[OPEN GRANT APPLICATION] Funding Rate Arbitrage Bot

SECTION 1: APPLICANT INFORMATION

Provide personal or organizational details, including applicant name, contact information, and any associated organization. This information ensures proper identification and communication throughout the grant process.

Applicant Name or Alias:

50shadesofgwei (AKA: 50)

Project Name:

Funding Rate Arbitrage Bot

Project Description:

An open-source searcher bot that can detect and profitably execute upon differences in funding rates across CEX/DEX perps platforms in a delta-neutral manner.

Team Members and Qualifications:

Lead Engineer - 50

Project Links:

Contact Information:

TG: @JonathanFeasby
Twitter: x.com
Email: jonofeasby4@gmail.com

SECTION 2: GRANT INFORMATION

Detail the requested grant size, provide an overview of the budget breakdown, specify the funding and contract addresses, and describe any matching funds if relevant.

Requested Grant Size: 50,000 $ARB
Grant Matching:

N/A

Grant Breakdown:

Funding for one full-time engineer to integrate GMX into the searcher architecture + provide full documentation, and to create and be present in a dedicated telegram channel for interested parties. Included in this grant is the promise of maintenance regarding new protocol upgrades including new markets, new chain integrations, and smart contract upgrades.

Funding Address:

arb1:0x66c1b1990AEcc1dd5a857D715309e1628eD31520
Funding Address Characteristics: 2/3 Multisig

Distribution Contract Address:

N/A

Incentivized Contract Addresses:

N/A

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Clearly outline the primary objectives of the project and the Key Performance Indicators (KPIs) used to measure success. This helps reviewers understand what the project aims to achieve and how progress will be assessed.

Objectives:

The existing repository will be adapted to include a feature-complete integration with the GMX protocol, including all read-write functionality present for the currently integrated exchanges. This will create a mechanism by which GMX users or the GMX protocol itself can combat the value leaked via funding rate payments to external market makers, and provides an entry point for beginner/intermediate traders and engineers who are interested in exploring some of the more advanced trading strategies that are possible on decentralized perps platforms.

Key Performance Indicators (KPIs):

The primary KPIs for this initiative once development is complete will all surround levels of usage of the bot. Some key indicators of usage will be cumulative USD volume, the number of unique addresses having placed trades via the bot, and the levels of community activity on the repository, including but not limited to the following factors:

  • Forks, Stars, # Watching
  • Amount of people engaging in the dedicated telegram chat, and in the GMX discord
  • Amount of unique users with the project tracking code (if the SDK provides this functionality)

In terms of technical KPIs, the key factors to look for to gauge project success are:

  • Edge cases should be accounted for in all modules involving GMX interactions, including handling tx failure, API/data errors, and accurate position monitoring (liquidation price, Delta calculations, etc)
  • Low-level details to be abstracted away via helper functions with the idea of promoting code readability. Some examples are trade size → size_delta conversions, and all decimal + market selection logic.

We would deem the project to have surpassed expectations if at the end of this round of STIP grants, we see cumulative volume surpass $10m, or if the project codebase is utilized in a new product or feature in the GMX ecosystem.

How will receiving a grant enable you to foster growth or innovation within the GMX ecosystem?:

Having the grant funded will allow the developer to continue working full-time on the bot and focus specifically on GMX specific features, both technical implementations and user-facing additions such as walkthroughs and workshops.

Justification for the size of the grant:

Benchmarked against previous (passed) STIP grants, specifically the Python SDK grant from SniperMonke, as well as standard market rates for decentralized trading systems engineers at companies such as Flashbots and Wintermute.

Execution Strategy:

The GMX technical integration will be considered completed when feature parity is reached with the already completed integrations, namely a trading interface with read/write functionality that takes into account the specific mechanisms of the underlying protocol (funding fees + skew calculations, etc). There will also be upkeep required on future protocol changes and updates, all of which are covered in the grant fee.

Grant Timeline:

Original technical integration estimated at 2/3 weeks, maintenance will be ongoing - can be handled as separate subsequent grants if required.

Fund Streaming: [Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream at their discretion at any time?]

Yes, this is fine

SECTION 4: PROTOCOL DETAILS

Provide details about the protocol requirements relevant to the grant. This information ensures that the applicant is aligned with the technical specifications and commitments of the grant.

What date did you build on GMX?: N/A

Protocol Performance:

All key data can be found at https://synthetix.streamlit.app/Base%20Mainnet , under ‘FundingBot’. Once cumulative volume/AUM reaches a certain threshold (say, $5m) having a dedicated tracking and data analytics page can be considered.

Protocol Roadmap:

As outlined above, the first step is the development of the modules for reading market data, parsing it out into opportunities, executing transactions and monitoring the trades once they are live. After this initial sprint is complete, the roadmap moves to its second phase - that of maintenance and community support.

Audit History (if any):

N/A

SECTION 5: Data and Reporting

Provide details on how your team is equipped to provide data and reporting on grant distribution.

Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?:

Yes. All key data points listed in the KPI section and more will be featured in a dedicated Dune dashboard.

Does your team agree to provide bi-weekly program updates on the GMX Forum thread?:

Yes. Reports on github pushes/merges, and parsing out usage numbers into stylised reports will be the primary modes of delivering updates.

Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?:

Yes

1 Like

Hey @zk50.eth, Thank you for submitting the application. The grants committee will soon start reviewing your application.