[OPEN GRANT APPLICATION] Neutra Finance

Grants
1

SECTION 1: APPLICANT INFORMATION

Alias:

Gery

Project Name:

Neutra Finance

Project Description:

Neutra Finance is a decentralized finance entity committed to delivering risk-hedged investment strategies through automated vaults. Neutra Finance facilitates stable returns even when market conditions fluctuate, concentrating on enhancing returns, efficient rebalancing, and vigilant liquidation risk oversight.

Our vision is for users to earn high returns easily and sustainably, supported by core values emphasizing performance, security, and user experience. By offering high-yield strategies that minimize risks and enhancing fund security, we lower the entry barriers, making sophisticated crypto investments intuitive and accessible for everyone.

Team Members and Qualifications:

  • Uzi: Product Owner/Business Development (Core Member)
  • Narumi: Lead Dev (Core Member)
  • Horizon: Front-end Dev (Core Member)
  • Boochoo: Back-end Dev(Core Member)
  • Gery: Marketer, Community Moderator

Project Links:

Contact Information:

TG: https://t.me/NullxGery
Email: 0xgery@proton.me
Twitter: https://twitter.com/NullxGery

SECTION 2: GRANT INFORMATION

Requested Grant Size:

100,000 $ARB

Grant Breakdown:

1600Ă—900 191 KB

Grant Allocation and Usage:

Allocation Category Amount ($ARB) Description
Mathematical Groundwork and Smart Contract Development 40,000 ARB Developing a robust mathematical model for the GMX V2 Delta Neutral strategy and initial development of smart contract prototypes.
Continued Smart Contract Development and Vault Migration 10,000 ARB Focused on the further refinement of smart contracts and the seamless transition from GMX V1 to GMX V2.
Contract Audit 20,000 ARB A crucial allocation for a thorough security audit of smart contracts, ensuring the highest standards of security and reliability.
Vault Launch and User Incentivization 25,000 ARB Aimed at a successful launch of the vault, with strategies to attract early users through various incentives.
Protocol Fee Subsidization 5,000 ARB Dedicated to subsidizing protocol fees, thus lowering the entry barrier and encouraging broader participation.

Funding Address:

0xe84c4450968f310eAa61d973a4e0d3e4B9512532

Funding Address Characteristics:

Neutra multi-sig address is secured with a 3/5 Multisig, and all hardware wallets are safely stored in various locations. Four of these are held by Neutra Core team, and one by the RoboLabs CEO.

SECTION 3: GRANT OBJECTIVES AND EXECUTION

Neutra Finance is seeking 100,000 $ARB from the GMX Open Grants Program, aimed at facilitating the migration of our GLP Market Neutral strategy from GMX V1 to GMX V2, thereby advancing our technology.

Objectives #1: Pre-Development

This phase focuses on the groundwork necessary for a successful transition to GMX V2. It involves the creation of a robust mathematical model and the preliminary development of smart contracts, setting the foundation for the subsequent development phase.

KPIs:

  • Completion of an in-depth mathematical model for the GMX V2 Delta Neutral strategy.
  • Initial development and testing of smart contract prototypes.
  • Development of a detailed migration plan from GMX V1 to V2.

Objective #2: Development

This stage is centered on the completion and refinement of smart contracts, ensuring their readiness for deployment. It also includes the critical task of migrating the vault, which requires careful planning and execution to ensure user trust and platform stability.

KPIs:

  • Smart contracts for GMX V2 finalized and deployed.
  • Smooth and user-friendly migration of the vault from GMX V1 to V2.
  • Security audit completed with all identified issues resolved.

Objective #3: Launching

The final stage involves the official launch of the GMX V2 Delta Neutral vault. This phase is crucial for establishing market presence and includes strategies to attract and incentivize new users, as well as measures to subsidize protocol fees to encourage active participation.

KPIs:

  • Successful launch of the GMX V2 Delta Neutral vault with positive user feedback.
  • Target TVL achieved within the first quarter post-launch.
  • Effective incentivization program leading to a significant increase in user base.
  • Implementation of protocol fee subsidization resulting in higher transaction volumes and user engagement.

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

Receiving this grant will be a pivotal step in enabling Neutra to drive innovation and foster significant growth within the GMX V2 ecosystem. As a Project that has not received funding from venture capital or previous grants, this support is crucial for us.

Focusing on the Delta Neutral landscape, our strategy aims to assist DeFi users in acquiring GLP shares while minimizing market volatility. By employing a hedged position — using GMX to purchase GLP for long positions and simultaneously creating short positions — we achieve delta neutrality. This approach is beneficial not just for users in terms of risk management, but also contributes substantially to the GMX ecosystem by enhancing perpetual swap fees and increasing Total Value Locked (TVL).

Therefore, the grant would not only propel Neutra Finance forward but also bring tangible growth and innovation to the GMX community.

Justification for the size of the grant:

In our journey since the inception of Neutra Finance, we have been committed to building innovative solutions on DeFi. GLP Delta Neutral as our first Delta Neutral Strategy, launched on December 22, 2022, stands as a testament to our capacity and expertise in this field. The performance of nGLP vault has been competitive, even when juxtaposed with other delta-neutral projects, reinforcing our case for the 100,000 ARB grant.

This funding is pivotal for the development of our GMX V2 Market Neutral strategy, ensuring we maintain our competitive edge. Notably, Neutra Finance has reached its current position without any venture capital or grant funding, which, while demonstrating our resilience and capability, has also placed us at a relative disadvantage in the rapidly evolving DeFi landscape. The grant will bolster our commitment to delivering innovative solutions and enhancing the GMX ecosystem with our Delta Neutral Strategy.

Furthermore, our ethos at Neutra Finance is rooted in continuous innovation. We strive to emulate and surpass the achievements of leading DeFi platforms like GMX, creating exceptional products for both new and existing DeFi users. Our approach focuses on leveraging the potential of GMX V2 while effectively minimizing market volatility risks. Given our track record and future aspirations, we are confident that Neutra Finance is a deserving candidate for this grant, poised to contribute significantly to the DeFi community.

Execution Strategy:

Our execution plan is meticulously structured to ensure the efficient use of funds and successful delivery of the project. We will allocate resources across development, auditing, marketing, and user incentives. Specific pools and eligible assets will be carefully selected to align with the goals of the GMX V2 Market Neutral strategy. Risk management protocols will be established to safeguard against market volatility and security vulnerabilities.

Grant Timeline:

Phase Time Focus Activity Outcome
Phase 1 (Pre-Development) Q1 2024 Groundwork for transitioning to GMX V2. Developing a robust mathematical model for the GMX V2 Delta Neutral strategy and initial development of smart contract prototypes. A detailed migration plan from GMX V1 to V2
Phase 2 (Development) Q1-Q2 2024 Completion and refinement of smart contracts; seamless vault migration. Developing a robust mathematical model for the GMX V2 Delta Neutral strategy and initial development of smart contract prototypes. Security audit completion with resolution of identified issues.
Phase 3 (Launch and Incentivization) Q2 2024 Official launch of the GMX V2 Delta Neutral vault. Establishing market presence, implementing strategies to attract new users, and subsidizing protocol fees to encourage participation. Achieving a target of 1 Million TVL within the first quarter post-launch and significant growth in the user base due to the incentivization program.

Fund Streaming:

We agree to the linear streaming of the grant for the duration of the proposal and understand that the multisig holds the authority to halt the grant at any time, should it be deemed necessary.

SECTION 4: PROTOCOL DETAILS

What date did you build on GMX?:

We have built atop GMX V1 and launched GLP Market Neutral on 22 December 2022 and will continue building GMX V2 Market Neutral.

Protocol Performance:

Neutra Finance has demonstrated strong performance since launching the GLP Market Neutral product atop GMX V1. As evidence of our competitive edge in the DeFi space, particularly against high Total Value Locked (TVL) projects, we direct attention to our comprehensive stats dashboard: https://neutra.finance/stats.

This dashboard showcases our project’s robust performance metrics and user engagement. The data illustrated here not only reflects our product’s resilience and efficiency in yield generation but also our ability to compete and excel in a highly dynamic market. This track record of performance is a clear indication of our potential for continued success and growth within the GMX V2 ecosystem.

Protocol Roadmap:

With a plan to migrate our existing vault to GMX V2, Our protocol Roadmap will be updated as follows:

Phase 2 (Q2 - Q4 2023)

  • Begin Developing Uniswap V3 DN Strategy
  • Launch Uniswap V3 DN Strategy
  • Begin Developing Lending Platform

Phase 3 (Q4 - Q1 2024)

  • Launch Lending Protocol
  • Begin Developing GLP Market Neutral Strategy V3

Phase 4 (Q1 - Q2 2024)

  • Launch GLP Market Neutral Strategy V3
  • Begin Developing Leverage Delta Neutral Strategy
  • Launch Leverage Delta Neutral Strategy

Phase 5 (Q2 - Q3 2024)

  • Begin Developing Uniswap V4 Delta Neutral Strategy
  • Launch Uniswap V4 Delta Neutral Strategy
  • Integrate more advanced strategy vaults
  • Prepare for Multichain expansion

Audit History :

  1. First GLP Market Neutral audit was conducted by Solidproof, and the comprehensive report is accessible here.

  2. Second GLP Market Neutral audit was conducted by CertiK, and the comprehensive report is accessible here.

SECTION 5: Data and Reporting

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

Our team is well-prepared to develop Dune Spells or independent Dashboards for our incentive program.

We have already demonstrated our proficiency in this area with our existing stats page here, which serves as a testament to our commitment to transparency and ease of tracking our progress.

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

Absolutely, We commit to providing bi-weekly updates on the GMX Forum, sharing insights, progress, and metrics.

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, we acknowledge that failure to comply with the reporting requirements can result in the halting of our program’s funding stream.

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Thank you for submitting your application to the GMX DAO Grants. We will review your application and get back to you.

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Thank you for the confirmation,

We appreciate the opportunity to be considered for the grant and are looking forward to any feedback or further queries you might have regarding our proposal.

Please feel free to reach out if additional information is required.

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In response to

We want to make a clear statement:

Neutra Finance is committed to advancing decentralized finance with innovative, risk-hedged strategies. Our proposal for the GMX grant is to exclusively fund the development and marketing of the GMX V2 Delta Neutral Strategy. This strategy is designed to provide sustainable investment returns and boost long-term on-chain activity, including a significant increase in TVL and trading activity on GMX V2.
By focusing on efficient rebalancing and proactive liquidation risk management to ensure stable returns without being affected by market fluctuation, underlining our dedication to the ecosystem’s growth and sustainability. In line with the grant’s goals, we assure that these funds will be strictly used for their intended purpose and not for employee salaries.

Additional Notes

We are eager and open to working with the GMX team to discuss and plan the grant’s allocation and usage. Our intention is to ensure that these funds are used in a way that maximally supports our mutual objectives in the DeFi space.

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what will the funds be used for then, if not for employee salaries?

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thanks for the application, amendments can be made any time during the open grant period

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Thank you for the opportunity, @CredegarFhristensen.

Based on our recent discussions, we have meticulously revised our grant allocation and usage plan.

Detailed breakdown of new allocation strategy:

Name Allocation Description Usage
Continued Smart contract Development & Vault Migration 20,000 ARB This budget is allocated for essential technical developments and operational enhancements
  • Server Infrastructure: Funds for reliable server infrastructure to support increased user activity and data processing demands.
  • API Integration Costs: Budget for integrating essential third-party APIs for functionalities like crypto price feeds, transaction tracking, and secure data exchange.
  • Dashboard Development: Expenses for toolkits and frameworks required to develop a feature-rich dashboard that offering real-time data visualization and user interaction.
  • UI/UX Enhancement: Allocation for purchasing licenses of design and prototyping tools that are essential for enhancing Neutra UI/UX.
  • Maintenance and Upgrade Expenses: this allocation will be including Maintenance cost, node provider cost, security enhancements, and scalability improvements to adapt to evolving user needs and market trends.
Partnership Allocation 20,000 ARB
  • This fund is designated for establishing and strengthening partnerships, particularly with Robolabs, to collaborate on R&D development and other strategic alliances.
  • Robo Labs is one of the scheduled partnership protocols. They played a significant role in enhancing the stability of the nGLP and nUSDC strategy development. We greatly benefited from their assistance in various aspects, including backtesting for strategy validation, creating a dashboard for continuous monitoring of the strategy, and receiving support for peer review in the development of smart contracts.
  • Joint Project Initiatives: Resources allocated for joint project initiatives with partners, including shared development tools, data sharing agreements, and collaborative platforms.
  • R&D and Backtesting Infrastructure: Backtesting tools and R&D infrastructure to enhance strategy development and optimization.
  • Dashboard Co-Development Infrastructure: Costs associated with collaborative tools and technologies for co-developing the dashboard, focusing on integrating partner features and data sets.
  • Code Peer Review Systems: Budget for systems and tools required for conducting thorough code peer reviews, ensuring code quality and platform reliability.
  • Strategy Optimization Tools: Allocation for advanced analytical tools and data services that aid in refining and optimizing operational strategies.
Contract Audit 30,000 ARB This allocation is reserved for comprehensive and thorough contract audits.
  • Hiring External Audit Firms: Funds allocated for engaging with reputed external audit firms to conduct detailed reviews of smart contracts.
  • Audit Follow-ups: Resources set aside for addressing any unforeseen issues identified during initial audits, including additional audit rounds if necessary.
  • Contingency Funds: A portion of the budget is reserved as contingency funds to cater to any unplanned expenses during the audit process.
Vault Launch and User Incentivization 25,000 ARB Budget dedicated to marketing activities, promotional campaigns, and public relations efforts to create awareness and attract users to the platform.
  • User Rewards: 80% of Allocation for rewards and incentives to early adopters.
  • Outreach Programs: 20% of Allocation for outreach and engagement initiatives community events to educate and attract potential users.
Protocol Fee Subsidization 5,000 ARB This fund is dedicated to making the platform more accessible by subsidizing protocol fees.
  • Protocol Fees refund

We believe these amendments better align with the goals and concerns of the GMX Grants community and look forward to your feedback on this revised proposal.

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Hello Neutra Team,

We want to thank you for applying to the GMX grants program. The window for applications has recently closed. In the interest of clarity, and to ensure continued lines of collaboration, we want to notify that your grant did not muster full support from the community to move on to approval. Such developments tied only to the STIP grant program are not the end of GMX working with you all. We understand that the opportunity presented by the grants program might have left you in the middle of some developments - we are more than happy to find other ways outside the grants program to see these developments through to a productive end, or to adjust scope accordingly in the interest of such ends.

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this is awsome for me

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