Application Template
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: Seth Duskin
Project Name: Purity
Project Description: Purity is a state-of-the-art trading tool equipped with advanced features such as limit orders, trailing stops, and anti-rug measures, providing traders with a competitive edge in the crypto market.
Team Members and Roles:
- Founder + CEO: Seth D.
- Business Development Director: Michael G.
- Corporate Strategist Manager: Cole T.
- Technical Developer: Jorg S
Project Links:
Twitter: https://twitter.com/puritysniper 5
Contact Information
Point of Contact (note: this should be an individual’s name, not the name of the protocol): @PPURITYRINGG
Point of Contact’s TG handle: Telegram Web
Twitter: https://twitter.com/E77EX
Email: seth@dieutiergroupe.com
Do you acknowledge that your team will be subject to a KYC requirement?: Yes
SECTION 2a: Team and Product Information
Provide details on your team’s past and current experience. Any details relating to past projects, recent achievements and any past experience utilizing incentives. Additionally, please provide further details on the state of your product, audience segments, and how you expect incentives to impact the product’s long-term growth and sustainability.
Team experience (Any relevant experience that may be useful in evaluating ability to ship, or execution with grant incentives. Please provide references knowledgeable about past work, where relevant. If you wish to do so privately, indicate that. [Optional, but recommended]):
- Seth D.
- Former US Army Ranger and Founder of DIEU TIER GROUPE LLC and PURITY SNIPER BOT.
- Michael G.
- A successful derivatives trader for six years. He entered crypto in December of 2013. Michael then worked as a marketing director for GridNet Project, and as the Biz Dev Director at an NFT metaverse company called LeapN, which built a game for Method Man of Wu-Tang.
- Cole T.
- Specializing in advertising, network effects, viral marketing, and social media management. Experienced and balanced with a passion for creating value.
- Jorg S.
- Specializes in crypto bots and scraping. Sniper / buy sell, arbitrage bots, market research bots, on both decentralized and centralized exchanges.
What novelty or innovation does your product bring to Arbitrum?
- Existing sniper bots in the market lack comprehensive features, failing to meet traders’ essential needs and neglecting a significant share of the market by not operating across various chains.
- Purity stands out by addressing these shortcomings, simplifies the user experience, and excels as the only operational sniper across multiple chains, ensuring a complete solution for traders.
Is your project composable with other projects on Arbitrum? If so, please explain:
Not with a project in specific but Purity targets both retail and institutional traders active in the cryptocurrency market, spanning various demographics and geographic regions.
Our product increases relevant metrics across key players like DEX’s so we are composable in that fashion.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains? Prodigy bot, Unibot, BananaGun, and PancakeSwap sniper bot are all comparable.
How do you measure and think about retention internally? (metrics, target KPIs)
Our approach to retention is simple: we mainly focus on the number of users leveraging Purity, and then volume created from our product. Given this will be the first deployment, we do not have specific metrics to share yet, but will be tracking these metrics closely…
Relevant usage metrics - Please refer to the OBL relevant metrics chart 47. For your category (DEX, lending, gaming, etc) please provide a list of all respective metrics as well as all metrics in the general section:
General Metrics
Daily Active Users: A time series metric representing the daily count of unique addresses interacting with the protocol’s contracts.
Daily User Growth: A time series metric representing the daily user growth (in addresses) interacting with the protocol’s contracts.
Daily Transaction Count: A time series metric representing the daily number of transactions interacting with the protocol’s contracts.
Daily Protocol Fee: A time series data representing the daily total protocol fee generated. For example, swap fees, borrowing fees, etc., comprising all economic value generated through the protocol, contracts, apps, etc., by users.
Daily Transaction Fee: A time series, daily total transaction fees generated daily by interactions with the protocol’s contracts.
Daily ARB Expenditure and User Claims: Data on individual ARB incentive claim transactions made by users, as incentivized by the protocol. It should include the timestamp, user address, and the claimed ARB amount. The spent ARB will allow for the normalization of growth metrics.
Incentivized User List & Gini: The list should include users incentivized by the protocol along with their performance metrics. For instance, if trading volume is incentivized, this would be a list of traders with their respective trading volumes. If liquidity providers are incentivized, it would include a list of LPs and their liquidities in USD. Protocols should also strive for more uniform engagement levels across a wide user base for long-term sustainability, which will be measured through a gini coefficient across reward recipients.
We believe some of the DEX metrics are suited for our product
Trading Volume: A daily time series, also measured in USD.
List of Traders: A comprehensive record of addresses or entities engaged in trading activities. This list should include trader addresses and the volume of trades executed.
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):
We have a network of advisors that we rely upon to offer feedback and insights when it comes to everything, including grant writing.
PrecisionMark Capital Ltd, Serious People, Bill Shook (Trade Engine), Ken Aleksaundr (Trail of Bits)
None of these groups will receive ANY of the incentives in this proposal, and therefore have no conflicts of interest.
SECTION 2b: 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?:
We will be. We have been working on mainnet incognito in various capacities, but the plan was never to deploy there as our home for obvious reasons like high gas and existing competitors. Therefore, we believe Arbitrum is the perfect home for us.
On what other networks is the protocol deployed?:
Some initial contracts are deployed on mainnet.
What date did you deploy on Arbitrum mainnet?:
Deploying shortly, we will be fully live before March 17th.
Do you have a native token?:
Not at this time.
Past Incentivization:
What liquidity mining/incentive programs, if any, have you previously run? Please share results and dashboards, as applicable?
N/A
Current Incentivization: How are you currently incentivizing your protocol?
N/A
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
Protocol Performance: [Detail the past performance of the protocol and relevance, including any key metrics or achievements, dashboards, etc.]
While we do not have specific metrics on this bot because it has not been used yet, we expect to garner market share from our closest competitors. Snipers like Unibot and BananaGun pull in $250-350 million dollars of revenue respectively, with profits of $8.5m and $9.5M in just over 100 days each. With just a small portion of this market, and the low cost to operate, we expect to be able to gain traction and become profitable in just a few months.
Protocol Roadmap: [Describe relevant roadmap details for your protocol or relevant products to your grant application. Include tangible milestones over the next 12 months.]
- Quarter 1, 2024 - Purity Launches on Arbitrum
- KEY OBJECTIVES:
- Launch March Q1 / Token Launch April Q1
- Onboard Local / Immediate Community
- Strategic Partnerships with smaller niche CT influencers
- CLIENT BASE GROWTH: 0-500 USERS
- KEY OBJECTIVES:
- Quarter 2, 2024 - Achieve 250M in volume
- KEY ACHIEVEMENTS:
- Strategic Partnerships with Various outside CT Influencers
- Onboard outside community CT users
- CLIENT BASE GROWTH: 500-1000 USERS
- KEY ACHIEVEMENTS:
- Quarter 3, 2024 - Achieve $600M in volume
- KEY ACHIEVEMENTS:
- Ad Agency integration
- Major CT ad campaigns
- Major TradFi media pushes
- Onboarding Non-CT influencers
- New Monetization Methods
- CLIENT BASE GROWTH: 1000-1500 USERS
- KEY ACHIEVEMENTS:
- Quarter 4, 2024 - Achieve $1B in volume
- KEY ACHIEVEMENTS:
- Ad push sustain
- Onboard TradFi users
- R&D of future features, EVM operations Asymmetric Marketing Campaign
- Target Tik Tok influencers
- New Monetization Methods
- CLIENT BASE GROWTH: 1500+ USERS
- KEY ACHIEVEMENTS:
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.]
The audit will be finalized on March 21st and is being conducted by Quill Audits: Smart Contract Auditing Service
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 for future incidents]
None
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: 29,582 $ARB
Justification for the size of the grant: [Enter explanation. More details are better, including how you arrived at the required funding for individual categories of expenses covered by your grant plan]
We took a look at market comparables, notably Unibot and BananaGun:
| Metric | UniBot | BananaGun |
|---|---|---|
| Average ETH Price (Past 10 months) | $2,671.328325 | N/A |
| Eth Volume | 260,839 | N/A |
| Total Volume (Past 10 months) | $696,786,608 | $930,000,000 |
| Time Frame | 10 months = 304 days | Since July = 235 days |
| Average Daily Volume | $2,292,061 | $3,957,446 |
| Desired 20% Of Daily Volume | $458,412 | $791,489 |
We believe that the innovations we are bringing in our sniper bot technology will help us to acquire a significant amount of this market share in a relatively short period of time, especially with the help of $ARB incentives that will be used to refund traders in such a way that renders their experience virtually free.
As a newly deployed bot we have set our specific goal at reaching 20% of UniBot’s volume in 90 days by utilizing the $ARB incentives for a trading fee rebate that gets paid out to the end user of the bot.
The following thought process was used to determine the specificity of the grant size:
We expect the Purity sniper bot volume to increase exponentially as the popularity of the product increases. Similar growth patterns have been observed when looking at comparable products and it can be reasonably expected that the $ARB incentives will only increase this exponential growth pattern.
With this in mind we expect to reach our goal of 20% of Unibot’s daily volume by day 90.
Total expected volume: $5,975,697
1% fee on Purity volume: $59,756
Avg $ARB price: $2.02
Total $ARB needed for fee rebate: 29,582
Grant Matching:
No token at this time
Grant Breakdown:
29,582 $ARB used for sniper bot fee rebates
Funding Address:
0x290C50C65B9aa63908954A81DB499394030740F9
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.
Will be a 2 of 3 multisig Safe
Treasury Address:
N/A
Contract Address: [Enter any specific address that will be used to disburse funds for grant recipients]
TBD - will be updated upon deployment as soon as the audit is finalized on March 21.
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]
Our primary objective is to increase daily volume, with a target of reaching 20% of Unibot’s daily volume within 90 days. These are key to kickstarting our flywheel (the exponential growth capabilities seen in market comparables) and therefore we plan to use our $ARB grant to grow this crucial metric.
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.]
Our main objective is to increase the trading volume processed by our trading bot. To achieve this, we plan to use our $ARB grant to reimburse the 1% transaction fee that users incur when they engage with our trading bot.
Here’s how it works:
- Fee Refund System:
When users execute trades using the Purity trading bot, they typically pay a 1% fee. Under this new initiative, the fee will be refunded to them in $ARB tokens.
- Transparent Tracking:
We will monitor each wallet that interacts with our trading bot, recording both the trading volume and the fees incurred. This tracking mechanism ensures transparency, allowing users to view the $ARB they’ve accumulated from refunded fees in real time.
- Weekly Payouts:
At the end of every week, we will calculate the total $ARB earned by each user through fee refunds. Users will then have the opportunity to claim their accumulated $ARB tokens.
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]
Our platform has an inherent stickiness to it in that it enables users to be more profitable in their trades. Using the ARB incentives will make this extra profitability that much more obvious, which should then in theory create a much stickier user acquisition environment. Once they realize they are able to be more profitable by using our infrastructure, why would they trade elsewhere?
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 entire initiative is very intentionally narrow in scope; our goal is to increase volume with the goal of achieving 20% of Unibot’s daily volume by the end of the program. Therefore, we will be tracking daily volume day-over-day with the goal of reaching specific milestones by specific intervals as discussed in the following section.
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.]
Milestone 1 - Days 1-30: The initial ramp up
Objective: The goal is to increase our daily volume up to the $45,391 milestone by day 30 of the program by reimbursing $453.91 in fees utilizing ~$225 $ARB
Activities:
- Deploy wallet/fee tracking infrastructure
- Begin reimbursing TX fees on a weekly basis
Expected Outcome: Reach a trading volume of $45,391 in total by day 30.
Milestone 2 - Days 31-60: Sustained Growth
Objective: Build on the initial momentum and continue to reimburse fees as more and more users begin to adopt the product reaching $541,991. In total volume by day 60 and reimbursing $4,966.28 in fees utilizing ~2,458 $ARB
Activities:
- Analyze data from the first phase to refine the reimbursement program if needed.
- Continue reimbursing TX fees on a weekly basis
Expected Outcome: Increase cumulative trading volume to $541,991 by day 60.
Milestone 3 - Days 61-90: Exponential growth
Objective: Ensure reimbursements remain accurate and timely as the popularity of the product begins to kickstart the exponential growth typically seen by market comparables at this level in their cycle - reaching $5,975,697 in total volume by day 90 (reaching the 20% mark on day 90 with daily volume of $458,412) and reimbursing $54,336.79 in fees utilizing ~26,899 $ARB
Activities:
- Analyze data from milestone 2 and adjust the reimbursement program if needed
- Continue reimbursing TX fees on a weekly basis
Expected Outcome: Reach a final cumulative trading volume of $5,975,697 by day 90.
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]
By providing Arbitrum users with a competitive advantage in the world of high-speed trading by deploying our sniper bot we anticipate seeing growth in the areas of increased traders on the network and therefore increased volume.
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 42. 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. And no special considerations.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?
Yes, we will be able to report out on all purity usage to provide biweekly updates.
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?:
Yes