SECTION 1: APPLICANT INFORMATION
Applicant Name: DAOSorcerer
Project Name: LayerDapp
Project Description:
LayerDapp streamlines DeFi by enabling effortless permissionless management of assets and crafting of complex strategies using multiple protocols. It’s a one-stop platform that simplifies the integration and interaction within the DeFi ecosystem, allowing users to both utilize existing protocols and build standalone protocols on top of existing protocols. Our platform enables users to manage their DeFi assets and positions efficiently, engage in complex cross-protocol strategies, and access innovative DeFi tools, all within a unified, user-friendly interface.
Team Members and Roles:
-LeadAlchemist: CEO & Co-founder, DeFi Strategist
-AlgorithmAlchemist: CTO & Co-founder, Blockchain Architect
Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.)]
Website: https://www.layerdapp.xyz
Twitter: https://twitter.com/layerdapp
Discord: LayerDapp
Contact Information
Point of Contact (note: this should be an individual’s name, not the name of the protocol): @LeadAlchemist
Point of Contact’s TG handle: @RealmSorcerer
Twitter: https://twitter.com/0x_vd
Email: team@layerdapp.xyz
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 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]):
Our team boasts a rich background in blockchain development, smart contract security, and DeFi product design, with previous successful contributions to projects on EVM chain and contributions to the Arbitrum ecosystem. Our team has been providing services to multiple Defi protocols (like ALMs, RWA and Liquidity management) and have also contributed in marketing and consultation with multiple protocols that have secured millions in TVL and have a proven track record of executing with grant incentives.
What novelty or innovation does your product bring to Arbitrum?
LayerDapp introduces a novel approach to DeFi interactions on Arbitrum by leveraging smart connectors and proxy accounts for enhanced interoperability and user experience. Our platform allows for the creation of complex DeFi strategies across multiple protocols without the need for direct interaction with each protocol’s interface. It also enables interoperability between multiple protocols and create strategies that were not possible before, this allows users to get access to more liquidity and is a move in reducing fragmented liquidity on arbitrum.
By introducing an alternative frontend, LayerDapp connects users directly to a multitude of protocols through smart connectors, Layer Smart Accounts (LSAs), and Diffusion Vaults, paving the way for unmatched interoperability and a seamless experience.
Our platform offers a unique space where users can effortlessly explore, combine, and manage multiple DeFi protocols. LSAs simplify digital asset management by linking various accounts to one External Owned Account (EOA), removing the hassle of juggling multiple wallets and the intricacies of gas fee management.
At the heart of LayerDapp’s innovation are the Diffusion Vaults, which bring a new layer of automation and logic. Users can now craft and implement custom strategies with ease, such as Native hedging using uniswap and aave or leveraging assets using aave. This feature not only makes complex strategy management straightforward but also provides users with insightful analytics on their performance.
LayerDapp’s intuitive integration process invites users to discover and engage with Arbitrum’s native functionalities, including re-staking, voting, and staking, all within a singular, user-friendly environment.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, LayerDapp is designed to be fully composable with other projects on Arbitrum. Our smart connectors enable seamless integration with lending platforms, DEXes, yield aggregators, and more, fostering a more interconnected and efficient DeFi ecosystem. We are committed to fostering a highly composable ecosystem where LayerDapp acts as the glue, integrating protocols like Aave, Uniswap, and GMX, and emerging platforms such as Premia, Dopex, Lyra, and Lodestar. This integration not only enhances capital efficiency but also encourages innovation in strategy creation.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
While there are platforms that offer some level of cross-protocol interaction (Eg. Factor DAO) LayerDapp’s unique value proposition lies in its comprehensive approach to DeFi strategy creation, management, and execution, setting it apart from existing solutions.
How do you measure and think about retention internally? (metrics, target KPIs)
Our retention strategy hinges on monitoring user growth, protocol engagement, and TVL and volume generated through LayerDapp. The stickiness of our Layer Smart Account (LSA) system, akin to an alternate wallet linked to one EOA, plays a pivotal role. It ensures once users deposit liquidity, it remains engaged. By offering staking rewards and partner incentives, we not only boost liquidity retention but also facilitate its seamless integration across various protocols, simplifying user participation in the DeFi ecosystem.
Relevant usage metrics - Please refer to the OBL relevant metrics chart . For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
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TVL: We have recently launched and our TVL is around $2k
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Daily active users: We currently had around 15-20 beta users
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Number of transactions per day: Expected number is more than 1500 transactions per day
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?:
No, as our solution is naturally needed by multiple ecosystems we have to build on multiple chains as our plan is also to bring interoperability between chains.
On what other networks is the protocol deployed?:
Yes, We are also deployed on Polygon right now
What date did you deploy on Arbitrum mainnet?:
January 2024
Do you have a native token?: Planned
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
As our protocol has just launched after beta test this will be the first time we will running incentives on LayerDapp, but we do have experience of running incentives, also aware about their management and reporting guidelines
Current Incentivization: How are you currently incentivizing your protocol?
We are planning to introduce a user referral program and liquidity mining incentives to drive adoption and increase the utility of LayerDapp within the Arbitrum ecosystem.
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)]
N/A
Protocol Performance:
Recently launched, our protocol is yet to showcase specific TVL metrics but shows promising early engagement. With our unique LSA structure and enticing incentives, we’re poised for rapid growth. Despite the absence of current TVL data, the positive initial response from users and strong partnerships with protocols that are finalised and upcoming lead to strong future performance.
Protocol Roadmap:
Our protocol gives us good composability to expand to multiple protocols easily and our aim is to get to multiple protocols and integrate them. Our plan is to also get automation and typescript custom strategy logic implemented.
Also our alpha update will include a SDK that will enable anyone to build a standalone protocol using LSA and our legacy protocol connectors.
We even have plans to enhance strategy creation and management process using AI.
Audit History & Security Vendors:
LayerDapp initial contracts are a fork of DSA contracts by InstaDapp that have been audited by OpenZepplin
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, LayerDapp has maintained a stellar security record since its inception.
SECTION 3: GRANT INFORMATION
Requested Grant Size: 150,000 ARB
Justification for the size of the grant :
Our grant request is meticulously designed to not only fuel the growth of our protocol but also to usher in groundbreaking technologies that position Arbitrum as the most capital-efficient chain in the ecosystem. The allocated funds will be directed towards advancing our platform’s capabilities, including the development of automation features and tools tailored for both retail users and market makers. These innovations are aimed at simplifying and enhancing the liquidity provision process on the Arbitrum chain, making it more accessible and attractive. By investing in these areas, we’re not just expanding our reach and enhancing user experience; we’re also contributing to Arbitrum’s standing as a leading platform for DeFi activities.
The requested funds will be allocated towards further development of LayerDapp’s core features, marketing initiatives to grow our user base, and liquidity incentives to foster deeper integration within the Arbitrum ecosystem.
Grant Matching: N/A
Grant Breakdown:
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Development: 25% (Will be used to create connectors and automation tools that will help us expand and get more protocols onboard)
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Marketing: 25% (Will be used to create category and market strategies, usage and benefits that will help us get more users as this tech requires some education to the user)
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Liquidity Incentives: 50% (Will be used to incentivise users that use our protocols infrastructure (add funds to LSA, interact with legacy protocols like Uniswap/Aave/Lido and also incentives will be given to the strategies that we create initially (eg. leveraged stETH, leveraged GLP etc)
Funding Address: Multi-sig to be set up with relevant members
Funding Address Characteristics: Relevant members will be added with atleast 2/3 multi-sig
Treasury Address: No specific DAO wallet holding major portion of treasury
Contract Address:
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
Objective 1: Optimize Capital Efficiency and Liquidity Provision
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Description: Utilize LayerDapp’s smart connectors and Layer Smart Accounts (LSAs) to optimize incentive allocations, encouraging liquidity providers (LPs) to contribute meaningful liquidity. Our goal is to ensure that the cost-benefit ratio of incentive programs maximizes value for all stakeholders within the Arbitrum ecosystem.
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KPI: Increase total value locked (TVL) on Arbitrum through targeted incentive distributions.
Objective 2: Drive Network Effects and Platform Growth
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Description: Implement a strategic incentive program designed to attract LPs, deepen liquidity pools, and increase trading volume. By enhancing liquidity and volume, LayerDapp aims to bolster Arbitrum’s competitive edge among Layer 2 solutions and initiate a positive flywheel effect for ecosystem growth.
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KPI: Attract new users to the Arbitrum ecosystem and achieve a increase in daily trading volume on integrated protocols.
Objective 3: Foster Sustainable Ecosystem Growth
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Description: With our composable platform we can integrate with multiple protocols that will be integrated and will boost ecosystem growth, LayerDapp’s approach includes developing features and automation tools that benefit both retail users and market makers, encouraging ongoing liquidity provision.
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KPI: Maintain a retention rate for incentivized LPs over a 6-month period, contributing to a steady increase in Arbitrum’s utility and network activity.
Objective 4: Enhance User Engagement and Ecosystem Awareness
- Description: Through LayerDapp’s intuitive platform, launch educational and interactive quests that onboard users to Arbitrum and increase platform usage. Our tiered ARB incentive structure is optimized for long-term user retention, focusing on attracting high-quality users who actively participate in the ecosystem.
Execution Strategy:
Phase 1: Integration and Onboarding
- Objective: Seamlessly integrate LayerDapp with legacy protocols (AAVE, UNISWAP, GMX) and new protocols (premia, dopex, lyra, lodestar) to provide a comprehensive DeFi experience.
- Actions:
- Develop and deploy smart connectors for each protocol to ensure compatibility and seamless interaction through LayerDapp.
- Initiate a marketing campaign to announce the integrations and highlight the benefits of using LayerDapp for managing DeFi strategies.
Phase 2: Incentive Program Launch
- Objective: Launch an incentive program to reward users for bridging liquidity to LSAs and engaging with integrated protocols.
- Actions:
- Allocate a portion of the grant funds to create a rewards pool for early adopters and active users.
- Design a tiered rewards system that benefits users based on their level of interaction and liquidity provided.
- Implement tracking mechanisms to monitor user participation and ensure fair distribution of incentives.
Phase 3: User Education and Engagement
- Objective: Educate users on the benefits of using LayerDapp for creating complex DeFi strategies and enhancing capital efficiency.
- Actions:
- Develop comprehensive guides and tutorials on how to use LayerDapp, bridge liquidity, and interact with integrated protocols.
- Create interactive quests and challenges that encourage users to explore different features and strategies within LayerDapp.
Phase 4: Continuous Monitoring and Optimization
- Objective: Continuously monitor the incentive program’s performance and user engagement to optimize rewards and ensure sustainable growth.
- Actions:
- Create community forum that will allow users and protocols to brainstorm ideas on multiple strategies that can be created using LayerDapp
- Adjust incentive structures based on performance data and user feedback to maintain high engagement levels.
- Explore opportunities for expanding the rewards program to include additional protocols and innovative strategies.
Phase 5: Expansion and Scalability
- Objective: Scale LayerDapp’s ecosystem by adding more protocols and enhancing features based on user demand and market trends.
- Actions:
- Regularly assess the DeFi landscape for emerging protocols and potential integrations that could benefit LayerDapp users.
- Update and upgrade LayerDapp’s infrastructure to support increased activity and more complex strategies.
- Foster partnerships with other DeFi projects and platforms to broaden the range of opportunities available to LayerDapp users.
Incentives for Legacy Protocol Use
- Users will receive incentives for utilizing legacy protocols through LayerDapp, encouraging a diversified approach to liquidity provision and strategy creation.
- Special bonuses for users who actively participate in creating and sharing innovative strategies that leverage the unique capabilities of both legacy and new protocols.
Our execution strategy includes getting new protocols first that will help bolster our platform and their discoverability, next step is to make the UI more interactive so that the retail understands the concepts and structure easily
We plan to deploy the grant funds towards developing new platform features, conducting targeted marketing campaigns, and providing liquidity mining incentives to attract and retain users.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
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Tiered Rewards System: Users and liquidity providers will access higher rewards tiers based on their duration of participation and the volume of activity. This encourages both initial engagement and long-term commitment.
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LSA (Layer Smart Accounts) Bonuses: By utilizing LSAs for transactions and liquidity provision, users will receive additional bonuses, promoting the use of our unique account structure for enhanced engagement and retention.
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Community Governance Participation: Using our community protocols and users discuss and create new strategies where ideas are discussed that helps the users get access to new strategies and creates a new ecosystem
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Cross-Protocol Incentives: Collaborating with integrated protocols to offer exclusive rewards for users who engage across multiple platforms through LayerDapp, fostering a cohesive ecosystem experience.
These mechanisms are designed to not only attract users and liquidity but also to maintain them by rewarding continued participation, innovation, and community involvement.
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.
To accurately measure the success of our grant objectives, we will focus on the following Key Performance Indicators (KPIs), utilizing Dune Analytics as our primary source of truth for transparent and verifiable data:
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Total Value Locked (TVL): An increase in TVL within Layer Smart Accounts (LSAs) will indicate successful liquidity attraction and retention.
- Target: 20% increase within the first six months.
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User Growth Rate: The number of new users engaging with LayerDapp, indicating successful user acquisition.
- Target: 15% monthly growth.
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Protocol Interaction Frequency: Frequency of transactions per user, reflecting user engagement and platform stickiness.
- Target: 25% increase in monthly transactions per active user.
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Cross-Protocol Strategy Creation: The number of unique cross-protocol strategies created by users, showcasing the innovative use of LayerDapp.
- Target: 100 unique strategies within the first three months.
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Governance Participation: Level of user involvement in governance decisions, reflecting community engagement and platform ownership.
- Target: 30% of active users participating in governance.
Grant Timeline and Milestones:
Weeks 1-4: Foundation and Integration
- Integration Expansion: Implement connectors for key protocols such as GMX, Lyra, and Lodestar, broadening our interoperability and user offerings.
- Incentivization Infrastructure: Launch tracking and incentivization contracts to reward users for depositing funds into Layer Smart Accounts (LSAs), enhancing liquidity.
- Staking Partnerships: Forge alliances with staking protocols to offer rewards for users holding specific assets in LSAs, promoting asset retention and growth.
Weeks 5-8: Strategy Incentivization and Ecosystem Enhancement
- Strategy Manager Incentives: Introduce rewards for strategy managers who devise and execute multi-protocol strategies, fostering innovation and active participation.
- Protocol Usage Boost: Incentivize user engagement with live protocols on our platform, benefiting both users and integrated protocols by driving usage and highlighting the value of our ecosystem.
Weeks 9-12: Analysis, Iteration, and Distribution
- Program Evaluation: Conduct a thorough analysis of the incentive program to identify and address gaps, ensuring continuous improvement and effectiveness.
- Campaign Conclusion: Finalize the campaign by distributing the remaining ARB rewards, celebrating achievements and preparing for future initiatives based on learned insights.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Receiving this grant will be a game-changer for both LayerDapp and the Arbitrum ecosystem. It will:
- Speed up Development: Fast-track our innovative features like Layer Smart Accounts and Diffusion Vaults, attracting more users to Arbitrum.
- Boost Liquidity: Launch incentives to draw and lock liquidity, benefiting the entire Arbitrum DeFi space with more fluid markets.
- Enhance Interoperability: Use the grant to integrate more protocols, facilitating seamless asset movements and complex strategies across platforms.
- Drive Innovation: Invest in pioneering DeFi technologies and functionalities, setting new benchmarks for the Arbitrum ecosystem.
- Build Community: Allocate resources for community engagement and education, amplifying user base and ecosystem participation.
This grant isn’t just about LayerDapp’s growth; it’s about enriching Arbitrum with deeper liquidity, better interoperability, and fostering a thriving DeFi community.
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
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?
Absolutely, we’ll provide bi-weekly updates via Dune Dashboard, utilizing our team’s analytics expertise, and share these insights in the forum thread regularly.
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