[OmniBTC] [FINAL] [STIP - Round 1]

[JJuuneez]

SECTION 1: APPLICANT INFORMATION

Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name: JJuunee Zhang

Project Name: OmniBTC

Project Description: OmniBTC is a decentralized cross-chain swap and lend/borrow platform built across multi-VM ecosystems, aiming to connect and unify all the on-chain liquidity for seamless and low-cost cross-chain transactions. OmniBTC is granted by the Web3 Foundation, the Optimism Foundation, and the Sui Foundation.

Team Members and Qualifications:

Ghua Guo, CEO of OmniBTC, focusing on Solidity, Substrate, Move, C++ for more than 7 years.

JJuunee, CMO of OmniBTC, focusing on web3 for more than 3 years. Graduated from Zhejiang University and majored in public administration.

Kely, CTO of OmniBTC, focusing on web3 for more than 5 years. Now he is responsible for Architecture and execution in OmniBTC.

Liming, CPO of OmniBTC, focusing on web3 for more than 3 years. He had built a product with more than 1MM DAU.

Gariouy, PM in OmniBTC. Responsible for OmniSwap and Reward System.

WeiDai, core dev in OmniBTC. Graduate students of Tsinghua University, responsible for OmniSwap contracts development and OmniLending Architecture setup.

Jianbing Zhao, core dev in OmniBTC. Full experience in WASM and EVM, Move core developer.

Bingshow, core dev in OmniBTC.

Xiang, core Back_end Dev in OmniBTC. Responsible for database and off-chain route-seeking algorithms.

Zhangjie Gu, core Back_end Dev in OmniBTC. Responsible for nodes service and database.

Icehole, core Front_end Dev in OmniBTC. OmniBTC website and product pages.

Lucy, core Front_End Dev in OmniBTC. OmniSwap front_end pages.

Gray, UI & UE in OmniBTC.

Augest Zhang, community in OmniBTC.

Project Links:

• Website: https://www.omnibtc.finance/
• Twitter: https://twitter.com/OmniBTC
• Discord/Discourse/Community: https://discord.gg/Z2EzZcJ72x
• Github: https://github.com/OmniBTC/
• Technical/Economic Documentation: https://github.com/OmniBTC/OmniSwap
• Other: Mockups and UI components: https://docs.google.com/presentation/d/1Q0DKqkVz-TQ3R6qJyAqC84gbEI8blnGW4NtLvdnkF18/edit?usp=sharing

Contact Information

TG: Telegram: Contact @JJuunee

Twitter: https://twitter.com/JJuuneez

Email: business@chainnet.tech

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

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 200,000 ARB

Grant Matching: N/A. However, once we successfully get the grant, ChainX Bridge(our own bridge) will reduce 50%-70% charge for users who bridge assets to Arbitrum. Besides, we will upgrade our loyalty system to incentive users who bring new trading volume and deposit/borrow assets on Arbitrum(10%-20% scores based on the assets value, the scores can be exchange for our token in the near future).

Grant Breakdown:
75% – Incentive users who deposit/borrow assets on Arbitrum based on their volume.
20% – Incentive users who bridge assets from/to Arbitrum based on their volume.
5% – Incentive users who experience DEX aggregation function in OmniBTC on Arbitrum.

Funding Address:
arb1:0x002dbB9Ee09ae4d2b0E750387c83e799FF70d200

Funding Address Characteristics:
It is a ⅔ multisig account on Arbitrum. The private keys are securely stored.

Contract Address:
Marketing – “0x88F453111fE710b36b5b193971b8E7e7576be397”
OmniSwap – “0xee2174cb3bc411A31Dd10363067E0B6Cf0aB0D37”
OmniLending – “0x941ECfC6f02d037aF921fDC7431C78785638acDE”

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:
With the grant, OmniBTC will connect with more builders and users on Arbitrum, will help more users who interested in Arbitrum come into the Arbitrum ecosystem.
More specifically,

1. we will try to reach out 5MM liquidity deposited into Arbitrum, and 3 MM borrowed on Arbitrum.
2. Besides, we will reach out 120MM total trading volume on Arbitrum(50MM new trading volume on Arbitrum).
3. 30,000 new active addresses & 50,000 new transactions will come into OmniBTC on Arbitrum.

Key Performance Indicators (KPIs):

1. Weekly New Trading Volume on Arbitrum.
2. Weekly New Active Addresses on Arbitrum.
3. Weekly New Transactions on Arbitrum.
4. Total Deposit on Arbitrum in OmniLending.
5. Total Borrow on Arbitrum in OmniLending.

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

1. Reputation. Once Arbitrum has announced that OmniBTC is one of the grantees, OmniBTC will be more reliable for users who would like to use bridges.
2. More TXs and users. There is an exponential increase in OmniBTC. Half year ago, there were just 100 Daily Transactions. Now there are about 2,000 Daily TXs on Arbitrum via OmniBTC without any kinds of incentives or budget. We deeply believe that the grant can help us improve daily active transactions to 3,000 even more, and the total transactions happening on Arbitrum will be > 300 k.
3. Increase TVL in OmniLending on Arbitrum. OmniLending, the first available cross-chain lending function, is supporting Arbitrum so that users can easily deposit $ARB in our pools and borrow other assets on any chain. They can also deposit assets on other chains but borrow assets on Arbitrum. The biggest advantage for users is that they don’t need to bridge bridge bridge, but directly leveraging assets on Arbitrum. With the grant, we plan to attract 5 million assets deposited on Arbitrum. Now, our weekly trading volume has reached $7 MM, which means the monthly volume is＞$28 MM. As long as 18% of the volume is converted into our supply pool, we can realize the goal.
4. Integrate with DEXs on Arbitrum. OmniBTC will integrate with more DEXs on Arbitrum(now supporting UniV3, SushiSwap and Camelot), so that users can easily swap assets on other chains for any assets on Arbitrum. Then, we are willing to do co-promotions with DEXs on Arbitrum and attract more users to experience Arbitrum by using the grant.

Justification for the size of the grant:
OmniBTC is an omnichain DeFi platform that connects all the on-chain liquidity using interoperability protocols such as L0, Wormhole, Celer Network. OmniBTC is also a decentralized cross-chain swap and lend/borrow platform built across multi-VM ecosystems, aiming to connect and unify all the on-chain liquidity for seamless and low-cost cross-chain transactions. Besides, most of our transactions happened on Arbitrum(> $70MM), with more than 140,000 active addresses. There is a great user foundation in OmniBTC on Arbitrum.

We have been granted by the Optimism Foundation too, with the grant, we successfully attract more than 25MM new trading volume come into Optimism, so that we are optimistic on realizing the goal og Arbitrum Grant. Besides, we also use 160,000 $SUI(about 100k in USD) to realize 4 MM total deposit and 3 MM total borrow on Sui.

The grant will only be used to attract more users to experience Arbitrum. We would like to use the grant to do the following promotion.

1. Bridge Assets from/to Arbitrum. OmniBTC will incentivize users who bridge assets from other chains to Arbitrum by using the grant.

2. Integrate with DEXs on Arbitrum. OmniBTC will integrate with more DEXs on Arbitrum(now supporting UniV3), so that users can easily swap assets on other chains for any assets on Arbitrum. Then, we are willing to do co-promotions with DEXs on Arbitrum and attract more users to experience Arbitrum by using the grant.

3. Increase TVL in OmniLending on Arbitrum. OmniLending, the first available cross-chain lending function, is supporting Arbitrum so that users can easily deposit $ARB in our pools and borrow other assets on any chain. They can also deposit assets on other chains but borrow assets on Arbitrum. The biggest advantage for users is that they don’t need to bridge bridge bridge, but directly leveraging assets on Arbitrum.

4. Invite Competition. Users who invite more new users to finish the OmniSwap from/to Arbitrum or deposit/borrow assets on Arbitrum can claim extra $ARB as reward.

Execution Strategy:

1. Phase1(2 weeks): Incentives To Users Who Bridge Assets to Arbitrum. OmniBTC will incentivize users who bridge assets from other chains to Arbitrum. At present, each user will cost about 0.5-0.7 USD to bridge assets from other chains(except Ethereum) to Arbitrum. In return, we would like to refund them 30%-60% by using the grant.
2. Phase2(4 weeks): Incentives to users who realize OmniSwap from/to Arbitrum. For example, in the first week, the task may be that users who realize OmniSwap(from/to Arbitrum to another chain) via Uniswap V3 on OmniBTC can get 0.6-1 $ARB per day. The second week may be via Camelot.
3. Phase3(2 weeks): Incentive users who experience DEX aggregation on Arbitrum in OmniBTC.
4. Phase4(about 3-4 months): Incentive users who deposit/borrow assets on Arbitrum.
   New Distribution:
   ● We divided the weekly allocation into 2 parts, for Lenders and for Borrowers.
   ● We set 3 thresholds for lenders, less than $3 MM, between $3 MM and $5 MM, from $5 MM to $10 MM.
   
   ● We set 3 thresholds for borrowers, less than $1 MM, between $1 MM and $3 MM, from $3 MM to $5 MM.
   
   ● It is our first time to use a large grant to attract funds, so we set up a limit to up to $10 MM total deposit on Optimism to ensure the security. If we achieve the $10 MM deposit at a fast speed, then we will gradually improve the up-limit under the stability. If we add more collateral into the protocol, we will change the shares of each token on Arbitrum.
   
5. Risk Management. 10% of protocol venenue will be used as a mini risk fund. Besides, 5% of OmniBTC token will be used as risk fund. Whats more, we will finish our second audit at the end of 2023.
6. We will continually incentive users who deposit/borrow assets on Arbitrum until we run out of the grant. If we reached 10MM deposit and 5MM borrow on Arbitrum at the first day, the incentives can last for more than 11 weeks(150,000/12,800).
7. We aim to attract new 50MM trading volume on Arbitrum wilth 50,000 $ARB. 50MM trading volume will cost users about 70-80k in USD, and the grant refunds users about 56%-64% cost.
8. Claim Reward: For phase 1-3, the reward can be claimed after per phase. For lending, users can directly claim reward at any time during the period.

Grant Timeline:

1. 2 weeks to incentive users who bridge assets to Arbitrum(12,000 ARB in 2 weeks).
2. 4 weeks to incentive users who realize OmniSwap from/to Arbitrum(28,000 ARB in 4 weeks).
3. 2 weeks to incentive users who experience DEX aggregation on Arbitrum(10,000 ARB in 2 weeks).
4. 3-4 months to incentive users who deposit/borrow assets on Arbitrum(150,000 ARB in 11-16 weeks).

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 4: PROTOCOL DETAILS

Provide details about the Arbitrum protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

Is the Protocol Native to Arbitrum?:
Yes, we have built on Arbitrum for more than 14 months

On what other networks is the protocol deployed?:

Yes, as an omnichain DeFi platform, we have extended to more chains. Cross-chain Swap living on: Optimism, Ethereum, zkSync Era, StarkNet, Base, Linea, opBNB, Polygoon, Polygon zkEVM, BNB Chain, Avalanche, Sui, Aptos

What date did you deploy on Arbitrum?:
Omniswap: Most are deployed in July-11-2022

SoDiamond: 0x2967e7bb9daa5711ac332caf874bd47ef99b3820, Jul-11-2022 04:06:22 AM +UTC

DiamondCutFacet: 0xdae4db475aca613a5e2dc5fc304da7e962b3cead, Jul-11-2022 04:06:22 AM +UTC

DiamondLoupeFacet: 0xe4d1ebf03742a8238b546980261507fde0113d37, Jul-11-2022 04:06:22 AM +UTC

DexManagerFacet: 0x0917923af85ab3adab081e3b8825fcceddbb889c, Jul-11-2022 04:06:22 AM +UTC

OwnershipFacet: 0xad85421c47e9b830602deb83fcf149c2a1f0e8a9, Jul-11-2022 04:06:22 AM +UTC

WithdrawFacet: 0xa7487a536968be0d563901aeb3fc07b099e2fb04, Jul-11-2022 04:06:22 AM +UTC

GenericSwapFacet: 0x6aa49fa53d372329de88160017f9ca7c5d3338be, Oct-21-2022 02:13:06 PM +UTC

StargateFacet: 0x96568bf35abeeb6c39910f6672f8e3fbeb1db303, Oct-28-2022 11:50:22 AM +UTC

CelerFacet: 0x930b39ecea81678a5033aa3c9cc1f804ffee004e, Mar-14-2023 02:06:49 AM +UTC

MultiChainFacet: 0x8f3ff39fe8565b787453f3e5735bf6f0863853ac, Apr-18-2023 05:04:29 AM +UTC

CCTPFacet: 0x452b5f476f4fa706a80c513c52729e47150d343c, July-20-2023 03:06:15 AM +UTC

BoolFacet: 0x206b7075c6b12e3a9b4c6a85c8bc848d6eff435c, Aug-22-2023 05:06:41 AM +UTC

OmniLending:

WormholeAdapterPool: 0x4d6CAB4f234736B9E149E709CE6f45CE04a11cE5, Aug-10-2023 06:01:45 AM +UTC

DolaPool: 0x53eCC006a0073b3351E9e38d94f052E3864C7935, Jun-01-2023 07:09:02 AM +UTC

SystemPortal: 0x9AB575ab5b2c58c07345cE2DB9b36F0CF54753A5, Aug-10-2023 06:01:58 AM +UTC

LendingPortal: 0x01ebb222C04894Fc402F8772d2BF2b19D2eEA607, Aug-10-2023 06:01:52 AM +UTC

Protocol Performance:
Bridge Integrated on Arbitrum:

1. LayerZero
2. ChainX Bridge(self-developed)
3. CCTP
4. Connext
5. CBridge
6. Bool Network

DEX Aggregated on Arbitrum:

1. UniSwap V3
2. SushiSwap
3. Camelot
4. Balancer V2(integrating)

DATA:

• Total Trading Volume happened on Arbitrum: $71,275,321

• Total Addresses on Arbitrum: 142,816

• Trading Volume happened on Arbitrum(last 30 days): $15,350,075

• Transactions happened on Arbitrum(last 30 days): 26,917

• Addresses on Arbitrum(last 30 days): 17,501

• Hot Pairs in OmniBTC
  

• Available Dashboard: https://app.omnibtc.finance/stats

Protocol Roadmap:

1. Integrate with at least 2 new DEXs on Arbitrum in Q4, 2023.
   
   
2. Develop our Reward Claim pages on Arbitrum in Q4, 2023.
3. Develop our Lotalty System in Lending in Q4, 2023.
4. Optimize our order splitting function on Arbitrum in Q4, 2023.
5. Optimize the lending parameters on Arbitrum in Q4, 2023.
6. Finish second audit in Q4, 2023.
7. Develop OmniBTC public API to attract more Defi platforms to integrate on Arbitrum in Q1, 2024.

Audit History:
We have been audited by Movebit, all of the problems were fixed.

OmniBTC/Sui-AMM-swap/blob/main/Sui-AMM-swap_Contracts_Audit_Report.pdf

Beside, there will be about 5% of OmniBTC’s token used as a “Risk Fund”, which will be used for further bug bounty and compensation.

GitHub - OmniBTC/OmniBTC-Risk-Fund

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, actually we have already built an internal dashboard for ourselves, and a dashboard in our website. We will create our own Dune Dashboards. Besides, we will also provide our contracts deployed on Arbitrum one Mainnet.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes, we(OmniBTC team) agree to provide bi-weekly program updates on the Arbitrum Forum thread, including key milestones and KPIs. We will also build our own data analysis platform for users on Arbitrum to know more about the process of OmniBTC.

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

[cris]

I have used omnibtc to cross-chain eth, and it feels pretty good. Support it

[Matt_StableLab]

Hello @JJuuneez thank you for submitting!

Please note grant funds may only be used to incentivize Arbitrum contracts and can not be used for "Marketing and Awareness” as per the following rule.

@tnorm

Can I use grant funding for operational costs?

Funds are to be kept in ARB and used to incentive Arbitrum contracts. This funding is not meant support development or operational costs.

Please edit your submissions to be considered for a snapshot vote.

[JJuuneez]

Thanks for your kind notification!

We have removed the part “Marketing & Business”, and the new allocation is 65%-Lending; 20%-Bridge; 15%-DEX aggregation!

[Matt_StableLab]

Thank you for making these changes! Your submission now meets all requirements to be considered for a snapshot vote.

[flindy]

Not really convinced.

You have only integrated Uniswapv3 on Arbitrum currently, so your proven collaboration with the ecosystem is as little as it can be. You say you will integrate with more, but likely this is only a comment to help foster greater alignment with your grant request.

Numbers to justify the grant have been shared, but to be honest there seems little reason for the DAO to provide a grant here. This could be put towards an existing, well established bridge that users know and trust.

[JJuuneez]

Sorry for misunderstanding. Here are some explanations.

1. OmniBTC is a DEX aggregation with over $100MM trading volume and been granted by the Optimism Foundation, Sui Foundation and Web3 Foundation. We have been in Arbitrum for more than 15 months, and the data meets the standard for up to 200K ARB.
2. We not only support UniV3, actually we have already integrated with UniV3, Camelot and SushiSwap on Arbitrum. Thanks for your notification, I will optimize my words in the proposal.
3. Also as a bridge aggregation, we have integrated with CCTP/LayerZero/Connext/Bool Network/CBridge, and also developed ChainX Bridge from other chains to Arbitrum.
   Hope that will be helpful!

[Matt_StableLab]

Hello @JJuuneez ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

@Matt_StableLab

• Review Period Deadline: October 4, 2023 11:59 PM EST

Please complete the following steps required for your application to proceed to Snapshot:

@Matt_StableLab

2. Once feedback is collected, applicants will need to change their application title from [DRAFT] to [FINAL] by the Review Period deadline: October 4, 2023 11:59 PM EST. At that time, all eligible proposals with the following formatted titles will be migrated to Arbitrum Snapshot to vote. The correct format for a proposal ready to move to vote looks like this: [Project Name] [FINAL] [STIP - Round 1].

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

[JJuuneez]

Thanks for your kind notification, Matt. We have finilized our proposal!

@stonecoldpat @cliffton.eth @eli_defi , hey guys, could you please help me change our title from [draft] to [Final]? Thanks a lot!

[cliffton.eth]

Post has been marked as FINAL and locked.

[JJuuneez]

Thank you so much. Have a nice day!

[SEEDGov]

OmniBTC: @JJuuneez

From @Seedgov led by the @cattin delegation, we want to convey our support to this proposal. The reasons why we agree are as follows:

• While the metrics are low, these incentives can bring users from other chains to Arbitrum due to the nature of the protocol.

We want to clarify that this is not the final vote, since as we clarify in this release, the final vote is defined by our community. We also want to invite you to attend our Governance Call that will be held tomorrow in our discord.

[JJuuneez]

Hello members from SeedGov, happy to see that you are interested in OmniBTC and our potential to attract assets into Arbitrum.

We are willling to attend the governance call to share more about OmniBTC, what we have done and what we want to do on Arbitrum!

The detailed time is 10th Oct, 7PM UTC, right?

[SEEDGov]

Yes, it is at that time

[JJuuneez]

Could you please tell me more details? What I should do is to join in the DC and the call at that time, right?

[SEEDGov]

Yes, that’s right. You can read this post for more details

Arbitrum's Short-Term Incentive Program (Arbitrum Improvement Proposal)

General Communication SEEDGov As already noted by @cattin, the @seedlatam delegation has created this account in collaboration with several partners, with the objective of evaluating grant proposals related to Arbitrum Short-Term Incentives. Here are the evaluation criteria adopted: Evaluation Criteria: Despite the large volume of proposals received, with more than 106 submissions in a short period, the team defined several essential criteria to determine which initiatives to support: Protoco…

[ITUblockchain]

We appreciate OmniBTC’s work on the proposal. However, we believe incentivizing users on bridges would only benefit users who are already committing to use bridge and Arbitrum, rather than attracting more users to it. Therefore it does not fit the purpose of the grant. Considering this, we are giving our vote against the proposal.