DefiEdge: Ecosystem Grant Draft Proposal

DefiEdge : Proposal for Moonbeam Ecosystem Grants

Author
DangerExploit

Primary Goal
The primary goal of this proposal is to attract more users, new projects, and increase liquidity on the Moonbeam chain by establishing DefiEdge as the ecosystem hub for decentralized, permissionless, and non-custodial multi-chain asset management on concentrated liquidity DEXes.

Project Description
DefiEdge (https://app.defiedge.io) is a decentralized, permissionless, and non-custodial multi-chain multi-dex asset management protocol on concentrated liquidity DEXs.

Requested GLMR Grant Amount
1,500,000 GLMR

Use of Grant
The grant funds will be utilized to support the integration of DefiEdge with DEXs on Moonbeam and implement liquidity management solutions that attract more users, new projects, and increase liquidity on the chain.

Specifically, the grant will cover development costs, marketing and educational initiatives, and community engagement activities to ensure a successful integration and adoption of DefiEdge on Moonbeam.

The grant amount will also be used for incentivising the liquidity that will be onboarded through DefiEdge strategies on different DEXs that we will be integrating on moonbeam chain (Potential Partners: Stellaswap, Beamswap, Upcoming Uniswap V3 Deployment)

Motivation for Grant Amount
Active management ensures that liquidity pools on Moonbeam remain dynamic and optimized, attracting more users, increasing trading volumes, and reducing slippage. By integrating DefiEdge’s permissionless management solutions, projects launching on Moonbeam can efficiently manage their liquidity without relying on centralized entities, fostering trust and decentralization within the ecosystem. Furthermore, DefiEdge’s capital-efficient liquidity rewards distribution mechanism ensures that liquidity providers are incentivized in a fair and sustainable manner, promoting long-term participation and liquidity growth. By supporting this grant, the Moonbeam community can unlock the full potential of active liquidity management, permissionless management, and capital-efficient liquidity rewards distribution, driving the growth and success of the ecosystem.

Updates
No updates at this stage.

Project Overview and Relevant KPIs
DefiEdge is a decentralized, permissionless, and non-custodial multi-chain asset management protocol. Within just five months of its launch, DefiEdge has already achieved significant traction, with over 15M in Total Value Locked (TVL), and volume exceeding $1B, and a community of over 1,600 liquidity providers and 500+ created strategies. DefiEdge’s success on other chains demonstrates its ability to attract users and projects, and we believe that integrating with Moonbeam will further amplify its impact. We have been audited over 6 times and all audit reports can be found here Audits | DefiEdge

Our platform provides active liquidity management solutions, including our innovative Active Liquidity Optimization (ALO) strategies, that are automated strategies that provide returns to POL and makes the pools liquid. By integrating DefiEdge into the Moonbeam ecosystem, we aim to address the liquidity management needs of projects launching on the chain and provide a seamless trading experience for users.

Team Experience
Our team includes experienced people with background in solidity development, quants and security . Our team has successfully developed and deployed liquidity management solutions on multiple chains, and we are well-positioned to deliver a seamless integration and support for Moonbeam’s ecosystem.

Vision of Success
Success for DefiEdge’s integration with Moonbeam means becoming the ecosystem hub for decentralized, permissionless, and non-custodial multi-chain asset management on concentrated liquidity DEXes. Through our collaboration, we aim to attract a significant number of users and new projects to Moonbeam, increase liquidity on the chain, and provide a seamless trading experience. We envision a sustainable and thriving ecosystem where projects leverage DefiEdge’s ALO strategies to generate fees, support their operations, and achieve long-term growth even after the grant period expires. Our goal is to keep the chain and its pools liquid even after the grants ends through our ALO strategies and partnerships that we bring to the chain.

Rationale
One of the key motivations for Moonbeam to support DefiEdge’s Ecosystem Grant is the opportunity to provide protocols on the chain with active management of their liquidity. When projects launch on a new chain, they often face the challenge of managing their liquidity effectively to ensure sufficient trading activity and provide a seamless user experience. By integrating with DefiEdge, Moonbeam can offer a solution that addresses this need and attracts new projects to the ecosystem.

DefiEdge’s ALO (Active Liquidity Optimization) strategies provide an innovative approach to liquidity management. These strategies not only enable blue-chip pairs to generate great returns but also offer a unique way for protocols to leverage their native tokens (POL) to support their operations. By utilizing ALO strategies, projects on Moonbeam can optimize their liquidity, generate fees, and ensure the sustainable growth of their ecosystem.

With the support of the Ecosystem Grant, DefiEdge will collaborate closely with Moonbeam and its partner bridges, such as Socket, to incentivize users to bridge liquidity to Moonbeam. This initiative will result in an influx of liquidity on the chain, benefiting both existing protocols and new projects that choose to integrate with DefiEdge. By actively managing liquidity and offering fee-generating opportunities through ALO strategies, DefiEdge will provide an essential service that enhances the value proposition of Moonbeam for projects and attracts a diverse range of protocols.

By establishing DefiEdge as the ecosystem hub for liquidity management on Moonbeam, the chain will not only become more attractive to existing DeFi projects seeking active liquidity solutions, but it will also become a preferred destination for new projects looking for seamless liquidity management options. This will significantly contribute to the growth, adoption, and long-term sustainability of the Moonbeam ecosystem.

Through our comprehensive marketing efforts, educational initiatives, and collaboration with Moonbeam’s community, we will ensure that the value proposition and benefits of DefiEdge’s liquidity management solutions are effectively communicated and understood by all stakeholders. We are confident that this partnership will drive user engagement, foster the integration of new projects, and establish Moonbeam as a prominent player in the DeFi space.

Together, DefiEdge and Moonbeam can build a vibrant and thriving ecosystem where liquidity flows freely, projects thrive, and users benefit from a seamless and profitable DeFi experience.

Steps to Implement

  1. Deploy DefiEdge on Moonbeam: Adapt and optimize the DefiEdge protocol for seamless integration with Moonbeam.

  2. Integrate Existing DEXs and Partners: Collaborate with already live and upcoming DEXs on Moonbeam to provide liquidity management solutions and expand user access.

  3. Enable Capital-Efficient Liquidity Management and Rewards Distribution: Implement ALO strategies to optimize liquidity pools and distribute rewards efficiently on the blue chip pools.

  4. Facilitate Bridge Integrations: Partner with bridge providers to enable cross-chain liquidity flow to Moonbeam.

  5. Metrics and Reporting: Establish suitable metrics to measure the success of the integration and regularly report progress to the Moonbeam community and stakeholders, demonstrating the value added by DefiEdge to the ecosystem.

By supporting DefiEdge’s integration with Moonbeam through this Ecosystem Grant, we can collectively drive the growth, liquidity, and adoption of the Moonbeam ecosystem, making it a vibrant hub for decentralized asset management and an attractive destination for new projects and liquidity providers.

Updates

  1. Grant Breakdown: Out of the 1.5M GLMR grant, 1.4M GLMR will be utilized for liquidity incentives, while 100,000 GLMR will be allocated for development and deployment on Moonbeam and also support new AMMs
  2. Previous Grant Usage: As DefiEdge, we have not received any grants before.
  3. Timeline for Deployment: We are committed to deploying DefiEdge on Moonbeam by the start of Q3 2023. We have kept the integration straight forward and doesn’t take much time to deploy on any EVM chain.
  4. Success Metrics: As mentioned TVL and user growth is the metric that most protocols and chains use and everyone likes these numbers. We want to make sure that we are managing and getting POL of most of the current and upcoming protocols, with this we will surely achieve significant Total Value Locked (TVL) and user growth on Moonbeam.
  5. Expected TVL and User Growth: With the 1.5M GLMR grant, we are optimistic about attracting at least $2-2.5M in TVL within grant period, more than 100+ strategy managers and 1000+ LPs, these are based on our current stats and result that we noticed after running successful LM campaigns with other chains and protocols
  6. Plan and Updated OKRs: In case of receiving 1M GLMR, we will prioritize the most critical aspects of our development plan and focus on achieving similar goals as mentioned above with rewards being run for shorter duration and in case of 2M GLMR we will make sure that rewards are run for a prolonged period and will result in bringing more TVL that stated above and more rewards will be kept for more initiatives with bridges, protocols and token
  7. Reporting and Updates: We are committed to providing regular updates on the progress of the liquidity incentives program and its impact on TVL and user growth on Moonbeam. Monthly reports will be shared with the Moonbeam community, and we will actively engage with the community through Discord and other channels.
1 Like

hey Danger, Thank You for your proposal!

I’m not sure if you’ve noticed or not, but this is the third proposal we’ve received from ALMs. therefore, I would like to ask you the same questions I asked your competitors. I’m someone who highly appreciates collaboration between projects within the ecosystem, and I sincerely hope that all of you will be able to find opportunities for cooperation and mutual benefit.

  1. I’m curious to know what are the main advantages of your service compared to Gamma and Charm? Could you please elaborate on that?

  2. Could you please elaborate on the criteria and process for selecting the strategically important pools that you will bootstrap with liquidity incentives? how do you determine which pools require liquidity support and contribute to the growth of Moonbeam?

  3. How does DefiEdge handle impermanent loss for liquidity providers within the vaults?

  4. What fees or commissions does DefiEdge charge for its liquidity provision services through the managed vaults? are these fees fixed or variable, and how are they calculated?

  5. How does DefiEdge ensure that the liquidity incentives provided through the managed vaults are distributed fairly among liquidity providers? Is there any mechanism in place to prevent concentration of incentives or favoritism towards certain members?

  6. If the grant amount you receive turns out to be less than 1.5M, how would this impact your plans and strategy moving forward?

  7. Have you considered the possibility of using liquidity incentives for a longer duration, like 9 or 12 months?

Hey @turrizt

Thank you for your questions and the opportunity to elaborate on DefiEdge’s advantages and our approach to liquidity management. We appreciate your focus on collaboration within the ecosystem, and we share the same sentiment.

  1. Advantages of DefiEdge:
  • Comprehensive Multi-Chain Support and proven track record: DefiEdge is already live on multiple chains, offering users the flexibility to access our services across different ecosystems. Within just 5 months of launch, DefiEdge has achieved over 15M in TVL, with active volume exceeding $1B and a growing community of 1600+ liquidity providers and 500+ strategies.

  • Permissionless Liquidity Management: DefiEdge empowers users to actively manage their liquidity without relying on custodial solutions. This opens new avenues for trades and LPs to participate and provide liquidity on Moonbeam. Being permissionless allows protocols to market make their tokens on their own if they want to without worrying about any other costs.

  • Capital-Efficient Automated Strategies: Our ALO strategies not only generate returns for blue-chip pairs but also attract new protocols and their POL, driving further liquidity and growth to Moonbeam.

  • Extensive Integration Experience: DefiEdge has successfully integrated with more than 5 DEXs on different chains, providing us with deep insights into the needs and scalability of DEXs.

  1. Criteria for Selecting Strategically Important Pools:
    DefiEdge uses a data-driven approach to identify strategically important pools that require liquidity support. We make sure that the pools we are considering have major role in shaping the ecosystem, we make sure that that the blue chip and ecosystem pairs are kept in correct ratio to build new ecosystem projects and also keep sustainable liquidity. This ensures that liquidity incentives are allocated to pools that contribute to the growth, activity, and sustainability of Moonbeam.

  2. Handling Impermanent Loss:
    DefiEdge employs various risk management mechanisms to mitigate impermanent loss for liquidity providers within the vaults. Our strategies dynamically adjust positions based on market conditions, optimizing returns while minimizing exposure to potential loss.

  3. Fees and Commissions:
    DefiEdge charges a protocol fees from the fees generated by the strategy managers, it is based in community feedback and considering all the factors.

  4. Fair Distribution of Liquidity Incentives:
    DefiEdge is committed to fair and equitable distribution of liquidity incentives. We have implemented a transparent mechanism to prevent concentration of incentives and favoritism. The allocation of incentives is based on proportional contributions, ensuring that all liquidity providers are rewarded fairly for their participation. Our protocol and strategies are extremely transparent providing al data like depositors, rebalances and fees earned.

  5. Impact of Grant Amount:
    If the received grant amount is less than 1.5M, the phase and liquidity estimation might be changed we’ll rearrange the priorities and make sure the received rewards are well spent in getting the same results we expected from getting the stated amount.

  6. Duration of Liquidity Incentives:
    While our initial proposal suggests a six-month duration for liquidity incentives, we are open to considering longer durations, such as 9 or 12 months. Extending the incentive period can provide sustained support to liquidity providers and foster long-term growth and stability within the Moonbeam ecosystem. It will also depend on the current market conditions and deployment and liquidity onboarding.

We hope this clarifies our approach and the advantages of DefiEdge.

2 Likes

Hello DefiEdge team — thank you for submitting this proposal. I do have some additional questions and comments as listed below:

  1. Please provide a breakdown of the grant, how much of the 1.5M GLMR will be used for development and how much will be used for liquidity incentives?

  2. Have you received grants before? If YES — How did your team use these grants? If available, please provide a link to reports or posts related to those? Also share the results of it.

  3. What is the timeline to deploy DefiEdge on Moonbeam?

  4. Please define what success metrics is relevant for this grant. Normally DeFi protocols choose TVL, user growth and transaction growth, but it’s up to the team.

  5. Provide estimates on how much TVL or user growth (or any other relevant metrics defined in the previous question) you expect to bring to Moonbeam

  6. Please provide plan and updated OKR’s in case of 1M GLMR or 2M GLMR

  7. As the grant program progresses, what kind of reporting and updates can the Moonbeam community expect? How frequently do you plan to share the status of the grant and provide updates on the progress and results of the liquidity incentives program?

Note about metrics/tangible KPIs and the timeline: these answers are mandatory. Even if the metrics are estimates, it’s essential that our community is able to compare your goals against other candidates and define a baseline to measure success of your grant, if received, throughout the time. Please update your proposal with these before July 14th.

UPDATES TO PROPOSAL

Please note that you have until July 14th, 11:59 PM UTC to make changes to your proposal. A list of changes based on community feedback should be added to the “Updates’’ section of the proposal and any changes should be reflected in the text of the proposal itself

1 Like

Hey @thiago.go hoping to answer your questions in the points below

  1. Grant Breakdown: Out of the 1.5M GLMR grant, 1.4M GLMR will be utilized for liquidity incentives, while 100,000 GLMR will be allocated for development and deployment on Moonbeam and also support new AMMs

  2. Previous Grant Usage: As DefiEdge, we have not received any grants before.

  3. Timeline for Deployment: We are committed to deploying DefiEdge on Moonbeam by the start of Q3 2023. We have kept the integration straight forward and doesn’t take much time to deploy on any EVM chain.

  4. Success Metrics: As mentioned TVL and user growth is the metric that most protocols and chains use and everyone likes these numbers. We want to make sure that we are managing and getting POL of most of the current and upcoming protocols, with this we will surely achieve significant Total Value Locked (TVL) and user growth on Moonbeam.

  5. Expected TVL and User Growth: With the 1.5M GLMR grant, we are optimistic about attracting at least $2-2.5M in TVL within grant period, more than 100+ strategy managers and 1000+ LPs, these are based on our current stats and result that we noticed after running successful LM campaigns with other chains and protocols

  6. Plan and Updated OKRs: In case of receiving 1M GLMR, we will prioritize the most critical aspects of our development plan and focus on achieving similar goals as mentioned above with rewards being run for shorter duration and in case of 2M GLMR we will make sure that rewards are run for a prolonged period and will result in bringing more TVL that stated above and more rewards will be kept for more initiatives with bridges, protocols and token

  7. Reporting and Updates: We are committed to providing regular updates on the progress of the liquidity incentives program and its impact on TVL and user growth on Moonbeam. Monthly reports will be shared with the Moonbeam community, and we will actively engage with the community through Discord and other channels.

1 Like

Thank you for your reply. Could you please add these answers to your proposal? You may use the “Updates” section and copy/paste the answers.

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