SECTION 1: APPLICANT INFORMATION
Applicant Name:
Gery
Project Name:
Neutra Finance
Project Description:
Neutra Finance is a decentralized finance entity committed to delivering risk-hedged investment strategies through automated vaults. Neutra Finance facilitates stable returns even when market conditions fluctuate, concentrating on enhancing returns, efficient rebalancing, and vigilant liquidation risk oversight.
By offering high-yield strategies that minimize risks and enhance fund security, we lower the entry barriers, making sophisticated crypto investments intuitive and accessible for everyone.
Team Members and Roles:
- Uzi: Product Owner/Business Development
- Narumi: Lead Dev
- Horizon: Front-end Dev
- Boochoo: Back-end Dev
- Gery: Marketer, Community Moderator
Project Links:
- Landing Page: https://neutra.finance
- dApp: https://neutra.finance/vault
- Twitter: https://twitter.com/neutrafinance
- Github: NeutraFinance · GitHub
- Official Docs: https://docs.neutra.finance/
Contact Information:
Point of Contact:
@NeutraFinance
Point of Contact’s TG handle:
@NullxGery
Twitter
@NullxGery
Discord
0xGery
Email
0xGery@proton.me
Do you acknowledge that your team will be subject to a KYC requirement?
Yes
SECTION 2a: Team and Product Information
Team experience
| Name | Qualifications & Experience |
|---|---|
| Uzi | Fintech product development with a focus on DeFi, 3 years in fintech and 2 years in DeFi development. Expert in business development, product strategy, and DeFi. |
| Narumi | Background in blockchain engineering and AI MLOps with 2 years in DeFi blockchain and 2 years in AI, specifically Computer Vision. Specializes in blockchain development, AI integration, and smart contracts. |
| Horizon | Experienced in front-end development for DeFi and trading apps with 2 years in DeFi front-end and 2 years in stock trading app development. Skilled in front-end development, UX/UI design, and trading platforms. |
| Boochoo | Background in fintech and quantitative development with 1 year as a Fintech Quant Developer. Focused on R&D and quantitative finance analysis. |
| Gery | Computer Science background with 7 years in crypto, knowledgeable in EVM, Cosmos, Parachain. Expertise in content creation, social media, UI/UX, low-entry coding, project management, and on-chain analysis. |
What novelty or innovation does your product bring to Arbitrum?
Neutra Finance is working to solve a significant problem in the DeFi space related to yield farming and risk management. Neutra Finance is addressing the following key issues:
- Complexity and Accessibility: Yield farming strategies, especially those involving risk hedging through derivatives and options, can be quite complex and inaccessible to average users. Neutra Finance makes these strategies easily accessible through automated strategy vaults.
- Risk Management: Market volatility poses a significant risk, particularly in the yield farming domain. Neutra Finance offers solutions that help users protect their funds and earn stable returns in any market condition.
- High Performance and Security: Ensuring high performance and security is crucial in DeFi operations. Neutra Finance is committed to offering high-yield, sustainable strategies that minimize risk while optimizing returns.
- Market Exposure: Managing market exposure, especially in a diverse portfolio, is a significant challenge. Neutra’s unique product offerings, like the GLP Market Neutral Vault and the USDC LP Market Neutral Vault, help users mitigate market risks and optimize their returns.
- Impermanent Loss: Impermanent loss is a significant issue for liquidity providers on decentralized exchanges. Neutra’s products, such as the USDC LP Market Neutral Vault, minimize exposure to impermanent loss while allowing users to earn high returns.
In summary, Neutra Finance is designed to simplify the DeFi yield farming process, making it more accessible, risk-managed, and profitable for users, regardless of market conditions.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, since our project is running/utilizing another yield-bearing project on arbitrum, we do composable with other projects, as now we have composable with projects such as Camelot Dex, GMX, Aave, Uniswap V3, and others.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
GMD & JonesDao
How do you measure and think about retention internally? (metrics, target KPIs)
Access key insights on our Stats Dashboard, featuring comprehensive metrics such as:
- nGLP Price
- Rewards associated with nGLP
- Overall Returns for each nGLP
- Total Value Locked (TVL) in nGLP Assets Under Management (AUM)
- Variations in nGLP Value (Delta)
- Costs related to nGLP Rebalancing
Relevant usage metrics
The relevant metrics for Neutra Finance would be:
- Active Users (to build)
- User Growth (to build)
- Transaction Count (to build)
- Protocol Fee (to build)
- TVL (done)
- List of Depositors (to build)
As of 1st March 2024:
- Daily Active Users: ~
- TVL: 14k USD
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/No]
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/No, and provide explanation]
Yes, Neutra Finance is inherently integrated with the Arbitrum ecosystem, specializing in Delta Neutral strategies.
Presently, it operates a strategy known as GLP Market Neutral, which leverages the fee earnings from GLP while minimizing market exposure. This is achieved by adopting a strategy of going long or buying GLP, coupled with shorting ETH/USD on GMX, ensuring delta neutrality. The protocol automatically rebalances the position based on set criteria, such as asset weight deviations plus anticipated volatility ranges. Read details here
Moreover, Neutra Finance is in the process of introducing a new strategy called USDC LP Market Neutral. This strategy aims to exploit the efficiency of Uniswap V3’s concentrated liquidity feature, again with the goal of minimizing market exposure. It accomplishes this by shorting ETH on Aave and going long on ETH within the Uniswap V3 LP Pool, with automatic rebalancing triggered upon reaching predetermined thresholds (i.e., the ratio of ETH borrowed to ETH in the LP). Read details here
The new USDC LP Market Neutral strategy is undergoing mainnet internal testing, where it has already shown promising results. We are continuing to refine and optimize the strategy during this testing phase to ensure its robust performance and reliability upon full launch.
On what other networks is the protocol deployed?: [Yes/No, and provide chains]
Only on Arbitrum
What date did you deploy on Arbitrum mainnet?: [Date + transaction ID. If not yet live on mainnet, explain why.]
January, 18th 2023
txID of Staked Neu GLP (nGLP V1 Token): 0xa7daac1d5bc258d83154ed3e610c6a7e82a4dd52122faef925980601c6f0c584
Do you have a native token?: [Yes/No/Planned, link tokenomics docs]
Yes, Token Allocation - Neutra Finance
Past Incentivization: What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
Bonus Reward on vested Token form (esNEU), needs to vest 12 months to convert it to liquid token.
Current Incentivization: How are you currently incentivizing your protocol?
As stated above, we are and still using vested token(esNEU) as bonus yield for users.
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)]
No, we are completely independent, only fair-launch token on january 2023.
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
The performance history of Neutra Finance is illustrated through key metrics and achievements accessible via Neutra Finance Stats and DeFi Llama’s. Notably, the protocol achieved a Total Value Locked (TVL) ranging between approximately 1.6M to 1.8M across two strategies: GLP Market Neutral (Live) and USDC LP Market Neutral(Currently Halted).
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
Phase 0 (Q4, 2022)
-
Begin Developing GLP Market Neutral Vault (nGLP) [Completed]
-
Backtesting [Completed]
-
Open community [Completed]
-
OG Recruit [Completed]
-
Website Open [Completed]
-
Launch Partnership [Completed]
Phase 1 (Q1-Q2, 2023)
-
Complete Audit [Completed]
-
Token Launch [Completed]
-
Token Public Sale [Completed]
-
Launch on Arbitrum mainnet [Completed]
-
Token Listing [Completed]
-
Launch GLP Market Neutral Vault (nGLP) [Completed]
-
Begin Developing USDC LP Market Neutral Vault (nUSDC) [Completed]
-
Major UI/UX update [Completed]
-
Launch [USDC LP Market Neutral Vault (nUSDC) [Completed]
-
Expand partnerships using vault tokens [Completed]
Phase 2 (Q2-Q4, 2023)
- Begin Developing Uniswap V3 DN Strategy (Coming Soon) [Completed]
Phase 3 (Q4, 2023 - Q1, 2024)
-
Launch Uniswap V3 DN Strategy (Coming Soon)
-
Begin Developing Lending Platform (Coming Soon)
Phase 4 (Q1-Q3, 2024)
-
Launch Lending Platform (Coming Soon)
-
Begin Developing Leverage Delta Neutral Strategy (Coming Soon)
-
Launch Leverage Delta Neutral Strategy (Coming Soon)
Phase 5 (Q3-Q4, 2024)
-
Begin Developing Uniswap V4 Delta Neutral Strategy (Coming Soon)
-
Launch Uniswap V4 Delta Neutral Strategy (Coming Soon)
-
Integrate more advanced strategy vaults.
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Prepare for multichain expansion.
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.]
- nGLP v1 contracts have been audited by Solidproof. Check our report in this Link.
- nGLP v2 contracts have been fully audited by CertiK. Check our report in this Link. Check CertiK’s official leaderboard at https://www.certik.com/projects/neutra-finance
- nUSDC Vault has been revised by RoboLabs. The security report can be viewed here.
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 future incidents]
Yes, our protocol encountered an incident on August 2nd, 2023, which stemmed from a vulnerability during our token migration process, rather than a direct security breach. The issue occurred with our ‘convert’ contract, designed to exchange old NEU tokens for new ones. The vulnerability was related to how the exchange rate was determined, referencing the NEU/USDC token pool’s rate. Due to the pool’s insufficient liquidity, an attacker manipulated this rate, acquiring more new NEU tokens than they should have, resulting in a loss of approximately $40,000.
The attack exploited this specific condition using a flash loan to affect the pool’s exchange rate, then migrating and selling the new tokens at an inflated price. This situation was managed swiftly and effectively, with immediate actions taken to mitigate the impact and secure our protocol against similar future vulnerabilities.
This incident has led to a comprehensive review and strengthening of our security framework, enhancing the robustness and resilience of our protocol. A Post-mortem has been published on Community Discord Announcement.
Note: The compromised contract was specifically used for transitioning our LPs and has since been decommissioned; it is no longer in operation. Consequently, auditing this contract is no longer necessary as it is not part of our current or future infrastructure.
SECTION 3: GRANT INFORMATION
Requested Grant Size: [Enter Amount of ARB Requested]
170,000 ARB
Justification for the size of the grant 12
Our request for a grant of 170,000 ARB is meticulously calculated to support the launch and growth of pivotal initiatives within Neutra Finance, specifically tailored to enhance our innovative offerings in the decentralized finance (DeFi) space. The allocation is strategically divided into several key areas, each critical for achieving our ambitious goals:
-
User Incentives (100,000 ARB): A significant portion of the grant will be dedicated to user incentives, which are crucial for the initial traction and adoption of our cutting-edge products. This includes:
- Kickstarting New Uniswap V3 DN Vault (50,000 ARB): We aim to launch a pioneering vault leveraging Uniswap V3’s concentrated liquidity features, which has no parallel in the current market. This vault is designed to achieve Delta Neutral positions, maximizing liquidity efficiency and minimizing impermanent loss. These funds will serve as incentives to attract early adopters to this innovative technology.
- Reigniting nGLP Vault (50,000 ARB): To revitalize interest and usage of our nGLP vault, which enables users to earn fees on GMX by providing liquidity in a risk-managed manner. This initiative aims to leverage existing capabilities to attract a broader user base by offering incentives that highlight the vault’s benefits and its potential for stable returns.
-
Partnership Campaign (40,000 ARB): Establishing strategic partnerships is essential for our growth and expansion. This allocation is intended to foster collaborations with other projects and platforms, particularly on the Arbitrum ecosystem. By collaborating, we can extend our reach, enhance our offerings, and incentivize partnerships that bring mutual benefits and innovation.
-
User Acquisition (30,000 ARB): To broaden our user base and enhance our market presence, we will invest in marketing strategies targeting users across different networks. This includes fee rebates & Airdrop bonuses to lower the entry barrier and collaborations with bridge projects to ease cross-chain transactions. By highlighting our technological advantages, such as minimizing impermanent loss while optimizing yield through our Uniswap V3 Delta Neutral strategies, we aim to attract a diverse group of users to the Arbitrum ecosystem.
Each category of expenditure is carefully chosen to ensure the maximum impact of the grant on our project’s success and contribution to the Arbitrum ecosystem. Our strategy is to leverage these funds to build a solid foundation for growth, attract a loyal user base, and establish Neutra Finance as a leader in innovative DeFi solutions.
Grant Matching: [Enter Amount of Matching Funds Provided - If Relevant]
For this event, Neutra Finance is committed to aligning our resources with the support received from the Arbitrum grant. We plan to provide matching funds of [TBC] from our internal reserves. These funds are earmarked for additional development, marketing efforts beyond the scope of the grant, and further security enhancements to ensure the robustness and reliability of our platform. This financial commitment underscores our dedication to the project’s success and our confidence in its potential to positively impact the Arbitrum ecosystem.
Grant Breakdown: [Please provide a high-level overview of the budget breakdown and planned use of funds]
The requested budget of 170,000 ARB from the Arbitrum grant is earmarked for distribution across three pivotal areas, ensuring the all-encompassing development and launch. Below is a detailed breakdown of the fund allocation plan:
-
Vault Incentives (100,000 ARB): Aimed at jumpstarting engagement with our new Uniswap V3 DN Vault and revitalizing the nGLP vault, this portion is equally divided, allocating 50,000 ARB to each. The investment serves as direct incentives for both new adopters and loyal users to engage with these innovative financial tools.
-
Partnership Campaign (40,000 ARB): This allocation is intended to cultivate strategic alliances, serving as rewards for campaigns around our Delta-Neutral strategies and collaborations with partner projects. It is designed to boost our visibility and utility within the DeFi ecosystem.
-
User Acquisition (30,000 ARB): This fund supports initiatives aimed at drawing users from across the blockchain spectrum to our platform, encompassing 10,000 ARB dedicated to rebates and 20,000 ARB earmarked for bonus airdrops targeted at the most active bridgers and depositors. This allocation also covers partnerships with bridge projects to facilitate seamless cross-chain transactions and marketing efforts spotlighting our GLP Market Neutral, Uniswap V3 Delta Neutral strategies, among others.
This budget is meticulously crafted to ensure each ARB allocated contributes maximally towards hitting key development milestones, boosting user engagement, and expanding our market presence. The strategy is aimed not just at our success but also at enriching the Arbitrum ecosystem’s dynamism.
Funding Address: [Enter the specific address where funds will be sent for grant recipients]
0xe84c4450968f310eAa61d973a4e0d3e4B9512532
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.
The funding address is configured with a 3/5 multisig setup, featuring signatories Uzi, Horizon, Boochoo, Matt (associated with Robo Vault), and Narumi Lee.
Treasury Address: [Please list out ALL DAO wallets that hold ANY DAO funds]
Treasury Multisig address: 0xfba3b455211a3a09689788Ac3A14B4F8Baf012B4
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
The addresses for grant recipients will be revised in sync with the timeline of execution.
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 our grant application are tailored to elevate Neutra Finance’s presence and impact within the Arbitrum ecosystem, targeting enhanced user engagement, financial growth, and technological advancements. Our specific goals include:
- Delta Neutral vault: The current nGLP TVL is between $13,000 to $15,000, with ATH TVL of approximately $2,5 to 3 million for both vault. The decline in TVL can be attributed to the suspension of our nUSDC vault due to assets being frozen on Aave forced us to halt nUSDC vault. Currently we’re in the process of developing a new strategy under the nUSDC vault, transitioning from Camelot DEX to Uniswap V3 to enhance capital efficiency. We aim to:
- Increase TVL for both nUSDC and nGLP vaults for at least 2 million TVL for both vaults.
- Boost the number of unique users for each vault.
- Introduce and familiarize users with our revamped nUSDC vault (Uniswap V3 Delta Neutral).
- If the nUSDC vault’s development is ongoing when funding begins, we plan to allocate a portion of the ARB tokens to the “earn section”. This strategy will provide $NEU stakers with bonus ARB tokens, fostering loyalty as our vaults also offer esNEU as an additional reward. Consequently, users are incentivized to maintain their investments in our vaults to accumulate esNEU and then stake these for ARB rewards.
- Increasing Unique User Engagement: We aim to boost interaction with our platform through enticing incentives like bonus yields for depositors, aiming to cultivate a vibrant and expanding community of users actively engaging with our services.
- Boosting User Influx to Arbitrum: By offering rebates to both bridge users and depositors, we aim to attract a wider audience to the Arbitrum network, capitalizing on its scalability and efficiency to refine the user experience on our platform.
Our execution strategy, detailed with specific allocations towards Vault incentivize, Rebate, and partnerships campaign, is designed to meet these objectives within an initial timeframe of 12 weeks. Through this approach, we aim to not only achieve but exceed our goals in user growth, TVL expansion, network utilization, and technological advancement.
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.]
Vault Incentives:
- Total Allocation: 100,000 ARB
- Target Vaults: nGLP Vault & Uniswap V3 DN Vault
- Distribution Period: 12 weeks
- TVL Milestones:
Initial TVL Target: $850,000 USD combined.- Bonus Increase Trigger: If TVL exceeds $850,000 USD within 1 month, daily yield increases to 2,222.22 ARB per day.
- Bonus Decrease Trigger: If TVL exceeds $850,000 USD but then falls below $850,000 USD within a month, extend distribution by reducing daily yield.
- If the nUSDC vault’s development is ongoing when funding begins, we plan to allocate a portion of the ARB tokens to the “earn section”. This strategy will provide $NEU stakers with bonus ARB tokens, fostering loyalty as our vaults also offer esNEU as an additional reward. Consequently, users are incentivized to maintain their investments in our vaults to accumulate esNEU and then stake these for ARB rewards.
- Additional Note:
We are considering adjusting the distribution rate/total Allocation for vault incentives based on TVL as follows:-
TVL < $100,000
- Allocation: $20,000 distributed for 12 weeks
- Lowest APR: Approx. 86.67%
- Reward Ratio: Approx. 0.867 ARB per USD
-
TVL > $100,000 to < $300,000
- Allocation: $40,000 distributed for 12 weeks
- Lowest APR: Approx. 57.78%
- Reward Ratio: Approx. 0.578 ARB per USD
-
TVL > $300,000 to < $500,000
- Allocation: $60,000 distributed for 12 weeks
- Lowest APR: Approx. 52%
- Reward Ratio: Approx. 0.520 ARB per USD
-
TVL > $500,000 to < $850,000
- Allocation: $80,000 distributed for 12 weeks
- Lowest APR: Approx. 40.78%
- Reward Ratio: Approx. 0.408 ARB per USD
-
TVL > $850,000
- Allocation: $100,000 distributed for 12 weeks
- Lowest APR: Approx. 50.98%
- Reward Ratio: Approx. 0.510 ARB per USD
-
User Acquisition:
We are planning to implement two primary strategies: rebating fees and conducting an airdrop for random participants through a points/tickets system, culminating in a raffle. Details of this system are still under consideration and may include modifications like time-weighted entries. With this strategy, we aim to achieve a $150,000 to $250,000 increase in TVL. To support user acquisition, we are exploring partnerships with bridge projects.
-
Rebate for Bridgers and Depositors
- Total Allocation: 10,000 ARB
- Eligible Bridged Token: Neutra’s deposit token [DAI, GLP, USDC]
- Maximum Rebate per Transaction: 5 ARB
-
Bonus Airdrop for Bridgers and Depositors
Eligible Criteria: Address that has been bridged and deposited into the vault.
Top three are fixed winners and the rest are chosen by raffle to receive the same amount.
Tier 1: More Than 5000 Participants
- Total Rewards Allocation: 20,000 ARB
- Distribution: 5000 winners
- Top 1 Winner: 1,600 ARB (8% of 20,000 ARB)
- Top 2 Winner: 1,000 ARB (5% of 20,000 ARB)
- Top 3 Winner: 600 ARB (3% of 20,000 ARB)
- Remaining Winners: Each receives Approx. 3.36 ARB
Tier 2: More Than 2000 Participants
- Total Rewards Allocation: 14062 ARB
- Distribution: 2000 winners
- Top 1 Winner: 1,040 ARB (8% of 13,000 ARB)
- Top 2 Winner: 650 ARB (5% of 13,000 ARB)
- Top 3 Winner: 390 ARB (3% of 13,000 ARB)
- Remaining Winners: Each receives Approx. 6 ARB
Tier 3: More Than 500 Participants
- Total Rewards Allocation: 4,250 ARB
- Distribution: 500 winners
- Top 1 Winner: 634 ARB (15% of 4,226)
- Top 2 Winner: 423 ARB (10% of 4,226)
- Top 3 Winner: 211 ARB (5% of 4,226)
- Remaining Winners: Each receives Approx. 6 ARB
Partnership campaign:
Our partnership strategy is meticulously designed to support two principal directions. First, we aim to establish strategic partnerships essential for our growth and expansion, particularly focusing on technical support-oriented collaborations for joint development projects. Secondly, this allocation supports marketing campaigns(Participant Rewards) to highlight our innovative DeFi solutions, specifically our Delta-Neutral strategies, and collaborations with partner projects.
- Total Allocation: 40,000 ARB
- Expected Partnerships: 3-5 strategic DeFi collaborations
- Funds Allocation for each Partnership campaign prize: 8,000 13,000 ARB (varying based on the partnership scale and expected outcomes)
Financial Breakdown and Milestones:
- Overall Budget: 170,000 USD
- Strategic Areas: User Incentives, User Acquisition, and Partnership campaign.
- Timeframe: 12-weeks
Risk Management Strategies:
- Adjustment Mechanisms: Dynamic allocation of bonus yields and rebates based on market and TVL performance
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]
To incentivize ‘stickiness’ among users, liquidity, or other targeted metrics, our strategy integrates a multi-faceted approach that not only attracts participants but also encourages long-term engagement. Key mechanisms include:
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Tiered Bonus Yields: Implementing a tiered structure for our bonus yields encourages users to maintain and increase their deposits over time. Higher tiers offer better yields, rewarding long-term participation and increasing the ‘stickiness’ of our user base.
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Loyalty Programs: Introducing a loyalty program that rewards users based on their activity duration and volume. Rewards can range from early access to new vaults, higher yields, to special rebates, further encouraging sustained engagement.
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Community Involvement: Engaging users in decisions not only fosters a sense of community but also increases their commitment to our platform. Offering governance tokens as part of participation rewards ensures users have a stake in the platform’s future.
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Continuous Learning and Improvement Feedback Loop: Implementing a feedback mechanism where users can suggest improvements or vote on new features. This involvement in the platform’s evolution ensures users feel valued and more likely to stick around.
These mechanisms are designed to enhance user experience, engagement, and loyalty, ensuring that once users choose Neutra Finance, they have compelling reasons to stay engaged.
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.]
Our primary source for validating these metrics will be our internal analytics system, which will be cross-referenced with data from blockchain explorers to ensure transparency and verifiability. Here’s the detailed justification for each selected KPI:
- Unique User Engagement: We will monitor the monthly count of active, unique users on our platform. A noticeable uptick in this figure signifies effective user engagement strategies and successful community-building efforts. This metric is crucial as it reflects the direct impact of our user acquisition and retention initiatives, indicating a growing trust and interest in our platform.
- Total Value Locked (TVL): The growth in TVL across our designated vaults stands as a concrete measure of our platform’s financial health and user confidence. Targeting a specific percentage increase in TVL will quantify our success in enhancing the platform’s value proposition and its perceived stability among users.
- User Inflow to the Arbitrum Network: This will be quantified by tracking the influx of new users transferring assets to Arbitrum and engaging with Neutra Finance. A surge in this metric demonstrates our effectiveness in drawing users to the Arbitrum network, highlighting our role in expanding the ecosystem’s user base and increasing network activity.
Each of these KPIs has been chosen for their direct relevance to our stated objectives, offering a comprehensive view of our progress across user engagement, financial stability, and ecosystem growth. The rationale behind these indicators is grounded in their ability to provide tangible evidence of our contributions to both Neutra Finance and the broader Arbitrum ecosystem, ensuring that the distribution of the grant translates into measurable outcomes.
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.]
This 12-week program is designed around key milestones to stimulate growth in unique depositor numbers and Total Value Locked (TVL) in our vaults, utilizing ARB as a bonus yield. Here’s an overview of the Grant Timeline & Milestones with projected calculations:
1st Week:
- Initiate the program by incentivizing our vaults with ARB as a bonus yield, aimed at increasing both the number of unique depositors and the TVL in each vault.
2nd Week:
We expect a significant rise in both unique depositor numbers and TVL across the vaults, with projections varying from 50% to 130%. Based on the outcomes, we will adopt one of two strategies:
- Option 1 (if TVL < $850,000): We will start a rebate fees campaign in collaboration with bridge projects to boost inflows to the Arbitrum network and announce the first partnership, anticipating a 70% to 130% increase in unique users and TVL.
- Option 2 (if TVL > $850,000): We will commence the first partnership campaign with another DeFi project within the Arbitrum ecosystem, targeting at least a 50% to 80% growth in both TVL and unique users for Neutra and the partnered project.
3rd-4th Week:
- Option 1 (TVL < $850,000): If the TVL remains below $850,000, following the second partnership project, we anticipate stable growth in unique users, TVL, and inflows, projecting an additional 90% to 120% increase from previous weeks.
- Option 2 (TVL > $850,000): With a TVL above $850,000, we will periodically launch campaigns with other LTIPP-granted protocols to stimulate activity, expecting a 20% to 50% increase in TVL & Unique Users with an allocation of 8,000 ARB for each campaign. The second partnership campaign was announced.
5th-6th Week:
- Option 1 (TVL < $850,000): Expect increased awareness of our protocol’s sustainability, leading to continued growth. With third partnership campaign announcements, we anticipate a 50% to 120% increase in unique users, TVL, and inflows, even after the conclusion of vault incentives.
- Option 2 (TVL > $850,000): Expect increased awareness of our protocol’s sustainability, leading to continued growth. Rebate fees campaigns and a third partnership campaign announced, expecting a 30% to 80% increase in TVL and Unique Users.
7th-8th Week:
- Option 1 (TVL < $850,000): We will observe and learn from market reactions to all events and incentives, including 2 running vault incentives, 3 partnership campaigns, and a rebate campaign that has been active for 5 weeks. We will evaluate the effectiveness of each.
- Option 2 (TVL > $850,000): With 2 running vault incentives, 3 partnership campaigns, and a rebate campaign active for 2 weeks, we will assess the effectiveness of each initiative.
Output: Daily growth data on TVL, Unique User, etc.
9th-10th Week:
- Option 1 (TVL < $850,000): After a two-week break, we will unveil the fourth partnership campaign using a new approach, expecting a 20% to 35% increase in TVL and unique user numbers.
- Option 2 (TVL > $850,000): After a two-week break, we will continue with the fourth partnership campaign using the established approach, expecting an 8% to 15% increase in TVL and unique user numbers.
11th-12th Week:
- Both Options: Regardless of TVL, we will announce the fifth partnership campaign and, at week’s end. Expecting a 5% to 8% increase in TVL and unique user numbers.
Notes:
- Option 1: The campaign is expected to boost TVL by 20%-30%, leading to an overall approximate growth range of 510% to 1523% over the 12 weeks.
- Option 2: With the campaign concluded, we may see a stabilization with an overall approximate TVL growth of 183.93% to 557.94% over 12 weeks.
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]
Receiving this grant will enable Neutra Finance to significantly contribute to the growth and innovation within the Arbitrum ecosystem through several key inputs and benefits:
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User Base Expansion: By attracting a broader user base to Arbitrum through incentives, we enhance network utilization and liquidity, benefiting the entire ecosystem.
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Technological Innovations: Our focus on developing and securing automated strategies introduces innovative financial products to Arbitrum, setting new standards for DeFi platforms.
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Ecosystem Synergies: Through strategic partnerships facilitated by the grant, we create synergies with other projects, fostering a more interconnected and robust DeFi ecosystem.
The expected benefits to the DAO and the broader Arbitrum ecosystem are tangible and backed by our detailed execution plan, previous successes, and the strategic use of grant funds to achieve targeted outcomes.
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
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?: [Y/N]
Yes