SECTION 1: APPLICANT INFORMATION
Applicant Name: Joseph Schiarizzi
Project Name: Open Dollar
Project Description:
Open Dollar is an Arbitrum-only stablecoin protocol bringing the first tradable CDPs to DeFi with Non-Fungible Vaults (NFVs). Our flexible stablecoin is over-collateralized with LSTs like wstETH and rETH, floating pegged to $1.00, and always redeemable for underlying collateral. Governance minimization ensures predictability and longevity of the protocol by reducing the scope of allowed changes and reducing the need for human oversight. Open Dollar aims to be the most flexible and safest stablecoin ever created.
Open Dollar is finalizing a second audit with Quantstamp, and will launch before LTIPP grants are disbursed.
Team Members and Roles:
Joseph Schiarizzi - CoFounder & CEO
Patrick Gallagher - CoFounder & CTO
Ivan Manvelov- BD Lead
Tim Kingery - Marketing Lead
Project Links: [Enter Any Relevant Project Links (website, demo, github, twitter, etc.)]
Website: https://www.opendollar.com/
Testnet App: https://app.dev.opendollar.com/
Github: Open Dollar · GitHub
Docs: https://docs.opendollar.com/
Litepaper: Litepaper
Blog: Blog
Twitter: https://twitter.com/open_dollar
Discord: Open Dollar Discord
Linktree: opendollar | Twitter | Linktree
Contact Information
Point of Contact
Joseph Schiarizzi
Point of Contact’s TG handle:
@CupOjoseph (Telegram: Contact @CupOjoseph)
Twitter:
@CupOJoseph (https://twitter.com/CupOJoseph)
Email:
Do you acknowledge that your team will be subject to a KYC requirement?:
Yes
SECTION 2a: Team and Product Information
Over 1% of all ETH mainnet transactions use contracts that Open Dollar founder Joseph has written. Joseph is a former Solidity Engineer for OpenSea, Dev Rel for Gitcoin, Developer for Consensys, and contributor to Storj, Ethereum.org, Web3.py, Decentraland, Meta Cartel. Cofounder, and CTO Patrick is a seasoned software engineer with former experience at Superfluid, rDAI, Fleek, an indexer for The Graph and others. He was a founding member of Raid Guild, the first services DAO in crypto, and contributor to other DAOs like Meta Cartel and Hero DAO.
Ivan is an accomplished Business Development and Sales professional. His most recent role was Business Development Lead at Lido, with additional Web3 experience in similar roles at Yearn Finance, DPRC.org, CodeShell, and FONDY. Prior to Web3 he brings over a decade of experience from Web2, from companies including ThyssenKrupp Elevator and Emerson.
Hunter, leading our smart contract development, is an experienced solidity developer with former experience at Raid Guild, ChainShot, and as a freelancer. He was the Hackathon winner at ETH Denver 2023, winning top prizes from Polygon and Chainlink, as well as a finalist at ETH Mexico for Polygon and SuperFluid awards, and a finalist of the NFT Hackathon at ETH Global in 2022.
Tim is a seven-year crypto marketing veteran and has led marketing operations resulting in the acquisition and retention of tens of thousands of users across various verticals from GameFi and DeFi. Most notably, Tim served as Communications Manager for ShareRing, resulting in market cap growth of over 100x, from ~$2m to $240m at peak, achieving a top 100 ranking on CMC.
What novelty or innovation does your product bring to Arbitrum?
Non-Fungible Vaults - We have completely changed how lending works. Every other lending protocol and CDP system ties debt to accounts – which means you cannot unlock your capital until your debt is paid back. However, Open Dollar CDPs are non-fungible vaults that are tied to ERC721 tokens, so they can be traded and sold without having to pay back debt. So traders can get in and out of leveraged positions with more capital efficiency. Also stablecoin holders can buy vaults with debt positions to redeem their OD stablecoin for the underlying collateral.
Is your project composable with other projects on Arbitrum? If so, please explain:
Yes, our NFVs are ERC-721s and are compatible with all NFT marketplaces and DeFi projects that can support this NFT standard. We are supporting other teams who are building secondary loan marketplaces, and more modules on top of NFVs.
The OD stablecoin is a standard ERC-20 token which can be used in any other compatible protocols.
We are working on submitting an EIP for NFVs, and all code is open source: GitHub - open-dollar/od-contracts: Open Dollar stablecoin contracts
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
On Arbitrum:
Vesta Finance, Gravita Protocol.
Outside of Arbitrum:
Liquity, Maker, Reflexer, other CDP protocols
How do you measure and think about retention internally? (metrics, target KPIs)
All goals are measured and onchain ones are available in our internal metrics dashboard and on Dune: OD | App
In order of priority:
- TVL - on-chain, with Dune + app stats dashboard post-testnet.
- Unique depositor addresses - on-chain, with Dune + app stats dashboard post-testnet
- Number of Vaults - on-chain, with Dune + app stats dashboard post-testnet
- Web traffic - Total, unique, and returning users via Matomo analytics
- Social/Media analytics - Brand24 for social listening, sentiment analysis, media hits, and reach
Daily Active Users: TBD
Daily User Growth: TBD
Daily Transaction Count: TBD
Daily Protocol Fee: TBD
Daily Transaction Fee: TBD
Daily ARB Expenditure and User Claims: TBA
Incentivized User List & Gini: TBD
For each collateralized asset:
Planned collateral assets at launch: wstETH and rETH.
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, Open Dollar protocol is Arbitrum-native from inception, currently live on Arbitrum Sepolia and scheduled to be live on Arbitrum Mainnet by the end of Q1.
On what other networks is the protocol deployed?:
None
What date did you deploy on Arbitrum mainnet?: Scheduled for mid to late March, as audit completion from Quantstamp allows.
Do you have a native token?:
Yes, Open Dollar Governor (ODG): Tokenomics | Open Dollar Docs
Past Incentivization:
None.
Current Incentivization:
None.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program?
Yes.
$5000 in ETH from Meta Cartel, spent on development and engineering.
Protocol Performance:
Dune dashboard for governance token: https://dune.com/whale_hunter/open-dollar-governance
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
Q1
DAO votes to launch protocol and OD stablecoin
Liquidations mechanism
Non-Fungible Vaults
Rebuilt Reflexive PID controller
100% DAO control of the protocol (no team multisigs)
Q2
Efficient Leverage Looping module
Support for more arbitrum native assets
Secondary NFV marketplace
Liquidation savior module
Stability Controller Deadzone
Decentralized oracle support
H2 2024
Many vault types
Autonomous incentives from fees
Flash loan minting and NFV collateral flash loan support
Streamable stablecoin
Omni chain support with Connext Network.
Support for Arbitrum DAO sustainability goals
Audit History & Security Vendors:
The core GEB Framework contracts were audited by OpenZeppelin. Other helper contracts were audited by Quantstamp.
Open Dollar hosted a $35,000 contest with Code4rena which had hundreds of participants.
Full Quantstamp Audit and Pentest is ongoing. Expected completion by March 17th.
$100,000 Bug Bounty program is planned.
Security Incidents:
No
SECTION 3: 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: 300,000 ARB
- Precedence. This is less than other CDP protocols on arbitrum have asked for, even though our innovations are larger and the differentiation of Open Dollar is more clear.
- Requirements to jumpstart liquidity for a new type of asset marketplace. Secondary loan trading is $3 Trillion a year in the US alone. Yet $0 a year in DeFi. Having liquidity in a new NFV marketplace will be essential and require initial investment.
Grant Matching:
Open Dollar will match 100% of ARB token incentives with ODG 1:1, and also guarantee any pools or activities that are incentivized with ARB receive equal pro-rata amount of token incentives from any other grants we receive from other grant programs like Lido (LDO), Rocketpool (RPL), Camelot (GRAIL), Balancer (BAL), or others.
Grant Breakdown:
- 33% Deposit and platform growth incentives program - incentivize user deposits of wstETH and rETH, especially of newly bridged tokens and borrowing against those assets. Sybil proof as borrowing OD incurs fees and incentives will be based on fees accrued and deposit time.
- 50% Liquidity incentives - to increase liquidity in OD stablecoin pairs on Camelot and Balancer. Incentives will be based on time deposited and weighted towards longer deposits in order to prevent wash trading.
- 17% Trading incentives on the first DeFi secondary loan marketplace. Sybil proof as trading incurs fees and incentives will be based on fees accrued to discourage wash trading.
Funding Address:
arb1:0x6274d27c00310780C8407D043A3cCADf1505D7F1
Funding Address Characteristics:
Team deployer 2/3 gnosis safe multi-sig.
Treasury Address:
0x7A528eA3E06D85ED1C22219471Cf0b1851943903
Contract Address:
arb1:0x6274d27c00310780C8407D043A3cCADf1505D7F1
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES - WIP
Clearly outline the primary objectives of the program and the Key Performance Indicators (KPIs), execution strategy, and milestones used to measure success. This helps reviewers understand what the program aims to achieve and how progress will be assessed.
Objectives: [Clearly state the primary objectives of the grant and what you intend to achieve]
- Accelerate the growth of the ecosystem around secondary loan markets and raise the feature set of Defi to match traditional lending markets
- Grow the Open Dollar protocol TVL
- Support more attractive yields and strategies that encourage users to bridge more LSTs to Arbitrum.
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.]
We have designed a points program that heavily weights TVL and proportionally awards points based on size of deposits and the length of time they’re deposited, as well as referral bonuses, in addition to smaller point allocations for social actions performed via Galxe and Zealy. We have contracted developers to implement this with an approximate two week lead time post-mainnet. We’ll have a dashboard and leaderboard integrated on our website for users to see their points updated daily with API connections to Galxe and Zealy.
For liquidity incentivization we’ll use a Camelot pool for the stablecoin pairing which will advertise and distribute rewards. The stablecoin pool will be live post-mainnet.
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]
After jumpstarting liquidity, the stablecoin will continue to float around the $1.00 floating peg creating more arbitrage opportunities for active participants in the Open Dollar ecosystem.
Other Flywheels to continue to attract more liquidity sustainably: as market dynamics change every day, people will be moving from stablecoin positions into collateral redemptions and then selling vaults to get out of leveraged positions without having to pay back debt. Open Dollar is designed to be significantly more dynamic and active than other CDP protocols and keep providing more opportunities for active participants to earn more yield and keep the protocol healthy.
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.]
Three primary KPIs will measure both the volume and quantity of user participation in the program:
- TVL - will be tracked on both the app stats page as well as a Dune dashboard.
- Stablecoin pool liquidity - Will be tracked on Camelot and the Dune dashboard.
- LSTs bridged to Arbitrum as facilitated by Open Dollar.
Total value locked will accurately indicate the aggregate depth of participation. Stablecoin pool liquidity will indicate the volume of participation in liquidity provision to support large swaps, leveraging, and stablecoin order book depth.
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.]
TBD
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 a grant will greatly accelerate our rate of user acquisition and TVL growth by effectively doubling the incentives of our planned programs. Similar grants received by stablecoin protocols from the foundation have shown this to be an effective method of accelerating platform growth.
- Secondary loans in tradfi is trillions of dollars a year in volume and $0 in defi. Arbitrum could be the home for this innovation
- Grow the liquidity of LSTs on arbitrum
- Create the most flexible CDP protocol ever, so that it can be used for arbitrum dao treasury sustainability in the very near future by providing a safer place to borrow against ARB token for the Arbitrum DAO and other grant recipients than exists today.
The majority of our marketing efforts will be focused on acquiring retail and institutional users who are liquid staking token holders of our supported collaterals, which are rETH and wstETH from launch and followed by additional collaterals added by the DAO. In addition to LST holders on ETH mainnet and other chains, we will target CDP protocol users, which will drive them to bridge their assets to the Arbitrum network to use our protocol. This will result in more users and more TVL on the Arbitrum network as a consequence.
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
OpenBlock Labs has developed a comprehensive data and reporting checklist for tracking essential metrics across participating protocols. Teams must adhere to the specifications outlined in the provided link here: Onboarding Checklist from OBL 24. Along with this list, please answer the following:
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 plan to integrate our data/reporting responsibilities into our routine weekly KPI collection and summarization. Providing bi-weekly updates on the Arbitrum Forum thread will require little additional effort on our behalf.
Data is also auto-collected on our own public stats page: OD | App
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