[XY Finance] [FINAL] [STIP - Round 1]

SECTION 1: APPLICANT INFORMATION

Applicant Name:

XY Finance

Project Name:

XY Finance

Project Description:

XY Finance is Cross-Chain Bridge Aggregator with in-house bridge live on 19 EVMs. We have integrated Synapse, cBridge, Circle CCTP, and our own bridge Y Pool to help users transfer any token to any token in the easiest and fastest way

At present, XY Finance has supported 19 chains, including Arbitrum, zkSync, Linea, Polygon zkEVM, Ethereum, Mantle, Optimism, BSC, Polygon, Cronos, Avalanche, and more. We have 70K MAU and been trusted by 100+ onboarded partners, such as Rubic, Rango, Single Finance, SyncSwap, DoveSwap, MantisSwap, Mojitoswap, Hyfen Pay, Nest Wallet, Numbers Protocol, and more.

Team Members and Qualifications:

Below presenting the core members of the XY Finance:

Wilson Huang, Founder
Leo Wu, Ecosystem and Strategic Partnership Manager
Phiz Chang, Tech Lead
Rudolph Hsieh, VP

Project Links:

Website: https://xy.finance/
Bridge Aggregator Dapp: https://app.xy.finance/
Twitter (X): https://twitter.com/xyfinance
Blog: https://blog.xy.finance/
Telegram: Telegram: Contact @xyfinance
Discord: XY Finance
Gitbook: https://docs.xy.finance/products/cross-chain-infrastructure
DefiLlama: https://defillama.com/protocol/xy-finance

Contact Information:

TG: Telegram: Contact @leo0628
Email: contact@xy.finance

Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:

Yes, we do.

SECTION 2: GRANT INFORMATION

Requested Grant Size:

500,000 ARB

Grant Matching:

N/A

Grant Breakdown:

100% of the grant will be used to the following purpose. We aim to bolster user participation and community engagement on Arbitrum through XY Finance and our own bridge called Y Pool by reimbursing bridge fee occurring amid the transfer and migration to Arbitrum.

  • Reduce the net cost for end users to onboard to Arbitrum

End users that utilize XY Finance to migrate their liquidity on other chains or transfer assets on other chains to Arbitrum will get bridge fee rebate, worth 90% of their onboarding fees. It’s extremely straightforward and user-friendly. Each ARB will be used to subsidize each to-Arbitrum transaction and lower threshold of inflowing liquidity into Arbitrum.

By doing so, we are sure that XY Finance can tackle 2 major problems for users:

  • High onboarding cost for user (gas fee + bridge fee)
  • The friction associated with the whole onboarding journey filled with multiple steps

Funding Address:

(GnosisSafeProxy | Address 0x4a4Cb50A1026D5C154eDcD4C3A664cc63a773d50 | Arbiscan)

Funding Address Characteristics:

Address given above is a 2/3 Gnosis Multisignature wallet. The private keys are securely stored.

Distribution Contract Address:

Specific contracts will be deployed before rebate campaign start and will be publicly available. Initially, the funds will be securely kept in XY Finance’s multisig wallet.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Objectives:

Reduce the net cost for end users to onboard to Arbitrum by tackling the following two major problems: High onboarding cost for user (gas fee + bridge fee) and the cumbersome onboarding process.

Key Performance Indicators (KPIs):

500,000 ARB (410,000 USD calculated by $0.82 per ARB) of this grant plan is to incentivize bridging volume of to-Arbitrum routes from competing ecosystems to hit 650,793,650.79 ~ 911,111,111.11 USD, which is calculated by the current industrial bridge fee rate (0.05%~0.07%.)

How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:

The objective of the token distribution is to supercharge our mission of making cross-chain easier and user onboarding Arbitrum. The token distribution eliminates one of the biggest problems hindering user onboarding & protocol to create an accessible & prosperous Arbitrum ecosystem.

By tackling the user onboarding problems, we can further support the Arbitrum user base expansion. We do the first step to attract users and inflow the liquidity. Arbitrum partners will do the second step to keep liquidity, serve newcomers, and convert them to loyal Arbitrum users.

Justification for the size of the grant:

This grant targets the importation of $650~$911 million of liquidity migration to the Arbitrum economy, which can make transfer liquidity into Arbitrum very cheap, which is much less than the average gas cost of competing ecosystems. Rewards target to subsidize 90% of the bridge cost of each to-Arbitrum transfer. This reward is meant to be distributed when the real user transfers the liquidity from the competing ecosystems to Arbitrum. That’s to say, only Arbitrum believers can get the rewards. What’s more, the rewards will continuously subsidize the users to support their liquidity migration until the grants are fully distributed without a specific deadline. At the time of writing, 500,000 ARB is expected to boost the liquidity migration of up to $911 million.

Execution Strategy:

XY Finance will see 100% of the allocated grant distributed as bridging subsidy that will be distributed fully to end users who utilize XY Finance to migrate their liquidity to Arbitrum. A distribution contract will be updated weekly with ARB token rewards, and the allowance for each address. End users can freely claim ARB rewards anytime.

Grant Timeline:

From time of first tranche receipt, estimated timeline:

  • Announcement of rewards program and building awareness: 2 weeks
  • Build, test, deploy rewards contract & UI: 2 weeks
  • Incentive period: it depends on the trading volume and it is first come first served.
  • Prepare report on grant plan results: 4 weeks (requires 30 days’ data post grant)
SECTION 5: 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?:

XY Finance is the cross-chain bridge aggregator and has integrated 19 different EVM compatible blockchains, including Arbitrum.

On what other networks is the protocol deployed?:

Currently XY Finance supports the following chains to allow our users to bridge & swap any assets across all these chains seamlessly:

  • Arbitrum
  • Optimism
  • Ethereum
  • zkSync Era
  • Polygon zkEVM
  • Linea
  • Base
  • BNB
  • Mantle
  • Polygon
  • Avalanche C-Chain
  • Cronos
  • KCC
  • ThunderCore
  • Astar
  • Fantom
  • Moonriver
  • Klaytn
  • Numbers
  • Scroll (Coming Soon!).
What date did you deploy on Arbitrum?:

2022/05/11. XY Finance deployed the bridge aggregator connecting Arbitrum with other 8 chains. (XY Finance Integrates and Supports Arbitrum! | by XY Finance | Medium)

Protocol Performance:

XY Finance is Cross-Chain Bridge Aggregator with in-house bridge live on 19 EVMs. We have integrated Synapse, cBridge, Circle CCTP, and our own bridge Y Pool to help users transfer any token to any token in the easiest and fastest way.

At present, XY Finance has supported 19 chains, including Arbitrum. We have 70K MAU and been trusted by 100+ onboarded partners, such as Rubic, Rango, Single Finance, SyncSwap, DoveSwap, MantisSwap, Mojitoswap, Hyfen Pay, Nest Wallet, Numbers Protocol, and more. Citing DeFillama Top Protocols, XY Finance is the top cross-chain protocol on Cronos, zkSync Era, Klaytn, Astar, Linea, and Polygon zkEVM. What’s more, based on the Orbiter L2 Data, XY Finance is most popular bridge and the 4th popular DeFi project on zkSync Era in terms of 24h active users.

Protocol Roadmap:

XY Finance’s mission is to make users transfer assets as easy as possible. Currently, our high-level goals:

  1. Empower new L1s & L2s, particularly zk-rollups.
  2. Integrate more and more third-party bridges so that we can make sure our users can find the best cross-chain routes. For now, 3rd party bridge candidates include but not limited to Stargate, Hop, Squid, Symbiosis, Across, and more.
  3. Develop more user-facing features inside bridge aggregator to support multichain access.
  4. Expand xAsset Bridge coverage to support 3rd party projects/partners migrating their tokens to strong and energetic ecosystems, including Arbitrum.

For full information, please find that here.

Audit History:

XY Finance has been audited by third parties, such as BlockSec, and been under another round of new audit. For full information, please find that here.

SECTION 6: 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 Spells and/or Dashboards for your incentive program?:

Yes, XY Finance will create a dedicate dashboard to track and report KPIs as part of the usage of incentives from this grant. Meanwhile, we are going to release a public explorer where everyone can track the cross-chain transactions via it.

Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?

Yes. No problem.

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?: [Y/N]:

Yes. Acknowledged.

Hello @Leowu thank you for your application! Your submission meets all requirements to be considered for a snapshot vote.

1 Like

Hello @Leowu ,

Now that your application has been marked eligible, please be advised of the remaining steps in the application process to be completed prior to the Review Period Deadline:

Please complete the following steps required for your application to proceed to Snapshot:

Once you change your proposal title to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness.

Once marked as [Final], your application post will be locked by moderators and you will no longer be able to edit your proposal.

1 Like

@Leowu Here is the updated process for changing your title.

To change your proposal to final, please tag an Arbitrum Foundation Forum Moderator (@ stonecoldpat @ cliffton.eth @ eli_defi) by the Review Period deadline to notify them of your proposal’s readiness to proceed from [Draft] to [Final] status.

Once notified, the Arbitrum Foundation Forum Moderator will adjust your title from [Draft] to [Final] status. Once marked as [FInal], your application post will be locked by moderators and you will no longer be able to edit your proposal.

1 Like

@stonecoldpat , @cliffton.eth , @eli_defi XY Finance is ready to mark the proposal as final. However, I am unable to change the title. Please help to change it. Thank you in advance

Post has been set to FINAL and locked.

1 Like

Thank you for your quick response and help.

1 Like

Michigan Blockchain supports this proposal with the requested amount being justified given the sustainable benefits to the Arbitrum ecosystem and having conducted an in-depth reviewal process of all submitted STIP proposals. We appreciate XY Finance’s effort in delivering a promising proposal and working with the community throughout the process.

We appreciate for the XY Finance proposal. The project’s main objective as a Cross-Chain Bridge Aggregator is commendable, and its integrations across multiple chains demonstrate a significant achievement. However, we believe that the requested grant size is excessive given the scope of the project. The magnitude of the requested funds raises concerns about the proportional value it brings to the Arbitrum ecosystem.

On behalf of ITU Blockchain, we express our ‘Against’ vote for this proposal due to the excessive grant size requested.