotkikh (Protofire): Solidity Developer
Pratik Arora: Product Manager
Santo Sinar Pandean: Solidity Developer
Le Viet Hung: Full Stack Developer
Project Links:
Dapp Link: https://beta.kunji.finance/
Team Info: Kunji Finance
Twitter: https://twitter.com/kunjitweets
LinkedIn: Kunji Finance | LinkedIn
Discord: Kunji Finance
Telegram Group: Telegram: Contact @kunjifinance
Telegram Channel: Telegram: Contact @kunjifinanceofficial
Reddit: Reddit - Dive into anything
Medium: Kunji Finance – Medium
YouTube: https://www.youtube.com/@kunjiofficial
Mirror: Kunji Finance
Instagram: kunji (@realkunji) • Instagram photos and videos
Gitbook: Kunji Finance - Kunji Finance
Contact Information
Point of Contact (note: this should be an individual’s name, not the name of the protocol): Anurag Dixit
Point of Contact’s TG handle: @anuragdixit
Twitter: https://twitter.com/bhootnath
Email: anurag@kunji.finance
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Team experience (Any relevant experience that may be useful in evaluating the 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 team’s founding team has vast experience in building and scaling funded and bootstrapped startups in Web2 and Web3 Space. Anurag has scaled Zycus a global leader in procurement SAAS provider from zero to 25% market share, he also spearheaded Teno, India’s largest school app from concept to 18,000 schools onboarded. We have demonstrated the same tenacity and zeal while bootstrapping Kunji, launching the app on mainnet in less than 7 months, building a strong community, and onboarding 6000 beta users onto the platform judiciously leveraging the Arbitrum Foundation grant. We would like to provide the references privately.
What novelty or innovation does your product bring to Arbitrum?
We are building for the next million users joining web3. We are an Arbitrum native social trading platform focused on contributing to the ecosystem by migrating users from centralized exchanges with custody control and transparency.
- There will be 22 million users in DeFi by 2027, but if we go by a report by eToro, 90% of crypto traders lose money due to lack of skills, research or time.
- 60% of these users will be in the age bracket of 18-24 and 67% of them will be interested in copy trading. This is one of the primary reasons why centralized exchanges are seeing a huge uptick in copy trading products.
We provide the same ease of use, but aggregate liquidity from major perp and spot exchanges across arbitrum along with full control of custody that allows users to exit any time they wish to do so. In this way, we will not only enable more TVL from these users to flow through the Arbitrum ecosystem but also create a platform for mainstream adoption with ease of usage and decentralization.
Kunji Finance uses a dual vault synchronized investment strategy orchestration (SISO), which is a significantly evolved copy trading model, that lets expert traders run portfolio management services for uninitiated users without any regulatory ambiguity.
- SISO allows traders to automatically create strategy vaults corresponding to their portfolio managed from their trading wallets
- Users can deposit any amount in the vault and the vault automatically replicates and scales expert traders’ trades synchronously (without any lag)
- It allows users to enter or exit the vault at any time without any socialization of returns
- It also offers full decentralization and with a dual vault mechanism at no point the traders or the platform are able to touch or manipulate user funds
- The dual vault mechanism also keeps Kunji free from regulatory ambiguity as single vault mechanisms used by our competitors allow the pooling of funds, which is subject to regulatory approvals in most regulatory regimes.
Is your project composable with other projects on Arbitrum? If so, please explain:
Our project is inherently composable with other projects within the Arbitrum ecosystem. Traders utilizing our platform engage in trades across multiple decentralized exchanges (DEXes) and derivative protocols that currently operate on the Arbitrum network. We’ve initiated integration efforts with prominent platforms such as Uniswap, GMX v1, and GMX v2 as part of our initial integration strategy. With these integration, there are now 90+ tradeable tokens on the platform with enhanced liquidity. By enabling these integrations we bring in more tradable pairs and liquidity to vault managers and increased trading volumes and revenue to partner DEXes. We have Vertex and Hyperliquid integration in progress, which will make the platform more efficient for traders. The architecture of our protocol is designed to seamlessly accommodate a variety of trading platforms available on Arbitrum, ensuring a continuous expansion of integration possibilities. As we progress, our protocol will offer an expanding array of options for traders seeking diverse trading platforms within the Arbitrum environment.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
There are a few copy trading protocols that have recently come up but Kunji offers the most comprehensive mechanism that makes it very easy for users to copy the entire portfolio of an expert trader with any amount of their choice. Most importantly, our dual vault mechanism not only ensures ease of use and zero socialization of returns, it also removes all the risks from a regulatory perspective. It would be pertinent to note that other protocols use a single vault model and they let a trader manage pooled funds in that vault. This model will fail scrutiny in most of the regulatory regimes.
How do you measure and think about retention internally? (metrics, target KPIs)
Our thought process on retention is that if a user keeps on adding liquidity to the vault and the average investment per user increases over time, that user will stick around. So the key retention metrics that we target
- Average time duration for a wallet connected to the dapp
- Average number of reinvestments per wallet
- Growth in average investment per wallet
Relevant usage metrics - Please refer to the [OBL relevant metrics chart 5]. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
We are a social trading platform so the relevant usage metrics are
- Active lead trader wallets and Vaults
- Number of users copying the trader wallet
- Growth in TVL
- Median and average monthly returns generated by the lead traders
- Average number of reinvestments per wallet
- % of exits both the number of wallets and amounts
- Growth in average investment per wallet
- Total and average KNJ tokens staked against vaults
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
Is the protocol native to Arbitrum?:
Yes. Kunji Finance is native to Arbitrum and we wish to remain so primarily due to the performance the chain offers as well as the thriving ecosystem of perps and spot exchanges with high liquidity on the Arbitrum chain.
On what other networks is the protocol deployed?:
No, we have not deployed the protocol on any other networks. We will be enabling users to deposit in Kunji Vaults through a bridge in the near future.
What date did you deploy on Arbitrum mainnet?:
18th Aug’2023
Tx id: Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?:
Yes, KNJ is our native token.
Token CA: Kunji Finance (KNJ) Token Tracker | Arbiscan
Tokenomics: Tokenomics - Kunji Finance
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
We have run beta user incentivization programs through native KNJ tokens and USDC quests that have helped us get 6000 users already on the platform. Before the mainnet launch, we introduced our early adopter program with incentives and principal coverage for early adopters. With the release, we onboarded whitelisted users to the platform. The details of incentives can be found on our Medium. We also ran multiple Zealy quests to educate and onboard early adopters and engage them.
We also attracted KOLs through a content program with the public beta release. Details about it can be found here.
We have two ongoing campaigns:
- Galxe: Users can earn up to 102 USDC to deposit in the vault and invite their friends to the platform. The total reward pool of this campaign is 30,000 USDC.
- Quest App: It contains multiple quests including vault deposit, liquidity provision, and staking, and has a reward pool of 10,000 USDC.
- Zealy: We run periodical sprints on Zealy to incentivize the community members.
By the time we formally launch the LTIPP-supported incentive program, we will already have at least 10,000 users who will also be participating in this liquidity farming program.
Current Incentivization: How are you currently incentivizing your protocol?
We have multiple incentive programs going on:
- We have a quest app on our website allowing users to earn points by completing tasks focused on increasing traction on the platform. We have allocated a 10K USDC reward for this program.
- We are also running quest programs on Zealy and Galxe to continue the engagement on the platform.
- We will soon be having our referral program live attracting more users on the platform.
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)]
We have been awarded 60,000 ARB grants out of which we have already received 40,000 ARBs for protocol development and user acquisition after successfully reaching the milestones within the stipulated time and are all set to achieve the final milestone well ahead of the scheduled time.
We attracted initial users to our public beta through multiple incentive programs and distributed the grant amount accordingly. As a result, we have approximately 5.5K active users on the platform. The details of incentivization programs are stated above.
We still have 4000 ARB left with us.
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
We have more than 5k unique users and achieved more than 6.5k transactions. Since we are a social trading platform, the most important metrics for us are number of vaults and expert traders along with the TVL and number of users for the vaults. We plan to go live for both expert traders and users by end of this month and hopefully coincide the launch with the LTIPP incentives
Daily Active Users: The total number of unique users depositing in the user vaults everyday
Total Value Locked: The total value locked in vaults (both trader and user) across all the integrated dex and derivatives
Daily Average Transactions: The total number of transactions everyday that includes, deposit in the vaults, claiming shares, withdrawals and claiming assets after withdrawal
Total Vaults: The total number of unique user vaults created by traders on the platform
Total Traders: The total number of unique traders creating vaults and running the trading strategies on the platform
Dune Link: https://dune.com/sangam/kunji-finance
Tracking of total number of vaults, traders and others will be added to the Dune once the feature is live on the platform.
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
Roadmap:
Current State: We are live with Uniswap and GMX V1 and V2 Integration, with Vertex integration almost complete. Traders can create their vaults through self-service and start trading on the integrated DEXes. Users can check these vaults on the vault page and deposit funds in one or more vaults.
End of March: We will complete and deploy Vertex and Hyperliquid Integration along with Vault staking, which is the primary use case of KNJ. We will also announce and launch the trading marathons and liquidity farming and referral program.
April till June: Focus would be on adding MUX, Gains, and Camelot integrations along with a few other DEXes in the Arbitrum ecosystem that will help us enhance the number of trading pairs and overall liquidity and surpass $1 MM in TVL, We will also add a KNJ incentive pool to make the liquidity farming more attractive.
June till Dec: Focus will be on enhancing the ecosystem and community and surpassing $10 MM in TVL. Along with it, we will enable users from other chains to add liquidity through a bridge on Kunji.
Dec till March: Will add community-based, governance, and other asset types like options and RWA and achieve a TVL of $50 MM
Audit History & Security Vendors: [Provide historic audits and audit results. Do you have a bug bounty program? Please provide details about your security implementation including any advisors and vendors.]
We have been audited twice and are planning our next audit in Q2 2024. The first and second audits were done after the beta release.
Audit 1 by P2P AUDIT: Audit by P2PAUDIT - Kunji Finance
Audit 2 by UNSNARL: Audit by UNSNARL - Kunji Finance
Token Audit: Audit Report - Kunji Finance
Currently, we do not have a bug bounty program. We are planning to have one in the upcoming quarter.
Audit of New Features and Their Value Proposition
-
Public Vaults: Allows any trader to create and manage their own vaults on the Kunji Platform, earning commissions through trading activities. This feature fosters profit generation for users, commission earnings for traders, and revenue growth and traction for the platform.
-
Seamless Commission Distribution: Facilitates direct claiming of commissions into traders’ crypto wallets, enhancing trust in the platform’s processes.
-
Wallet-Based Login Functionality: Enables traders to securely access their trading vaults via their crypto wallets without the need for KYC verification, reinforcing platform privacy and security.
-
Unlimited Tradable Token Pairs: Provides traders with the flexibility to trade in any token of their choice, expanding profit opportunities for users and revenue streams for the platform.
-
Limit and TP/SL Trading Functionality: Empowers traders to set trigger prices for initiating and closing trades, as well as implementing stop-loss and take-profit orders, enhancing risk management strategies.
-
Vertex Integration: Elevates trading capabilities by integrating with Vertex, offering access to a broader token pool and potential for cross-chain transactions.
-
GMX v2 Integration: Expands trading options by allowing traders to access a larger token pool with improved liquidity.
-
SubstanceX Integration: Optimizes liquidation efficiency and reduces the risk of shortfalls, providing traders with smoother and more reliable liquidation processes.
Elimination of Borrowing Fees: Enhances trading experience and potential profitability by removing borrowing costs, making liquidity more accessible.
-
Hyperliquid Integration - Low Latency Execution: Provides exceptionally fast execution speeds and impressive throughput capacity, ensuring efficient trading experiences for users.
-
Trading Competition: Enables traders to earn rewards and enhance trading skills through competitions, driving platform traction and offering incentives for traders.
-
Staking Functionality: Allows investors and traders to stake KNJ tokens to earn APY, promoting token utility and long-term engagement.
-
Principal Coverage: Offers partial loss coverage options for investors, reducing investment risks and enhancing overall security, thus increasing investor confidence in vault investments.
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]:
None
SECTION 3: GRANT INFORMATION
Requested Grant Size: [Enter Amount of ARB Requested]
100,000 ARBs
[Justification for the size of the grant 8]: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]
Our aim is to create strong initial traction for both sides of the platform and make it attractive for web3 and CEX users who are looking for help to generate returns through expert help. We have planned to achieve that by inviting 75+ lead traders on the platform through a trading marathon and achieving a TVL of 500k USDC post-completion of LTIPP. The grant will be broken down into two parts. We believe the LTIPP grant will help us break the chicken and egg conundrum by simultaneously attracting vault creators as well as users for the vaults.
- 25,000 ARBs will go towards incentivizing expert traders to create vaults, actively trade and generate returns and make them attractive for users to add liquidity. This will be done by conducting a trading marathon over a period of 84 days.
a. This will help us attract around 75 expert traders to the platform even when the revenue is not going to be significant for them in the initial period through periodic and long-term rewards
b. This will generate significant trading volumes for our partner DEXes and on-chain data that will attract other traders and users in the community
c. It will help us populate the vault page with significant options for the users from where they will invest in these vaults
- The remaining 75,000 ARBs will be used as incentives to the users providing liquidity to vaults to generate initial traction and TVL growth.
a. These users will be incentivized to add and hold funds in the vaults for at least a period of 84 days through the mechanism mentioned in the Grants breakdown section
b. This will not only help in generating initial TVL growth but also create visibility and demonstrate the value proposition of the protocol value proposition
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
Not relevant
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
We aim to solve the chicken and egg situation faced by any multi-sided platforms like ours through a two-pronged incentivization program constituting a trading marathon (a trading competition run over a period of 84 days) and gamified liquidity farming that will award points to users for adding or referring liquidity to the TVL.
- We will be using 25,000 ARBs as a reward pool for the marathon. 25,000 ARBs will go towards incentivizing expert traders to create vaults, actively trade and generate returns and make them attractive for users to add liquidity. This will be done by conducting a trading marathon over a period of 84 days.
a. The trader will have to connect their wallet with a minimum of $250 and start trading through the Kunji terminal
b. The top 50 traders of the month will get rewards every 4 weeks for 12 weeks totalling 10,000 ARBs
c. The top 50 traders for the cumulative period of 84 days will get rewards from a pool of 15,000 ARBs
d. Retention incentive to traders through KNJ, our native token after the end of LTIPP
- Users will have to cumulatively deposit a minimum of $50 to qualify for an additional 10% ARB yield incentive after 84 days.
a. This deposit a wallet can make will be capped at $3000
b. Any additional incentive if the total incentive amount exceeds 75K ARBs will be supplemented by Kunji Finance
c. We will provide retention incentives in the form of KNJ, our native tokens after the end of LTIPP
Funding Address: [Enter the specific address where funds will be sent for grant recipients]
0x93842E1834bA7ec6578A825609836f0196fA59E8
2/5 multisig address
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.
2/5
Treasury Address: [Please list out ALL DAO wallets that hold ANY DAO funds]
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives: [Clearly state the primary objectives of the grant and what you intend to achieve]
The primary objectives of the grant are to onboard vault users and lead traders to run vaults through a trading marathon (a trading competition run over a long duration) with a large reward pool and incentivize users to add liquidity to those vaults by incentivizing them through a gamified reward pool.
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.]
- Incentive program for lead traders: The objective is to get lead traders to create a vault on Kunji Finance. There will be two kinds of incentives. First will be for the lead traders, who will create a trading portfolio and a corresponding vault on the Dapp to participate in the trading marathon, the prize pool will be significantly large and distributed over a period of 84 days. This will enable us to create multiple and diverse vaults that will interest users with little or no trading skills to generate returns in Autopilot mode.
- Users of the vaults will be awarded a 10% additional ARB yield for every USDC they add (capped to 3000) per wallet, every 30 days. End of the 84 days points for everyone will be calculated and the rewards from the pool will be distributed proportionally on a pro-rata basis. This will help us to retain the liquidity for 90% and demonstrate the utility and value delivery of vaults. It will also help us create a buzz and visibility of our vaults by incentivizing users.
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]
While the 10% of trading marathon rewards will be distributed every 30 days, 70% of it will be distributed at the end of 84 days by the time good traders see the revenue opportunity through their trading skills as they would get people to copy their trades over this 84 day period.
Similarly, users adding or referring funds to the vaults will do so with better traders and will experience significant additional returns apart from liquidity and gamification rewards they will be getting at the end of the 84 days. We expect a large number of these users to stay and add additional liquidity, which we will subsequently incentivize through KNJ rewards to both types of users. An upper cap on liquidity addition will ensure that the rewards are distributed to a large number of users and not to a few whales. Post LTIPP, we plan to retain the users through rewards in KNJ in the same proportion.
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.]
There are two KPIs that would define success in achieving the grant objectives
- At least 40 active vaults created by traders
- At least $ 500k in TVL
We will create a Dune dashboard for the KPIs that will be shared with all the stakeholders.
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.]
- 30% of the grant to be released immediately after approval and contract signing
- 70% of the grant to be released after the $250,000 addition to the TVL
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]
There are millions of CEX users using their copy trading features who are looking for a more transparent mechanism where they can control the custody of funds and have all the transparency that is needed. There are millions of web3 users who are not skilled traders themselves and are looking for ways to earn returns from their crypto holdings. This grant will help us establish strong initial traction, create visibility of our value proposition among these user segments, and help increase web3 adoption in general and growth in Arbitrum TVL in particular over a longer period.
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
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
We have created a dune dashboard that covers all the relevant metrics. We will add other relevant dashboards here to track the trading marathon progress and output.
https://dune.com/sangam/kunji-finance
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