[Marginly] [DRAFT] [STIP - Round 2]


Applicant Name: Alex

Project Name: Marginly

Project Description:

We’ve developed a plug-and-play leverage solution to boost trading on any DEX we integrate with Marginly.

  • Users employ Marginly pools just like traditional lending protocols: lenders provide capital for borrowers. In Marginly, borrowers then use this capital to trade on multiple connected DEX-es.

  • Marginly supports the most popular Arbitrum DEX-es

    • TradeJoe

    • Uniswap

    • Camelot

    • DODO

    • Ramses

    • QuickSwap

    • ApeSwap

    • Balancer

    • SushiSwap

  • Third-party protocols and DEX-es use Marginly’s SDK to interact directly with Marginly smart contracts without intermediaries.

  • Marginly offers a white-label solution for the front end of the protocol. Any DEX can easily set up a leveraged trading mobile interface and reach out to the mobile audience.

Marginly design features offer a great advantage over traditional lending markets and classical perp trading protocols:

  • Great UX: Enjoy mobile and desktop apps that look and work smoothly.

  • Fully decentralized: Marginly uses no off-chain information and relies on Uniswap v3 oracles.

  • Risk segregation: Each Marginly liquidity pool acts as a side pool to a corresponding Uniswap v3 pool (or any exchange that supports Uni v3 concentrated liquidity architecture), making pool creation permissionless. With this approach, the risk is fully isolated to a single base asset, thus making it more predictable and manageable. Marginly’s risk framework allows the utilization of borrowed capital with maximum efficiency while ensuring strict controls over pool solvency.

  • No impermanent loss: LPs provide single-sided liquidity to any pool without any impermanent loss.

  • No liquidity locks: There are no LP tokens. Withdraw your liquidity when you want, just like in classical lending protocols.

  • Liquidity Infinity Loop: Marginly enables a self-reinforcing cycle in which assets can be reused by the opposite party as leverage for their trades. In other words, longs pay interest to shorts, while shorts pay interest to longs.

  • Deleveraging vs. Liquidations: In the case of margin calls, the system automatically nets positions inside the pool instead of liquidating them on the market.

  • Order routing: Marginly is designed to execute spot trading across multiple DEX-es, which helps aggregate liquidity and enables long-tail asset trading.

Team Members and Qualifications:

Alex, CEO & Founder

Peter, Lead PM

Veniamin, Lead Dev

Overseven solidity dev

Rudewalt solidity dev

Alex-nax front end dev

Project links:








Contact information:


Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:



Requested Grant Size: 250,000 ARB

Grant Matching: N/A

Grant Breakdown:

50,000 ARB (20%) - incentives for liquidity providers to bootstrap Marginly pools for 60 days.

150,000 ARB (60%) - trader incentives to be distributed via a trading competition. Weekly distribution based on PnL leaderboard. Battle-tested in three testnet trading contests. Recaps:

First contest

Second contest

Third contest

50,000 ARB (20%) - achievement system rewards to be distributed via a bi-weekly raffle system. Completing tasks such as LPing, trading, posting trade results, and referring users award raffle tickets.

Funding Address: 0x21D4693e811ed5E63BCF3A3EC93D85271A8d4f64

Funding Address Characteristics:

The provided address corresponds to a 2/3 Multisignature wallet, with its private keys securely safeguarded.

Contract Address: N/A (distributed directly from multisig to users).


Objectives: The primary goal for Marginly is to attract and retain traders and attract TVL to Marginly pools.

Key Performance Indicators (KPIs):

  • TVL dynamics for incentivized pools
  • Active users
  • New users
  • Fees
  • Trading volume

All of these will be available on Dune dashboards. We also provide our own internal dashboards for risk metrics and volumes: Risk dashboard

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?

Our protocol allows Arbitrum-based AMMs and spot DEX-es to use our SDK and integrate with our smart contracts directly to offer their respective user bases Leverage as a Service (LaaS). Leveraged trading increases volumes on those DEX-es and directly affects user engagement and transaction numbers.

Marginly’s initial strategy in the Arbitrum ecosystem is to foster unique opportunities and partnerships by leveraging a substantial DEX presence and a wide range of innovative DeFi protocols on Arbitrum.

The first two exciting niche use cases we plan to roll out involve 3rd party protocols also new to Arbitrum: Threshold Network and Dinari. With Threshold Network, we are looking into pushing tBTC trading on Balancer AMM in Arbitrum. At the same time, with the Dinari protocol, we aim to launch leveraged trading with the tokenized Coinbase stock.

Justification for the size of the grant:

We followed the unofficial guidelines based on information on STIP Round 2 available in the working groups.

We expect to achieve organic growth of the user base and an exponential increase in trading activity and fees, which we plan to utilize to incentivize traders and liquidity providers further to stay competitive.

We aim to attract $1,5M TVL with the amount provided and generate $4M trading volume over 60 days. These figures align with recommendations for Beacon grants for the STIP v1.

Execution Strategy:

We are already deep in talks with Arbitrum DEXs and DeFi protocols to form trilateral agreements based on fostering innovative use cases that Marginly facilitates by offering leveraged trading on niche assets on some of Arbitrum’s largest DEXs. Here are the use cases we aim to facilitate with this grant:

Liquidity provider incentives:

  • 50,000 ARB split equally into 6,250 ARB incentives over eight weeks.
  • Distribution is based on the weighted average liquidity provided to the incentivized pool.
  • Rewards will be sent directly to qualifying wallets.
  • Marginly will monitor and report distribution stats.

Trading contest:

  • 150,000 ARB for the entire contest
  • Distribution at the end of the contest based on Leaderboards and PnL figures.
  • The top 50 traders get rewarded
  • Rewards will be sent directly to qualifying wallets.
  • Marginly will monitor and report distribution stats.

Achievement system:

  • 50,000 ARB split equally into 12,500 ARB incentives over 4 bi-weekly periods.
  • One random jackpot winner is determined at the end of each week.
  • 30 minor prizes are distributed randomly among eligible accounts.
  • Users gain tickets to the raffle by providing liquidity, trading, posting on social media and inviting users to the platform.
  • Rewards will be sent directly to qualifying wallets.
  • Marginly will monitor and report distribution stats.

Grant Timeline:

As there has yet to be an official timeline for STIP Round 2, we expect it to take place in Q1 of 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?



Is the Protocol Native to Arbitrum?:


On what other networks is the protocol deployed?


What date did you deploy on Arbitrum?:


Protocol performance:


Protocol roadmap:

  1. Launch the initial set of pools and bootstrap liquidity.
  2. Launch the Marginly dApp.
  3. Attract traders with the help of STIP funding.
  4. Design tokenomics and launch native token in Q2 2024
  5. Integrate with all major Arbitrum DEX-es/AMMs
  6. Integrate with wallets and UI providers.
  7. Work on v2 of the protocol with no liquidations/hedging of pools’ net positions.
  8. Launch new products for users: LP management, portfolio trading, and social trading (via TG and Discord).

Audit History:

Audited by Quantstamp. Full report here.

SECTION 5: Data and Reporting

Is your team prepared to create Dune Dashboards for your incentive program?:

Yes, we are working on a Dune Dashboard to track key metrics. The initial version will be publicly available before 15 December 2023.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes, we will provide bi-weekly updates on the Arbitrum Forum and actively engage in community discussions.

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?


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