Application Introduction
1. Introduction
Nysa is a smart lending protocol that enables users to lend and borrow cryptocurrencies through an open-source, permissionless, and anonymous platform, while they can benefit from a Machine Learning Model which helps users prevent liquidation risks in real time.
**2. Problem statement in the existing Conflux ecosystem (customer, application, process,
While the Conflux DeFi ecosystem is experiencing significant growth, it still faces several major challenges:
-The absence of a native lending & borrowing protocol
-Significant room for adoption and expansion of the DeFi ecosystem
-Limited development in the DeFAI and Cross-Chain verticals
At Nysa, we aim to address these challenges directly. Our mission is to contribute to the growth of the Conflux ecosystem by:
-Launching a robust lending & borrowing infrastructure for key assets on Conflux;
-Pioneering the development of DeFAI within the network through our proprietary ML-based liquidation prediction algorithm and a natural language DeFi Agent in our mid/long-term roadmap, enabling users to access Nysa and all major DeFi protocols on Conflux through a single prompt-based interface. (MVP already built)
-Contribute to the Cross-Chain Features growth by leveraging our Partnership wth Filecoin.
3. Alignment of the project with the Conflux Network
We firmly believe that Nysa can deliver significant value to the Conflux ecosystem. This is not just a new product, but one that inherits its Tech and Community Stack from a well-established and validated DeFi protocol: Sirio Finance.
Thanks to this strong foundation, Nysa is launching with:
-A pre-built community of over 3,000 followers on X and 1,000 active Discord members
-A fully developed and tested Machine Learning algorithm
-A complete and functional Solidity codebase
This valuable legacy allows us to confidently foresee the following benefits for Conflux, broken down by category:
Benefits to the Conflux Ecosystem:
1.Open-Source Contribution:
Nysa’s entire codebase will be released under an open-source license, allowing other developers to fork, extend, or reuse the protocol freely.
2.Liquidation Incentive Model:
Our custom liquidation mechanism includes incentives and rewards for third-party liquidators and bots, encouraging the growth of an engaged developer base around the protocol.
3.AI/ML Accessibility:
The liquidation prediction algorithm is entirely built in Python—one of the most widely adopted languages in AI—making it accessible to the broader Data Science and AI development community.
Economic Benefits:
-
Proven Traction:
Nysa inherits the performance of Sirio Finance, which achieved the following milestones within just 5 days of launch:-Over $2M in Total Value Locked (TVL)
-250+ Unique Active Users (UAUs)
-More than 1,000 on-chain transactions -
Great Community & Partners:
With an already active user base originally rooted in the Hedera ecosystem, Nysa can potentially bring thousands of users to the Conflux network. Moreover, Nysa con count on several official partners, such as Filecoin, which can help to enrich the Conflux DeFi Ecosystem (The team already agreed to support cross-chain features).
4. Demonstrate a competitive edge that differentiates it from other projects
We believe that Nysa’s competitive positioning can be analyzed on two levels:
-Within the Conflux ecosystem
-Globally, across the broader Web3/EVM landscape
-
Intra-Conflux Ecosystem Perspective
Within the Conflux ecosystem, Nysa stands out as a high-potential product. As it would be the only active Lending & Borrowing protocol on the network, it has the opportunity to quickly become a cornerstone of the DeFi infrastructure on Conflux, especially with the right support in terms of co-marketing and business development initiatives. -
Global Web3 Landscape
Even in the global Web3 space, Nysa retains a unique and defensible edge. Our proprietary Machine Learning algorithm, designed to predict and prevent liquidation risks, is the first of its kind. It not only allows us to significantly enhance the user experience compared to traditional protocols but also opens the door to strategic partnerships—such as the one we are establishing with Filecoin. These kinds of collaborations can unlock powerful cross-chain functionalities and integrations, ultimately strengthening the Conflux DeFi ecosystem by connecting it to broader liquidity and user networks.
5. Links to the projects webpage, DApp, socials and chat groups
-Nysa Deck: https://docs.google.com/presentation/d/1dMO-x2Ho3YM8eRsSgyKI_8ZGakRzuUfI_oRsKURxyB4/edit?usp=sharing
-Twitter (Sirio’s X Account, will be rebranded with Nysa): https://x.com/SirioFinance
-Discord (Sirio’s Server, will be rebranded with Nysa): https://discord.gg/vUgVhS3YjY
-Github: https://github.com/SirioFinance/
-Medium: https://medium.com/@siriofinance/about
-App: https://app.sirio.finance/
-Nysa inherits its Tech & Community Stack from a previous protocol, Sirio Finance, which experienced an unfortunate security incident on February 2nd, just five days after its launch. Following a thorough investigation, the team publicly disclosed the root cause: a critical vulnerability introduced by an external auditing firm during the final review phase. This ultimately led to the exploit.
In response, Sirio immediately halted operations to protect users and initiated a full transparency process. Despite the incident, the community remained supportive and acknowledged the team’s integrity and rapid response. A detailed post-mortem report documenting the events and technical findings is available here: https://docs.google.com/document/d/1Axt2hkdQ00J7klNLVRPfAboYCCPu0hwBPLz56HDutL0/edit?usp=sharing
-Documentation (from Sirio, will be rebranded with Nysa): https://astrid.gitbook.io/sirio
6. Conflux eSpace grant recipient wallet address
0xa17A6E5503Cb29AC99139EC5d3a74C96323fE148
7. Are you an incorporated startup?
Yes, Nysa is an incorporated startup based in Italy.
Technical Introduction
1. Problem Statement
The Conflux ecosystem currently lacks a native and functioning Lending & Borrowing protocol. This gap limits DeFi adoption, restricts capital efficiency/liquidity flow, and creates friction for users and developers looking to engage in advanced financial strategies.
2. Existing Solutions & Feasibility Study
At the time of writing, no active Lending & Borrowing solution exists within the Conflux ecosystem. While global solutions like Aave, Compound, and Venus offer similar services on other EVM chains, they are not deployed nor integrated with Conflux. The feasibility of launching Nysa is high, as the project inherits a validated tech stack and community from a previous protocol (Sirio Finance), with both smart contracts and the ML liquidation algorithm already developed and tested.
3. Purpose of the System
Nysa aims to establish the first native Lending & Borrowing protocol on Conflux, enabling users to supply and borrow assets in a permissionless and anonymous environment. It also integrates a proprietary Machine Learning algorithm to predict and prevent liquidation risks, improving capital safety and user experience, by pushing boundaries of DeFAI on Conflux, and aims to contribute significantly to the Interoperability field, by leveraging its partnership with Filecoin.
4. Scope of the System
Nysa will launch as a complete Lending & Borrowing DeFi protocol with:
-Support for key Conflux assets
-Dynamic interest rate model
-Robust Risk Framework
-A Machine Learning liquidation risk predictor
-Future expansions include a DeFi Agent, enabling natural language interactions with Nysa and other protocols on Conflux.
5. Objectives and Success Criteria
Financial Objectives
-Launch a fully operational, open-source lending protocol on Conflux
-Reach $1M TVL within the first quarter since launch
-Attract 300+ Unique Active Users (UAUs) within the first quarter since launch
-Generate +1000 Transactions within the first quarter since launch
-Establish at least 1 strategic partnership for cross-chain functionality with Filecoin (& Axelar)
Community Objectives
-Reach 5,000 Followers on X
-Reach 1,600 Discord Community Members
6. Definitions, Acronyms, and Abbreviations
Not applicable.
7. References
No external references used in the current version of this proposal.
Technical Proposal
1. Functional overview of your system
Nysa is a protocol designed to deliver best-in-class user experience, built around a secure environment and aligned with the most robust Risk Parameters found in top-tier Lending & Borrowing protocols.
Its core components include:
- Compound V2 Architecture
Nysa follows an architecture inspired by Compound V2, already developed by the team. It enables three key actors: Suppliers, Borrowers, and Liquidators.
-Suppliers deposit liquidity to earn interest.
-Borrowers can lock collateral and borrow other assets.
-Liquidators maintain the solvency of the protocol by acting on risky positions.
We remain open to evolving this design and may consider forking another audited protocol, depending on future evaluations.
The Architecture of the contract is as follows:
SFPTokens Contracts
These are the core Nysa supported tokens (SFPs), handling lending, borrowing, withdraw, liquidation functions. The SFPToken and SFHbar (To be rebranded with SFCFX) contracts contain the foundational logic, they provide specific interfaces for ERC-20tokens and native ones, respectively. Each contract represents ownership in the market and is associated with an interest rate model. These tokens allow users to supply, redeem (withdraw capital), borrow, liquidate, and repay borrowed assets. SFPToken contracts adhere to ERC-20 standards.
Market Position Manager
This contract enforces the protocol’s risk management parameters, ensuring users maintain sufficient collateral across all tokens. It disallows risky actions that could threaten the stability of the system, such as borrowing/redeeming without sufficient collateral.
InterestRateModel
Contracts that determine interest rates algorithmically based on the market’s utilization. The higher the demand for borrowing relative to the supply, the higher the interest rates will be.
Oracle (Supra Oracle Integration) and Time Weighted Average Price Oracle (TWAP)
Nysa integrates with Oracles to securely retrieve real-time price data for all assets in the protocol. Supra Oracles provide decentralized price feeds, ensuring reliable and accurate asset valuations across different markets, whether CFX, ERC-20 tokens, or other assets. In addition we have a TWAP backup oracle in case the oracle goes down, so we can get prices for affected assets.
Oppenzeppelin, SafeToken, Upgradables
libraries designed for secure interaction with ERC-20 tokens, ensuring proper handling of token interactions and security.
In the next points, we will dive into each feature.
- Dynamic Interest Rate Model
Each asset listed on Nysa is governed by a dynamic interest rate model based on the interaction of supply and demand.
Every token has custom parameters (such as slope and kink) calibrated according to its volatility and risk profile, ensuring a sustainable and responsive lending market.
3. Liquidation Mechanism
To ensure the solvency of the protocol, Nysa includes a robust liquidation mechanism.
Loans with a low Health Factor become eligible for liquidation. In such cases, liquidators can repay the borrower’s debt and seize a portion of their collateral, receiving a liquidation fee as a reward.
4. Risk Parameters
Each asset is assigned a set of custom risk parameters based on our Risk-Per-Asset Methodology:
-Loan-To-Value (LTV): Limits borrowing power based on the asset’s volatility.
-Supply Cap: Maximum amount of tokens that can be supplied to the protocol.
-Borrow Cap: Maximum amount of tokens that can be borrowed from the protocol.
These parameters are adjustable and play a critical role in maintaining systemic stability.
5. AI for Risk Management
Every time a user attempts to borrow assets, our Machine Learning model calculates the liquidation probability of the proposed transaction.
This prediction is based on historical data and volatility trends. The borrower is shown this risk estimate in real time, along with custom strategies to reduce risk, enabling full transparency and informed decision-making before the transaction is executed.
2. Non-functional overview
-
Usability
We have carefully designed and refined the User Experience (UX) and User Interface (UI) to ensure the highest level of usability on the Nysa protocol.
Our goal is to provide users with an intuitive, responsive, and seamless interaction flow—from connecting their wallet, to supplying or borrowing assets, and understanding their risk exposure in real time. -
Reliability
Upon deployment, Nysa will undergo not only a full smart contract audit, but also a comprehensive penetration test and the integration of real-time risk-monitoring software. These measures are designed to ensure the highest levels of reliability and system security. -
Performance
The Nysa team has already built a robust infrastructure to support high-performance data access through a dedicated RPC node, allowing for near real-time updates of on-chain data within the app.
This technical foundation is one of the key reasons our community strongly supports the protocol—it ensures a smooth and responsive user experience. -
Implementation
Since Nysa inherits its Tech Stack from Sirio Finance, the majority of the components have already been developed, tested, and validated by a real user base. This significantly accelerates implementation and reduces technical risk, enabling a faster go-to-market timeline. -
User Interface
The UI—developed in close collaboration with a freelancer who also works with Trezor—was designed for simplicity, speed, and clarity. Combined with the app’s high performance, this ensures a highly attractive and user-friendly experience.
The current version of the UI, originally developed for Sirio Finance, will be used as a reference for the rebranding process into Nysa and can be previewed here: https://app.sirio.finance/
Total Budget
1. Grant Size
Grant Size Requested:
$83,000
2. Justification
The requested funds will be allocated across three main areas, each critical to the success and sustainability of the Nysa protocol:
-
Protocol Growth & User Adoption: 43,000$
Our primary objective is to attract new users, increase on-chain activity, and raise our TVL (Total Value Locked).
To achieve this, we plan to implement:
-APR Boosters to enhance supplier rewards
-Borrowing Cost Reductions to incentivize borrowing
-Monthly Prize Pools to reward top-performing and most active users -
Security & Auditing: 25,000$
We are committed to making Nysa a bulletproof protocol, starting with:
-A comprehensive smart contract audit
-Penetration testing to assess potential vulnerabilities
-Integration of real-time Risk-Tracking Software for continuous monitoring -
Operational & Development Costs: 15,000$
To ensure exceptional performance and reliability, we will invest in:
-High-performance infrastructure (servers, hosting, premium API plans)
-Performance monitoring tools
-Developer incentives, ensuring top-tier delivery and long-term commitment from the team
Development Roadmap
MILESTONE 1 — Testnet Deployment
Timeline: within 3 months of grant approval
Requested Funding: USD 20,000
Deliverables:
-Backend code fully adapted and deployed on Conflux eSpace Testnet
-Rebranded frontend live in Testnet “testing mode”
-Public testing campaign with feedback collection
Funds Allocation Purpose:
Audit
Penetration Tests
Bug Bounties
MILESTONE 2 — Mainnet Deployment
Timeline: ~2 months after Milestone 1 is completed
Requested Funding: USD 12,000
Deliverables:
Final audit report and penetration-test certificate
Smart contracts deployed on Conflux Mainnet
Production infrastructure live (high-performance server, dedicated RPC node, hosting)
Real-time performance & risk-monitoring software integrated
Funds Allocation Purpose:
Production-grade server, RPC node subscription, APIs Subscription
Performance-tracking and risk-monitoring SaaS plans
Hosting App
MILESTONE 3 — APR Booster Mechanism Deployment
Timeline: within 1 month of mainnet launch
Requested Funding: USD 4,000
Deliverables:
APR Booster smart-contract module coded, tested, and activated
Marketing rollout explaining Booster mechanics to users
Initial boosted APYs on selected pools visible in the app
Funds Allocation Purpose:
Development & QA for Booster contract
Smart-contract deployment
Marketing collateral
MILESTONE 4 — TVL Milestone: Reaching USD 1 Million
Timeline: expected triggered when $1 M TVL is reached
Requested Funding: USD 11,000
Deliverables:
APR Booster Live
Monthly Prize Pool program launched (first distribution executed)
Documented increase in daily active wallets and TVL growth metrics
Funds Allocation Purpose:
Liquidity incentives (Booster rewards)
Monthly Prize Pool budget
Promotional push (community AMAs, ads, leaderboard tooling)
MILESTONE 5 — TVL Milestone: Reaching USD 3 Million
Timeline: triggered when $3 M TVL is reached
Requested Funding: USD 32,000
Deliverables:
+1000 Transactions Executed
+100 N.A.U.
Funds Allocation Purpose:
Expanded Booster rewards
Larger Prize Pools
MILESTONE 6 — AI Model Deployment
Timeline: once sufficient on-chain data are gathered (projected 6–9 months after mainnet launch)
Requested Funding: USD 4,000
Deliverables:
Machine-Learning model retrained on Nysa’s proprietary risk dataset
ML model deployed on mainnet with real-time risk-score endpoint
One-year operational budget for model inference and monitoring
Funds Allocation Purpose:
Cloud compute for retraining & inference
FE work for on-chain model integration
Team
Gica – Co-Founder & Business Developer
Gica is an engineer with a strong technical background who personally designed the architecture of the machine learning model, leveraging his experience as a Python full-stack developer since 2017. He co-founded Sirio (now rebranded as Nysa) and plays a key role in strategic development. Under his guidance, the team completed two sold-out fundraising rounds in under two minutes, secured a grant from the HBAR Foundation, and established an official partnership with Filecoin. He was selected as a judge for the January 2025 Hedera Hackathon in the AI & Data Integrity track and was also a speaker at the ICP Global Townhall in July 2024, where he discussed decentralization in DeFAI using ICP.
LinkedIn: https://www.linkedin.com/in/giacomo-maraglino-9a811b144?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_app
GitHub: https://github.com/giacomo-giacomo
Andrew – Data Scientist & AI Specialist
Andrew is a full-stack AI and data scientist with practical experience in building production-grade ML systems. His projects range from clinical modeling and unsupervised clustering at the Istituto Nazionale dei Tumori—where he is co-authoring a paper on immunological biomarkers in perineural invasion—to scalable LLM-powered tools for SEO and crypto analytics. His expertise spans self-supervised learning, computer vision, NLP, and multimodal data, utilizing frameworks such as PyTorch and TensorFlow, along with Docker and cloud platforms like GCP and AWS. He holds a Master’s degree in Data Science and Economics from the University of Milan, where his thesis explored heterogeneous graph neural networks applied to biomedical knowledge graphs. His core strength lies in transforming complex, high-dimensional data into actionable insights through a blend of deep learning, statistical modeling, and hands-on engineering.
LinkedIn: https://www.linkedin.com/in/andrew-costa-95013013b?utm_source=share&utm_campaign=share_via&utm_content=profile&utm_medium=ios_app
GitHub: https://github.com/andrew4costa
Jordy – Full-Stack Web Developer & Co-Founder
Jordy is a full-stack web developer with in-depth knowledge of web application architecture and Web3 systems. He built the API and server infrastructure that significantly improved the speed and performance of the Sirio app. He also contributed to the development of minor smart contract components.
GitHub: https://github.com/JordyKingz
Marco – Full-Stack Web Developer
Marco is an engineering student with a strong academic background and comprehensive understanding of key Web3 architectures. He contributed to both the smart contracts and front-end development of Sirio. His academic training gives him a broad and analytical approach to complex technical challenges.
GitHub: https://github.com/marcomaraglino
Michele – Full-Stack Web Developer
Michele, also an engineering student, worked alongside Marco on the development of both the front-end and back-end of Sirio. He plans to continue contributing to the rebranded protocol, Nysa, with the same dedication and technical support.
GitHub: https://github.com/michele-03
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 requiremen