ACY Finance - An anti-robot decentralized exchange.

1 Funding Tier:

Tier 3 requested amount - 100K

2 Project Overview: Please include the following:

2-1 Project title and description of the project.

ACY Finance is an anti-robot DEX. ACY invents Flash Arbitrage, a protocol level implementation that executes to reduce the arbitrage activities of miners and other kinds of arbitrage robots in each transaction.

Flash Arbitrage:

We have created a entirely new track in Defi sector, which is Flash Arbitrage DEX, where our transactions are capable of fight back the Miners from doing arbitrage on our users.

Flash Arbitrage, is our greatest innovation to fight against the MEV problem. It is an arbitrage strategy integrated into the protocol, aka written in the smart contract. It is executed automatically each time when the user initiates swap transactions. Similar to flash loans, flash arbitrage happens in an instant. But instead of one block, flash arbitrage happens in one single transaction along with your swap. Therefore there will be no more arbitrage opportunities after our swap transactions as our protocol has already harvested the arbitrage benefits.

Flash Arbitrage is a creation invented to help promote a fair competition for users by ACY Finance. Which is why we wanted our solution to be Anti-MEV but also Anti-corruption to fight against the robots. In this new world created by ACY, the interest of both Traders and Liquidity Providers will be appreciated.

For more info about Flash Arbitrage, please check out**:** https://acy-finance.gitbook.io/acy-finance/product/acy-swap/flash-arbitrage

ACY DAO

ACYDAO is a Governance Portal for users to stake their ACY tokens, participate in governance and take rewards of their contributions. The reward is harvest from a portion of Flash Arbitrage Revenue.

20% of the Flash Arbitrage revenue will go to DAO participants once ACY DAO is launched.

2-2 How will this project be integrated into Conflux?

  1. First step is to start from deploying our smart contracts on Conflux Blockchain, we had our product ready for Polygon as we attended their hackathon with this project. Now we just need to modify the contracts to make it fit to the Conflux blockchain.
  2. Secondly, we will be implementing whitelist contracts for our dapp as this is a unique feature on conflux that is super welcomed by both projects and users.
  3. We will expand our application to solana and establish our bridge between the two chains.
  4. It is expected for us to launch our project on multiple chains, prioritizing Conflux, Solana, Polygon, and Ethereum.
  5. With all the bridges ready for application, it is likely to attract liquidities from different blockchains to Conflux with for users to invest in Conflux native assets.

2-3 Why is your team interested in creating this project?

We are a team who has plenty full of experience in Stock trading and financial investments. We saw the opportunity of anti-MEV as since early this year. There are several attempts have done to fix the MEV problem from the blockchain level. But with Miners extracting so much value out from this behavior, there is huge resistant in stopping MEV from happening. Therefore as it is important for DEX platforms to make their exchange competable to Miners, that’s where Flash Arbitrage comes into play. Flash Arbitrage is a birth child of our indepth observation, understandings of blockchain, and heavy Brainstorming. We believe that by helping user secure their Alpha from the arbitragers, not only users will earn more from our platform but also becoming longterm supporters. This Flash Arbitrage DEX is one of a kind that no other has done before, and we believe that our solution will not only just solve the MEV problem but all Arbitrage problems.

3 Project Details: Please include the following:

3-1 High-level technical approach, product flow & architecture (along with a diagram).

What is Flash Arbitrage?

Flash Arbitrage is a protocol level integrated arbitrage strategy to help us fight against Miners. Our smart contract will split user’s swap transaction into multi-route arbitrage transaction inside the same swap transaction. Users can then automatically profit from the arbitrages, enjoy the lower price slippage and more stable price. Without big enough arbitrage opportunities, arbitragers including the miners’ bots will be disinterested in swap transactions from our platform.

What’s more, Flash Arbitrage is executed using a mathematical model to calculate the most optimal routes during runtime, aka during transaction execution. Unlike 1inch and other platforms where they calculate the routing solutions before they do the swap transaction, ACY Finance has no delay and is more accurate for its protocol level implementation of the algorithm.

Instead of the direct exchange for the target token by users, the ACY contract is automatically split into multiple paths to exchange the target token. The liquidity equivalent to this exchange is the sum of the liquidity of all relevant paths, which can help users obtain arbitrage gains and greatly reduce the trading slippage.

A visual explanation can be seen in the following Figure where when an user wants to swap from X token to Y token, our methematical model will calculate how much X will go through X->Y, and how much X will go through X->Z->Y to conclude the transaction.

https://gblobscdn.gitbook.com/assets%2F-Mf7biEtgdSPwQ74dvkt%2F-MieD7iW4OW1fRJsM0sm%2F-MieDE8si5oxS44bh4n9%2FWechatIMG600.jpeg?alt=media&token=e677e642-4cec-42a3-8736-e20401eb656c

The extra income that is earned from Flash Arbitrage will be distributed to All users and ecosystem, More details here.

Regarding of Methematical Details of Flash Arbitrage, Please check out our whitepaper.

3-2 Any mockup designs of user facing components.

Here is link of our testnet to checkout more: test.acy.finance

Swap Page Upper Portion

Swap Page Lower Portion

Market Info Page

Farms Page

ACY DAO Page

3-3 Overview of the technology stack being used, including API specifications, and documentation of core components.

Technology Stack

  • ReactJS for frontend
  • Conflux SDK for connecting frontend to blockchain services
  • Solidity for AMM with Flash Arbitrage Algorithm, Liquidity, Farming, DAO smart contracts
  • ExpressJS for market data

Here is our github repo for more infomation: https://github.com/ACY-Labs

3-4 Ecosystem fit: How can the project benefit Conflux Network’s ecosystem?

ACY Finance is designated to create the lowest price slippage dex for users. We believe that with Conflux’s low transaction fee and fast network speed, the user experience on ACY Finance will be top of its class.

Therefore the benefits for Conflux ecosystems are:

  1. One excellent AMM-based Flash Arbitrage capable DEX on Conflux, more DEX choices for Conflux users
  2. Increasing the TVL on Conflux Network, especially after once we launch our dapp on other blockchains such as Ethereum, Solana, Polygon. With Conflux’s advantage of whitelist contracts, we will likely to draw more traffics to Conflux blockchain.
  3. Available for users to upload any tokens they want on to our DEX.

4 Team: Please include the following:

ACY Finance consists of a group of talented youth from Tsinghua University and Stanford University. Our team is filled with young professionals who come from quantitative finance and stock market backgrounds, and who have much to offer with their rich entrepreneurial experience, blockchain industry experience, and hard-core technical abilities.

4-1 Name of team members, and their roles and responsibilities. Team members/emails/social media handles/Github.

Frederick Kang

CEO & Co-founder

Tsinghua MBA graduates. Multiple fintech startup experiences, the first person to introduce Bloomberg Financial Data to Asia back in 2008 in his Singaporean Fintech Company. Multiple Interviews with Financial Time China, China Economics, etc. Currently the head of a quantitive investment firm at Beijing.

Email: vcpe@163.com

Linkedin: linkedin.com/in/frederick-kang-5b149a12

Twitter: @FrederickKang1

Ju Ping Ng

CTO & Co-founder

Full-stack Developer and Technical Director from Tsinghua University Software Department. Been developing since 2018 with both frontend and backend works, working with startup companies to develop official websites and apps. Director for ACY Finance participation of IOSG hackathon, which won us Second place in overall competition as well as Defi track winner of Polygon bounty.

Email: mashimaro514@gmail.com

Linkedin: linkedin.com/in/ngjuping

Github: https://github.com/ngjuping

Brian Seong

COO & Co-founder

Operation and Marketing Director. Alumni of Tsinghua University Department of Computer Science Undergraduate Degree. Past President of Tsinghua International Blockchain Association(TIBA). Winner of Conflux 2020 Blockchain Hackathon, Team Polaris.

Email: seongjinwoo@outlook.com

Linkedin: https://www.linkedin.com/in/brian-seong-0185441a1/

Github: https://github.com/JinwooSeong

Bruce Win Privitt

CIO & Co-founder

Chief Innovation Director, invented the flash arbitrage algorithm. LSE Undergrad majored in Statistics, Economics and Finance, UCL graduate researched on Quantitive Investments. Currently enrolled in Institute of Interdisciplinary Information Science, researching on Machine learning and Quantitive Investments.

Email: j1j2yingguo3@gmail.com

Linkedin: linkedin.com/in/bruce-win-privitt-29a5bb152

Kevin Rum

Co-founder

Full-Stack Developer, Smart Contract Developer with years of experience.

Linkedin: linkedin.com/in/kevin-rum-417a99217

Danny Du

Core Member

Smart Contract Developer from Stanford University CS Department.

Linkedin: linkedin.com/in/danny-du

Other 10 Core Members

4-2 Provide the name and registered address of the legal entity that will be delivering the project.

Name: ACY FOUNDATION LTD.

Address: 3 Fraser Street #05-25 Duo Tower, Singapore 189352

5 Development Roadmap:

5-1 Total Grant Budget

5-2 Milestones

Milestone 1 - Mainnet Launch!

Timeline: 2021-Sep to 2021-November

Description: This is a period where we do our testnet testing with our users to get ready for our mainnet launch. The auditing will take some time so as soon as our auditing is finished, then we will launch our mainnet.

Deliverables: Fully Operable DEX with Flash Arbitrage capability. Functionalities will include swap, liquidity mining, and farming.

Milestone 2 - ACY DAO Launch with Pro version access!

Timeline: 2021-November to 2021-December

Description: ACYDAO will be launched for users to participate in our stakable DAO! By staking in our DAO and participate in the governance, users will be able to receive a portion of the Flash Arbitrage revenue as a reward. Pro version access means if users have staked enough token, then they will be eligible to use our pro version DEX where the algorithm of Flash Arbitrage is even more optimized than the previous one.

Deliverables: A DAO interface for users to stake, govern and claim rewards. Pro version portal for those who have staked enough ACY tokens.

Milestone 3 - IDO Platform ACYDO Launch!

Timeline: 2021-December to 2022-Februry

Description: ACYDO will be available for all new conflux ecosystem tokens to launch their IDO on our platform. It is designated to help all projects on conflux to be tradable in Conflux ecosystem.

Deliverables: A complete pipeline for projects to list and launch IDO of their tokens automatically, the listing process will be monitored by ACY DAO entirely, instead of ACY Finance.

Milestone 4 - API/SDK features for Conflux ecosystems

Timeline: 2022-January to 2022-March

Description: Defi services available for other users/projects to utilize on their applications or platforms.

Deliverables: Depending on the design, we will deliver APIs first for other projects to implement our data or services onto their platform. If SDK is heavily requested from our community, then we will move forward with it as well.

6 Long Term Vision

What is the team’s long term vision for the project?

At ACY Finance, we are committed to help users get their best offers for financial services by securing users’ alpha. To achieve this, we have invented Flash Arbitrage where it helps users secure alpha in each and every swap. We are not stopping here, we are reinventing the entire DEX ecosystem where we want to help users earn by not just using our product but also governing our product, market our product, build on top of our product. Not only that, with multi-chain capability available soon, we want to bridge different users from different blockchains to trade with each other, to help users with the best swap conversion rate availalbe.

7 Other:

Please include any further information or attachments that are relevant to your application.

Social Channels:

6 Likes

Exciting project, thank you for applying for a Conflux Network grant!

Is it possible to implement your mathematical model on-chain in the general case? What is the expected extra cost per swap?

Does this mean that your platform is permissionless? If I deploy an XYZ token, can I start an XYZ/CFX pool by myself, or does this need to be approved by your team or by the DAO?

Could you elaborate more about the extra features included in the pro version?

What kinds of decisions will DAO participants make? Is voting power proportional to the amount of staked tokens? Are decisions made through simple majority voting?

2 Likes

Hi ACY Finance, thank you for your application. The committee will review you and get back to you with any questions.

1 Like

Thank you for the great questions~!

The example we provided is called bi-routing flash arbitrage. But in our later pro version milestone, we will have a routing solution with three to four routes available. The expected extrac cost cannot be given at this point of time as we haven’t testing on the mainnet. But it is likely to cost a little extra compare to normal AMM swap as we have extra steps included.

At the beginning, we intent to make it permissionless and welcome all conflux projects to onboard our DEX. In later on milestones, we will add a layer of token listing governance that will be managed by our ACY DAO to decide on the tokens that can be listed and others that cannot.

Currently what we have planned is to provide a more optimized flash arbitrage solution where the number of routes for each swap is increased to three to four routes. It is quite important for large transaction users because the reduce of price slippage will show a way better swap conversion rate for them. This is the core idea of the pro version, and its already mathematically provened and tested already, but it will only be implemented once we have a more healthy ecosystem available which is way we will do it in Milestone 2.
We are also considering more benefits for users in the pro version, so that when users are becoming a pro user, they will have a package of goods available for them.

Great question~ so this would be able the specific rules of the ACYDAO. What we have planned so far is: as long as users have staked their token, they are able to participate in our acy token farming. After users have staked, then they are allowed to participate in the governance of our project. and Mainly the governance would be for proposal voting, similar to snapshot. Yes, Majority voting, but each vote will be counted with weight, and the weight is decided according to the token user has staked during the voting period. Regarding of more details of ACYDAO’s mechanism, you can check out our white paper, but we might change the rules as we are still discussing the details even now. Just want to make it a DAO that is actually beneficial to both project and our community~!

Cheers

3 Likes

Got it~!

Thank you!

Thanks for applying ACT Finance! This is an exciting application :slight_smile: Few questions on my end…

  1. Can you specify a budget for each milestone? Grants are released based on milestones.
  2. In Milestone 2, will users be able to stake their tokens on Conflux?
  3. Early in your application you mention ACY also has bridges between the protocols it supports. Does this grant application include those bridges?
  4. What TVL are you targeting on Conflux post mainnet launch?

Thanks!
Geoff

1 Like

Reviewed this application again, look forward to discussing this with the team.

Hi Geoff, thank you for your questions.

In fact, we recently have actually achieved milestone 2 product in the above post, so we decided to merge Milestone 1 and 2 into Milestone 1 below. And also there are some updates in the later milestones as well, with budget included of course.

5-2 Milestones

Milestone 1 - Mainnet Launch!

Timeline: 2021-Sep to 2021-November

Budget: 30k USD

Description: This is a period where we do our testnet testing with our users to get ready for our mainnet launch. The auditing will take some time so as soon as our auditing is finished, then we will launch our mainnet.

Deliverables:

Fully Operable DEX with Flash Arbitrage capability. Functionalities will include

  • swap: Exchange product for users to swap their tokens to desired ones, using Flash Arbitrage as underlying technology for way lower price slippage.
  • farming: aka Liquidity Mining, for providing liquidity for pools, mining liquidity fee and other tokens. Users will be able to receive a portion of the Flash Arbitrage revenue for participating in farming.
  • staking DAO: its actually a combined product with farming. Users have to stake their tokens in farming to be able to participate in DAO governance.

Milestone 2 - Large Scale Marketing in South East Asian Markets as well as IDO of ACY Finance

Timeline: 2021-November to 2021-January

Budget: 20k USD

Description: Establishing our office in South East Asia. We are currently planning on doing so in Malaysia where one-third of our team is from Malaysia. A large scale airdrops and marketing actions will be done to adopt users to use our platform. IDO will be done within this period for further adoption of ACY tokens in the crypto community, which will draw them to ACY finance for more trading actions.

Deliverables: A significant user growth in our telegram community, currently looking at 30k+ users, DAU of our platform 1000+ users.

Milestone 3 - IDO Platform ACYDO Launch!

Timeline: 2021-December to 2022-Februry

Budget: 30k USD

Description: ACYDO will be available for all new conflux ecosystem tokens to launch their IDO on our platform. It is designated to help all projects on conflux to be tradable in Conflux ecosystem.

Deliverables: A complete pipeline for projects to list and launch IDO of their tokens automatically, the listing process will be monitored by ACY DAO entirely, instead of ACY Finance.

Milestone 4(Optional) - Exploring AMM + limit order system

Timeline: 2022-January to 2022-March

Budget: 10k

Description: There are some projects out there supports AMM with limit order for users to execute swap with their preferred price on AMM DEX platforms. We are also interested in the idea, but still need some exploration and internal discussion about whether if we want that on our platform, or maybe let the community decides.

Deliverables: A Limit order function for ACY Finance, users will be able to see the orders created by others, set their own orders, cancel their orders, etc.

Yes, and this will be achieved in Milestone 1 now instead of Milestone 2.

We are thinking of using existing bridges for our cross-chain needs instead of building our own. But we are always open to the option.

I believe this is a question about our Go-To-Market Plan, I have it here in this link, please take a look, it will be updated from time to time.

Thank you!

Cheers,
Browni @ACY Finance

Greetings from ToC. Thanks for applying and welcome to Conflux!
Here are several questions we would like to discuss:

  1. We noticed that the Pro version access missed in your latest version of milestones. Is it merged into the normal version?

  2. You mentioned:

At the beginning, we intent to make it permissionless and welcome all conflux projects to onboard our DEX. In later on milestones, we will add a layer of token listing governance that will be managed by our ACY DAO to decide on the tokens that can be listed and others that cannot.

For the latest version, the DAO governance will be launched during M1. So what decisions will DAO participants make before IDO platform launched?

  1. Since you put IDO in M2, can users receive ACY tokens while using DEX starting from M1? Is the staking DAO refer to the ACY token staking DAO?

  2. Could you show us more details about the grant budget? Especially M2 and M3 including technical indicators.

Thank you for your question!

Yes, so there won’t be any Pro version anymore, by default it will supports the pro version feature for every users.

It’s more of a testing version of DAO as well where our users can try and test the DAO platform. The actual usage of the DAO will only be live once our mainnet version is live. Then users will be able to participate in the DAO governance, some of the points they are encouraged to discuss:

  • Project Enhancements
  • Pools/Liquidity Adding Requests
  • Flash Arbitrage/revenue model token distribution
  • Deployment on other Public Chains or Layer2 solutions
  • etc.

There will be a selection process made before the proposals are listed on the DAO interface, users will first need to post on our Forum then will be moved on to our DAO with enough supports.

Your understanding is correct. So ACY tokens will start to distribute right when the platform is live on Conflux Mainnet in Conflux network. Currently we are planning on having the ACY staking pool implemented in Farming Page, then there will be a checking mechanism to check if a user has staked token and how much they have staked. With these metrics available, the users will be able to participate in the DAO governance with weight applied depending on how much they have staked. But if the community prefers to separate ACY staking pool from DAO participation, it will also be considered.

Milestone 2 - Large Scale Marketing in South East Asian Markets as well as IDO of ACY Finance

Budget:

  • Marketing with South East Asian Communities: 10k
  • Payment for Shillers and moderators in total: 4k
  • Internal Marketing Team: 6k

Deliverables:

  • A significant user growth in our telegram community, currently looking at 30k+ users, DAU of our platform 1000+ users.
  • Weekly AMA with South East Asian Communities.
  • Partnership with Media, Crypto Communites.
  • Twitter Post Sharing Contests to claim ACY Airdrops.
  • IDO, currently in contact with TrustPad, Miso and Gate for IDOs.

Milestone 3 - IDO Platform ACYDO Launch!

Budget:

  • 2 Blockchain Developers: 20k
  • 1 Frontend Developer: 10k

Delieverables:
A complete pipeline for projects to list and launch IDO of their tokens on Conflux, aka a Launchpad on Conflux, the listing process will be monitored by ACY DAO entirely, instead of ACY Finance.

  • Listing Request Portal for Conflux Projects
  • Launchpad interface with different ranking available
  • Twitter activity checking module and Telegram activity checking module.
  • Portal for users to stake their ACY tokens and participate in IDO sales.

Hi @browni thanks for the application and patience! To get this application unstuck please see some suggestions on your milestones we would like to see in your proposed milestones. You can respond directly to this post with your milestones.

Recommendations:

  1. Since you already have a demo, I suggest applying for a Tier 2 grant first. A second grant can be applied for once all the milestone in your first grant are successfully completed.
  2. To help us clarify the deliverables of your grant please breakdown your milestones as follows:

Note below is just a breakdown of the general milestone categories we are looking for, please add in the details.

Please specify the deliverables, budget, and timeline for each suggested milestone, and feel free to shuffle timelines of the deliverables around. These are merely suggestions to highlight what we are looking for in your milestones. You can also see some general milestone guidelines here: Grant Application Milestone Guidelines

Once your Tier2 grants has been successfully completed, you will be eligible to apply for a Tier3 grant.

Let me know if you have any questions :slight_smile:

Thank you for your suggestions and here is the updated version.

We have already finished Launchpad MVP that was written in the previous milestone 3, because we believe having a launchpad on Conflux ecosystem is necessary for all projects on Conflux and us.

Milestone 1 - Conflux Testnet Version Launch + Community Growth - 1 month after signature

Grant: 20k

General Deliverables:

  • Smart Contract Implementations
  • Frontend UIUX Completion
  • Frontend Conflux SDK implementation
  • Ecosystem Testing and Simulation
  • Marketing Activities including:
    • AMA, Airdrops with south east asian and english communities, we have already hosted some AMA events with south east asian communities and we be only doing more later.
    • We have already created a smart contract for batch airdropping, so we just need to collect user’s address then we can do airdrop to all participants in one click.

Milestone 2 - Conflux Mainnet Launch + Community Growth - 2 months after signature

Grant: 20k

General Deliverables:

  • Full App functionality for production ready MVP, including:
    • Swap: Exchange product for users to swap their tokens to desired ones, using Flash Arbitrage as underlying technology for way lower price slippage.
    • Liquidity Mining: For providing liquidity for pools, mining liquidity fee and other tokens. Users will be able to receive a portion of the Flash Arbitrage revenue for participating in farming which is known as Long-term liquidity mining in ACY Finance. This is where the longer users deposit their liquidity the more flash arbitrage revenue they will get. More info in here: ACY is the First AMM DEX which Gets Protocol Owned Liquidity | by Fredericking | ACY Finance | Oct, 2021 | Medium
    • Farming: Farming section with three different tiers of farming:
      • Stake your LP tokens and earn ACY token rewards
      • Stake your ACY tokens and earn ACY token rewards
      • Stake your LP tokens and earn project/other token rewards
    • Launchpad: A launchpad where it can customize the procedure of user participating in IDO sale, such as joining telegram before buying the token, tweet a tweet about the project before the IDO sale, etc.
  • Smart Contract Audits
  • Marketing Activities including:
    • pre-IDO events promotions in different comunities,
    • AMA, Airdrops with south east asian and english communities, we have already hosted some AMA events with south east asian communities and we be only doing more later.

Milestone 3 - ACYDAO platform - 3 months after signature

Grant: 10k

General Deliverables:

  • A fully functioning DAO platform, where users are allowed to discuss:
    • Project Enhancements
    • Pools/Liquidity Adding Requests
    • Flash Arbitrage/revenue model token distribution
    • Deployment on other Public Chains or Layer2 solutions
    • etc.
  • Marketing Activities
    • IDO, currently we are already in talk with serveral IDO platforms so it would be safe to say 3 months from signature for our IDO, but if we can do it earlier, we will do so.
    • Continue AMAs, Airdrops with all communities.

Hi @browni, thanks for the updates. The milestones are still a bit vague, can you provide some more details and specific growth targets? See notes below:

Milestone 1

  • Please include some community growth KPIs. We are looking for specific growth targets from the AMAs and airdrops here we can help you work towards.

  • For Airdrops, you should avoid vampire attacks on other communities. Can you provide more details on how/where you are acquiring wallet addresses to airdrop and other specifics around your airdrop campaign. Will airdrops be to Conflux wallet addresses? To how many?

  • What ecosystem / economic testing and simulations will you be conducting specifically? The deliverable from this should include a report, a blog post, and some marketing around it.

Milestone 2

  • Same comments as before around the AMA and airdrops - we want to see some specific targets.

  • I also strongly recommend also including 1) TVL 2)Volume and 3)Active User targets for ACY’s on Conflux mainnet launch.

Milestone 3

  • The ACYDAO deliverables are not entirely clear to me. Is the DAO platform just a forum? Will users be able to vote? Will there be a governance token on Conflux? Please provide more details on the deliverables here.

  • Will the IDO occur on Conflux?

  • Again, please include some community growth KPIs around the AMAs and airdrops.

Let me know if you have any questions!