Integration Grants Application '25: CycleX RWA Fund Deployment
Date: May 22, 2025
Applicant : CycleX Team
Application Introduction:
Project Name: CycleX RWA Fund (Conflux eSpace)
Problem Statement and Solution:
The Conflux ecosystem excels with its high throughput of approximately 3,000 TPS, low fees, and regulatory compliance advantages in the Chinese market. However, it lacks diverse financial products in Real-World Asset (RWA) tokenization, limiting its appeal to institutional and retail investors. The current ecosystem primarily focuses on DeFi and NFTs, missing stable, asset-backed financial instruments that traditional finance users demand. CycleX proposes deploying an RWA tokenization fund on Conflux eSpace, enabling on-chain investment in assets like real estate and bonds through smart contracts. This bridges traditional finance and Web3, with all transactions (e.g., investments, redemptions, dividends) processed via the Conflux network, ensuring low-cost, high-efficiency operations. By leveraging Conflux’s compliance strengths and CycleX’s U.S. legal framework, the fund aims to attract global users and enhance ecosystem vitality.
Alignment with Conflux Network:
The RWA Fund will be deployed on Conflux eSpace, utilizing its EVM compatibility to run smart contracts. Transactions will be processed through the Conflux network, ensuring low-cost (below 1 cent per transaction) and high-efficiency (confirmation time <1 second) on-chain transfers. The fund will support stablecoin payments on the Conflux network, enabling seamless interaction with Conflux ecosystem components like wallets and DEXs (e.g., Swappi), contributing to Conflux’s mission of advancing financial innovation.
Value Brought by the CycleX RWA Fund to the Conflux Ecosystem
1. Boosting Economic Vitality and On-Chain TVL:
The CycleX Fund, by tokenizing stocks, bonds, cryptocurrencies, and other high-value global assets, will effectively increase the scale of on-chain assets and transaction activity on Conflux, significantly driving TVL (Total Value Locked) growth. The fund’s investment and redemption processes will also stimulate frequent on-chain interactions, enhancing network usage intensity.
2. Igniting the Developer Ecosystem:
CycleX’s provision of open-source smart contracts and API interfaces will offer modular, plug-and-play tools for RWA project developers, encouraging the deployment of more financial DApps on Conflux eSpace. This will enrich DeFi scenarios, boost developer engagement, and enhance the vitality of the technical ecosystem.
3. Driving User Growth and Market Expansion:
Through joint AMA events, KOL promotions, and on-chain incentive programs (e.g., CFX cashback, NFT rewards), CycleX will attract global users to the Conflux network. Meanwhile, Conflux’s strong community foundation in Asia will support CycleX in expanding its user base and brand influence, creating a bidirectional traffic loop.
4. Building Differentiated Competitiveness and a Compliance Moat:
The CycleX Fund, adhering to U.S. legal regulations and backed by real assets, offers a compliance advantage tailored for institutional investors. Compared to generic chains like Ethereum and Polygon, Conflux can leverage this to establish a differentiated RWA service ecosystem. In collaboration with CycleX, Conflux can drive the formulation of industry standards, solidifying its leadership in the global RWA domain.
5. Deepening Ecosystem Collaboration and Resource Co-Building:
CycleX will fully integrate into the Conflux ecosystem, providing RWA project consulting, tokenization strategies, and compliance support to lower the entry barriers for new projects and facilitate the onboarding of high-quality enterprises. Both parties will collaboratively recommend investment institutions and industry resources, jointly expanding global ecosystem influence and promoting the prosperity of on-chain finance.
Projected Ecosystem Growth Targets by Q4 2025
By Q4 2025, CycleX anticipates achieving the following core ecosystem growth targets:
- Assets Under Management (AUM) are expected to reach $150 million;
- Cumulative trading volume (VOL) is projected to exceed $45 million;
-
Total Value Locked (TVL) is anticipated to reach $25 million, reflecting the chain’s ability to retain funds and the fund’s stickiness.
This growth will primarily stem from the expansion of structured funds, synergistic collaboration within the on-chain financial ecosystem, and the continuous inflow of institutional capital.
Project Links:
Website: https://cyclex.cc/
DApp: CycleX DApp (under development, to be launched on the testnet in the 3rd-4th month milestone and on the mainnet in the 5th-6th month milestone, see Development Roadmap for details)
Social Media: Twitter (https://x.com/CycleXTeam)
Chat Group: Telegram (https://t.me/CycleX_Team)
Conflux eSpace Grant Recipient Wallet Address:
TG5VxXgxjVgXiUEsXCNeBAnKBcvkYQ1YyX (Trc20)
Are You an Incorporated Startup?:
Yes, CycleX is a registered Web3 startup focused on RWA tokenization, incorporated at Room 4, 16/F, Ho King Commercial Centre, 2-16 Fa Yuen Street, Mong Kok, Kowloon, Hong Kong.
Technical Introduction
Functional Goals and Development Reasons:
The CycleX RWA Fund aims to tokenize real-world assets into ERC-20 tokens, deploy them on Conflux eSpace, and enable asset investment through a secure, user-friendly DApp. All transactions (investments, redemptions, dividends) will be processed via the Conflux network, leveraging its low cost (below 1 cent per transaction) and high throughput (3,000 TPS) to ensure scalability and user-friendliness. The development goal is to fill the gap in compliant RWA financial products within the Conflux ecosystem, attracting institutional and retail investors, enhancing use cases, and increasing TVL.
Problem Statement Reference:
RWA platforms on Ethereum (e.g., Centrifuge) face high gas fees and regulatory constraints, limiting their appeal to traditional finance users. Conflux’s compliance and low fees make it an ideal platform for RWA tokenization, but eSpace currently lacks similar projects, reducing opportunities to expand its target user base.
Feasibility Study:
Conflux eSpace’s EVM compatibility supports ERC-20 tokens and smart contract deployment, ensuring efficient, low-cost transactions. CycleX’s U.S. legal framework complements Conflux’s compliance in China, making it suitable for deploying a compliant RWA fund.
Purpose of the System:
To provide a secure, scalable RWA tokenization and trading platform, enhancing financial use cases in the Conflux ecosystem and boosting user engagement and TVL.
Scope of the System:
- Tokenization of pre-vetted RWAs (e.g., real estate, bonds).
- Smart contract management of the fund (investments, redemptions, dividends), with transactions processed via the Conflux network.
- DApp for user interaction (wallet integration, asset browsing).
- Cross-chain bridge support for asset migration.
Objectives and Success Criteria:
- Deploy the RWA Fund within 6 months.
- Attract institutional and retail investors to Conflux eSpace.
- Increase TVL and on-chain activity through fund transactions and user acquisition.
- Success criteria: User adoption rate, TVL growth, and developer usage of the fund’s API.
Definitions, Acronyms, and Abbreviations:
- RWA: Real-World Asset
- eSpace: Conflux’s EVM-compatible chain
- CFX: Conflux native token
- DApp: Decentralized Application
References:
- Conflux Documentation: https://doc.confluxnetwork.org
- Integration Grants Template: INTEGRATION GRANTS APPLICATION TEMPLATE
Technical Proposal
System Functional Overview:
- Core Functions:
- Tokenization: Convert RWAs into ERC-20 tokens via audited smart contracts.
- Fund Management: Support investments, redemptions, and dividends, with all transactions processed on the Conflux network, ensuring low cost and high efficiency.
- DApp Interface: Integrate with Conflux eSpace network, providing users with asset selection and transaction record interactions.
- Supporting Elements:
- Multi-signature wallets to ensure fund security.
- Regular audits by third-party entities (e.g., Certik).
Legal/Licensing Aspects:
- The fund adheres to a U.S. legal framework, ensuring global compliance while leveraging Conflux’s regulatory advantages in China.
- Collaboration with licensed custodians to ensure asset backing.
- Integration of KYC/AML processes for institutional investors.
Non-Functional Overview:
- Usability: The DApp supports English and Chinese, with a clear workflow and intuitive interface to lower the entry barrier for users.
- Reliability: Built on the Conflux network, ensuring 99.9% uptime.
- Performance: Utilizes Conflux’s 3,000 TPS to handle high-concurrency transactions.
- Implementation: Modular contracts enable seamless updates without interruptions, adapting to market changes.
User Interface:
Responsive Web DApp compatible with desktop and mobile devices, ensuring a consistent and smooth user experience across platforms.
Core Features: Multi-asset management and yield analysis, including portfolio management, asset details, and transaction dashboards to meet users’ needs for full lifecycle asset visibility.
Technical Architecture and Smart Contract Design
The technical architecture of the CycleX RWA Fund adopts a layered design to ensure modularity, scalability, and security:
Data Layer:
Utilizes oracles (e.g., Chainlink) to fetch off-chain asset data (e.g., asset valuations, yield rates) and maps it to on-chain data, stored within smart contracts to ensure data transparency and traceability.
Contract Layer:
Smart contracts are designed with a modular approach, comprising the following core modules:
-
Asset Tokenization Module:
Based on the ERC-1400 standard, tokenizes RWA assets (e.g., real estate, bonds) into tradable on-chain assets, supporting fractionalization and aggregation to ensure asset liquidity.
Fund Management Module: Manages investment, redemption, and dividend logic, incorporating permission controls (multi-signature verification) and fund allocation rules, automatically calculating and distributing profits proportionally to investors. -
Compliance Control Module:
Embeds KYC/AML verification logic, integrating with third-party services like Chainalysis to ensure all transaction participants pass identity verification, complying with U.S. regulatory requirements. -
Cross-Chain Bridge Module:
Leverages Chainlink or other cross-chain protocols (e.g., bridging services supporting Ethereum, Arbitrum) to enable asset migration between Conflux eSpace and other EVM chains, supporting multi-chain ecosystem interoperability.
Application Layer:
The DApp frontend is developed using the React framework, integrating with MetaMask and Conflux Portal wallets to support multi-chain interactions. The frontend provides core functionalities such as asset browsing, investment operations, and yield inquiries, featuring a simple and intuitive user interface adaptable to both desktop and mobile access.
Security Measures:
Smart contracts undergo third-party audits (e.g., Chainlink), utilizing OpenZeppelin’s standard libraries (e.g., Ownable, Pausable) for permission management and emergency pause functionality. This ensures rapid response in abnormal scenarios (e.g., market volatility or vulnerability detection). All transaction records are publicly accessible via the Conflux network’s blockchain explorer, ensuring transparency and auditability.
Total Budget
Grant Size:
$50,000 (Tier 3 Grant)
Justification:
- Smart Contract Development ($20,000): Design, coding, and auditing of modular RWA fund contracts, ensuring compatibility with the Conflux network’s transaction mechanism.
- DApp Development ($15,000): Building and testing a user interface with wallet integration.
- Marketing and KOL Partnerships ($10,000): Promote the fund through Conflux community events, AMAs, and Web3 KOL collaborations to attract user traffic.
- Compliance and Custody ($5,000): Legal consultations and asset custody fees to ensure compliance with U.S. legal frameworks.
To enhance fund utilization efficiency and align with project milestones, we propose disbursing the grant in two tranches:
-
First Tranche ($25,000):
To be disbursed upon approval of the grant application, supporting initial planning, legal framework establishment, and the early stages of smart contract and DApp development (Months 1-3). -
Second Tranche ($25,000):
To be disbursed upon successful deployment of the smart contract on the Conflux eSpace testnet and submission of the Month 3 user growth report (Month 4), funding the mainnet launch, marketing efforts, and compliance activities (Months 4-6).
Development Roadmap
Timeline and Milestones:
Months 1-2: Planning and Application
- Submit the grant application, coordinate with the Conflux team, and confirm collaboration directions (e.g., technical integration, joint promotion, ecosystem alliances).
- Deliverables: Final grant proposal and legal framework (compliant with U.S. regulations).
Months 3-4: Development
- Develop and audit RWA fund smart contracts and DApp, ensuring transactions are processed via the Conflux network.
- Deliverables: Contracts deployed on the eSpace testnet, DApp prototype.
Months 5-6: Deployment and Promotion
- Launch the fund on the eSpace mainnet, attract user traffic through joint promotions (e.g., AMAs, KOL partnerships) and incentives (e.g., CFX cashback, NFT rewards), driving TVL and user growth while deepening ecosystem collaboration (e.g., RWA standard setting, resource sharing).
- Deliverables: Live RWA Fund, marketing report, public API documentation.
Software/Deliverable Specifications:
- Open-source RWA fund smart contracts (GitHub repository).
- DApp with wallet integration and cross-chain bridge support.
- Public RWA fund data API for developer integration.
- Asset-backed compliance documentation (U.S. legal framework).
Team
- Name: Rain
- Role: Co-Founder and CEO
- Responsibilities: Oversee CycleX’s overall strategy, product development, and platform implementation, lead cross-departmental collaboration, and drive the deployment and growth of the RWA Fund on Conflux eSpace.
- Experience: Over 10 years of deep experience in the internet finance industry, previously served as a core product leader at a leading fintech platform and held senior management positions at an A-share listed company, with a long-term focus on financial product structuring and technical platform implementation. Possesses strong product strategy thinking and cross-departmental integration skills. Led the development of multiple structured products and standardized fund solutions, deeply involved in restructuring asset securitization pathways, covering core modules such as ABS, FoF, parent-subsidiary funds, and multi-strategy allocation models. Over the past 5 years, consecutively founded ventures in the digital finance sector, accumulating extensive experience in building compliant frameworks, technical platforms, and fund issuance systems from scratch.
- Name: Lenny
- Role: Lead Blockchain Developer
- Responsibilities: Design, deploy, and audit smart contracts, ensuring compatibility with the Conflux network’s transaction mechanism.
- Experience: Over 5 years of Solidity development experience, led RWA tokenization projects, proficient in EVM-compatible chain development and auditing processes.
- Name: Lucas
- Role: Product Manager
- Responsibilities: Design DApp user experience, develop joint promotion strategies (e.g., AMAs, KOL partnerships), and coordinate with Conflux.
- Experience: Extensive experience in fintech product management, led design and iteration of multiple DApps, skilled in fund flow logic, user credit behavior, KYC processes, and risk control mechanisms. Focuses on user behavior analysis and feedback loops to refine product details, lowering entry barriers and improving new user understanding and retention.
- Name: Andy
- Role: Compliance Officer
- Responsibilities:
- U.S. Compliance Framework: Oversee the design and execution of the platform’s compliance framework in the U.S., including MSB registration, RIA (Registered Investment Adviser) process preparation, SEC regulatory coordination, and policy documentation management.
- KYC/AML Process Integration: Build a risk-based user identity verification and anti-money laundering monitoring system, integrating third-party services like Chainalysis, Sumsub, and Elliptic to create an auditable client due diligence chain.
- Custody Compliance Coordination: Lead compliance negotiations and integrations with major custodians (e.g., BitGo, Fireblocks, Anchorage), ensuring user asset segregation, transaction authorization, and audit trails meet U.S. regulatory requirements.
- Cross-Jurisdictional Regulatory Coordination: Establish a compliance bridge between offshore jurisdictions (e.g., BVI, Cayman Islands) and the U.S. regulatory system, supporting compliant operations and disclosure obligations under multi-tier fund structures.
- Experience: Previously served in information security and operational risk management at a commercial bank, contributing to risk control strategy development, anomaly detection mechanisms, and anti-fraud system design for core financial transaction systems. Later transitioned to a major internet finance platform, leading the development of platform-level risk control systems, implementing user behavior profiling, credit scoring models, and fund flow tracking systems, significantly enhancing AML capabilities and regulatory transparency. Currently focuses on compliance process standardization for tokenized funds and RWA products, deeply involved in multiple projects from structural design, compliance filings, to automated compliance reporting.
- Name: Ivy
- Role: Head of Marketing
- Responsibilities: Develop and execute CycleX’s marketing strategy within the Conflux ecosystem, including community events, KOL partnerships, AMA planning, and user incentive programs to drive user growth and brand influence.
- Experience: Over 3 years of digital marketing experience focused on Web3 and blockchain, successfully led global marketing campaigns for multiple DeFi and NFT projects, skilled in leveraging social media and community engagement to boost project visibility.
Summary
The CycleX RWA Fund on Conflux eSpace will enhance the Conflux ecosystem with compliant, asset-backed financial products, leveraging the Conflux network’s transaction mechanism to drive TVL and user growth. Joint promotions and incentives will facilitate bidirectional user flow between CycleX’s global user base and Conflux’s Asian community, while multi-dimensional collaboration in technical integration, ecosystem alliances, RWA standard-setting, and resource sharing will deliver significant economic benefits, developer engagement, and market competitiveness to Conflux. We request a $50,000 Growth Grant to deploy the fund within 6 months, expanding financial use cases on Conflux eSpace. We look forward to Conflux’s feedback to collaboratively refine the proposal and maximize mutual value.
Terms of Use
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.
