[OPEN GRANT APPLICATION] Mozaic AI < > GMX Vault

Grants
17

Hi Saurabh!

First of all, I’d like to extend my gratitude towards the GMX team for reviewing the grants proposal & a decision, irrespective of the outcome.

I would like to add some important context here for a more nuanced discussion (as a community member foremost) :

  • Mozaic Finance was launched on 23rd August, 2023 on Arbitrum with the Hercules Vault (i.e. stablecoin yield vault) being first of many product offerings as a part of the project’s broader roadmap.

  • For broader comparision w peers, Hercules Vault was able to capture $100k USD in stablecoin deposits (which stands at 150k as of this date) within a matter of 3 months WITHOUT any native protocol incentives, as compared to equivalent product offerings for top 5 protocols in the same category (i.e. stablecoin yields).

For reference, Sommelier Finance, a top 5 protocol with a market-mover launch advantage by substantial amount still boasts only ~3M, which represents an extremely small portion of their total TVL capture.

Vault TVL Statistics (Non-exotic stablecoins)
DefiLama (Yield Aggregato/Optimisers)

  • The current TVL numbers are simply reflective of the protocols’ security-first approach that takes vault cap deposits & uninterrupted protocol functioning into active consideration., and it’s a “feature, not a bug” scenario to be precise.

  • Furthermore, the product team is certainly planning to launch Theseus Vault atop GMX v2 by mid December 23’/January 24’ nonetheless & purpose of the grant was simply intended to supercharge existing development efforts via focus on talent acquisition & security.

  • Additionally, the proposal seems to be structured in a way that the protocol DOES NOT seek any ARB incentives (30K ARB) UNTIL it has accomplished a miniumum organic TVL growth threshold of its own (~1M), as a way of showing continued committance towards planned growth objectives for a nascent protocol, as well as mission first being safety.

This, on its own, in my view makes it seem a much more attractive proposition than an excessive, immediate ask of the full $100K ARB amount.

The initial distribution percentages seems to be heavily front-loaded towards development efforts (65-70%, i.e. 70-75k), so I hope that a discusssion channel can still be kept open if there’s room for negotiation on :

  1. Bringing development costs down, AND/OR;

  2. Revised milestone targets,

  3. exploring potential mutual synergies.

Again, thanks for all your input & kindly do share any constructive feedback for the team (if any).

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