[OPEN GRANT APPLICATION] GMX <> Enzyme

Grants
1

SECTION 1: APPLICANT INFORMATION

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

Applicant Name or Alias: MementoMori
Project Name: Enzyme I https://enzyme.finance/
Project Description: Enzyme is the leading on-chain asset management protocol accelerating growth for builders and asset managers.
Team Members and Qualifications:
  • Sean Casey - Senior Protocol Engineer: Linkedin
  • Ivan Herger - Senior Software Engineer: Linkedin
  • Pawel Kedzia - Software Engineer: Linkedin
  • Eugene Kostjuk - Software Engineer: Linkedin
  • Ana Tardivo - Product Designer: Linkedin
  • Luca Mossini - Business Development: Linkedin
  • Mona El Isa - Business Development Linkedin
  • Sebastain Lorenz - Staff Engineer: X
  • Gabriel Rocheleau - Software Engineer: Linkedin
  • Daniele D’Ettorre - Business Development: Linkedin
  • Dyfan Williams - Strategy & Finance: Linkedin
  • Ignacio Rodriguez - Operations Project Manager: Linkedin

  • Guillaume Bouchet - Business Development: Linkedin

  • Romina Bungert - Business Development: LInkedin

Project Links:
Contact Information:
  • TG: @ignacio_rsg
  • Twitter: x.com
  • Email: foundation@enzyme.finance
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: 75k ARB
Grant Matching: N/A (may occur on a client by client basis)
Grant Breakdown: 0x1D1454D2016Cf6cCdE3687159a0d202e91825d60
  • Audit costs for GMX adapter (integration of GMX into Enzyme)
  • User incentives for specific DeFi strategies using GMX
Funding Address: N/A

Funding Address Characteristics: Multisig 3/7
Distribution Contract Address: N/A until later date
Incentivized Contract Addresses: N/A until later date

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:

We want to be able to conduct a smart contract integration between GMX and Enzyme and have it audited by Chain Security. We will then pick one vault which we think has the highest chance of success to support with GMX incentives. This vault will have to have a strategy which uses GMX actively and comes to Enzyme to build the automation of the strategy for them.

More broadly, the GMX integration with Enzyme will:
  • Enable vault managers to build strategies and vaults on-chain incorporating perps/derivatives and easily showcase their NAV/track record in real time and historically.
  • Provide managers with a suite of customizable automation tools & services to make the building and launch of new product and strategies easier
  • New vault/products on Enzyme will help onboard a different target user for GMX, i.e people who don’t want to bother with actively managing complex on-chain transactions and strategies but are happy to passively invest in vaults that show a successful track record.

Key Performance Indicators (KPIs):

  • A vault on Enzyme which achieves a TVL of > $5m
  • This vault should trade more than $5m worth of perps on GMX before Septemenber 2nd
  • More than 100 depositors in the vault
How will receiving a grant enable you to foster growth or innovation within the GMX ecosystem?

It will cover the cost of the audit and enable us to generate some excitement and awareness (via incentives) around what GMX <> Enzyme can do. We will aim to pick an exciting product and invest in some PR around the product launch.

Justification for the size of the grant

Enzyme will cover the cost of development but this grant will help us with the cost of the audit. The rest of the grant can be used to drum up some excitement and ensure the first product we launch on Arbitrum which uses GMX and Enzyme is a success which everyone is talking about.

Execution Strategy

The user incentives will be directed onto one or more products that can be built using GMX. Examples of that could be delta neutral strategies or directional leveraged strategies.

Grant Timeline

Milestone 1: 25K ARB upon GMX audit completion and going live with announcement

Milestone 2: 25K ARB upon hitting $2m in TVL on Enzyme with GMX

Milestone 3: 25K ARB payment upon hitting $5m in TVL

Fund Streaming

Since the rewards will be used to incentivize a vault, we prefer no streaming methods to be used in this instance. Incentives will be allocated to vault depositors and become claimable at the end of the incentivization period.

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 - coming soon.

Protocol Performance:
  • Enzyme has been on chain for more than 5 years
  • Around $225m in TVL in on-chain asset management across Ethereum and Polygon
  • 7 subgraphs (i.e. onchain APIs) running data on Enzyme, historical performance can be viewed here: Enzyme
  • Working with high profile projects including Nexus Mutual, Diva, Swell and many more in the pipeline.
Protocol Roadmap:
  • Deployment of Enzyme to Arbitrum (June 2024)

  • Integration of GMX to Enzyme (July 2024)

  • Audit (July 2024)

  • UI work (July 2024)

  • Launch & Announcement (July/August 2024)

  • Launch of products with other partners (August 2024)

Audit History (if any)

Audit report can be found here: protocol/audits at dev · enzymefinance/protocol · GitHub

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?

We can build the equivalent of our Ethereum and Polygon dashboard out for our Arbitrum deployment which will track activity on GMX via Enzyme.
Also, from a user perspective, the vault’s UI comes with a “Rewards” tab that shows the amount of incentives accrued by the single depositor and gives indications on how to claim them eventually (unless they are airdropped directly).

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

Yes

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
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Hey @d.enz, Thanks for submitting your grant application.

1 Like
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Hey @d.enz, I have a question how do these vaults work?

1 Like
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Enzyme would allow to vault managers to open leveraged positions using GMX, the size and leverage amount depends by the vault manager strategy.

Everyone can create a vault on Enzyme and manage funds using the integrated tools, here’s a list of currently integrated protocols.

https://app.enzyme.finance/discover/integrations

5

How do we avoid users losing funds if some traders mismanages the trades in the event of volatility?

6

Most of the times the vault manager provides a description of the strategy he’s going to use.
The strategy could even be to open a X4 long vault on ETH and keep the vault going, indeed we’re working on a delta neutral leveraged vault where depositors can deposit without worring about borrowing fees

7

Milestones update:

Milestone 1: 20K ARB upon GMX audit completion and going live with the announcement.
Milestone 2: 15K ARB upon hitting $1m in TVL on Enzyme with GMX.
Milestone 3: 15K ARB payment upon hitting $3m in TVL.