Author name and contact info (please provide a reliable point of contact for the project.):
0xfast (Discord:0xfast#2306, Twitter:https://twitter.com/0xfast_) & DangerExploit (Discord:#DangerExp#3836, Twitter:https://twitter.com/0x_vd ) & 0xAirboom (https://twitter.com/0xAirboom, Discord: airboom#0400)
L2 recipient address:
Which Voting Cycle are you applying for?:
Season 3 cycle 11
I confirm that I have read the landing pages for the Builders 8 and Growth Experiments 10 Sub-Committees and that I have determined my proposal is best suited to be reviewed by the Growth Experiments Sub-Committee: [Yes/No]:
I understand that Growth Experiments grants are subject to a “no sale rule,” as explained in this post 5, and I have read the terms of the rule: [Yes/No]:
What are you building?:
DefiEdge is an asset management protocol that extends the capabilities of UniswapV3 by offering advanced liquidity management features not available in the native platform. With DefiEdge, users can access multiple price ranges, limit orders, private strategies, and Liquidity Mining (LM) rewards, all in a unified and seamless platform.
However, what distinguishes DefiEdge from other protocols is its Active Liquidity Management (ALM) feature. By enabling protocols to manage their own liquidity, DefiEdge empowers them to provide a wider array of liquidity options to their communities. This can be a potent driver of growth and engagement, as users are more likely to participate in a protocol that offers diverse liquidity options. Moreover, the ability to deploy tokens in public strategies managed by experienced strategy managers can help protocols attract and retain users who lack the time or expertise to manage their own liquidity positions.
DefiEdge unlocks new levels of liquidity and growth for protocols while also offering users an intuitive and seamless liquidity management experience. It is a one-stop solution for protocols seeking to address their liquidity requirements and offers a powerful tool for incentivizing communities and driving growth.
Our numbers speak for themselves with a TVL of more than $5M, a volume of more than $400M and 750+ unique investors on DefiEdge.
Check out the app at:
Why do you believe what you are building is going to succeed?:
DefiEdge is a powerful liquidity management protocol that provides innovative solutions to the challenges faced by liquidity providers in concentrated liquidity AMMs like Uniswap V3. The platform’s advanced features, including multi-range deployment, limit orders, and Protocol-owned Active Liquidity Management, enable liquidity providers to optimize their returns and reduce risk. These features make us a valuable asset for any protocol that requires liquidity management solutions.
Our category-agnostic approach to liquidity management is a significant strength. While the platform was initially designed for concentrated liquidity AMMs like Uniswap V3, the underlying technology and infrastructure can be applied to a broad range of protocols and categories. This means that we are well-positioned to address the liquidity management needs of a vast array of protocols, not just those in the DeFi space. Our total value locked of $5M and more than $400M of volume demonstrate the platform’s effectiveness and appeal.
We have also recently launched the Dune Dashboard, With over 1400 transactions processed on the dashboard since its launch.
Check out our Dune Dashboard at:
How many users does your project have currently? Please include how you arrived at this estimate:
At DefiEdge, we’re committed to transparency and accountability. That’s why we actively track and share important metrics about our platform. Our app allows users to review these metrics in real-time, including our $5M TVL, $400M in volume, and over 350 strategies deployed and more than 750 unique investors. You can find these stats at https://app.defiedge.io/.
In addition to our app, we’ve also developed an Optimism-DefiEdge Dune Dashboard for tracking. With more than 1400 transactions, this dashboard offers a detailed view of our activity on the Optimism chain, giving users even greater insight into our platform’s performance. You can check it out for yourself at https://dune.com/defiedge/defiedge-optimism.
With over 50k followers on Twitter, we’re able to reach a wide audience and keep our users up-to-date on the latest developments at DefiEdge.
How will receiving a grant enable you to further the mission of maximizing the number of users interacting with Optimism? Please include a step-by-step flow of how you imagine this grant can lead to a greater number of user interactions with Optimism:
Receiving a grant will empower us to incentivize users to interact with Optimism via DefiEdge and ALM. We plan to initially attract the web3 community by offering LM Rewards to users who provide liquidity to Optimism-based projects through DefiEdge, thereby attracting fresh liquidity. Our past success with Uniswap OP-LM Launch inspires us to implement a similar plan for OP grants based growth.
Here is a step-by-step process of how we envision this grant leading to a greater number of user interactions with Optimism:
- We will use the grant to offer LM Rewards to users who provide liquidity to Optimism based projects and manage their liquidity on DefiEdge.
- By incentivizing active liquidity providers, we can draw a new community of users to Optimism native projects, leading to increased user interactions with the network.
This will encourage users to engage with Optimism-based projects, thereby further increasing user interactions with the network.
- With a larger user base on Optimism, more developers and projects will be incentivized to build on the network, leading to increased adoption and growth of the ecosystem. We plan to hold trading competitions on DefiEdge for new projects, which will allow the community to directly engage with the projects’ growth and give the protocol’s native community an added incentive to engage more thoroughly with the protocol.
- Ultimately, this grant will enable us to create a virtuous cycle of user incentivization, leading to increased user interactions with Optimism and growth of the ecosystem.
- DefiEdge’s organic and high returns make it a sticky protocol that users love. Here are two examples of successful strategies on Optimism:
Fee APR : 162.76% ; 16.16% profit in 2.5 months
Fee APR : 163.22% ; 9.1% profit in 2.5 months
Tell us about the users you plan to target with this grant. Include any defining characteristics that will help you identify and target them.:
DefiEdge plans to attract and retain two types of users through this grant: retail and institutional users, as well as projects in need of liquidity management. Our goal is to leverage our user-friendly platform and Active Liquidity Management (ALM) solution to provide long-term value to these users, beyond just initial reward incentives.
For retail and institutional users interested in DeFi, DefiEdge provides a seamless and efficient platform for managing liquidity and trading on Uniswap V3 pools. Our partnerships with major DeFi protocols allow us to reach out to potential users and drive adoption, while our focus on a simple and intuitive user interface makes it easier for new users to engage with DeFi. By incentivizing users through LM rewards, we aim to attract an initial user base to the platform. However, our goal is to retain these users through the long-term value proposition offered by DefiEdge’s advanced features and ALM solution.
We have created a Dune query to show the current market analytics of wallets interacting with Ethereum UniswapV3 and the stats for overlapping users on Optimism.
Approximately, 115k wallets have interacted with UniswapV3 Ethereum and only 15k have also interacted with Optimism UniswapV3 as well, there is a huge market potential to capture this user base and bring them to Optimism as well as they are already familiar with liquidity management. In addition we will be helping Optimism based projects with ALM to enhance the experience of existing Optimism users.
How would these users interact with Optimism? For how long?:
We aim to attract users to interact with Optimism through its platform by offering a 6-month long rewards program, including liquidity mining rewards, trading competitions, and content marketing campaigns. This program is designed to incentivize both retail and institutional users to use DefiEdge for liquidity management on Optimism, not only to provide liquidity but also to trade and use other platform features.
The rewards program is expected to attract a large and engaged user base to the platform, building on the success of the initial launch that saw over 1.4k transactions done through DefiEdge for Optimism Liquidity Management. However, users will interact with Optimism through DefiEdge for an extended period due to the platform’s range of benefits beyond the rewards program.
Our easy-to-use interface and seamless deployment of liquidity on UniV3 pools over multiple ranges, set limit orders, swap tokens, and much more in a single strategy make it a compelling solution for liquidity management. Additionally, ALM’s ability to provide active liquidity management ensures that the strategies deployed on the platform remain optimized for the current market conditions, further adding to its stickiness.
Check out some of the excellent strategies on Optimism at DefiEdge App:
Provide us with links to any of the following for the project:
- Technical/Economic Documentation:
Do you have any metrics on the project currently? (TVL, transactions, volume, unique addresses, etc. Optimism metrics preferred; please link to public sources such as Dune Analytics, etc.):
We are committed to transparency and providing our users with real-time metrics on our platform’s performance. Our app, available at https://app.defiedge.io/, displays key performance indicators such as total value locked (TVL), trading volume, and fees generated.
Currently, our platform has over $5M in TVL, with a total trading volume of more than $400M, more than 750 unique investors and over $450k in fees generated. These numbers demonstrate the trust and confidence that our users have in our platform and the value we provide.
In addition to our app metrics, we provide our users with detailed insights into their strategies’ performance through our Dune dashboard. Our Dune dashboard offers a comprehensive view of all our users’ transactions on Optimism, with over 1,400 transactions already processed. This level of transparency and detail ensures that our users can make informed decisions when it comes to liquidity management and trading on our platform.
Who are your competitors, and are they on Optimism?:
Set Protocol & Instadapp. Yes, they are both on Optimism.
Please link to code audits (if any):
Who are your founders?:
Our Core team includes
What makes your team well-suited to carry out the project described in this proposal?
DefiEdge is a unique project built from scratch that is permissionless and non custodian. Our team is composed of highly skilled individuals with years of experience in the DeFi space. The team members are experts in various areas such as crypto, game theory, and mechanism design, and have published research papers in reputable academic journals and conferences. They have a proven track record of building successful projects such as Unbound and have formed partnerships with major protocols such as Chainlink, Zapper, DeBank, and Polygon.
We were among the first projects to go live on UniswapV3 testnet and have been operating seamlessly since then. The team has a deep understanding of smart contract development and has experience in developing secure and complex smart contracts that meet the needs of various DeFi projects. They actively engage with the DeFi community through social media and developer communities, and have contributed to the development of open-source projects.
Moreover, the team has experience in using artificial intelligence (AI) and machine learning (ML) techniques to optimize trading strategies and liquidity management. This expertise allows them to develop innovative solutions for DeFi protocols that are efficient, secure, and user-friendly.
Is this your first Web3 project?:
If not, what else have you built? (Share links, Github repository, or any other useful information.):
Our past successful project details:
Unbound protocol is building a management layer over the existing AMMs by locking up LPT to mint synthetic assets that further reinforces liquidity in AMMs and Defi, unlocking liquidity from existing AMM Liquidity Pools. The initial set of product Unbound has been built to include decentralized, cross-chain stablecoin called UND.
What is the size of the grant request? (250k OP max): 185k OP
How do you justify the size of the grant?:
The size of the grant is justified as it will enable DefiEdge to address the needs of users and protocols in the DeFi space, while also attracting new users to the platform. With the grant, DefiEdge will be able to offer liquidity management services and private position management through its ALM solution to both retail and institutional users.
One great new tool we have developed allows users to seamlessly import their existing UniswapV3 positions onto DefiEdge. We will incentivize this migration going forward, thereby onboarding a lot more TVL and generate new activity on the optimism platform.
DefiEdge has seen remarkable success on Optimism, with over $4.5M TVL and a growing user base of more than 750 unique strategy investors. Since its launch, the platform has attracted a significant number of users who are attracted to its suite of features, including Active Liquidity Management, Limit Orders, and the upcoming Migrate Position feature. One of the keys to DefiEdge’s success has been its highly organic user growth, with users sticking to the platform even after rewards programs have ended.
The platform’s stickiness is due to the benefits that it offers, including effective liquidity management and revenue generation for projects on Optimism.
Roadmap and Distribution Plan
Describe in discrete steps how you will successfully implement your grant plan:
To ensure a clear and successful implementation of the grant plan for DefiEdge, we will follow a series of discrete steps:
LM Rewards: We will distribute LM rewards for 6 months in 3 batches of 2 months. These rewards will incentivize users to interact with DefiEdge and Optimism, which will increase engagement and retention. We will be picking pools to incentivize before each batch and the focus will be on Optimism-Native projects. We will be distributing LM proportional to the TVL.
Trading competitions: In months 2 and 4, we will run trading competitions to increase engagement among protocols on Optimism. This will help them to generate more revenue and attract more users to their platform. For the trading competition, we will be choosing protocol governance token pools, and strategy managers will compete to bring the highest fees and gains. We will be allocating tokens based on the project’s native volume. This will really help to fairly promote optimism-native projects.
Campaign marketing rewards: From month 2 to month 6, we will offer rewards for campaigns that attract new users to Optimism-native protocols. This will encourage projects to develop effective marketing campaigns that will help grow the user base on Optimism.
Monitor and adjust: Throughout the grant period, we will closely monitor user activity and make adjustments as necessary to optimize user engagement and retention.
Evaluate and report: At the end of the grant period, we will evaluate the results of the program against our defined goals and objectives. We will prepare a report detailing the outcomes of the grant plan, including user growth, engagement, and retention.
Note: No rewards will be distributed to the DefiEdge team or the protocol wallet
How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also include a justification as to why each of these initiatives align with the problem statement this proposal is solving. Distribution should not include the sale of any tokens by the grantee or the use of tokens for compensation, protocol expenses, etc. See the no sale rule here 5):
To achieve our grant goals, the OP tokens will be distributed across three initiatives with the LM rewards being the top priority. 80% of the OP tokens will be allocated to the LM rewards program, which will incentivize users to provide liquidity to the Optimism protocol through DefiEdge. This initiative will provide an initial boost to projects and attract more liquidity providers, which will solve the liquidity management problem and promote community growth.
We will allocate 5% of the rewards from LM rewards towards incentivizing users who migrate liquidity from ethereum to Optimism.
This will be capped and TVL based, e.g., we will allocate 5% for the movement of 2M TVL. If TVL moved is less than 2M TVL, we will use residual tokens for pool incentives.
The reason for targeting this is the already familiar nature of wallets with UniswapV3.
The second domain is to enable smooth liquidity management for protocols boosting their communities for which we have already allocated rewards.
The Trading Competition will be the second priority, with 15% of the OP tokens allocated to it. This initiative will incentivize traders to make trades on the Optimism protocol via DefiEdge. It will run for one and a half months during the grant period, and rewards will be distributed to the top traders based on the volume of trades they make. This initiative will encourage users to interact with the platform, explore projects and increase trading volume on Optimism.
The remaining 5% of the OP tokens will be allocated towards a Content Marketing campaign to promote Optimism projects. This initiative aims to bring the spotlight to newer projects and help them get a boosted launch. The campaign will include creating educational content, sponsoring events, and running social media campaigns for projects that get listed on DefiEdge. This will help improve the overall visibility and reputation of the Optimism ecosystem, leading to increased adoption and usage of the platform. The campaign will run for 2 months in sub-parts with a weekly focus on one or two projects onboarded for listing.
To summarize, 80% of the rewards will be allocated to the LM rewards program, 15% to the Trading Competition, and 5% to the Content Marketing campaign. These initiatives aim to attract more liquidity providers, encourage trading, and promote newer projects on the Optimism protocol via DefiEdge. By implementing these initiatives, we aim to increase community growth, boost engagement and adoption, and promote the overall visibility of the Optimism ecosystem.
Over what period of time will the tokens be distributed for each initiative?:
LM rewards: The majority of the tokens will be allocated to LM rewards, which will be distributed over a period of 6 months in 3 batches of 2 months each. This extended period will allow for the sustained growth and retention of users on the Optimism network. We will distribute 50% of these rewards (40% of total) on blue chip token pairs like ETH, OP, wBTC and the remaining 50% to Optimism native tokens like Thales, PERP, SNX etc.
Trading Competition: A smaller percentage of the tokens will be allocated to the Trading Competition, which will run for month 2 and month 4 during the grant period, creating a sense of urgency among traders and leading to increased trading volume on the platform. This will further enhance the liquidity of the protocols, and attract more users to the network.
Content Marketing Campaign: The remaining tokens will be allocated to the Content Marketing Campaign for Optimism projects, which will run for multiple weeks with one new project on focus each week for a period of 2 months. This campaign will create awareness about the benefits of the Optimism network and the protocols built on it, leading to increased adoption and usage of the network. By providing high-quality content that showcases the unique features and advantages of Optimism and DefiEdge, this initiative will attract new users to the platform and improve the overall user experience.
Each initiative has been carefully chosen to align with the problem statement this proposal is solving, which is to maximize the number of users interacting with Optimism. The LM rewards will incentivize users to provide liquidity to the protocols, leading to increased usage and adoption of the network. The Trading Competition will increase trading volume on the platform, which will further enhance the liquidity of the protocols and attract new users to the network. Finally, the Content Marketing Campaign will create awareness about the benefits of the Optimism network, leading to increased adoption and usage of the network.
Please provide benchmark milestones for this project. These milestones should guide the Optimism community on the progress of your project throughout your work on the project. Do not use distribution of the grant itself as a milestone:
We plan to distribute the 185k OP tokens across three different initiatives over a period of time. The biggest priority will be the LM rewards, which will start in the first month and run for a duration of 6 months. The second priority will be the Trading Competition, which will begin in the second month and run for a period of 2 months. The third priority will be the Content Campaign, which will start from the third month and run for a duration of 2 months.
In terms of benchmark milestones, we plan to achieve the following:
- By the end of the first month, we aim to have successfully launched and deployed the LM rewards program, with clear guidelines for participants to follow. With a targeted increase of approximately $3.5M TVL on Optimism at DefiEdge for the first month and a boosted volume of $100M every month.
- By the start of the second month, we aim to have successfully launched and deployed the Trading Competition program, with a clear set of rules and prizes for participants. We will also be reviewing the past month of LM rewards and then restructure our incentivized program to fine-tune.
- By the end of the third month, we aim to successfully launch and deploy the Content Marketing Campaign, with a clear set of guidelines for participants and a strong outreach plan to attract participants to the Optimism native projects.
- By the end of the fourth month, we aim to have attracted a significant number of new users to the Optimism ecosystem through the LM rewards, Trading Competition, and Content Campaign initiatives, with a strong focus on user retention and engagement.
- By the end of the sixth month, we aim to have successfully completed the LM rewards program and achieved our goal of attracting a large user base that remains engaged with the Optimism ecosystem even after the incentives have ended.
We are overall targeting a TVL increase of $3.5M-$4M, $100M volume on Optimism through DefiEdge and supporting as many projects as possible through ALM and content marketing campaign rewards.
Please define critical milestones for this project. Critical milestones are meant to show good-faith efforts to accomplish the project. Non-completion of these milestones could lead to revocation of remaining grant rewards. Do not use distribution of the grant itself as a milestone:
Milestone 1: Launch of LM Rewards Program and Trading Competition (Month 1.5-2)
Launch the LM rewards program and trading competition on the DefiEdge platform for Optimism users.
Monitor and analyze user engagement with the program and competition, making necessary adjustments to optimize results.
Milestone 2: Launch of Content Marketing Campaign for Optimism Projects (Month 3-4)
Develop a comprehensive content marketing plan to promote Optimism projects to a wider audience.
Collaborate with partners in the Optimism ecosystem to produce and promote engaging content such as blog posts, videos, and infographics.
Launch the content marketing campaign and monitor engagement metrics to measure its impact on increasing awareness and adoption of Optimism.
Milestone 3: Analysis and Optimization of Programs (Month 5-6)
Analyze the results of the LM rewards program, trading competition, and content marketing campaign.
Make necessary adjustments and optimizations to improve engagement and retention of users beyond the incentive periods.
Develop a plan for ongoing user acquisition and retention efforts beyond the initial grant period.
If the OP tokens are for direct distribution to users, why will incentivized users and liquidity on Optimism remain after incentives dry up?:
While the distribution of OP tokens through LM rewards, Trading Competition, and Content Marketing campaign is an essential component of our grant plan, we believe that our platform’s ease of use and efficiency can attract and retain users even after the incentives have ended. By making it easier for protocols to manage their liquidity and for users to access those protocols, we will increase the overall user base and activity on the Optimism network.
Our previous success in attracting and retaining users for other protocols is a testament to the effectiveness of our incentivization strategies. Moreover, we have established partnerships with major protocols in the space, which has allowed us to reach a wider audience and contribute to the growth of the DeFi ecosystem. Our existing community of 50k followers and 33k Discord members is a testament to our team’s experience and commitment to community building. We are confident that our team’s experience, combined with the features of DefiEdge and ALM, positions us well to deliver on our grant plan and contribute to the continued success of Optimism.
Please provide any additional information that will facilitate accountability (smart contracts addresses relevant to the proposal, relevant organizational wallet addresses, etc.):
Smart Contracts: https://github.com/unbound-finance/defiedge-core
Does your project solve a problem for the Optimism ecosystem? If so how?:
Optimism’s Layer 2 scaling solution aims to provide fast and cheap transactions while leveraging the security of the Ethereum network. However, attracting and retaining users and projects is crucial for the ecosystem’s success. Our platform and ALM offering will not only provide a much-needed solution for liquidity management but also incentivize users and projects to stay and interact with Optimism. It will make the Optimism ecosystem the center of price discovery and create transactions with arbitrage opportunities. This, in turn, will boost communities for Optimism Native projects and drive growth for the entire ecosystem. Here are the links for some of the most successful strategies on DefiEdge:
Why will this solution be a source of growth for the Optimism ecosystem?:
With more users and projects joining, the network effect will continue to grow, making it increasingly valuable to all participants. Moreover, with our user-friendly platform and efficient solutions make it more likely that users will continue to use the Optimism network even after the incentives have ended, contributing to the long-term sustainability and growth of the ecosystem.
Our success metrics for DefiEdge will be focused on driving user adoption and usage of our platform, as well as increasing the number of projects and users on the Optimism network. We plan to measure our success by monitoring metrics such as the number of active users, the amount of liquidity managed by our platform, and the number of new projects integrated with Optimism through our platform. In addition, we will be tracking user feedback to continually improve our platform and ensure that we are meeting the needs of the community. Ultimately, our goal is to contribute to the long-term success of Optimism by providing a valuable service that helps grow the ecosystem and attract more users and projects to the network.
Is your project Optimism Native?:
I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: [Yes/No]:
I understand that I will be expected to following the public grant reporting requirements outlined here: [Yes/No]: