Project name: Jarvis Network
Author name and contact info: Pascal (TG: @Pascal_Tallarida)
L2 recipient address: 0x40bd131fA9933D592344783E38f0c0F27767d9FA
Which Voting Cycle are you applying for? Cycle 11
I confirm that I have read the landing pages for the Builder 1 and Growth Experiment 2 Sub-Committees and that I have determined my proposal is best suited to be reviewed by the Growth Experiments Sub-Committee: YES.
I understand that Growth Experiments grants are subject to a “no sale rule,” as explained in this post, and I have read the terms of the rule: YES
What are you building?
We launched the Synthereum protocol: borrow and exchange liquid non-USD synthetic fiat currencies, called jFIAT (jEUR, jCHF, jBRL, etc.).
Synthereum has three modules that play an equally important role:
Liquidity Pools: allow users to buy/sell jFIATs with/for USDC at the Chainlink price feed without price impact against liquidity providers. Liquidity pools provide jFIATs with liquidity and stability and act as an on-chain Forex spot market.
Wrappers: allow users to buy/sell jFIATs for their fiat-backed equivalent (=DAI’s USDC PSM) at 1:1. Wrappers provide jFIATs with stability and act as an indirect on/off-ramp solution for jFIATs.
Credit Lines: allow users to borrow jFIATs against various collateral, including other jFIATs. Credit Lines provide users with no FX risk loans.
These 3 modules combined offer a vast range of features:
Wrapper + Liquidity Pools: increase fiat-backed stablecoins peg/liquidity by allowing them to tap into jFIAT’s liquidity (XCHF → jCHF → USDC → …)
Wrapper + Liquidity Pools: provide users with the cheapest and most direct fiat on and off-ramp (Euros → EURe → jEUR → USDC → …)
Wrapper + Liquidity Pools: provide users with international transfers by connecting two fiat-backed stablecoins (Euros → EURe → jEUR → USDC → jBRL → BRZ → Real).
Credit Line + Liquidity Pools: allow on-chain leverage (FX long/short, levered LSD, etc.)
Credit Line + Wrapper: allows to borrow an on-chain currency and to cash it out with near 0 fees (ETH → jBRL → BRZ → Real)
It is important to note that the protocol is natively deployed on Optimism (no bridge).
Why do you believe what you are building is going to succeed?
Users need liquid non-USD stablecoins!
We mainly focus on the European market and have started exploring the LATAM one (BRL and MXN). Both regions need better liquid and robust on-chain fiat currencies, direct fiat on and off-ramp to access yield, liquidity, and credit, and the need for liquid and robust non-USD stablecoins to create on-chain financial services.
Our protocol can be used in two ways: user-facing product or liquidity infrastructure.
User-facing product: trading jFIATs (exposure to one currency or holding a currency to buy the dip, leverage) and yield with jFIATs (lending, liquidity provision, leverage). We also have direct fiat on and off-ramp (with Mt Pelerin, from the bank to Optimism, back and forth). We aim to give power users the tools they want to manage their DeFi portfolio with their local currency.
Liquidity infrastructure: we do not aim to be the largest stablecoin! We do think cooperation brings more value to the end users. We are ushering Transfero (BRZ) and Monerium (EURe) to come on Optimism to give Brazilian and European users direct access to the on-chain liquidity. They would leverage our Wrappers + stable pools on secondary markets to do so! Transfero and Monerium can also leverage our protocol to deepen the liquidity and stability of their respective stablecoins, allowing their users to hold them safely. We aim to collaborate with and bring more fiat-backed stablecoins on Optimism and work closely with them to deliver value to the end users.
How many users does your project have currently? Please include how you arrived at this estimate:
While we are deployed on Optimism, we have had 118 users on our primary market and 365 on secondary markets. Our main focus has been on Polygon, with +11k users and 150k swaps.
dune . com/0xroll/jarvisnetwork-polygon
dune . com/0xroll/jarvisnetwork-optimism
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 more significant number of user interactions with Optimism:
To provide value to users, we need to scale our liquidity, both in primary and secondary markets. We use our token for incentives and bribes and are acquiring voting power with the protocol’s revenue. But it is far from being enough.
Receiving a grant in OP will help us attract more liquidity, both for our primary market (the protocol) and for our secondary markets (Velodrome, KyberSwap, etc.) through liquidity mining.
Reward protocols LP with OP and JRT to attract more liquidity, allowing larger swaps.
Reward borrowers with OP and JRT if they maintain their health ratio within a certain range.
Rewards stability pool depositors with OP and JRT (relatively similar to Liquity).
Using OP for bribes or direct incentives to reward secondary market LPs for providing liquidity in WETH-jFIAT and/or OP-jFIATs pools and stable pools with jFIAT (jEUR-sEUR, jEUR-agEUR). We are discussing with Transfero to bring BRZ on Optimism, and Chainlink to launch a BRLUSD and CHFUSD price feed and also to launch jCHF and jBRL pools. We are pushing Monerium to deploy on Optimism too.
Create grants in both JRT and OP to incentivize people building on top of our protocol. For instance, an on-chain FX spot market (we had distributed a grant to stableswap.fi on Polygon) to leverage our protocol Liquidity Pools and Wrappers + secondary markets’ stable pools. Also, vaults for advanced trading and yield strategies using jFIATs, or 1-click fiat on/off-ramp using Monerium and Transfero API.
Tell us about the users you plan to target with this grant. Include any defining characteristics that will help you identify and target them.:
European/Brazilian looking for direct on/off-ramp on Optimsim: on Polygon, we launched an initiative with Mt Pelerin and helped 3000 users to perform 8000 on and off-ramp transactions (amount: $30M) directly on Polygon; we also work with Monerium to do the same on Polygon and Gnosis. We aim to do the same on Optimism and create the best fiat on and off-ramp solution, powered by our on-chain liquidity, for European and Brazilian users. The grant will help us with the on-chain liquidity, allowing these users to transact higher amounts.
Companies holding stablecoins: Mt Pelerin and Monerium allow companies to be onboarded and pay their fiat invoices with stablecoins. Again, we have facilitated +$1M of invoices to be paid using jEUR + Mt Pelerin and Monerium on Polygon, aiming to replicate it on Optimism. The grant will help us with the on-chain liquidity, allowing this audience to use jFIATs/fiat-backed stablecoins for their needs.
LSD token holders: by borrowing jFIATs vs LSD, users can maintain their exposure to the underlying asset and staking rewards while unlocking the liquidity in their desired currency (no FX risk) to cash out or earn additional yield (leverage LSD, borrow to farm, etc.). The grant will help us increase our liquidity, allowing larger transactions and a larger user base.
DeFi power users: trading and yield in multiple currencies.
How would these users interact with Optimism? For how long?
Our protocol is natively deployed on Optimism. No bridges are required. It will be the same for our partners (Monerium and Transfero).
Therefore, all the users mentioned above will interact with our own applications (jarvis.exchange and jarvis.money; soon, we will centralize everything into jarvis.money: swap, borrow, yield, on/off-ramp, bridges).
We plan to be very cautious with the distribution of OP, to have incentives running for as long as possible, and to transition to a more sustainable model for primary and secondary markets LP. Primary markets LPs already earn real yield (+20% APR), but it is not yet the case for secondary market LPs.
For them to keep their liquidity when incentives are getting lower, we would need to allow them to borrow against their LP tokens and launch a liquity-like stability pool where the jFIATs deposited are invested in yield-bearing strategies.
We plan to favor L2 over L1 and side chains due to the UX (instant transactions), so we will still target these users for as long as the chain lives.
Provide us with links to any of the following for the project:
Website: jarvis . network
Discord: can’t add link
Gitlab: gitlab . com /jarvis-network/apps/exchange/mono-repo
Documentation: learn . jarvis . network
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 have a Defillama dashboard: can’t add a link
And dedicated Dune dashboard for OP: dune . com/0xroll/jarvisnetwork-optimism
We also have other networks:
- can’t add a link
Please note that until this week, we had scaling issues for liquidity (only one LP in our protocol), preventing us from growing. We have completed and audited our protocol’s last piece of code to solve this issue, and it will be launched on Optimism soon.
Who are your competitors, and are they on Optimism?:
Angle Protocol, Mimo Labs, and Synthetix. While Mimo and Angle are using a CDP model (and Angle has a similar system to our Liquidity Pools on Ethereum), we could consider them as direct competitors.
However, we have been working with Angle and Mimo for quite a while now. Each network has pools with agEUR and PAR (their respective Euro stablecoin).
For Synthetix, users can convert sUSD for sEUR at the EURUSD chainlink price feed, similar to our users who can convert USDC for jEUR. This provides great synergy: though a jEUR-sEUR stable pool, sUSD → USDC swaps can be routed better than the very own sUSD-USDC pool. So here again, more synergies rather than competing for market shares.
We do not want to outcompete everyone but rather create a more meta-EUR or meta-BRL, meta-CHF, etc. approach because this is how we can grow the non-USD stablecoin ecosystem most safely, and how we can deliver an immense amount of value to the end users.
Please link to code audits (if any):
can’t add a link: audits are in our documentation linked above.
Who are your founders?
Me Pascal Tallarida, I have been active in the Forex for most of my adult life.
What makes your team well-suited to carry out the project described in this proposal?
I have a decent experience in Forex (remittance and trading) and a good network (I have been advocating for DeFi since 2019, I am very active in the French DeFi community, etc.).
Besides working with talented people, I think the most important thing to note is that our team has worked together for a long time. We have been through ups and are still here, committed. We all know what we want to do: to leave a protocol that delivers value (we are the first users of our protocol).
Is this your first Web3 project?
If not, what else have you built? (Share links, Github repository, or any other helpful information.)
What is the size of the grant request?:
How do you justify the size of the grant?
We request the largest amount possible to have the most impact possible: 250K OP would allow us to bootstrap our protocol faster than we have ever done on other networks, and will help us scale more than any other network. It helps us go to the upper league in terms of liquidity and TVL. 250K will allow us to have sufficient flexibility and to do not make compromises ise in the way to bootstrap our protocol (we need to attract liquidity on our primary market and on secondary markets).
We raised a small amount of money compared to our competitors, and most of our tokens have already been distributed to investors (we distributed our tokens before the DeFi summer and the so-called airdrops, fair launch, etc.). This prevented us from growing like other projects with bigger budgets or token supplies.
Roadmap and Distribution Plan
Describe in discrete steps how you will successfully implement your grant plan:
Step 1: liquidity
start bribing the existing jEUR-sEUR, jEUR-agEUR, WETH-jEUR pools on Velodrome to grow liquidity.
launch LSD collateral for our Credit Lines.
deploy our LM contract for the Credit Lines to incentives borrowing.
LP token as collateral to stick liquidity.
deploying our new Vault LP to welcome more liquidity providers in our protocol and incentivize them with OP.
Work with Monerium, Transfero, and Chainlink to bring EURe, BRZ, BRLUSD, and CHFUSD price feed on Optimism.
Step 2: Marketing
Works with Transfero to promote the L2 BRL on-chain ecosystem in Brazilian (fiat on and off-ramp, yield).
Use my network (Youtube channel of 50k people, media, and french crypto YouTubers and influencers), conferences, etc. to promote our L2 EUR ecosystem (fiat on and off-ramp, yield).
Deploy gasless burner wallet for events.
Step 3: network effect and integration
Reach out to money markets, other AMMs on Optimism, and protocols such as DCA protocol, web3 casinos, etc., to further integrate jFIATs and increase their use cases.
How will the OP tokens be distributed? (please include % allocated to different initiatives such as user rewards/marketing/liquidity mining. Please also justify why each of these initiatives aligns 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.
30% for six months of direct incentives for Liquidity providers on our primary market. Liquidity providers in our protocol take the counterparty risk and are the most critical piece of our infrastructure.
30% for six months for bribing and/or direct incentives for liquidity providers on secondary markets. Liquidity providers of the secondary markets drive demand and volume in our primary market. Like our Wrappers, they enable valuable use cases concerning stable pools with a fiat-backed or crypto-backed equivalent stablecoin.
10% for six months of direct incentives for Stability module liquidity providers. The stability module LPs already earn yield from secondary markets (the stability module invests the jFIATs in yield-bearing strategies). Still, the 10% additional incentives will drive most of the liquidity on secondary markets to be locked in the stability module.
10% for six months of direct incentives for borrowers on our primary market. Borrowers take less risk.
5% for six months of direct incentives for veJARVIS holders (lock LP tokens).
15% for grants (without limit in terms of time). We will like to hold a hackathon and publish a list of “ideas for grants” but we do not know when these grants would be delivered.
Over what period will the tokens be distributed for each initiative?:
two years for the liquidity providers on our primary market and secondary markets.
1 year for borrowers on our primary market and contributors to our stability module.
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:
jFIATs/Synthereum reaches 500 addresses by the end of the first three months and 2000 addresses by the end of the first 12 months.
200 users for our fiat on and off-ramp for the first three months and 500 for the first 12 months.
Synthereum TVL on Optimism is on par with the TVL on Polygon (±$3-4M).
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:
$100K of fees generated = $100M of volume in 12 months
$1M of on and off-ramps in 12 months
$5M TVL reached in 12 months.
If the OP tokens are for direct distribution to users, why will incentivized users and liquidity on Optimism remain after incentives dry up?:
When we stopped our LM programs on Polygon, users stayed because of the utility of our fiat on and off-ramps, payment, credit facilities, and the real yield they can get.
By growing the ecosystem on Optimism and delivering value to the end users, they will still use the protocol and provide liquidity after the end of the incentive.
Most importantly, as described earlier, Synthereum is also a liquidity infrastructure for other stablecoins. It also provides value to other projects using jFIATs + stable pools for their own need, ensuring that even without incentives, there will still be usage and users.
Does your project solve a problem for the Optimism ecosystem? If so how?
Addressing a larger audience of non-USD users by providing them with fiat on and off-ramps, credit without FX risks, and access to yield and liquidity from their local currency.
Why will this solution be a source of growth for the Optimism ecosystem?
Similarly to Polygon, where we brought thousands of new users and opportunities, we aim to accomplish the same, with the same dedication.
Users worldwide need non-USD stablecoin ecosystem for their DeFi needs, and we are convinced that DeFi can also be the backend of real-world applications such as remittance.
This could happen on Optimism using our protocol and ecosystem.
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
I understand that I will be expected to following the public grant reporting requirements outlined here: YES