Integration Grant Application: Crust Finance

#1

Application Title

Integration Grant Application: Crust Finance

Introduction

Crust Finance is a multichain ve(3,3) dex supporting concentrated liquidity pool, stable swaps and volatile pairs.

Key Features

:small_blue_diamond:Crust Finance comes with CLAMM with capability to support multiple ALM, enabling users to manage liquidity effectively.
:small_blue_diamond:Crust Finance has a native ALM, allowing easier management of concentrated liquidity positions.
:small_blue_diamond:OTokenomics to prevent farm and dump behaviour and incentivise long-term locking.
:small_blue_diamond:Secure and thoroughly audited smart contracts by openZepplin.
:small_blue_diamond:Crust Pro: perpetual exchange within the crust ecosystem powered by Orderly Network, enabling users to easily trade perps across multiple chains with up to 50x leverage, no bridges.

Official Links:

Website: https://crust.finance/
Discord: https://discord.gg/UGApBP7RfS
Twitter: https://twitter.com/CrustFinance
Medium: https://medium.com/@crustt.finance

Conflux eSpace grant recipient wallet address

0xF7c802E795C749066E917F30b34C6488e5b10Da3

Are you an incorporated startup

We are not an incorporated startup, however, we do plan on incorporating post our TGE.

Alignment of the project with the Conflux Network

For Users/Traders on Conflux eSpace:

  • Easy to use dex, with low slippage and better price.
  • Fully community-centric and decentralised with veNFT, veHolders decide which LP pair should be incentivized, and share protocol revenue.

For Conflux Ecosystem:

  • Crust will help bring in liquidity from other chains, hence boosting the overall TVL on conflux eSpace.
  • Due to concentrated liquidity traders/arbitrageurs will find better prices on conflux, thus contributing to an increase in overall transactions.
  • New and existing protocols will be able to incentivize their liquidity by creating incentives for their LP pairs, thus improving their token liquidity and reducing slippage.

Technical Introduction

Problem Statement

Concentrated liquidity plays a crucial role in enhancing the efficiency of swaps in several key ways. By pooling together a significant amount of liquidity in a concentrated manner, swaps benefit from increased market depth and tighter spreads. This enables participants to execute their trades at more favourable prices and reduces the potential slippage costs.

Active liquidity managers play a role in simplifying and maximizing the process of providing liquidity on concentrated liquidity decentralized exchanges (DEXs). These ALMs offer strategies that automate and optimize liquidity provision, making it more accessible and efficient for users.

ve(3,3) module deployed on top of a dex are most decentralised and are most efficient in terms of revenue distribution to the token holders.

Existing Solutions

Currently, there is no such solution consisting of a concentrated liquidity dex, ALM and ve(3,3) available for users on conflux eSpace. We at Crust Finance try to fill this gap by deploying our innovative concentrated liquidity ve(3,3) dex.

Purpose of the System

Providing a one-stop solution for traders, and liquidity providers, along with supporting liquidity bootstrapping for other protocols, while being fully decentralised and distributing majority of revenue back to the token holders.

Technical Proposal

Functional Requirement

Deploy dex on conflux eSpace supporting concentrated liquidity.
Deploy solidly based stable and volatile pairs and factory.
Deploy Native ALM on conflux eSpace.
Deploy frontend to provide easy-use UI for users.
Deploy ve(3,3) module consisting of voter, options, tokens(crst/vecrst), gauges/bribes on conflux eSpace

Non Functional Requirements

Intuitive interface for both novice and experienced users along with a mobile-responsive design.
Ensuring high uptime for the overall system.

Total Budget

Grant Tier: Tier 3
Grant Size: 50000 USD equivalent
All grant funds go to supporting the protocol including audits, user incentives, marketing and further development.

Milestone List

Milestone 1 (Dex and ALM Deployment)

Timeline: Q4 2024
Amount Requested: 12,500 USD equivalent
Deliverables:

  • Deployment of dex on conflux eSpace supporting concentrated liquidity.
  • Deployment of solidly based stable and volatile pairs and factory.
  • Deployment of Native ALM on conflux eSpace.
  • Deployment of frontend to provide easy-to-use UI for users.

Funds Usage: Third party Audits

Milestone 2 (ve(3,3), TGE and Growth)

Timeline: Q1 2025
Amount Requested: 37,500 Dollars
Deliverables: Deployment of ve(3,3) module consisting of voter, options, gauges/bribes along with tokens(crst/vecrst) on conflux eSpace.

Sub Milestone 1 (10,000 Dollars)

  • Total Transaction Volume Crosses 4M$
  • Total TVL reaches to 1M$
  • Hold atleast 2 AMA with the community.
  • Launch atleast 1 campaign to acquire new users.

Funds Usage: Planned to be used as User incentives.

Sub Milestone 2 (12,500 Dollars)

  • Total Transaction Volume Crosses 8M$
  • Total TVL reaches to 2.5M$
  • Hold bi-weekly AMA with the community.
  • Launch a campaign similar to fenix rise/aerdrome flight school to incentivise long term users.

Funds Usage: Planned to be used as User incentives.

Sub Milestone 3 (15,000 Dollars)

  • Total Transaction Volume Crosses 15M$
  • Total TVL reaches to 5M$
  • Hold bi-weekly AMA with the community.

Funds Usage: Planned to be used as User incentives.

Team

The team consists of individuals with significant experience in defi, and have experience managing multi millions in user funds without any issues. More details can be found here.

Founder and Lead Developer: Github | Twitter

Terms of Use

Confirm that you agree to the terms of use for applying to a Conflux Ecosystem Grant by including the entirety of the following statement and conditions:

  • I agree to all of the following terms of use in applying to a Conflux Ecosystem Grant
  • I have read and understood the Conflux Grants Ecosystem Overview
  • I have read about and understood that the Conflux Technical Grants are subject to a No-Sale rule
  • I agree to provide KYC information to the Conflux Foundation for the sake of overall ecosystem security
  • I understand that I will be required to follow public grant reporting requirements
1 Like
#2

Hello Crust Team,

thanks for the application. I have a couple of notes that I’d like to share:

  1. The detailed funds you requested in your phases and milestones do not align with each other. (Phases total to $50k, and milestones total to $37.5k) Please adjust accordingly in your proposal.

  2. How many team members are in the team to push it forward, since one of the most important things of ve(3,3) includes education of users, and aligning various parties to continuously vote on the platform.

  3. How does Crust differ from Solidly, Aerodrome or Velodrome. Please share more on Crust’s ve(3,3) mechanics, e.g. LP benefits, veNFT voter benefits, bribing benefits.

#3

Hello Team,

Thank you for sharing your proposal. I have a few suggestions for adjustments that might improve its clarity and alignment:

  • Consider including the mainnet deployment in Milestone 1.
  • Merging Milestones and Phases could help streamline the structure.
  • Could you clarify under which Milestone the audit is planned? (Ideally, it should be part of Milestone 1.) At this stage, it’s unclear which fund allocation covers the security aspect.
  • It might make sense to include the ve(3,3) launch within Milestone 2.
  • Please specify when you plan to begin hosting bi-weekly AMA sessions with the community.

Looking forward to your feedback!

#4

There was confusion in milestone and phases, basically the milestones were sub phases for phase 2.
Anyway have restructured the proposal to make it less confusing.

1 => The funds usages were correct, just some confusion with milestone and phases, should be clear now. The total amount matches what we have asked in proposal.

2 => We have 4 core team members, including couple of developers, BD and designer, and we are looking to expand our team to include a few community managers who can easily educate users and help them to onboard seamlessly on our protocol.

3 => Crust doesn’t differ significantly from other ve(3,3) protocols as such in terms of ve(3,3) mechanics. We are very similar to say aerodrome for example. Major differences being how we distribute emissions in form of Option tokens rather than our native token, which incentivises more locking and positive protocol action. We have covered the protocol flowchart in brief here

#5

Consider including the mainnet deployment in Milestone 1 => Mainnet deployment was part of first phase, however we understand there was some confusion with phases and milestone, have restructured the proposal, so it is more clearer.

Merging Milestones and Phases could help streamline the structure. => Agreed, restructured as requested.

Could you clarify under which Milestone the audit is planned? (Ideally, it should be part of Milestone 1.) At this stage, it’s unclear which fund allocation covers the security aspect. => First milestone funds are planned to cover audits.

It might make sense to include the ve(3,3) launch within Milestone 2. => Yes it is, restructured so that it is more clear.

Please specify when you plan to begin hosting bi-weekly AMA sessions with the community. => It is a part of milestone 2, sub milestone 2.

Let us know if you have any more questions.

#6

Thank you for the clarifications and adjustments.

Question regarding the ve(3,3) token emissions:
How much of the ve(3,3) token emissions will be allocated to eSpace on Conflux? Specifically, what portion of the emissions will go to eSpace compared to other platforms?

#7

The emissions are planned basis the fees generated each epoch on individual platforms. That said we expect something between a range of 20-50% of our total emissions for conflux eSpace.
The exact percentage will vary basis fees/incentives deployed every epoch.

#8

Kindly review the maximum emission you can allocate to Conflux and make the necessary adjustments to your proposal. This will ensure we can present it to the Foundation for consideration and a vote.

#9

Thank you for submitting your project’s proposal to the Conflux Grant Program. Unfortunately, your proposal did not pass the grant committee’s decision. We greatly appreciate the effort and innovation behind your project, and we encourage you to keep exploring future opportunities within the Conflux ecosystem.