SECTION 1: APPLICANT INFORMATION
Applicant Name or Alias:
Jeff Lam
Project Name:
Steadefi
Project Description:
Steadefi provides yield strategies that allow users with different risk profiles to earn yield profitably from DeFi’s best yield sources ****across any market conditions — bull, crab or bear.
Our lending vaults lends out assets to strategy vaults to earn yield from interest fees charged for borrowing. The interest rate model of the lending vault combines asset utilisation with yield sharing from strategy vaults, which allows lending vaults to earn more interest when strategy vaults earn more yield.
Our strategy vaults borrow assets from dedicated lending vaults to execute various yield earning strategies that vary in leverage and delta. As the lending vaults are dedicated only to a group of strategy vaults, this allows for the maximum capital efficiency via under-collaterized leverage borrowing as no assets has to be posted to lending vaults as idle collateral. Different strategy vaults also execute on different asset delta strategies, with automated keepers being ran 24/7 to monitor and rebalance the vaults if any of their debt ratios or deltas drift away from the intended strategy. This allows for depositors in the strategy vault to earn yield profitably in any market conditions while not facing the risk of full liquidation.
Team Members and Qualifications:
- Jeff Lam — Founder and Project Lead. 15 years in Consumer and FinTech startups with experience in sales, engineering, product management and product design.
- Leon Lee — Marketing (Social Media). 12 years experience in consumer marketing. Runs a web2 marketing agency.
- Micky P. — Marketing (Partnerships). 6 years in finance with hedge funds and VC experience. 5 years in DeFi with partnerships to influencers.
- Kevin M. — Community Mod. 5 years experience in DeFi.
- Giraffe — Solidity Dev + Security Analyst. 2 years solidity dev with DeFi experience and 1 year experience as a public smart contract auditor.
- Fachry A. — Front-End Dev with 5 years of experience building consumer tech.
- Zora — Back-End Dev with 5 years of experience building data and consumer tech.
Additionally, our advisors are:
- Omer Demirel (Partner at AVenture DAO)
- Rasheed Saeluddin (Partner at AVenture DAO)
- Daniel Dizon (Founder and CEO of Swell Network)
- Abishek Kannan (Head of Research at Swell Network)
- Ethan B. Johnson (Ex-Chief Information Security Officer of Galaxy Digital)
- Rebase Ventures (DeFi focused Accelerator)
Project Links:
- Website: https://steadefi.com
- Vaults: Steadefi | Leverage yield strategy vaults with automated risk management (not yet launched)
- Vaults (staging version): https://staging.steadefi.com/vaults
- Docs: https://docs.steadefi.com
- Discord: Steadefi Official
- Twitter: https://twitter.com/steadefi
- Blog: https://blog.steadefi.com
Grant Type:
Open Grant
Contact Information:
TG: @Steadefi_Official (note: NOT @SteadefiOfficial which is a fake group)
Twitter: @steadefi
Email: contact@steadefi.com
SECTION 2: GRANT INFORMATION
Requested Grant Size:
100,000.00 ARB to be distributed over 12 weeks
Grant Matching:
Estimated $180k USD worth of esSDY emissions over 10 weeks
Grant Breakdown:
100% of the ARB grants will be used to incentivise the Steadefi Lending Vaults on Arbitrum over 10 (ten) weeks as follows:
Link to sheet: Steadefi GMX ARB STIP Grant Breakdown - Google Sheets
For simplicity, ARB grants are estimated to be $1.00 USD per ARB.
The goal is to attract $4m USD of lending liquidity to the lending vaults of Steadefi, which will enable users to execute on the various leverage and delta strategies in the strategy vaults to GMX v2 GM pools.
The esSDY emissions stated previously will also be distributed throughout these 10 weeks. It is worth noting that Steadefi will aim to do a token launch some time in Week 6-9.
In the pro forma above, 89,500 ARB will be allocated to incentivising the lending vaults directly, while 10,500 ARB will be allocated towards indirect incentives in the form of giveaways in our “SDY Airdrop Campaign” as well as for generating more buzz and activity on BOTH GMXv2 and Steadefi (via platforms like X f.k.a. Twitter or newsletters).
Funding Address:
0xBc22B72B0408F66316CC4ee562b858f612776F14
Funding Address Characteristics:
This is a SAFE 2/3 multisig that may transition into a 3/5, with 5 different individuals using a hardware wallet for signing.
Distribution Contract Address:
The grants will be converted into the asset in the relevant lending vault, and airdropped linearly into the lending vault which would then be shared equally amongst all lending vault depositors. A keeper will likely be performing this task, with the keeper being able to withdraw the grant assets from a holding contract which will be the distribution contract in this case.
Contract address of the distribution contract will be added once it is deployed.
Incentivised Contract Addresses:
Contract addresses of the lending vaults will be added once they are deployed.
SECTION 3: GRANT OBJECTIVES AND EXECUTION
Objectives:
The goal is to attract an estimated $4m USD of lending liquidity to the lending vaults of Steadefi, which will enable users with more capacity to deposit into Steadefi’s strategy vaults with varying leverage and delta strategies which ultimately deploys all the assets as liquidity in GMXv2 GM pools.
Key Performance Indicators (KPIs):
[Specify the KPIs, including but not limited to total value locked, transaction volume, and number of users that will be used to measure success in achieving the grant objectives]
Please refer to the pro forma sheet here for breakdown of the grants disbursement to estimated TVL: Steadefi GMX ARB STIP Grant Breakdown - Google Sheets
Total Value Locked:
The KPI would be to achieve $4m USD of lending liquidity with ~89,500 ARB grant.
With ~40,000 ARB, we hope to attract ~$2m in lending liquidity, which should enable at least $400k of deposits into the strategy vaults for a combined $2.4m of liquidity into GMX v2’s GM pools.
With another ~50,000 ARB, we hope to grow the lending liquidity from $2m to ~$4.2m in lending liquidity, which should enable about ~$800k of deposits into the strategy vaults for a combined $5m of liquidity into GMX v2’s GM pools.
Number of Users:
The KPI would be to achieve at least 1000 users (proxy via unique wallet addresses) with 8000 ARB grant.
With a budgeted amount of ARB grants allocated to the “Leaderboard Giveaway” to our SDY Airdrop Campaign, besides aiming to drive further TVL growth, we also aim to drive more users to participate in liquidity provision.
Number of X/Twitter Posts:
The KPI would be to achieve at least 200 unique X posts by 200 different X accounts with 2000 ARB grant.
With a budgeted amount of ARB grants allocated to the “Social Media Giveaway”, we also aim to drive more awareness to GMXv2 and Steadefi.
How will receiving a grant enable you to foster growth or innovation within the GMX ecosystem?:
Beyond just direct value incentives, receiving a grant signals a validation of Steadefi’s unique value proposition contribution to the GMX v2 ecosystem by GMX.
Liquidity providers and DeFi yield chasers will be made aware of the different strategies that can best allow them to not just earn yield, but be aware of the strategies they can take to earn yield profitably while providing liquidity to GMX v2.
Steadefi’s lending and different leverage and delta strategy vaults will allow users to better understand the methods of earning yield profitably from GMX v2 across any market conditions. The different vaults will also cater to different risk/reward profiles of yield chasers.
With the ability to earn yield profitably from GMX v2 in any market conditions, liquidity to GMX v2 pools should stronger retention across all market conditions.
Justification for the size of the grant:
We believe that fully utilising the 100,000 ARB grant with a target of driving ~$4.8m in liquidity to GMX v2 pools is a significant value add to GMX v2 pools. Additionally we will also be educating and offering users the various strategies to not just earn yield, but do so profitably based on how they provide liquidity to GMX v2 pools with the various strategy vaults. Last but not least, the grant usage is not limited to just incentivising lending liquidity; we also aim to use ~10% to drive more user awareness, excitement and engagement to both GMX v2 and Steadefi via our Leaderboard and Social Media giveaways.
Execution Strategy:
There are 2 types of grant distribution: Lending Vault Boost and Giveaways.
For Lending Vault Boost:
The ARB grant received (or streamed) to our 2/3 multisig wallet will be periodically (depending on how we receive the ARB grants, could be daily or weekly) sent to a holding distribution contract which allows our approved keeper (we will use OpenZeppelin Defender relayer + autotasks) to withdraw the prescribed amount of ARB grants per pool, swap them for the assets of the lending pool, and periodically (e.g. every 3-6 hours, or a random time interval) send them to the lending vaults to increase the yield of the lending vaults. We would be mostly using Uniswap or TraderJoe as the avenues to swap assets at, with swap slippages being set to ensure we do not lose too much value due to slippage.
As shared in the Grant Breakdown section, about 89,500 ARB out of the 100k requested will be allocated to lending vaults over 10 weeks. The breakdown of the ARB grant distributed to each lending vault is stated in this sheet: Steadefi GMX ARB STIP Grant Breakdown - Google Sheets
For Giveaways:
Another 10,500 ARB will be allocated to the Airdrop Campaign and Social Media giveaways.
For this, we would first obtain the wallet addresses of the winners of which thereafter we would send the week’s allocated ARB grants from the multisig to a controlled and trusted hot wallet to then disburse them to the various winner’s wallet addresses.
We will be running a service that will be frequently obtaining the data on-chain to be able to attribute points to wallets that deposited in our vaults, and having an API that will showcase the Leaderboard. We will then use reference this Leaderboard for 1st-10th place at the end of a week to be the winners, with the time being somewhat “random” towards the end of the week to prevent gaming. Additionally, as we may also engage dedicated Liquidity Providers for larger lending liquidity, these Liquidity Providers will be exempted from this program/Leaderboard to prevent double dipping or these LPs to always be the top of the Leaderboard.
For the social media giveaways, we will encouraging users to be sharing their tweets or blog/newsletter posts in our community channels to allow us to discretionally pick content that we believe deserve the reward. The criteria will be mostly based on a mixture of qualitative and quantitative metric to reward users that write good quality content that is being read by others. For this scenario, we will allow repeated winners with different content on a weekly basis, as the metric is for good quality content on GMXv2 and Steadefi to be distributed to as many people as possible. Winners of this giveaway will be requested to verify their social media account ownership with us as well as provide us with a wallet address to send their rewards to.
If any of the winners do not respond with a wallet address within 2 weeks, the ARB grant will be returned to the multisig and would be eventually distributed as part of the Lending Vault Boost by the end of the 10 weeks.
Grant Timeline and Milestones:
- Steadefi Vaults Go-Live by 4th December 2023
- Assume 1st week’s grant can be received by 16th December 2023 for the 1st week of the program to be 18th December 2023
- 1st milestone of 110k TVL by 24th December 2023 with 1800 ARB distributed for that week
- 2nd milestone of 220k TVL by 31st December 2023 with with another 2350 ARB distributed for that week
- For the weekly TVL and milestone breakdown, please refer to the sheet here for TVL milestone to ARB grants to be given over the 10 week timeline: Steadefi GMX ARB STIP Grant Breakdown - Google Sheets
- For the Number of Users milestone, it would be 500 unique users by Week 5 and 1000 unique users by Week 10
- For the number of Unique Content, the total amount of unique content is set at 200 over 10 weeks, but on average we aim to achieve about 20 content submissions weekly in our community channels.
Fund Streaming:
Yes.
SECTION 4: PROTOCOL DETAILS
What date did you build on GMX?:
We are currently wrapping up our public audit with CodeHawks, and we expect to launch before mid December 2023.
Previously, we had built and launched a 3x Delta Long and 3x Delta Neutral to GLP from April 2023 to August 2023.
Protocol Performance:
Steadefi had previously launched with lending and strategy vaults to protocols such as Trader Joe, Pangolin, Camelot and GMX v1. TVL growth was somewhat linear from April to August, eventually reaching $2m TVL on August 2023. Unfortunately, we suffered an exploit (cause was due to improper operational security of the ownership of the protocol contracts) then and all vaults has since been halted as we restart and rebuild with much better operational security in mind, a much stronger foundation with more security checks and balances for the strategy vaults, and vaults that cater to GMXv2 GM pools for a start.
Protocol Roadmap:
Steadefi’s goal is to provide vaults that allow users to earn yield profitably in any market conditions from the best DeFi yield sources.
We are re(starting) first with GMXv2 GM pools as we believe that GMXv2 is at the forefront of DeFi usage, security and real yield earning opportunity. We aim to focus first on GMXv2 for the first 3 months of restarting, growing the TVL of these vaults (which also grows the TVL of GMX v2 pools).
Subsequently, we will look to build up “Aggregated Vaults” to make the experience a little simpler for users.
Firstly, an aggregated GMXv2 USDC Lending Vault will be created that will allow users to deposit USDC into this lending vault, which then splits up the USDC deposited across all the isolated USDC Lending Vaults into GMXv2 strategies.
Additionally, we may look to create strategy vaults that provide exposure to multiple GM pools such as a WBTC-ETH-USDC to allow users to easily get exposure the assets and yield of multiple GM pools with different leverage and delta strategies.
We do not claim to be GMX-exclusive however, and we will eventually look to create vaults to tap into other yield sources and protocols. As Steadefi users may get exposure to SDY/esSDY, we will need to continue to serve token holders by pursuing more revenue, yield and TVL growth.
To sum up the roadmap with rough timelines:
- Q4/23: Launch GMXv2 GM Vaults
- Q1/24: Growth GMXv2 GM Vaults + SDY Token Launch
- Q2/24: Aggregated Vaults for GMXv2 + New Vaults to New Protocols
- Q3/24 onwards: New Vaults to New Protocols
Audit History (if any):
- Our lending vaults, oracles and strategy vault contracts were previously audited by Omniscia: Audits
- Our new GMXv2 oracle and GMXv2 strategy vaults have went through a public audit by Codehawks: https://www.codehawks.com/submissions/clo38mm260001la08daw5cbuf?page=1&tags=%255B%255D&filterValidated=true&filterInvalidated=true&filterDone=true&filterSelectedForReport=false&search=
- Note that as of 22nd November, the public audit findings are being finalized and mitigations/resolutions of the findings are well underway.
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. Our front-end UI displays plenty of historical timelapsed information of the vaults which makes it relatively easy for us to display them on Dashboards we can build.
Does your team agree to provide bi-weekly program updates on the GMX Forum thread?:
Yes. With the data we collected, we can build a dashboard(s) to display the relevant data even on a daily basis. We will also track every on-chain transactions with regards to the ARB grant distribution for audit purposes.
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.