SECTION 1: APPLICANT INFORMATION
Applicant Name:
Krunal Amin
Project Name:
UniDex
Project Description:
UniDex is the everything aggregator in DeFi, allowing users to find efficient routes for their swaps, perp trades, and even other aggregators. Our bottom line is to save as much money and time for users when trading across any network.
Team Members and Qualifications:
Krunal Amin | Developer
Arthur Woytna | Developer
Gor Shipaktsyan | Developer
Vladimir Hovsepyan | Developer
Vinayak | Developer
Syed Ahmed | Growth
Project Links:
Website: https://www.unidex.exchange
Twitter: https://twitter.com/UniDexFinance
Telegram: Telegram: Contact @unidexfinance
Discord: UniDex Community
Mirror: UniDex Exchange
Medium: https://unidexfinance.medium.com
Swap Aggregator: https://app.unidex.exchange
Perp Aggregator: https://leverage.unidex.exchange
Contact Information
TG: Telegram
Twitter: Twitter
Email: krunalamin@unidex.finance
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?: Yes
SECTION 2a: Team and Product Information
Team experience: UniDex has a lot of experience with self-funded grants/incentives, with valuable data presented below on how efficiently they were used. We’ve also received grants to incentivize the usage of the protocol on other chains, most recently on EVMOS, which has nearly increased the growth and impact we’ve had as a perp dex on that network by 20 times. We’ve been shipping products since October 2020, demonstrating our long-term commitment to delivering new updates and products for DeFi.
What novelty or innovation does your product bring to Arbitrum?
UniDex is the 1st perp aggregator on Arbitrum, and in DeFi. Our swap aggregator also taps into the most liquidity sources on arbitrum compared to any other aggregator. It has consistently shown to always get the best rate for users swaps and its modularity allows new aggregators/sources to be added on the fly. Our Perp DEX aggregator is also a DeFi & Arbitrum first. It taps into 6 other Perp DEXs on arbitrum offering the deepest liquidity out of any Perp DEX deployed on arbitrum.
Is your project composable with other projects on Arbitrum? If so, please explain:
UniDex prides itself on its composability. As an aggregator, we’re heavily integrated with projects on Arbitrum especially given we tap into the most number of protocols on Arbitrum for both swaps and Perps.
Do you have any comparable protocols within the Arbitrum ecosystem or other blockchains?
There have been a few swap meta-aggregators that have now launched and new perp aggregators as well. Some of these have received grants from the previous STIP which did turn out greatly for arbitrum because they received that grant. Comparable aggregators include Llamaswap, Kyberswap, 1inch Fusion, Mux protocol, and Rage trade.
How do you measure and think about retention internally? (metrics, target KPIs)
We’ve recently redone our stats page and started tracking new data with the past data still avaliable.
We’re able to show information pulled on chain related to…
- User count
- Daily volume
- Daily margin traded
- Pairs traded
- Source of aggregated trade
- Ranking of aggregated trade (how far off was another souce from being the best route)
- Liquidation data
- Chain dominance
- New users per day
- Traders PnL
All this data can be found on multiple stat sources including our protocols (non aggregated) usage data
Our WIP aggregated dashboard which shows both swap and perp volume
https://unidexswaps.metabaseapp.com/public/dashboard/f0dd81ef-7bc7-47b5-9ac4-281c7cd71bdc?tab=10-swaps
And Defillama which also tracks our volume for both aggregated swaps and perps.
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?: No, UniDex embraces a multichain ecosystem so that we can deliver the best swap rates no matter the chain the user wishes to use.
On what other networks is the protocol deployed?
ETH
ARB
OP
POLYGON
ZKSYNC
ZKEVM
BASE
METIS
BOBA
MANTLE
GNOSIS
FANTOM
BSC
AVAX
What date did you deploy on Arbitrum?
Day 1 when mainnet was opened (August 3rd 2021)
Do you have a native token?: [Yes]
Past Incentivization: We’ve had a white-label partner incentivize usage on the protocol recently with roughly $8,000 of incentives over the past month. This has generated roughly 70M in volume and a 12x increase in TVL from $10k to $120k. This was on the EVMOS network where activity isn’t as high as on a network like Arbitrum.
We’ve also run incentives in the past when we deployed native LPs on Arbitrum alongside aggregation. $10k over 2 weeks generated $87M in processed volume and set an all-time high for the most volume processed in a single day for our protocol.
Have you received a grant from the DAO, Foundation, or any Arbitrum ecosystem-related program? No
Protocol Performance:
UniDex has contributed over +$1,000,000,000 in trading volume across perps and spot markets. There are several dashboards and endpoints to view the data over time such linked below. Outside of general usage numbers, other key achievements include being the first meta-aggregator on Arbitrum, the 1st perp aggregator in DeFI & Arbitrum, and the first limit order platform on Arbitrum.
All this data can be found on multiple stat sources including our protocols (non aggregated) usage data
Our WIP aggregated dashboard which shows both swap and perp volume
https://unidexswaps.metabaseapp.com/public/dashboard/f0dd81ef-7bc7-47b5-9ac4-281c7cd71bdc?tab=10-swaps
And Defillama which also tracks our volume for both aggregated swaps and perps since the deployment.
Protocol Roadmap
- Listing more innovative and exciting pairs
- Integrating more Perp DEXs into our perp aggregator
- Permissionless pool creation to create a uniswap-esque factory system
- Native mobile app for spot and perp aggregation
- Further optimizing the Aggregation path for spot and perps
- Capture off chain liquidity for our intent-based swaps.
- Cross chain routing for aggregated perps
Audit History & Security Vendors: Protocol was listed on immuneFi for multiple years without any issues to date. A larger percentage of user interactions and the protocol itself is just frontend facing with API calls thus our security is the security of other protocols we’ve let the user route into (direct interaction to sources as we do not have any middleman contracts)
Security Incidents: [Has your protocol ever been exploited?] No
SECTION 3: GRANT INFORMATION
Requested Grant Size: 125,000 ARB
Justification for the size of the grant
UniDex has been at the forefront, offering numerous public goods and high-quality services. We’ve provided subgraph hosting services for teams, freely available and public aggregated RPC endpoints, a deeply integrated swap protocol, and we stand as the first and most comprehensive perp aggregator. A substantial portion of the incentives directly promotes the use of other protocols through our aggregator, both for spot and perps. Therefore, we believe our request aligns perfectly with the values and objectives of the program, aiming to bolster growth & usage of the entire ecosystem.
Incentivizing usage of UniDex on Arbitrum helps nearly every protocol on Arbitrum grow, both directly and indirectly. The increased usage that this grant will provide means that liquidity providers for both swaps and perps we tap into will be more heavily utilized, earn more fees, have deeper liquidity, and less known protocols will gain usage that wouldn’t have been accessed otherwise.
Other key points include our existing data when it comes to utilizing incentives specifically on arbitrum.
We have ran directly ran incentive programs with external and internal funding (using no protocol tokens) which resulted in an extremely positive outcome.
We achieved a daily average volume of roughly 8m-9m on while incentives ran on arbitrum and on track for increasing had incentives stayed around (they dipped due to incentives being ran on another network due to an external grant). This led to every dollar spent resulting in roughly 8,200 in volume while there was relatively no presence, liquidity, and social reach like we currently have now (that campaign lasted 2 weeks, $10,000 spent, and only 300k in total liquidity).
So assuming a total grant size of 125k with 27,500 ARB being paid every month puts the total rewards at roughly $50,000 per month. Scaling our already proven incentive campaign of using incentives correctly, we should hit our target goal of 30m volume from past data (which was also when global perp volume was at an all time low)
Grant Breakdown:
82,500 ARB (66%) - Trades routed through UniDex perps
32,670 ARB (33%) - Liquidity provider rewards for Perp LPs
Funding Address: 0x4aa7e6634d67a49d179dbfc6f5353de7a833922e
Funding Address Characteristics: 2/3 Gnosis Safe multisig secured by Hardware wallets and key team members.
Contract Address: 0xD152f549545093347A162Dce210e7293f1452150 | disperse contract deployed on Arbitrum to automate sending tokens to multiple addresses
SECTION 4: GRANT OBJECTIVES, EXECUTION AND MILESTONES
Objectives:
- Increase aggregator adoption across Arbitrum
- Grow our TVL on Arbitrum with liquidity incentives
- Increase our presence on Arbitrum as the place to trade through trading incentives
- Get users on other chains to transact on Arbitrum through our app which provides a 1 stop shop to all of Arbitrum
Execution Strategy
82,500 ARB (66%) - Trades routed through UniDex perps
Trades that are routed to UniDex LPs for perps will have a scoring system for how much is rebated back to the user.
- A base 40% of the traded fee will be rebated to the user in ARB equal to the USD value transacted.
- Traders can earn an additional 10% if the wallet used has traded perps on another chain besides Arbitrum.
- The trader can earn another additional 10% if they’re using a referral code
- If the trader is a returning trader from the week prior, they can earn an additional 20% rebate on fees.
- Lastly, they can get another 20% rebate if the trade routes through UniDex’s native liquidity pools on Arbitrum.
This model incentivizes organic usage and refers organic users to the protocol given they cannot earn a complete rebate unless they’re a returning trader, referring other users to the protocol, referring users to arbitrum, and can’t be using a fresh new wallet to trade.
32,670 (33%) - Liquidity provider rewards
- The goal here is to increase TVL, give more opportunity for collateral swaps, and increase utilization of commonly aggregated pools
- Rewards are distributed automatically, and yield hopping is curbed through the user of minimum deposit times. This encourages longer term pooling and keeps activity healthy.
- Any LP would be eligible for rewards based on the amount deposited.
- We treat the USD deposit value / Total TVL for how much rewards you will be earning
What mechanisms within the incentive design will you implement to incentivize “stickiness” whether it be users, liquidity or some other targeted metric?
As outlined in the execution strategy, users are encouraged to get other traders from other chains onboarded to arbitrum and consistently conduct their regular trading activity on our platform.
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.
The source of truth can be our dashboards or even the sources we tap into’s public data reporting of things like referral data.
We’re looking to…
Increase our TVL from 600k to 20m (33x)
Increase our traded volume from ~1m daily average to ~30m (30x)
Increase our DAU count from 214 to 800 (4x)
The reason why we chose these 3 figures is that we believe these 3 things are the key to successful adoption for a protocol of our size.
Volume = successful activity for poolers all across Arbitrum. An increase in this metric means theres more reason to provide liquidity on the network
TVL = Healthy liquidity for the ecosystem. Increasing our protocols TVL gives another source of liquidity for traders and should solve some chicken or the egg problems with getting that initial activity going.
DAU = Increasing users means we have more users from other chains coming in specifically because of how we have the incentives setup.
Grant Timeline and Milestones:
We plan to immediately utilize the granted ARB for the incentives outlined above. We already have the infrastructure to incentivize users in those categories, so we can get started right away. This means we can begin tracking and monitoring our growth from the grant immediately.
Our overall goal is at least 30m in daily volume and 20m total TVL. We aim to achieve at least 10m in daily volume in the first month, an additional 20m in the second month, and reach our 30m daily volume goal by the third month.
For TVL, we anticipate a lag behind trading volume as the incentive to LP comes from a pool’s volume/activity metric. However, we aim to cross 1m new TVL in the first month, 5m in the second month, and 20m in TVL by the end of the campaign.
The justification for these targets is supported by the recent STIP research done by OpenBlock found here. OpenBlock Labs STIP Efficacy + Sybil Analysis (2/24)
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?
Aggregators are uniquely positioned for grants due to their interaction with the ecosystem. A transaction done on an aggregator benefits not only the protocol itself, but also provides volume and activity from the sources it taps into. UniDex is both a spot and perp aggregator, with most of the grant going towards incentivizing aggregation. We believe that this presents the DAO with a unique opportunity to effectively incentivize all capital-efficient protocols on Arbitrum, not just our LPs. Out of the three other perp aggregators on Arbitrum, we’re the only ones with more than two external integrated sources (six native Arbitrum protocols aggregated and more coming very soon). On top of that, we have 16 liquidity sources to tap into for our swap meta-aggregator, giving us the widest reach for any swaps done on Arbitrum. This means more niche and underutilized hidden gems on Arbitrum are being accessed and unlocked.
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
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? We agree and will comply fully.
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread that reference your OBL dashboard?
We’ve recently built out new tools to track onchain trading activity that stems from our protocol. We can easily provide reporting and updates for all data as we would also be using the data to improve the protocol.
Does your team agree to provide a final closeout report not later than two weeks from the ending date of your program? 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