Application introduction
- Name of the project
Fluxtake Finance
- Problem statement in the existing Conflux ecosystem (customer, application, process, etc) and the proposed solution
Fluxtake Finance is a decentralized cryptocurrency lending protocol available on Conflux Network. Fluxtake finance would provide ecosystem users with access to one of the core DeFi use cases - crypto assets lending. From one side, Fluxtake finance allows users to earn dividends by lending their crypto assets through the smart contract under no custody in the best and safest web3 fashion, while from another side - it allows users to borrow provided crypto assets in the safest user-friendly manner. For all parties, Fluxtake Finance provides a seamless experience through the minimalistic and simple user interface.
- Alignment of the project with the Conflux Network
3.1 Benefit to the Conflux Ecosystem: How this product will entice more developers to build on Conflux
Fluxtake finance is to engage and increase developers’ activity on Conflux by a variety of means and activities, such as complete open-source code release, future API release for external integrations, open public policy in terms of developers relations, future participation in the technology-related public events and encouragement of talented engineers outside of Conflux ecosystem to join and explore amazing platform opportunities, having Fluxtake finance as an example of the success they can achieve.
3.2 Economic benefit: How this product will increase assets and transactions on-chain
Fluxtake finance perfectly aligns with the strategic ecosystem launch of AxHKD - native HKD stablecoin fully backed by the Hong Kong Dollar. Considering the lending/borrowing use case proven to be one of the most demanded and performed on-chain cases globally, Fluxtake Finance will unlock a powerful stream of assets and valuable on-chain activities from the existing ecosystem users as well as from the outside in the later stages.
- Demonstrate a competitive edge that differentiates it from other projects
Fluxtake Finance is prepared to overcome any possible competition by becoming the main lending on-chain solution on Conflux with the ecosystem’s support. The platform’s key advantage is its simplistic and efficient user experience, backed by its simple, transparent, and efficient technology solution developed by MeGaDev - the mother company and the industry leader in the web3 service domain. On top of that, Fluxtake Finance is ensured by the reliable security audit performed by external certified professionals.
- Links to the project webpage, DApp, socials and chat groups
Fluxtake finance is an MVP concept developed by MeGaDev - leading enterprise software and web3 service provider.
Website: https://megadevllc.com/
X (Twitter): https://twitter.com/MeGaDevOU
LinkedIn: https://www.linkedin.com/company/megadev-ou/
- Conflux eSpace grant recipient wallet address
0xb26e6243f0097e611e8e4caaa324bf0139b76d48
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Are you an incorporated startup?
Fluxtake Finance is to launch under the MeGaDev business entity established in Estonia, and Fluxtake Finance is to be incorporated separately and independently at a later stage once the fundraising event is confirmed.
Technical introduction
- Refer back to the problem statement
The main problem we’re focusing on is a series of safety, user-friendliness, and transparency challenges, causing average web3 users to spend extra time and effort, and what’s more important – to risk their own funds while dealing with existing market opportunities for lending and borrowing crypto assets in a preferred decentralized manner, which at a first sight seems to be the most secure way to manage assets operation. In fact, it is, however, it needs a very precise and careful approach, which is the main challenge we’ll face building Fluxtake finance.
- Identify existing solutions (if any), and include a feasibility study
After conducting an in-depth analysis of best DeFi lending protocols, it’s been concluded that the strongest and the most reputable market solutions are Compound interest, AAVE, Coinbase and Vesper. The APR tab is projected below:
- Purpose of the system
With Fluxtake finance, our purpose for the Conflux ecosystem is expanding its functional limits with one of the most demanded use cases in the web3 space, which is lending and borrowing crypto assets in a seamless user-friendly way. In compliance with the highest security standards and the simplest user flow for both lenders and borrowers, Fluxtake Finance will boost the on-chain activities and engage new funds of the existing ecosystem users, as well as bring new users from the external web3 market, especially having the AxHKD stablecoin supported from the earliest versions of the DApp.
- Scope of the system
Fluxtake Finance is a minimalistic traditional lending platform with transparent functionality for two main opposing user types: lenders and borrowers. Aiming to keep the revenue model classical, Fluxtake Finance will earn from the interest rate difference between lenders, which are to stake their assets for dividends, and borrowers which are to take the staked assets against the corresponding collateral and to cover interest rate fees.
- Objectives and success criteria of the project
8 Identify definitions, acronyms, and abbreviations
MVP - Minimum Viable Product;
TVL - Total Value Locked;
APR - Annual Percentage Rate.
- Include any references
References to the DApps we’ve been recently working on:
https://skyprotocol.org
Fluxtake finance reference:
Amongst the strong competition with significant TVL metrics, mentioned above, as a reference technology solution with EVM compatibility and proven market track, it’s been decided to fork the Aave v3 liquidity protocol with minimal required edits of the blockchain component to operate on Conflux eSpace, as well as various custom UX/UI adjustments.
Technical proposal
- Functional overview of your system
1.1 Identify all of the core aspects of your system and elements to uphold its functionality
Fluxtake finance is to be considered functionally complete once the development and the integration of the following core elements are done:
- Mainnet deployed and audited a smart contract system that manages the liquidity pools, lending/borrowing asset streams, responding to user requests, and maintaining risks and collaterals;
- Metamask support integration;
- Chainlink oracle connection;
- Interest rates setup
- Supported assets: CFX, ETH, BTC, AxHKD, USDT, USDC, DAI;
- Preliminary* interest rates:
- Minimalistic user-friendly functional web page and the integration layer connecting the page with required on-chain components.
*Preliminary interest rates are to be adjusted according to the market conditions by the platform release date and regularly later on.
1.2 Legal/licensing aspects (if any)
Legal and licensing aspects are to be tackled at the future stages of the platform’s growth.
- Non-functional overview, outlining user-expected factors which are not directly related to functionality
2.1 Usability
Simple and understandable user flow in its best web3 fashion for experienced users as well as clear and efficient onboarding opportunities for the users that are new to crypto. Open public policy for users, allowing everyone to deliver fair feedback to the project team, based on which the user experience is to be improved in future platform iterations.
2.2 Reliability
Considering the past incidents that happened to one of the previous lending DApp on Conflux Network, the security aspect of the reliability is at the highest priority. This aspect will be insured by the comprehensive technology audit by a 3rd party security service provider, licensed for the audition work. Besides that, another key reliability point is keeping the uptime at its longest, reducing downtime as close to zero as possible. In addition, the platform’s reliability is to be ensured by the undeniable accuracy of the on-chain funds processing methods along with trusted and precise information provided by the oracle.
2.3 Performance
The most efficient platform performance is to be achieved by the simple and efficient code design along with carefully thought-through system architecture providing strong enough scalability to handle the growing number of users and transactions without performance degradation. Processing speed is another factor that is to be ensured by regular maintenance and optimization works around the Fluxtake finance technology.
2.4 Implementation
Core Fluxtake Finance implementation aspects are the following: architecture, smart contracts, API and Middleware, and Security Measures. Each of them has its corresponding basis and detailed specifications.
Architecture
- Modular Design: Separate components for smart contracts, API, and user interface to facilitate maintenance and scalability.
- Blockchain Integration: Seamlessly integrate with the Conflux eSpace to leverage its high throughput and low confirmation times.
Smart Contracts
- Development: Utilize Solidity to develop secure smart contracts for managing lending and borrowing activities.
- Testing: Conduct rigorous testing to identify and fix vulnerabilities.
API and Middleware
- API Development: Create RESTful APIs to enable interaction between the user interface and smart contracts.
- Middleware: Develop middleware to handle data processing and business logic.
Security Measures
- Audits: Regularly audit smart contracts and system components to identify and mitigate security risks.
- Encryption: Use advanced encryption methods to protect user data and transaction details
2.5 User interface
User interface design is developed according to the principles and methods providing the advantages mentioned in the 2.1 usability section above. Those are based on minimalism and accuracy, avoiding extra visual objects and keeping users’ attention on the specific queries designed for the complete and transparent understanding of each step of the user flow. UI responsiveness is to ensure perfect accessibility across different devices on different OS platforms with different screen sizes.
Total Budget
- Grant Size: What is the total grant amount being requested?
The total requested amount equals 35000 USD.
- Justification: Break down the activities and costs associated with the requested grant amount
Development Roadmap
Team
Eduard Miaus (Board Member) – https://www.linkedin.com/in/eduard-miaus/
Vadym Bestaiev (Chief Executive Officer) - https://www.linkedin.com/in/vadym-bestaiev-b38931193/
Yaroslav Panchenko (Business Development Manager) - https://www.linkedin.com/in/yaroslav-panchenko-3300b5205/
Anna Miaus (Financial Consultant) - https://www.linkedin.com/in/anna-miaus-096b74200/
Lolita Poliashenko (Head of Brand Marketing) - https://www.linkedin.com/in/lolita-poliashenko-a9a536246/
George Burlakov (Chief Technology Officer) - https://www.linkedin.com/in/george-burlakov/
Valeriy Manchenko (Technology Architect) - https://www.linkedin.com/in/valeriy-manchenko-939a6667/
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