Proposal: Grant Request for Koryntia - Pioneering the Next Generation of DeFi Lending

Abstract

Koryntia seeks a grant of 3,000,000 ARB tokens from the Arbitrum DAO Treasury to develop and launch a revolutionary DeFi lending platform. With a focus on accessibility, scalability, and user engagement, Koryntia aims to significantly enhance the Arbitrum ecosystem’s DeFi capabilities and drive widespread adoption.

Motivation

The Arbitrum community should implement the AIP to address critical gaps in the DeFi landscape. Koryntia’s innovative approach makes DeFi accessible to all, aligning with Arbitrum’s mission of fostering innovation and inclusivity. By supporting Koryntia, the community can solidify Arbitrum’s position as the leading blockchain for DeFi solutions.

Rationale

Koryntia’s integration with the Arbitrum network leverages its superior scalability and low transaction costs, ensuring a seamless user experience. The platform’s advanced features, including BTC integration, attract significant liquidity to the Arbitrum ecosystem. By promoting user-centric solutions, Koryntia epitomizes the core values of the Arbitrum community.

Key Terms

  • DeFi (Decentralized Finance): Financial systems built on blockchain technology without intermediaries.
  • Lending Platform: A service facilitating lending and borrowing assets with interest.
  • Liquidity Providers: Users supplying assets to facilitate lending and borrowing.

Specifications

Koryntia will utilize the following technologies and platforms:

  • Arbitrum Network: For high throughput, low fees, and robust security.
  • Smart Contracts: Ensuring secure and transparent lending and borrowing processes.
  • User-Friendly Interface: Accessible to novice and experienced users alike, fostering widespread adoption.
  • Yield Optimization: Utilizing advanced algorithms to maximize user returns and enhance platform efficiency.
  • BTC Integration: Incorporating unique solutions based on Bitcoin to attract a broader user base.

Considered Alternatives

Koryntia extensively evaluated various Layer 2 solutions and sidechains, ultimately selecting Arbitrum for its superior performance, security, and community support.

Steps to Implement

  1. Development Phase (3 months):
    • Finalize smart contract development.
    • Develop and test the user interface for optimal user experience.
    • Conduct rigorous security audits to ensure platform integrity.
    • Cost: 1,000,000 ARB tokens
  2. Beta Launch (2 months):
    • Deploy on Arbitrum mainnet and conduct beta testing with early adopters.
    • Gather user feedback to refine platform features and functionalities.
    • Cost: 1,000,000 ARB tokens
  3. Full Launch and Marketing (1 month):
    • Execute a comprehensive marketing campaign to drive user adoption and liquidity.
    • Forge strategic partnerships to expand platform reach.
    • Cost: 1,000,000 ARB tokens

Timeline

  • Start Date: July 1, 2024
  • Development Phase: July - September 2024
  • Beta Launch: October - November 2024
  • Full Launch: December 2024

Overall Cost

Total cost for AIP implementation is 3,000,000 ARB tokens:

  • Development: 1,000,000 ARB tokens
  • Beta Launch: 1,000,000 ARB tokens
  • Full Launch and Marketing: 1,000,000 ARB tokens

Success Metrics

Success will be measured by:

  • User Growth: Targeting 1 million active users within 6 months post full launch.
  • Total Value Locked (TVL): Achieving $500 million TVL within 6 months.
  • Transaction Volume: Reaching $1 billion in transaction volume within the first year.
  • User Retention: Maintaining a 70% monthly user retention rate.

Reporting

Comprehensive progress, metrics, and budget utilization reports will be submitted at the end of each phase via the Arbitrum forum and email on the following dates:

  • Development Phase Report: October 1, 2024
  • Beta Launch Report: December 1, 2024
  • Full Launch Report: January 15, 2025

Contact Information

Applicant Information

Team and Project Information

  • Project Description: Koryntia is a decentralized lending platform that leverages blockchain technology to offer secure, transparent, and efficient financial services for cryptocurrency holders. Our mission is to democratize access to financial services, eliminate intermediaries, reduce costs, and make DeFi accessible to everyone.
  • Team Experience and Completeness: Our team consists of 8 members: 5 developers and 3 operational experts.
    • Founders:

      • Gregorio Punzano (CEO): Serial entrepreneur with over 7 years of experience and since 2021 in DeFi, motivated by principles and philosophy of freedom.
    • Key Team Members:

      • Anonymous Bitcoin Expert: Our team also includes a Bitcoin DeFi expert who prefers to remain anonymous but has achieved significant milestones, such as developing a tool that created millions of transactions on the Bitcoin testnet, demonstrating advanced technical skills and deep knowledge of Bitcoin protocols.

Talent Section

Our commitment to excellence is driven by our philosophy of freedom and motivation to advance the most ambitious project. We have secured the best legal advisors for the project, ensuring compliance with favorable jurisdictions. Our team is composed of highly motivated and talented individuals who have worked on critical aspects of the Bitcoin protocol, contributing to significant developments in the DeFi space.

Community Engagement Plan

We will actively engage the community during the beta phase through various strategies:

  • Utilizing tools to efficiently analyze feedback and implement real-time adjustments.
  • Conducting specific campaigns to gather user insights and improve user experience.
  • Hosting AMA (Ask Me Anything) sessions and community calls to maintain open communication channels.

Risk Mitigation

Potential risks and mitigation strategies include:

  • Smart Contract Vulnerabilities: Conducting multiple security audits and implementing a bug bounty program.
  • Market Volatility: Establishing risk management protocols and maintaining a liquidity reserve.
  • Regulatory Changes: Working closely with legal advisors to ensure compliance and adaptability.

1 Like

I think, the proposal identifies critical gaps in the current DeFi landscape and positions Koryntia as a solution. This demonstrates a strong understanding of the market needs and how the project can fulfill them.

1 Like

I sincerely thank you for your detailed analysis and for recognizing Koryntia’s ability to meet the critical needs of the DeFi market. Your vision indicates a deep and valuable understanding of the sector. I am at your disposal to further explore any aspect or resolve any doubts you may have. Constructive feedback is essential for us, as it drives us to continuously improve and validate that we are moving in the right direction.

Accessibility is undoubtedly the most critical aspect. We are committed to developing a solution that is understandable and usable by the general public, which is fundamental to bridging the gap between complex financial systems and everyday users. We rely on the usability, scalability, and methodology implemented in Arbitrum, which, with its layer-2 solutions, seeks to enhance Ethereum’s capabilities, offering faster and more economical transactions without compromising security. This aligns with our mission to make DeFi accessible and practical, thus promoting the widespread adoption of advanced blockchain technologies. :pray:

Hello and gm.

I appreciate your proposal here, but feels like a couple of points could be clarified for others to chim in:

  • while we currently have approved not one but two one-off proposal outside incentives framework (curve, and kwenta, with latter having to go through tally), these are incentives approved for already existing platform. So far we have never approved any grant, directly from the dao, to build things from scratch. And while i am very glad we approved kwenta and curve, and i think we should be flexible for incentives outside of program, bootstrapping a new protocol is a totally different job, and something that IMHO can’t be done at a dao scale. Needs specific infra, re: people, mission, budget, to be done. I think it has to fall in the lap of a program
  • is also worth mentioning that you already applied, 2 days ago, in the questbook grant program, in my domain, to buld a subset (but core) of functionalities, for 50k usd. And while I understand that some stuff could be the same, it’s puzzling to me to see the same deliverable plan in both proposals, for such a different amount requested.

1 Like

Hello and thank you for your response and your comment. Following my principles, I will be 100% honest with the response I am about to give:

  1. I agree with you on certain points. It is important to mention that Koryntia already has an MVP (Minimum Viable Product) at 80% and a substantial amount of code. However, my vision as a founder goes further, seeing the potential of Arbitrum on a personal level. For me, setting up an adequate structure wouldn’t be a problem, as I am convinced that we can attract the best talent for this. I am confident that we have the capacity and determination to do it.

  2. It is correct what you mention about our recent application in the Questbook grant program for $50k USD. I discovered later that I could make a more ambitious proposal and decided to bet on the vision I have for this DeFi industry, also integrating Bitcoin. This strategy is based on two additional products related to Bitcoin DeFi. Thus, we would have Koryntia in the short term, another product in the medium term, and another in the long term. These last two products have great potential in a market of 4 trillion dollars, like Bitcoin. In summary, we are betting heavily on Arbitrum and need all possible support.

  3. It is well known that innovation is not cheap, but those who do not take risks do not gain. Not only would Koryntia be integrated, but two more brands would also be integrated, significantly increasing the flow in Arbitrum and creating a snowball effect. The 3,000,000 ARB tokens from the DAO grant would be instrumental in achieving this. We need to build a solid foundation with the tortoise approach, but we also need more hares and a space where they can run without fear. Often, our impostor syndrome tells us that we can’t achieve certain things, but why not? We have the resources, the talent, and the technology to keep innovating and position Arbitrum as a leader in long-term innovation. It’s all about value.

Let’s say that the grant we are requesting is the tortoise, and the DAO proposal is the hare. We need both approaches to ensure solid and sustainable development. Your support and that of the community are crucial to making this vision a reality.

Thank you for your consideration, and I hope you can see the potential of our project and change your mind to support us.

To be clear, is not against the rule to apply to more than 1 program. Technically, you can’t apply at the same time for the same thing because is double dipping, but i also understand the camp saying “i don’t know how is gonna give me the money so i go for all the possibilities i can see at once”.

Just, is worth 1) disclosing 2) explain the (huge) spread.

1 Like

I appreciate your perspective :pray:, but I assure you, my motivations extend beyond financial gain. Money is merely a tool to achieve our goals. It’s a result of the value we bring to humanity. Feel free to ask any questions. Let’s move forward with action. :slightly_smiling_face:

Appreciate the proposal @gregoriopunzano

It is good to hear you have selected Arbitrum as the home for Koryntia.

I will be honest though, the amount that you are requesting from the DAO is way too large. A grant of this size would be in line with what the strongest, most well-known DeFi protocols in Arbitrum are receiving.

I would recommend the following:

  1. Utilize smaller grant programs such as Questbook to supplement the development cost and look into the security subsidy fund
  2. Gain some initial traction, grow your core community and partner with existing Arbitrum-based protocols.
  3. Apply to the DAO’s longer-term growth program or come back to the DAO with a more tailored ask
1 Like

Thank you for your response @Cole_404 :slightly_smiling_face:, I value it greatly. Based on my intuition, I consider Arbitrum could be a great ally for Koryntia. Moreover, I agree with the three-step strategy you recommend. I believe it’s an excellent idea and aligns perfectly with our way of acting, as well as with Arbitrum’s.

The Koryntia token could be launched after the first step, if everything goes according to plan. At this point, a scenario with the Koryntia token could also come into play. Our focus is on the private sale of the token to trusted and long-term investors for the previously mentioned ‘hare’ strategy, with the aim of building pioneering products in DeFi markets. This strategy would fit well with the second step, that is, community growth and public sale. All of this, of course, is subject to the successful execution of our plans and compliance with relevant regulations.