Thanks for taking the time to read the proposal and providing feedback @jackanorak.
How do orders currently gain yield on OP and Polygon (I saw yearn on your website), and what are likely next steps in yield sources?
On Optimism, we use Aave v3 for the Yield source. On Polygon, we use Aave v2 and Aave v3 rn. We were planning to integrate more protocols such as a yield aggregator. In the initial days, we just want to integrate Safe Protocols but In the future, we plan to integrate a more complex yield strategy keeping in mind the risks attached to it.
(Apologies for the questions below if you have a subgraph – please lmk if you’ve got one)
Yes, we do have a subgraph. You can access it here:
Looks like roughly 2-2.5 limit orders per wallet. Do you have more detailed data on use likelihood? Specifically, the distribution of orders per wallet by size or frequency (which would help to identify churn and power users)? To be clear, what I’m asking for is different than the graphs on your provided dashboard, which look only at aggregate counts.
Yes. We have added a query on the dashboard. Now, you can see the orders per wallet for both Optimism and Polygon. Link to the query: Yolo top wallets (Optimism)
Do you have data on the distribution of length of time limit orders have historically been held for?
Yes, Please check this query: yolo order duration (Optimism)
Any data on usage of stop-losses? Is there a risk of bad slippage or failed execution during large market swings? I’m guessing the risk would be dependent on liquidity so might be an involved answer.
The execution depends entirely on the liquidity of DEXes. So by nature, yes there is a risk of failed execution if prices are moving too frequently. But because of our price & liquidity aggregation feature, we have better chances of matching the best price & liquidity for trades.
Is the below image the most accurate volume chart in Symphony’s history, or is there something more comprehensive (ie is this missing Yolo?)?
This query has not been created by us but the contents seem true with respect to our deployment on Polygon. We have now added the cumulative volume area chart on the dashboard for both Polygon and Optimism. Here is the link to the optimism query: yolo cumulative volume (optimism)
Similarly, is this an accurate graph of DAUs?
Yes. It’s accurate with respect to our deployment on Polygon.
This means that the team would have absolute discretion over how to mete out a third of all rewards. How exactly would you conduct this analysis and make decisions?
We operate on the principles of fairness and integrity, so decisions on token airdrops will be taken on that basis. Through token airdrops, we want to boost sustainable growth and minimize airdrop hunting. We will use the following metrics to analyze and disburse token airdrops -
- Unique wallets interacted with the protocol (OP side) for the most number of days. (Minimum 14 days)
- Has used (for example: Swapped at least $100 worth of crypto) in Symphony AND on another OP native project in the last X days.
As we keep getting more data, we’ll be in a better position to take decisions that would be in the long-term interest of the OP ecosystem and symphony DEX.
Given the rate of roughly 2-3 limit orders done by user to date (again, would like to see a distribution), how much in rebates do you project individual users seeing?
Apart from past usage, we’ll also consider future usage. Each user can possibly get a maximum of 90% gas rebate. There can be a possibility that the gas fee refund allocation is more than the actual gas refunds. In that case, the remaining tokens will be allocated to the user incentives.
How do bug bounties fit in with marketing?
That was an oversight, we intended to put it in the Development & Maintenance category. Thanks for the correction, we’ve edited our answer accordingly.
When you say “incentivize members,” who would you be hiring? Existing community members?
Yes. We’ll provide detailed guidelines for them (How to write an article, what bullet points need to be included). We have a strong community across socials, especially discord. This way we’ll be able to leverage our existing members and new users and allow them to participate and have a chance to contribute on the side. We’ll be able to leverage the economics of a capitalist market and be able to choose the best materials from users’ submissions. And, as a bonus we’ll be left with a lot of valuable article/research resources, since there will be only one winner for an RFI, we can always repurpose the rest.
I do respect the desire not to work with influencers. That said, if you don’t believe in working with KOLs, how do you intend to get eyeballs on the materials you are paying community members to create?
Community-made contents have to support bigger marketing goals. We truly believe that with the right form of content and the right purpose, we can achieve remarkable organic growth.
Incentives to create community-made TikTok videos
TikTok is an undervalued platform to get organic views. As mentioned previously, we can create RFIs like: Create a max. 30 sec TikTok video, explaining why Symphony is a better alternative to 1inch.
Rewards could be distributed based on performance:
- Unique Discord invitation link, so we can measure how a video performs.
Our team has a TikTok crypto influencer from Hungary with 140k followers, who can educate community members on how to make engaging videos and provide them with best practices, host AMAs, etc.
Here’s a bit of an insight into how we plan to do that: Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
Since we don’t believe in the shilling, what’s the best way to get your content seen by others with $0 on ads?
- Reach out to other OP projects in DeFi, looking to receive grants from the OP board (just like us) and ask them to collaborate.
This way, we can share each other’s organic content (tweets, videos, and medium articles made by our community). This approach also favors the OP foundation, since as you mentioned, you prefer seeing OP projects supporting each other. Plus, this way we reduce our chances of failure. It’s less likely for 2 projects to fail than 1.
- Reach our target audience
The worst part of working with crypto influencers is that you can not be sure that your target group will see your message. So why not create an incentive campaign for those users, who are most likely to use our product?
Let’s say our competitors are 1inch and 0x.
A Twitter organic marketing campaign could look like this:
Get rewarded in OP, if you traded at least $X amount in 0x token in the past 30 days AND / OR hold X amount of the (competitor’s token).
Come and create a limit order inside Symphony, and get your OP airdrop now.”
Why do we believe it’s a great marketing strategy?
For users: it’s free money, and rewards can be received in 5 mins.
For Symphony: a chance to present our product to users who actually use services like ours. Of course, there will be a retention rate, but our chances of increasing our DAUs are much higher this way than paying an influencer to share our Twitter post.
That’s because the target group in this case (niche audience) is 100% correct. And if our UX is as good as we stated previously then we’ll have a bunch of new active users.
For OP foundation: More activity on their chain, more adaption. Since it’s a bear market, for now, we don’t see new users’ joining the crypto world, meaning we are stuck with what we already have: DeFi users inside the Web3 ecosystem. The only logical solution is to onboard users from other chains. The previously mentioned use of funds is a perfect way to do that.
Given the roadmap you’ve offered in response to @ScaleWeb3, can you work out which specific features you’d be building with the grant, and over what amount of time?
Here are the features which we are looking to cover under the grant scope.
- Integration of more protocols such as Velodrome, Paraswap on Optimism.
- Order Book UI: Allow takers to fill orders directly from the interface.
Apart from this, the development allocation also includes other costs such as auditing, bug-bounty, and maintenance of the relayer service (operational cost).
What are the anticipated product and adoption effects of these features?
We anticipate that these features will bring additional volume and revenue to Symphony. As we are working on integrating more protocols in Symphony, we will be able to provide the best price for trades. The APY could potentially increase the interest earned by users incentivizing them to use Symphony over other competitors.
There is a demand for different types of orders such as iceberg orders. Once integrated, we can provide swap/iceberg orders which would be beneficial. The iceberg order will be beneficial for large-size orders.
The order book UI will allow users to fill orders directly from the UI. The Coincidence of Wants can reduce the risk of MEV to some extent. So, it could be beneficial for the users and we have already seen that there is a demand for these features.
What sorts of costs do partners incur to integrate your product?
There is no cost as such to integrate Symphony into any platform. If they want to execute transactions themselves then, they have to run a backend relayer service which is good for decentralization but will incur some additional operational costs (eg: AWS instance cost).
How has your development to date been funded?
Initially, it was self-funded and from grants that we received from Aave, Balancer, etc. Then, we raised a small round to fund the development.
My suggestion here is to specify the nature of the wallets and trading volume. I think KPIs here ought to match the kind of growth we’d want to see, so instead of unique wallets: unique existing wallets onboarded onto Optimism (i.e., not new wallets), perhaps even existing wallets that hadn’t yet interacted with Symphony
I totally agree with your point. We will include existing wallets in the KPI.
some # of limit orders per unique existing wallet bridged
Yes, we could keep 2-3 limit orders per wallet as KPI.
there should also be some intermediate KPIs based on marketing, such as engagements or inbound interest
Yes. We could keep these metrics in the marketing KPIs:
- Double average Twitter engagements under tweets.
- Double weekly active communicators on Discord (notice: we didn’t say members since we believe in building a community based on active users and not engagement farming giveaways)
- Community knowledge base with at least 20 articles/guides, made by the community (RFIs). We will use them to gain more Medium followers. Plus, we will repurpose them into SEO-friendly articles, and make a blog section to increase our likelihood of getting seen on Google Search.
- 1,000 TikTok followers, with at least 200k views across all videos.
Please let me know if you have any additional questions, we would love to answer them.