SECTION 1: APPLICANT INFORMATION
Applicant Name:
Teahouse FInance
Project Name:
Teahouse Finance
Project Description: Teahouse Finance is a decentralized finance (DeFi) platform dedicated to secure and flexible asset management. Our team focuses on enhancing “concentrated liquidity provision” by offering a wide range of innovative strategies that optimize LP ranges for maximum capital efficiency.
Team Members and Qualifications:
| Name | Title | |
|---|---|---|
| Fenix | CEO | |
| PC | CTO | |
| Tina | COO | |
| Jack | VP of Operation | |
| A-Tsung | Backend | |
| Pi | Frontend | |
| Oren | UIUX | |
| Venson | Blockchain Devs | |
| You-Ming | Blockchain Devs | |
| Wade | Blockchain Researcher | |
| John | Financial Engineer | |
| Amber | Financial Engineer | |
| Crystal | Project Manager | |
| Pat | Growth, Marketing | |
| Teresa | PR |
Project Links:
Website: https://teahouse.finance/
dApp: https://vault.teahouse.finance/
Docs: https://docs.teahouse.finance/teahouse-finance-doc-3.0/
Twitter: https://twitter.com/TeahouseFinance
Medium: Teahouse Finance – Medium
Github: Teahouse Finance · GitHub
DefiLlama: https://defillama.com/project/teahouse-finance
Contact Information:
TG: @patheboi
Twitter: patheboi
Email: pat@teahouse.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:
Yes
SECTION 2: GRANT INFORMATION
Requested Grant Size: 200,000 $ARB
Qualification Check:
Beacon Grants (Up to 200K $ARB)
Live on Arbitrum for at least 2 months.
Meets one of the following criteria:
$1.5M TVL / $2M 30D cumulative VolumeTeahouse has been active on Arbitrum 6 months -
Beacon
Teahouse has $3.22M in TVL -
Teahouse has $4.89M in 30d cumulative volume -
Grant Matching:
N/A
Grant Breakdown
- 150,000 $ARB for liquidity mining incentive to distribute to users of Teahouse vaults on Arbitrum
- 50,000 $ARB for bug bounty program
Teahouse will use this grant to fund an 3 months incentivized liquidity mining program.
The incentivized program would distribute a total of 150,000 $ARB to liquidity providers who participate in qualified Teahouse vaults. At least one of the boosted pools will be our latest “TeaVault V3 Portfolio” vault, diversifying the users’ holdings in a portfolio while attracting liquidity to Arbitrum.
Additionally, Teahouse will allocate 50,000 $ARB to fund a bug bounty program on ImmuneFi to bolster the security of our smart contracts on Arbitrum. Any excess $ARB tokens will be locked in a permissionless vault to earn passive yields until distribution time.
Funding Address:
0x0D2899A1304831ca3F762c2696a2F057874B7D56
Funding Address Characteristics:
2/4 GnosisSafe multisig with stored keys.
Contract Address:
Dedicated reward contracts (example) will be deployed for each AMM DEX. Addresses TBD.
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives:
This grant will be used to deploy liquidity mining incentives on the Teahouse dAPP to attract more users and liquidity to Arbitrum with the boosted yield. This will in turn increase the liquidity on Arbitrum in general, leading to lower slippage and more trades.
We have recently done something similar on the Boba Network, with proven results! On 11/5/2023, we added $BOBA rewards to boost our existing liquidity pools on the Boba Network. Just 3 short days later, on 11/08/2023, we have seen an increase of $118K in TVL across 3 vaults. We expect the volume to continue to increase as more people learn about the boosted APR.
Key Performance Indicators (KPIs):
- Total Value Locked (Teahouse AUM)
- Number of unique user wallets on the Teahouse dApp
- LP Performance in APR, including comparisons between Teahouse vault and HODLing
- Increase in AUM of Arbitrum vaults (before and after incentives)
- Decrease in slippage of hypothetical trades based on liquidity depth
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
Providing liquidity on an AMM is very difficult for an average user. Teahouse simplifies this process for users so that they can deposit and forget. Teahouse Strategy Managers will manage users’ funds on their behalf, in the most profitable and efficient manner based on their risk tolerance.
This grant will allow Teahouse to boast a high APR (consisting of both strategy performance and liquidity incentives, see below), which, although not sustainable in the long term, will boost the visibility and awareness of Teahouse products as we build up our brand. In addition, it will attract liquidity to our synergistic ecosystems so we can all grow Arbitrum together.
Strategy Performance
Teahouse strategies offer competitive yields with our innovative algorithms. The high-risk “Perpetual Protocol LP Strategy”, running for 10 months, has a 26.76% APR since inception, while the low-risk “Teahouse ETH Vault”, launched over a year ago, has generated a 3.55% APR since inception even in this bear market.
Liquidity Incentives
Liquidity incentives provide the boost protocols need to kick-start and maintain robust liquidity pools, which are essential for facilitating low-slippage trading, benefiting liquidity providers, traders, and our partner projects such as Uniswap and Aave.
Justification for the size of the grant:
Teahouse fulfills all the criteria for a Beacon grant. Ever since our Beta+ Strategy launch on Arbitrum on May 03, 2023, we have dedicated ourselves to growing the ecosystem, and we are now one of the top-ranked projects on Arbitrum.
As this grant directly translates into APR for users, we can expect an organic growth of our user base and AUM, which then translates into profits that we can redirect to stay on the cutting edge of concentrated liquidity provision and decentralized finance. One such revolutionary project we are currently working on is a Uniswap V4 solution, to be unveiled when Uniswap V4 officially launches. Furthermore, the upcoming announcement of TeaVault V3 Portfolio on Arbitrum demonstrates an innovative approach to asset management and accounting that will benefit the entire industry.
Execution Strategy:
Teahouse will immediately begin talks with prestigious native DEXs (e.g. Camelot, Ramses) on the Arbitrum Network to identify the appropriate pools to incentivize and to ask for a matching grant (if available) from the DEXs.
We have not yet decided on the specific pools to incentivize and plan to select the pools right before launch in order to take into consideration the most recent market conditions, available new data, and newly launched liquidity pools. We will prioritize under-capitalized pools based on our analysis of trading activities on the Arbitrum network.
Selection criteria may include:
- Native tokens to Arbitrum (more likely to be undercapitalized)
- Bedrocks of blockchain ($ARB, $WETH, $WBTC, stablecoins…)
- Avoid already-incentivized pairs by other projects & overcapitalized pairs
Grant Timeline:
| Period | $ARB per Period | TOTAL $ARB |
|---|---|---|
| Month 1 | 50,000 | 50,000 |
| Month 2 | 50,000 | 100,000 |
| Month 3 | 50,000 | 150,000 |
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
Is the Protocol Native to Arbitrum?:
No, Teahouse currently supports 5 networks, including Arbitrum.
On what other networks is the protocol deployed?:
Ethereum, Optimism, Polygon, and Boba Network.
What date did you deploy on Arbitrum?:
May 3rd, 2023
Protocol Performance:
As of November 7, 2023, Teahouse manages approximately $4 million in TVL.
On August 15, 2023, Teahouse was listed as the 9th “Top Yield Aggregator” on Arbitrum ranked by TVL. (https://twitter.com/ETH_AllDay/status/1691389321050501120)
On September 21, 2023, Teahouse was ranked 6th in Top Weekly TVL Gainers on Arbitrum. (https://twitter.com/arbinsider/status/1704952518097396210)
Our internal dashboard shows our current TVL in each of our strategies: Grafana
Additional information can be found on DefiLlama (https://defillama.com/protocol/teahouse-finance) or DappRadar (https://dappradar.com/dapp/teahouse-finance/?range-ha=3m&range-ds=24h).
Protocol Roadmap:
For Q4 2023, we have the following plans:
1.Company Main Focus: Uniswap V4 solution
True to our concentrated liquidity provision origins, Teahouse is currently focusing our efforts on implementing the most innovative applications for Uniswap V4. We plan to have this ready as soon as Uniswap V4 launches. If all goes well, we believe that this project will increase our product functionality and AUM exponentially, benefitting our partner projects including Arbitrum.
2 Security Audit & Bug Bounty
As we are planning to launch our TeaVault V3 Portfolio contract, which will be used for at least one of the incentivized pools on Arbitrum, we are currently preparing for an audit to ensure the utmost security. (More details about the TeaVault V3 Portfolio below.) In addition, we will be launching a bug bounty program with Immunefi in December.
3.New High-Yield Strategies.
We are always innovating and improving strategies for our users. In Q4, we plan to launch a “Beta+ long” strategy and a “BTC strategy”.
Products
The relevant product to this grant and the next significant launch on Arbitrum will be our “TeaVault V3 Portfolio” smart contract, which offers the following features:
The newly-launched TeaVault V3 Portfolio offers the following features:
Fungible ERC20 Shares
AAVE aTokens Support
Tokenized Liquidity Position Support (Permissionless Pairs)
Rebalancing with Exchange Rate Protection
Precise Performance Fee Calculation
High Water Mark Performance Fee Mechanism
This cutting-edge portfolio strategy will translate into three key benefits to the Arbitrum Network:
- Diversified Portfolio Strategy – diversifies investment holdings across the Arbitrum Network, promoting resilience and risk management
- Enhanced Liquidity through LP Positions – boosts liquidity within the network, benefiting users and ecosystem participants
- Fair Performance Fee Mechanism with Support for High Water Mark – ensures equitable and reasonable fee terms for users, promoting transparency and fairness
In addition, we are currently working on a Uniswap V4 solution and will add new products and services on Arbitrum after Uniswap V4 officially launches.
Audit History:
Teahouse’ most recent audit can be found here: LINK
SECTION 5: Data and Reporting
Is your team prepared to create Dune Dashboards for your incentive program?:
Yes, we plan to design and create a Dune Dashboard with select KPIs listed in Section 3 above.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
Yes, every two weeks, we will post a one-page summary to document the KPIs, vault metrics (such as APR, LP fees made, & TVL), the amount of $ARB used and amount remaining, and other details we feel appropriate.
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