SECTION 1: APPLICANT INFORMATION
Applicant Name: The Core Teams from Predy Finance Protocol
Project Name: Predy Finance
Project Description: The Intent base Dex for Swap, Perp and Gamma trade with No-Gas, fully composed with Uniswap
Team Members and Roles:
Project Links:
Apps: Perpetuals | Predy V6
github:GitHub - predyprotocol/predyx
Blog：https://predyfinance.medium.com/
X:https://twitter.com/predyfinance
Contact Information:
- TG: Ibe Noriaki @ibeibeibe
- Twitter: @ibeibe__
- Email: ibenoriaki@gmail.com
- Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2a: Team and Product Information
Our team originates from a group that has been conducting research on Layer2 since 2018, and which won a grant for Layer2 scaling from the Ethereum Foundation (EF) in 2020, centered around Hiya, who was the Lead Engineer at that time.
(Ecosystem Support Program: Allocation Update, Q1 2020 | Ethereum Foundation Blog, Layer 2Plasma Chamber)
Predy core team have continued to develop and evolve our product.
December 2021: Predy v1 Implementation of an Option Protocol on Ethereum (you can think of it as similar to the early Opyn. However, unfortunately, it did not attract attention due to the high gas costs on Layer1 and lack of demand.)
March 2022: Predy v2 Implementation of Power perpetual trades on Arbitrum (implemented Opyn’s Squeeth for MarginTrade and executed Cover trades on Uniswap). In fact, this caught attention and was noticed by the Arbitrum team, but it was necessary to solve the problem of high Cover trade costs.
December 2022: Predy v3 Implementation of Perpetual Option trades using Composable Uniswap LP positions on Arbitrum (similar to the current Panoptic, but we do not use a MiddlePool, so our efficiency is overwhelmingly better). However, it was difficult to create liquidity for Perpetual Options because it was necessary to create Uniswap LP positions for each range.
March 2023: Predy v3.2
it offered Perpetual Futures with portfolio margin using Composable Uniswap LP positions on Arbitrum. By combining ETH^0.5 and ETH, it became possible to create a capital-efficient Uniswap LP position.
August 2023: Predy v5
Implementation of a dedicated Perpetual Future trade for Gamma Trade using Composable Uniswap LP positions on Arbitrum. The products handled combine ETH^0.5 and ETH, making it possible to offer Gamma short (Delta neutral Uniswap LP position) and its Long.
February 2024: Predy 5 Implementation of Perpetual Future trades using Composable on Uniswap on Arbitrum. It features an intent-based Dex with No-Gas, No-Vault design.
What novelty or innovation does your product bring to Arbitrum?: Predy is the best capital-efficient protocol for Uniswap LP position.
Is your project composable with other projects on Arbitrum? If so, please explain: Uniswap
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains? Opyn’s squeeth@L1 & Panoptic@Base for Predy3~5, and Uniswap for Predy v6
How do you measure and think about retention internally? (metrics, target KPIs) Relevant usage metrics - Please refer to the OBL relevant metrics chart 29. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section: it will be measured metrics values via Predy V5 Dashboard on Dune, but the dashboard for v6 is not ready yet. The dashboard will contain the following metrics. 1.Daily Active Users 2.Daily Trading Volume 3.Open Interest 4.Fee & Premium
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
On what other networks is the protocol deployed?: Ethereum, Base
What date did you deploy on Arbitrum mainnet?: Date & TXID Predy v5:Jul-04-2023 Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Predy v6:Jan-17-2024 Arbitrum Transaction Hash (Txhash) Details | Arbiscan
Do you have a native token?: No
Past Incentivization: No
Current Incentivization: How are you currently incentivizing your protocol?: No
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem related program? :Predy was a recipient of the Arbitrum airdrop but has not received any additional funding through grants.
Protocol Performance:
https://dune.com/predy/predy-v5
Protocol Roadmap:
Predy Finance is contemplating the replacement of the entire financial system. Just as Layer2 developers contribute to various chains and DeFi protocols, we are also a part of that effort. Similar to how Paradigm has focused on Uniswap and Opyn, Predy Finance, up until version 5, concentrated on improving the efficiency of AMMs. Having achieved a certain level of efficiency in AMMs, we are now focusing on enhancing the efficiency of swaps and perpetual trades to increase transaction volume. Furthermore, there is a possibility that we might move closer to the customer, into areas such as wallets. However, for the next 12 months, we will likely focus on implementing features already present in traditional finance, such as stop orders, in our intent-based Dex.
Audit History & Security Vendors: Predy v1 Certik Predy v2 Zokyo Predy v3-v5 immunefi
Security Incidents: No
SECTION 3: GRANT INFORMATION
Requested Grant Size: 200K ARB
200K ARB for Lending Pool: Trader can borrow ARB to trade Perp ARB-USDC, and put Leveraged LP position into Uniswap v3 ARB-USDC pool.
Justification for the size of the grant 34: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]
Funding Address: 0x15cB9ee7a2F30D6dC7c2B0f0760F52556e934AC9
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.
Treasury Address: 0xb8d843c8E6e0E90eD2eDe80550856b64da92ee30 , 0x4f071924D66BBC71A5254217893CC7D49938B1c4
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
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]
Current TVL of Liquidity at Uniswap V3 ARB-USDC.: $5.43M
Incentives required =200k ARB @ $1.7 = $340K
The same amount of USDC loaded would increase TVL by $680K
↓
Target: $6.23M
Execution Strategy:
Among the offers, the one for the USDC-ARB pool will be fully provided to our prepared lending pool immediately after receiving the grant. As for the trading incentives, for ARB-USDC swaps, perpetuals, and gamma, after listing the trading pairs, a plan is in place to distribute the total amount to all wallets that have paid transaction fees during a certain period (likely one or two months), with the distribution weighted by the transaction fees paid. The method of distribution will follow any instructions provided with the grant distribution.
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric? :
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.
Regarding the lending pool, the utilization rate is appropriate as its Key Performance Indicator (KPI). Users borrow ARB from the lending pool and use it in Uniswap’s LP. We will make it constantly checkable on Dune.
Grant Timeline and Milestones:
If 80% of the grant amount is borrowed, an equivalent value of USDC will also move towards Uniswap, potentially adding more than 10% to the current liquidity of Uniswap V3.
Therefore, let’s set the target at 80%.
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]
We are not merely distributing the received ARB. Especially for the lending pool, since it is directed towards Uniswap’s LP, this does not create selling pressure on ARB. Instead, it improves the liquidity of the AMM, providing traders with an environment where ARB is easier to trade.Furthermore, the grant used as a trading incentive will ultimately encourage ARB trading on Uniswap, which benefits existing ARB liquidity providers as well. This incentive positively impacts the ecosystem by promoting increased trading activity and liquidity.
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 28. 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. tt shall be provided via dune and defillama.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard? Yes. it shall be provided via dune and defillama.
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. : 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.