Enosys Moonriver Ecosystem Grant Proposal

Governance Grant Proposals
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Enosys is a team of developers and academic researchers that run a Suite of diverse products in three main areas of Infrastructure, DeFI, and NFTs. Primarily based in the Flare Networks, we have been building on Songbird for over 2 years now and have fully incorporated Canary Networks into our development funnel. We are looking to expand that outward to new Canary Networks to create the first multichain Canary Network ecosystem.

Our proposal covers launching an indexer, multisig, Concentrated Liquidity CFAMM with native incentives, and a bridge to Moonriver. We would be looking to bring our two communities of Canary Network users together which would encourage the building of Canary cross-chain infrastructure. We would also be looking to bridge assets both to and from Moonriver, including our own established incentives.

Our product suite extends beyond those initial offerings, but this proposal would cover the initial steps needed to connect the Songbird and Moonriver Networks while providing new tools and users to Moonriver, and eventually Moonbeam.

About Enosys

Enosys runs a suite of products from infrastructure to DeFi and NFTs that are all connected to a central fee aggregator, the APY Cloud. These products include:

  • DeFi:
    • Enosys DEX V2: Full range liquidity DEX
    • Enosys DEX V3: Concentrated liquidity DEX
      • Based on the UniV3 architecture.
      • Alternative Fee tokens
      • Novel LP incentive system that rewards active liquidity
    • Enosys Farms
      • LP and single token incentive Farms
      • Simple Staking for single token pool entry
    • Enosys Loans
      • V1 Liquity Fork
      • V2 upgrade in research
    • Enosys Bridge
      • Custom built EVM Bridge solution featuring novel security systems.
      • Our custom two-way XRPL Bridge solution is undergoing final research and development, with expectations to be completed in 2Q 2024.
    • NFTs:
      • Enosys Gallery: NFT Marketplace
        • Free minting
        • Multi-asset order books
        • Auctions
        • ERC-1155 Partial listing fulfillment
      • Clover Protocol
        • Fair NFT distribution protocol
        • Fair compensation for artists with built in reserve.
        • Equal opportunity for collectors.
      • Ermis Protocol
        • Encrypted, on-chain redemption of Physical NFTs.
    • Infrastructure:
      • Skopos: Blockchain Indexing, Analysis, and RPC services for builders and users.
        • Provides charts and history for DEX
      • DeFi Oracles: Songbird & Flare Network Infrastructure Provider
      • Orry: Multi-Signature self custody vaults.
  • We run this system centered on the Canary Network, Songbird, and the Mainnet, Flare. However, we also developed our own Bridge, which allows us to expand the platform to be multi-chain without reliance on third parties.
  • Full product Suite TVL can be found at https://defillama.com/protocol/enosys

On the Social side our audience is as follows:

  • Twitter : 106k followers
  • Telegram : 6k members
  • Discord : 12.5k members

Enosys products usage stats:

  • ~66k unique users per 30-days , ~15.4k unique users per 7-days, ~5k unique Daily users

More information is available on our website: https://enosys.global/

Or check out our product deck here: Enosys Product Deck.pdf - Google Drive

Our Proposal:

Recruiting for Canary Networks is difficult, especially finding teams who intend to continue building long term. We have been building on the Songbird Network since its launch in 2021. Canary Network testing is an integral part of our development funnel and we have a dedicated community of Canary Network users who see the value in the experimental testing nature of Canary Networks.

Our initial offering for Moonriver would consist of 4 main pieces:

  • Launch Oryy, bringing a deterministic deployment of Gnosis Safe to Moonriver which can be used at no cost by users and builders alike.
    • Cost of $40k
    • Estimated 2 weeks from initiation.
  • Launch Skopos, allowing for indexing and analysis of Moonriver transactions and activity.
    • Skopos provides the infrastructure and tools that create a vastly improved User Experience for any product that would make use of real time transaction feeds, on-chain analysis, or blockchain data converted to a readable format.
    • For example this allows for our DEX to have things like charts and transaction histories, while also creating the backbone for additional potential product launches such as Gallery.
      • Cost of $50k
      • Estimated 1 month from initiation
  • Launch our DEX V3 on Moonriver.
    • This is a concentrated liquidity DEX based on the UniV3 architecture, but featuring a novel liquidity incentive mechanism which incentivizes active liquidity without requiring staking.
    • Will feature live charts and transaction history.
      • Cost of $75k
      • Estimated 2 months from initiation
  • Create a bridge between Songbird and Moonriver, successfully connecting the two largest Canary Networks for the first time.
    • We would initially look to bridge MOVR to Songbird, while also bridging SGB, EXFI, and SFIN to Moonriver. SFIN is our primary governance token and would be used to provide some DEX incentives on Moonriver as we do not create new tokens on each network.
    • Future bridge expansions could include bridging f-assets from Songbird to Moonriver (f-xrp, f-btc, f-doge), bridging ETH and USDT directly from Ethereum to Moonriver, and bridging from the XRPL to Moonriver.
      • Cost of $125k
      • Estimated 3 months from initiation

After roadmap completion, which we estimate would be completed in early 3Q2024, we would bridge $300k of SFIN, our primary governance token, to Moonriver to act as initial incentives. This amount would exceed the requested grant amount of $290k.

Proposal Slide Deck can be viewed here: Enosys Proposed Milestones.pdf - Google Drive

Our novel incentive system would allow for multiple incentives to be added to the same LPs, allowing for combined efforts from Enosys, Moonriver and other ecosystem participants to incentivize the same liquidity. Our experience thus far has shown that incentive programs on our Canary platform result in 2-5x TVL gains in relation to incentives provided, depending on perceived asset risk.

However, we believe that the most valuable piece provided by this proposal is the connection between Canary ecosystems. Songbird has a large, active, and vibrant set of Canary ecosystem participants. Fostering engagement between these two networks has the potential for outsized gains for both ecosystems, and perhaps a renewed interest in Canary Networks as a development tool altogether.

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hey, @thanasimos_enosys - thanks for your proposal and welcome to the Moonriver ecosystem!

I have some questions if you don’t mind:

If you don’t receive this grant, do you still plan to apply for a Community Committee Grants?

I believe the ecosystem already has Moonbeam Safe – Welcome - how will Oryy be different, and will we actually need several multisig solutions?

I believe that Subsquid, Subquery, Covalent, the Graph support Moonriver - do we still need another indexer? how will it be different?

Axelar + squidrouter are coming to Moonriver. If possible, could you work with Axelar to bring Songbird assets to Moonriver?

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Thanks for the questions! Happy to answer these and any others that may come up.

We put in an application over a month ago after talking with Aaron and Sicco, but have not heard anything back. At the time, this program was not available. However, this grant program with a focus on liquidity incentives fits in perfectly with our vision for combining Canary ecosystem efforts, as Songbird is about to have a similar initiative in order to promote F-Assets testing. Having both liquidity initiatives happening simultaneously on a multichain Canary ecosystem has the potential to push Canary Networks back into focus. Our DEX V3 incentive system makes this simple to do, as it allows for active liquidity to be incentivized from multiple sources with multiple assets on the same LP without the need for an ALM partner taking a cut.

I’m not 100% sure of the details on the Moonbeam safe deployment, but Oryy is a deterministic deployment of Safe that we use as our multisig solution for all of our contracts, wallets, and bridge validator systems. Oryy already supports Songbird, Flare, XDC, Kava, and Sepolia, and we take it with us wherever we launch products allowing for a seamless multichain experience with a unified front end. We could roll a portion of this cost into the dex and bridge deployment instead, if it was determined that Moonriver did not want to be added to the public facing front end.

However, if Moonbeam Safe is a deterministic deployment that is kept up to date, then we would not necessarily need to deploy Oryy.

Skopos provides modular indexing for any event on the chain simply by adding the event type to our dashboard, without the need for independent validation. This data can then be saved in any form that a dApp or developer would like for aggregation.

In order to get this same functionality from an existing solution like the Graph, we would have to build a custom solution on top of Graph anyway and then refactor our front ends to support that solution to provide data for our dashboards, transaction histories, charts and more. Some other solutions like Subsquid don’t provide the functionality we need at all.

As far as I know, Axelar has no plans to support the Songbird Network. Having our bridge is an essential piece of our ecosystem for two reasons:

  • We do not launch new tokens on new networks and instead Bridge our existing governance/incentive tokens as we expand.
    • This also lets us help boost the initial liquidity incentive program with our own incentives and gives our existing community a familiar pathway to the new ecosystem on Moonriver.
  • We bridge back a share of fees from all of our protocols to a central fee aggregator, the APY Cloud, which forms the core of our ecosystem value proposition.

Relying on a third party for either of those things would present a high risk to our core systems.

Additionally, we would be looking to bridge MOVR to Songbird as an initial way to get the Songbird community interested and active on Moonriver. This would allow MOVR to be paired against trustlessly bridged F-Assets like F-XRP, F-BTC, F-DOGE and more without the need for double bridging, although we could look into bringing those assets to Moonriver as well.

That being said, we know the good folks at Axelar and would be happy to work with them on developing a liquidity strategy. I believe they would be the first to tell you that having more than one version of bridged tokens is not a bad thing, and can actually be beneficial to liquidity on the network by allowing for low risk same-same LPs. Multiple bridges also reduces the single-point of failure risk, especially if they use different architectures (Enosys Bridge Whitepaper).

I also want to note that we see this as the beginning of our relationship with Moonriver. We have other products both available and under development that we would likely seek to deploy on Moonriver as well as Songbird as part of our development funnel. We have been dedicated Canary Network builders for over 2 years, through a bear market, and have no intention of stopping anytime soon. If those products were found to be a good fit for the market and userbase on Moonriver, then we would look to offer them on Moonbeam as well in the future.

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Good day to all,

A couple of things.

First I actually do like this proposal and am in favour of it. My main points of focus that you have addressed well.

  1. Oryy: A free, deterministic deployment of Gnosis Safe multisig.

I use Gnosis myself, the tech is great, cool and has pro crypto values. I do question how many people actually need this on Moonriver. But I still believe it should be available.

2.) DEX V3: A concentrated liquidity DEX derived from UniV3 architecture, enhancing liquidity incentives without the need for staking.

All dexes should be moving in the direction of V3 technology. Whether this is just a uniswap V3 fork or another bespoke solution. Concentrated liquidity is best for users, volume and LPs.

3.) Bridge: A bridge to connect Songbird and Moonriver, facilitating the transfer of several tokens including the governance token SFIN, which will also be used for DEX incentives on Moonriver.

More bridges, more coins, more things to do. Everything i’m in favour of. Great work.

Some minor feedback / questions I have.

Clarity on Incentive Mechanisms: The proposal mentions novel liquidity incentive mechanisms for DEX V3 but does not detail how these incentives differ from traditional staking systems. Can you clarify how these incentives work and how they encourage active liquidity?

Impact Analysis: How do you project the 2-5x TVL gains from your incentive programs? What metrics or historical data support these projections?

All in all, very well played everything here seems reasonable. The price is high, but as you are committing to so much. This seems fair to me.

Kind regards,

TheOyster

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Hey @TheOyster, thanks for the feedback!

Clarity on Incentive Mechanisms:
To provide some clarity on the incentives, we designed a bespoke system that utilizes a calculation similar to how fee share is calculated in UniV3 which effectively works as a supplemental fee system. If a larger percentage of the users liquidity is in the actively traded tick range, they will be earning more fees and will also be earning more incentives. This means that we are constantly incentivizing active liquidity without the need for a partner ALM or defined ranges.

Considering that the volatility risks for LPs in CL CFAMMs is increased due to the concentration, we think this method can help offset some of that increased risk and encourage broader participation. It also provides incentives to broader range LPs, as any position that crosses the active range is having some portion of their liquidity utilized, and therefore would be earning a share of the fees and incentives.

This system also allows for multiple incentive pools to be set up for the same LP, meaning we would be able to run incentives in SFIN, MOVR, and any other incentives provided by projects which may desire deeper liquidity on specific pairs at the same time.

This system is currently entering audit and we will be publicly testing on Flare’s testnet Coston very soon. We will then begin Canary testing on Songbird, but would love to have Moonriver be included in our Canary testing phase. If you or anyone else is interested in participating in our testing process, give us a follow on X for updates.

Impact Analysis:
We have been running a CFAMM on the Songbird Canary Network for over 2.5 years now and have found that our incentive Farms tend to cap out TVL at about 20-50% APY depending on perceived risk which is 2-5x TVL vs the annual value of the incentives. We wouldn’t expect there to be large differences between Canary environments in this regard, but we will definitely be refining our incentive approach as we are able to bring in live test data for the new system.

We pride ourselves on building novel tools and solutions that don’t cut corners or skip steps like Canary testing. It means our costs tend to be higher as we do not run a barebones crew and have significant infrastructure and audit costs. However, once we are on Moonriver, we will be on Moonriver, and we will be looking to expand our offerings here over time as part of our development funnel. Also, we would be bringing some existing value on chain which would help offset the cost to the network through our Canary Network incentive token SFIN.

I hope I covered everything and answered your questions!

Thanks,
Darren (Thanasimos)

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Well played, great response.

I am in support of this, look forward to your launch and will actively use the platform.

AYE from me, enjoy your weekend.

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Hi Enosys team,

I would be interested to hear how you intend to promote these new services to the ecosystem and beyond if you receive the grant and once it is completed.

Also, it would be useful to know about any communications plan during the build so that the community remains informed of your progress.

Thanks!

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Hey Jim,

We keep our users constantly updated through a consistent use of X, Discord, Telegram, and Medium. Generally our Medium and X account are used for larger announcements, or information needing more explanation. But, we are constantly active in Telegram and Discord especially where users are free to interact with the team and ask any questions they may have.

If this proposal were to pass, we would initially be looking for ways to reach out to the current Moonriver community to get them engaged in our testing process leading up to the product launches. Our Songbird/Flare community is very active and engaged already and we would expect a large portion of them to migrate at least some of their Canary ecosystem liquidity over to Moonriver to try things out as well.

I don’t know if you know anything about the Flare ecosystem, but they are about to launch their core non-EVM trustless bridging protocol, f-assets, on Songbird for Canary Network testing so we are expecting an explosion of new activity and want to create a spillover effect with Moonriver to revitalize Canary Networks as a whole.

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Hey @thanasimos_enosys - thanks for the detailed proposal and your interest in the Moonriver community.

I find the canary network angle to be intriguing for sure. What’s more, I appreciate the fact that Enosys is willing to pony up assets to help build liquidity.

However, I find I have a few concerns:

Firstly, I am sure the Enosys team is top notch, however I wonder of the commitment level to the Moonriver network (and the broader Moonriver and Moonbeam community). As you mentioned, your primary deployment is on the Songbird/Flare ecosystems. Thus, when I consider teams that are based in the Moonriver/Moonbeam networks, I expect that we could expect a higher level of commitment than of a team that is branching out to Moonriver.

Secondly and perhaps more importantly - the Moonriver community voted in favour of spending a good deal of MOVR to join the Axelar Amplifier program. The main purpose for the funding for these grants was to leverage the Axelar deployment and build on top of it, deepening liquidity of stablecoins, etc.

A lot of focus in your proposals seems to be on the Enosys bridge and bridging over assets from the Songbird ecosystem which doesn’t seem well aligned with the Axelar Amplifier initiative.

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I understand the concerns you are raising. I can only point again to our track record of consistently building on Canary Networks as part of our development funnel. Obviously we did not get our start on Moonriver/Moonbase, so anything we built here would be considered branching out.

However, we are not interested in building on Moonriver because of the grant, as I know you are aware of since we spoke and Enosys sent in an application months before this current initiative existed. We want Moonriver to be a primary part of our multichain product suite, focused in part on expanding the offerings available on Canary Networks as a whole. Adding Moonriver to our bridge is an essential part of allowing value to flow freely between our supported Networks and allowing our current users to move liquidity to a new environment they may want to try out.

Additionally, our product offerings are not limited to what is contained in this proposal, and should the Moonriver community be supportive and interested in seeing some of our other products be offered here - such as our NFT marketplace, physical NFT redemption protocol, NFT marketing and fair distribution system, or multi-collateral lending protocol, we would certainly be interested in doing so.

I might also challenge that teams that have already built on Moonbeam, but chose not to make use of the Canary offering of Moonriver, do not necessarily represent a higher level of commitment.

Finally, I want to reiterate that there is nothing in our proposal that seeks liquidity incentives for the assets that we might choose to bridge from Songbird. We know the folks at Axelar, and would be happy to have our DEX support and grow their assets should that be what the Foundation decided. The way our native DEX incentives work allows for full freedom in deciding what asset pairs receive incentives and at what level, even supporting multiple incentives for the same LPs.

I know you folks have a big decision to make, but feel free to reach out with any other questions and concerns. I’d be happy to have another call if needed as well.

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