[GF: Phase 1 Proposal] DeFunds.co - Decentralized Finance

Project name: DeFunds.co - Decentralized Finance

Author name and contact info (please provide a reliable point of contact for the project): Igor Shepelev


I understand that I will be required to provide additional KYC information to the Optimism Foundation to receive this grant: Yes

I understand that I will be expected to following the public grant reporting requirements outlined here: Yes

L2 recipient address: 0x92978b0d605c5ec59f9dbd9f11b689604f64ca3a

Which Voting Cycle are you applying for?: Cycle 10

Which sub-committee should review your proposal? (Builders Grants, Growth Experiment Grants): Builders Grants

Project description (please explain how your project works): DeFunds will connect investors to the world’s most seasoned and talented cryptocurrency assets managers (in a censorship-resistant and non-custodial way). We connect Investors with experienced managers and provide automated strategies in DeFi. Managers create Funds through the DeFunds factory. Each Fund is its own contract.

Funds operating on each chain are restricted to trading and depositing specific whitelisted assets, along with certain eligible whitelisted protocols. This means each type of Fund may operate a little differently and have different exchanges, protocols, or assets available for managers to utilize. DeFunds will incentivize investors to pool assets with top-performing managers and incentivize managers to earn greater return. We will take BarclayHedge approach to encourage and promote Traders and Asset Managers. https://www.barclayhedge.com/

Website: https://defunds.co

Twitter: https://twitter.com/defunds_co

Discord/Discourse/Community: Telegram: Contact @defunds_co

Other relevant links (including any demos): MVP: QuantHill.defi

Datasheet: DeFunds - Datasheet - 22 Nov.pdf - Google Drive

Additional team member info (please link): Team info: DeFunds - Team Contacts - Google Docs

Please link to any previous projects the team has meaningfully contributed to:


Relevant usage metrics (TVL, transactions, volume, unique addresses, etc. Optimism metrics preferred; please link to public sources such as Dune Analytics, etc.): Project is in MVP and smart contract audit stage

Competitors, peers, or similar projects (please link): Our crypto space Ethereum / Polygon competitors of our MVP:


Future competitors(our Pole Star):

- APEX group. Apex Group - Single Source Financial Solution Provider
- Amicorp https://www.amicorp.com/
- eToro https://www.etoro.com/
- FireBlockshttps://www.fireblocks.com/
- Copper https://copper.co/

**Is/will this project be open sourced?:**In the Future

Optimism native?:Yes

Date of deployment/expected deployment on Optimism: 2/27/2023

What is the problem statement this proposal hopes to solve for the Optimism ecosystem? Many of the most lucrative investment opportunities are only accessible for financial institutions and high-net-worth individuals, which further expands the wealth gap across our communities. Unfortunately, the lion share of the world’s population do not have access to private equity, hedge funds, and the world’s top financial advisors and traders.

Lack of useful tool for assets management in DeFi (transparent, controlled and trusted Manager - Investor system).

- Lack of Manager control
- Manual fees calculation and collection
- Manager has access to Investors funds
- Time-consuming Fund registration
- Expensive funds registration

How does your proposal offer a value proposition solving the above problem?: We can bring a new experience of interaction between Asset Manager and Investor into the Optimism Blockchain, which has been tested for decades and is the standard in classic hedge funds, with the help of smart contracts and blockchain. We managed to take the age-old experience of the classic market and pack the structure and logic of work into DeFunds and Optimism Blockchain.

We plan to bring a new standard for asset management to DeFi. DeFunds goals is to establish transparent and safe interaction between Investor and Manager, non-custodial crypto-investment platform for trading core crypto assets and DeFi tokens.

We are ready to bring new customers to Optimism Blockchain ecosystem. We are ready to share repo and source code with you. Also, our project will bring professional traders and assets managers to Optimism Blockchain.

Why will this solution be a source of growth for the Optimism ecosystem?:We are ready to bring new customers to Optimism Blockchain ecosystem. Also, our project will bring professional traders and assets managers to Optimism Blockchain.

Has your project previously applied for an OP grant?:No

Number of OP tokens requested: 2500

Did the project apply for or receive OP tokens through the Foundation Partner Fund?:No

If OP tokens were requested from the Foundation Partner Fund, what was the amount?: 0

How much will your project match in co-incentives? (not required but recommended, when applicable): TBD

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.): - development team rewards for successful deployment to Optimism Mainnet - 1250 OP
- community / early supporters rewards - 1250 OP

Over what period of time will the tokens be distributed for each initiative? Shorter timelines are preferable to longer timelines. Shorter timelines (on the order of weeks) allow teams to quickly demonstrate achievement of milestones, better facilitating additional grants via subsequent proposals:- development team rewards for successful deployment to Optimism Mainnet - immediately
- community / early supporters rewards - 2 months

Please clearly define the milestones you expect to achieve in order to receive milestone based installments. Please consider how each milestone relates to incentivizing sustainable usage and liquidity on Optimism. Progress towards each milestone must be trackable:- successfully deployed smart contracts set (core DeFunds smart contracts, Aave integration, 1inch integration)

Why will incentivized users and liquidity on Optimism remain after incentives dry up?: Yes

Please provide any additional information that will facilitate accountability (smart contracts addresses relevant to the proposal, relevant organizational wallet addresses, etc.):

FUND_FACTORY: 0x7C9f197f72e46aE389de7bC2F1E2E63dD44de998,
FEEDER: 0x4E1206effe850437D9682Ac39fFE12Bc3c2E7006,
INTERACTION: 0x4A3dFB227881B461a5135EF42360A120bd35DeA5,
FEES: 0x7601DA84e7a35cf9b0AFCB25b7f079cC6e9e2880,
TRADE_BEACON: 0x814C42b37E109677299FCce9eC64C99C0590A62c,

FUND_FACTORY: 0xd6fA633e0A908574f4144D24490479675D20daF9,
FEEDER: 0xd2f1131Abb18f97c32714693FdE38873EEd2c503,
INTERACTION: 0x13651D71F5B4A8f7d342C9680843409D4E9A171e,
FEES: 0xA6dC86134f841F636c1621ac4089aB7560d2c020,
TRADE_BEACON: 0xFb90C222ed074Ab77d58691c716972F4dDf31C50,

Confirm you have read and agree to the Eligibility Restrictions (here): I have read the Eligibility Restrictions and agree to abide by their conditions

1 Like

Hi @lavande

Could you please update our Grant proposal How will the OP tokens be distributed? ? We would like to mention that we are OK with 1 year lockup and that incentives would be granted retroactively for work performed. `

Thanks in advance!



Could you please give me additional permissions so I can keep all the links in original post?
My current permissions has maximum 2 links.


Proposer confirmed: “We would like to mention that we are OK with 1 year lockup and that incentives would be granted retroactively for work performed.” This will be incorporated as part of the application for review.


Hi, @igor! I wanted to bring awareness of a new Milestone Assessment the Grants Council added. It is not mandatory for cycle 10 but you could get a better score on the final review if you implement it.

If you do make a milestone change please let me know by replying to this message.

Thank you for the team effort in this proposal!

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Hey @Gonna.eth , please find below our milestones:

  1. Smart contract audit
    Type: Critical Milestone
    Deadline: 30 April 2023
    Source of Truth: Audit report in our github repo

  2. Onboard 5 funds managers
    Type: Benchmark Milestone
    Deadline: 30 May 2023
    Source of Truth: Fund smartcontracts unique managers QuantHill.defi

  3. Onboard 100 investors
    Type: Critical Milestone
    Deadline: 30 May 2023
    Source of Truth: Optimism blockchain query / DeFunds Graph

  4. Increase Discord/Twitter community - 1000 members
    Type: Benchmark Milestone
    Deadline: 30 April 2023
    Source of Truth: Discord/Twitter statistics

  5. 10k USD AuM
    Type: Benchmark Milestone
    Deadline: 30 March 2023
    Source of Truth: Fund smartcontracts AuM QuantHill.defi , DeFunds graph

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Our project has 2 full time developers. We use BitBucket repo. Please find below screenshots of latest commits.

Also, we have implemented Aave support. With this feature, our Fund manager can deploy a low-risk “Supplying & Earning” strategy on behalf of investors, allowing our funds to use borrowed tokens.

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1 Like

Do you mind adding if a milestone is Critical or Benchmark following the description here: Milestone Assessment


Done, I’ve updated my previous reply with Milestone type.


Why will incentivized users and liquidity on Optimism remain after incentives dry up?: Yes

can you go into further detail?


Hey @lay

Why will incentivized users and liquidity on Optimism remain after incentives dry up?:

Our goal is to provide passive income streams to crypto investors. We’ve been in the cryptocurrency market since 2018, and we’re focused on helping our investors achieve financial freedom through building sustainable passive income streams by grasping opportunities in the crypto economy and DeFi market.

DeFunds connects investors with top digital asset managers so that they can share the profits. DeFunds have the long-term vision of providing users with a stable and profitable passive income source that would help them earn one of the highest yields on major cryptocurrencies such as BTC, ETH, and USDT.

Our sister company stats can be found here: https://quanthill.ae/

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Hi @igor! Can you provide a Telegram handle or other contact method so the Optimism team can get in touch about paying out this grant! Feel free to DM or email lavande@optimism.io

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Quick status update from our side.

  1. We have completed first security audit of our smart contracts.

Milestone Type: Benchmark Milestone
Milestone: Smart contract audit
Source of Truth: Audit - DeFunds

  1. We hired dedicated marketing manager to improve our social media.

https://twitter.com/defunds_co - consider to join our Twitter and Discord.

Milestone Type: Benchmark Milestone
Milestone: Increase Discord/Twitter community - 1000 members
Source of Truth: https://twitter.com/defunds_co - 1858 followers

  1. Our contracts are in Optimism mainnet. Feel free to test our project, join fund or create your own fund.


  1. DeFunds is raising $800k with FasterCapital. By joining the Acceleration program for fundraising support, DeFunds aims to connect with the right funding sources and thrive with FasterCapital’s expertise.

@Gonna.eth FYI

Hey, does this mean all your critical milestones are complete?

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@Gonna.eth not yet, our next goal is to achieve 10k AuM


Hi @igor, I’m from M&M Grants council and currently reviewing your grant milestones. Can you please provide an update on your last critical milestone to achieve 10k AuM? Thanks.

cc. @Juanbug_PGov @mmurthy

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Hey @v3naru_Curia @Juanbug_PGov @mmurthy

Yes, I can confirm we achieved 10k AuM. Sorry for late response.


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Hi @igor , thanks for updating.

Following our evaluation of DeFunds’ progress in relation to the critical milestones set forth at the initiation of the grant:

As per our latest review, we observed that DeFunds has successfully onboarded 22 investors. Unfortunately, this figure is substantially below the target milestone, therefore your grant may be subject to clawback due to not meeting the agreed milestones. Could you please update within end of today us on whether there has been progress in meeting the investor onboarding milestone since our last assessment?

cc. @Juanbug_PGov @mmurthy

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No, we have not reached this target.

Our team continues to hone the security and reliability of our contracts. Yesterday we requested an additional (second) paid audit from the PeckShield team to evaluate the changes that we have made to the code over the past six months. This confirms that we continue to work on the project and the safety of our future clients’ funds.

Can we remove this milestone or change it type to benchmark milestone or any other option?

cc. @Juanbug_PGov @mmurthy