Provide personal or organizational details, including the applicant’s name, contact information, and the name of any associated organization. This information ensures proper identification and communication throughout the grant process.
Applicant Name or Alias: Juan Diego Oliva
Project Name: Alcancía Labs inc
Project Description: Full fledged and abstracted USDC self-custody wallet for savings, cross-border transactions and on/off-ramp. We made wallets and cryptodollar experience feel like normal fintech.
Team Members and Qualifications:
Juan Diego Oliva CEO: Domain Allocator for Developer Tooling @ Arbitrum, Engineer in Sustainable Development, 6 years experience in crypto.
Guelmy Levit Salcedo CFO: Open Fund Analyst @ Banco de Reservas de la República Dominicana, Bachelors in Finance.
Juan David Torres CTO: Software Engineer @ Microsoft, Software Engineer, 3 years experience in crypto.
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: 10k ARB
Grant Matching: N/A
- 7k ARB for trading competition prices
- 4k 1st place
- 2k 2nd place
- 1k 3rd place
- 3k ARB ad campaign to promote trading competition plus gas incentives to cover for off-ramp
Funding Address: 0x388D7FDac9AA9a44d02431E3DD98F9A223dECcC1
Funding Address Characteristics: Cold Wallet Storage
Distribution Contract Address: N/A
Incentivised Contract Addresses: N/A
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 main objective for this grant is to go after the trader market in LATAM starting in the Dominican Republic and Mexico, then expanding to other latin american countries. Most traders in Latin America use centralized exchanges to execute their trades because of the ease of use and the ability to off ramp their funds into fiat bank accounts. At Alcancía we want to give users the possibility of connecting to the GMX trading platform through Alcancía. The goal of this grant is to do a marketing campaign for GMX to attract the latin market towards decentralized exchanges. In countries like Mexico there is about 30% of the population that uses centralized exchanges and this is the lowest amongst Latin American countries. Brazil, Argentina and Colombia for example all have more than 60% of the population that uses crypto using centralized exchanges for their trades (Cointelegraph). We have received comments and requests from clients stating that they are looking for a way to trade on decentralized applications. Most traders in Latin America are using the likes of Binance to do their trading and the exchange fees tend to be fairly high. Other exchanges in the area charge 5-6% spread when exchanging fiat to stables. Thus, making Alcancía one of the leading exchanges in the Dominican Republic in the last few months charging 2%. While Alcancía has begun taking up market share in the Dominican Republic and Mexico, we believe we can use our platform to reach traders that are looking to move towards decentralized trading.
We plan on doing a trading competition amongst our clients where we will be giving out ARB tokens to the best trader who uses the app for on and off-ramp. They will have to trade on GMX for a period of time (starting January and ending in February), bringing new users to the platform. On the other hand, these users will be able to fund their trading wallets through Alcancía, making it a win-win situation.
Key Performance Indicators (KPIs): The KPIs that we are going to track are the amount of users and transaction volume from Alcancía to wallets trading on GMX. Currently Alcancía has almost 1000 users mainly from the Dominican Republic and starting to get traction in Mexico. Our goal is to double it by February and keep growing from there. We have also realized that most of our clients utilize the application to on/off ramp to USDC and with a volume of over 500k USD a month currently, when adding the trader market we could keep growing exponentially while also promoting the GMX platform as a decentralized alternative to trading, attracting more users to the platform. Our main goal is to reach 1.5M USD in transactional volume and purchases between January and February 2024
How will receiving a grant enable you to foster growth or innovation within the GMX ecosystem?: Alcancía will be bringing in a Latin American market used to trading on centralized exchanges like Binance and Coinbase. Latin American people prefer the use of centralized exchanges. They have the 7th largest crypto economy in the world, receiving 562 billion from July 2021 to June 2022 which makes it an attractive market to pursue for both Alcancía and GMX. From the 562B USD in transaction volume we estimate that about 3-4% is used for trading, generating an addressable market of about 22B USD annually. Given the current market structure where most people in Latin America use CEXs for their trading, using Alcancía, which functions as a bridge between TradFi and DeFi will open the door for users to use decentralized trading platforms like GMX by promoting decentralized exchange trading instead of the centralized that they are used to. More than 30% of the crypto transaction volume in Mexico came from using decentralized applications in web3, moreover in the Dominican Republic the share of transactions relating to DeFi applications was a little under 20%. These numbers indicate that there is a growing market for DeFi applications as crypto adoption increases.
Justification for the size of the grant: The grant allocation will be used for commercial and on-chain operations (fueling the relayer with gas native token for ARB) purposes so that traders can be informed of the possibility to trade in GMX, a decentralized platform while having Alcancía as an on/off ramp, buying and selling stablecoins to fund their wallets for trading.
Execution Strategy: Our execution strategy will be to make a campaign through ads targeting traders in the Dominican Republic and Mexico. This ad campaign will state the prizes available to earn through this trading competition. There will be 4k ARB tokens for first place, 2k ARB tokens for second place and 1k ARB for third place. On the other hand we will be using 3k ARB towards the ad campaign for design, ad spaces and going all-in in our operations so that transactions and integration can be seamless.
Grant Timeline: We will be promoting the trading competition for 2 weeks and after that, another 4 weeks so that traders can compete against each other for the prizes.
Fund Streaming: Yes, we do accept streaming and are already familiar with this kind of infrastructure (previously used Superfluid for payroll operations)
Protocol Performance: CAC of $1.63 USD, Cost per acquisition of ±0.60 USD per registered user, >500k in transactional volume during November, sitting at 944 users where 260 are currently active (depositing bi-weekly). And more than >100k USDC in TVL generating yield in Mountain Protocol RWAs.
Currently funded by previous grant programs such as: Compound Finance, Aave Grants DAO, Celo Community Fund (Prezenti)
and Tier S VCs like: Outlier Ventures and Boost VC.
Protocol Roadmap: Looking to launch a USDC debit card by Q2 2024 so users can spend their stables IRL.
Provide details on how your team is equipped to provide data and reporting on the grant distribution.
Is your team prepared to create Dune Spells and/or Dashboards for your incentive program?: We have a dedicated quant to provide on-chain data about the results and impact of the proposal.
Does your team agree to provide bi-weekly program updates on the GMX Forum thread?: We are more than happy to contribute with the GMX and Arbitrum community for transparency purposes and the continuation of Alcancía’s grant.
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!