Applicant Name: Gemach DAO
Project Name: Tender Finance
Project Description: The team is developing a native Arbitrum-centric DeFi offering with a decentralize money market/borrowing and lending platform, loan application, index fund, Telegram bot, Telegram token scanner, and a Telegram Crypto Intelligence Bot. Referred to as DeFi legos.
Team Members and Qualifications:
Anhnt (developer) - GitHub - anhntbk08 (Anhnt) · GitHub
Ben J Kanbour (developer) - GitHub - bjkanbour (Ben J Kanbour) · GitHub
Ian Kane (Growth)
Dr. Justin Goldston (Research and Operations)
Tender Finance documentation - https://docs.tender.fi/
Tender Finance GitHub - tender-finance · GitHub
Tender Finance Demo - https://youtu.be/gkJfeIuF3dw?si=QAmZ602RBbdm4nxI
Gemach DeFi Legos - https://gemach.io/
Gemach documentation - Intro to Gemach - Gemach DAO
Dr. Justin Goldston
Email: firstname.lastname@example.org (cc: email@example.com)
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:
SECTION 2: GRANT INFORMATION
Requested Grant Size:
We are requesting 750,000 $ARB tokens from the Short-Term Incentive Program.
- 100% of the grant (750,000 ARB) will be distributed among market participants (suppliers and borrowers on the platform). Each market participant is entitled to the proportion of emissions directed to the different markets they are participating in (USDC or ETH markets) and the percent of the pool they have contributed.
Funding Address Characteristics:
The above address is the DAO’s treasury address which is a 3 of 6 gnosis safe on Arbitrum.
Contract Address: N/A
SECTION 3: GRANT OBJECTIVES AND EXECUTION
We aim to use the funds from the grant to incentivize depositing and borrowing activity in the Money Markets and the participation into our borrowing and lending markets.
By providing depositors with more attractive yields and borrowers with cheaper borrow interest rates, we expect these incentives to improve the general available liquidity in the lending markets. This will allow users to deploy their assets more efficiently, but also support Protocols that are facilitating leveraged yield-bearing strategies such as looping with GLP v1 and GLP v2 as well as other strategies included in the future.
Key Performance Indicators (KPIs):
We believe that the main KPIs to measure the success of the grant are:
Total Value Locked (“TVL”):
- Growth in the total deposits on the Protocol
- Growth in the total deposits of yield-bearing assets
- Total number of weekly users
- Number of new users
- How much of the funds are being utilized in the makers. This is an important metric as we want markets to be efficient
- The last metric that is important to measure is the ROI on the emissions paid out per market. This is to ensure efficient distribution of incentives.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
By providing an alternative platform for tokenholders to utilize their native application tokens, our goal is to assist applications by:
Enhancing the competitiveness of native yield-bearing assets compared to other ecosystems through leveraged looping of these assets;
Maintaining a larger user base and tokenholder community; and
Easing supply-side pressure on their token, thereby fostering the growth and adoption of their Protocol.
Creating a one stop telegram DeFi bot where users can perform all their regular crypto tasks including borrowing and lending.
With the increased liquidity from these incentives and the interoperability of our markets, we are excited to see other developers building on top of the TND markets and engaging in the aforementioned mechanisms to customize liquidity according to their specific requirements.
Justification for the size of the grant:
The eligibility guidelines posted on the forum categorize Tender Finance, now under Gemach DAO’s operation, as falling within the Sirens Grants category. Since its launch in January 2023, which marks 10 months ago, it has amassed deposits totaling $4.48 million.
Notably, we have consistently maintained our TVL above the threshold for prolonged periods. It’s worth highlighting that we achieved this scale without relying on external funding, and through the merger between Tender Finance and Gemach DAO, we continue to deliver innovative products. Additionally, it’s also worth mentioning that we did not receive the ArbitrumDAO airdrop, underscoring our competitive standing with other protocols for liquidity.
Tender Finance intends to distribute granted funds as follows:
Market participants will receive compensation in $ARB tokens directly for their protocol engagement.
Eligible rewards will be calculated weekly by dividing the total granted $ARB by the number of weeks until the incentive program ends in January 2024.
$ARB tokens will be emitted directly from the comptroller to users, requiring manual claiming through our dashboard.
Weekly $ARB distribution for each user will be determined by their total supply and borrow balances, allocated across different markets.
The Tender Finance team will monitor and report distribution metrics weekly to the public.
We plan to deploy the incentives linearly as soon as the tokens are received. The start date will with the plan to end the emissions on January 31, 2024.
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
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?:
Tender Finance is currently native to Arbitrum.
On what other networks is the protocol deployed?:
Currently Tender Finance is only deployed on Arbitrum and is exploring other potential networks, but nothing has been realized as of yet.
What date did you deploy on Arbitrum?:
Tender Finance deployed on Arbitrum in Jan 2023 making it the longest standing native money market on Arbitrum.
Tender Finance, a pioneering decentralized finance (DeFi) protocol, has continually demonstrated its commitment to fostering financial inclusivity and innovation in the blockchain space. Launched in January 2023, Tender Finance swiftly established itself as a robust and user-friendly lending and borrowing platform. Leveraging cutting-edge technology, Tender Finance has played a pivotal role in reshaping the landscape of borrowing and lending on the Arbitrum network by being the first platform to allow users to lend and borrow $ARB.
Steady Growth: Tender Finance has exhibited remarkable growth since its inception.
Innovative Features: The protocol has introduced innovative features such as leveraged looping, the first 2 in 1 auto-compounding money markets, and a built from scratch open source front end enabling users to enhance the yield of their assets, setting a new standard in DeFi.
User Engagement: The vibrant community surrounding Tender Finance actively participates in governance proposals, demonstrating a high level of engagement and commitment to the protocol’s evolution.
Security Measures: With a focus on security, Tender Finance has undergone rigorous security audits and bug bounties, ensuring the safety of user funds and data.
- Total Value Locked (TVL): Tender Finance has consistently maintained a substantial TVL, showcasing its appeal to users and investors.
- User Activity: The protocol experiences high user activity, evidenced by the frequency of lending, borrowing, and yield farming transactions.
- Liquidity Pools: Tender Finance boasts diverse and deep liquidity pools, enabling a wide range of yield farming strategies.
With the recent merger of Tender Finance and Gemach DAO, this collaboration allows growth within the Arbitrum ecosystem. Below are the integration plans:
Phase 1: Integration of gBot and Telegram Direct Interaction (Q1 2024)
Development of gBot Integration: Tender Finance will focus on seamlessly integrating gBot, a cutting-edge chatbot technology, allowing users to borrow, lend, and manage their assets directly through Telegram. This integration aims to enhance user accessibility and convenience, fostering a frictionless experience within the Telegram environment.
- Current gBot functionality on Ethereum can be found on Telegram at: @Gemach_Bot
User Education and Adoption: The team will initiate comprehensive user education programs, tutorials, and interactive guides to ensure that the community fully understands the capabilities of gBot. This educational effort will be pivotal in driving user adoption and engagement with the new Telegram-based features.
Crypto Alpha Intelligence: The team will also integrate the Gemach AI - Alpha Intelligence tooling onto Arbitrum. This tool is capable of exploring new market trends and executing strategic trades as well as providing users with the most valuable and up-to-date information in the DeFi space. In addition to being a DeFi co-pilot, Gemach AI - Alpha Intelligence can perform various actions such as checking if a URL is a phishing site, checking address and token security information, checking the risk of a dApp by URL, or checking for token approvals of an EOA address and associated risk items.
- Current gBot functionality on Ethereum can be found on Telegram at: @GemachAlphaIntelligenceBot
Phase 2: Integration of GMX v2 for Enhanced Customizability (Q2 2024)
- Implementation of GMX v2: Tender Finance will integrate GMX v2, an advanced version of the protocol, providing users with highly customizable strategies for lending, borrowing, and yield farming. The integration will empower users to tailor their financial strategies based on individual risk tolerance and investment objectives, enhancing the overall flexibility of the platform.
- Partnership Collaborations: Tender Finance will actively collaborate with external DeFi projects and experts to explore innovative use cases and strategies leveraging GMX v2. These partnerships will bring diverse perspectives and expertise, enriching the platform’s offerings and providing users with a wide array of strategic options.
Phase 3: Full Integration into Gemach DAO DeFi Legos (Q3 2024)
- Holistic Integration: Tender Finance will achieve complete integration into the Gemach DAO DeFi Legos ecosystem. This integration will create a seamless synergy between Tender Finance and other Gemach DAO projects, enabling users to leverage a comprehensive suite of decentralized financial services, all under one unified platform.
- Cross-Protocol Collaboration: Collaboration initiatives with other Gemach DAO DeFi Legos projects will be initiated, encouraging cross-protocol partnerships and synergies. These collaborations will foster an environment of innovation, enabling shared resources and expertise to create novel solutions and enhance the overall DeFi experience for users.
Continuous Improvement and Community Engagement:
Throughout each phase of the roadmap, Tender Finance will prioritize continuous improvement, security enhancements, and proactive community engagement. Regular updates, security audits, and feedback-driven optimizations will be conducted to ensure a robust, user-friendly, and secure platform. Community feedback will be actively sought and integrated, aligning the development trajectory with the needs and preferences of Tender Finance users.
Additionally, to amplify the protocol and the community, our project, along with other projects within the Arbitrum ecosystem, will be profiled as use cases in Forbes as Dr. Justin Goldston is a member of the Forbes Technology Council and publishes in Forbes regularly. Please see a recent article where a few protocols and projects where highlighted in a recent article on multi-party computation and account abstraction:
Peckshield and Armors performed audits, and the reports/results can be found below.
SECTION 5: Data and Reporting
Provide details on how your team is equipped to provide data and reporting on grant distribution.
Is your team prepared to create Dune Dashboards for your incentive program?:
We are able to keep track of the data and results of this grant with our Dune Dashboard, we can create a reporting interface in our front end, and store the relevant information in our database and access it via our API.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
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?: