Integration Grants Application: Snitch Protocol - Scout & Earn from Top Trading Wallets

#1

Introduction
We propose to develop Snitch Protocol, a platform for discovering and monetizing alpha from top-performing traders across several blockchains. The core protocol has the following flow:

  1. Users submit promising wallet addresses to be tracked
  2. AI analysis ranks wallets based on trading performance
  3. Other users interested in copy-trading top traders pay to reveal tracked addresses, with rewards going to the original submitter

Benefit to Conflux Ecosystem

  1. Brings sophisticated trading analytics to Conflux
  2. Creates passive income opportunities through alpha discovery
  3. Attracts traders looking for competitive edge
  4. Increases network activity

Competitive Edge
Snitch Protocol brings unique innovations to trading analytics:

  • First platform with incentivized wallet scouting
  • AI-powered performance ranking
  • Automated reward distribution
  • Real-time trade monitoring
  • Privacy-preserving analysis system

Are you an incorporated startup?
Yes, we are incorporated in France.

Technical Introduction
Problem Statement
Identifying successful traders is time-consuming and unrewarded. Centralized platforms (e.g. Nansen) dominate the space. Copy-trading lacks incentives for alpha discovery.

Existing Solutions
Nansen Smart Money lacks incentive mechanisms for scouts.

Purpose of the System
Snitch Protocol aims to create a marketplace for trading alpha while ensuring fair rewards for scouts.

Technical Proposal

  • Smart contract protocol for scout rewards
  • Real-time performance tracking
  • Privacy layer for revealed addresses
  • Front-end with Privy integration

UI Mockups

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Total Budget
Amount requested: $15,000
Breakdown

  1. Development: $10,000
  • Smart Contract Development: $4,000
  • Frontend/Backend Development: $4,000
  1. Server/API Costs: $2,500
  2. Marketing: $4,500

Roadmap

Milestone 1: Launch (1 Month)
Core Development
Deploy smart contracts
Launch frontend interface
Onboard and interview 10 beta testers
Complete mainnet deployment
Launch campaign with 2 KOLs
Publish daily free alpha on socials
Generate first revenue from subscriptions
Launch scout education program
Funding: $8,000
Milestone 2: Growth (1 Month)
Quest campaign on Zealy
50 daily active users
250 tracked wallets
30 unique wallet submissions per week
50% user retention rate (week to week )
Achieve $500 monthly recurring revenue
Funding: $7,000

Targeted KPIs

  • Monthly Active Users: Target 100 by month 3
  • Monthly Transaction Volume: Target $10k by month 3
  • Unique Wallet Submissions: 100+ per month
  • Website Traffic: 2000 monthly visits
  • User Retention: 50% month-over-month
  • Scout-to-Subscriber Ratio: Target 1:5

Scout Incentive Structure

  • 70% of subscription revenue goes to scouts
  • 30% protocol fee for platform maintenance and development
  • Long-term sustainability through protocol revenue

**Scout Acquisition Strategy:

  1. Early adopter rewards program offering bonus rewards for first 100 scouts
  2. Educational content teaching wallet analysis and scouting techniques
  3. Weekly leaderboards highlighting top-performing scouts
  4. Ambassador program for experienced traders
  5. Integration with trading communities and DAOs

User Engagement Plan**

  1. Daily free alpha reports highlighting successful scouted trades
  2. Social channels for scout community discussion
  3. Regular AMAs with successful scouts
  4. Gamification elements (scout levels, achievements)
  5. Revenue sharing events for high-performing scouts

Team
We are HaAI Labs (haai.info), the team behind preprints.io

Nassim Dehouche: Lead Developer
Ph.D. CS, Certified Ethereum Developer
Nishant Tomar: Developer
MSc. CS
Som Meesakulthaworn: Product Lead
MA Visual Communications, UI/UX, Product Manager

Terms of Use
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.

#2

Hello @haailabs,

thanks for the submission. Your project looks very promising and somewhat decentralized the on-chain hunting. A couple of questions:

  1. Who do you think are you main competitors?
  2. How will you on-board users to become scouts? Especially in the beginning
  3. Is copy-trading included in the grant-scope?
  4. Do you have a demo-site that interested parties can play around with? Can be on another blockchain.
#3

Hello Snitch Team,

Thank you for submitting your proposal. I have a few suggestions for areas that could benefit from refinement:

  • The Foundation typically does not allocate funds for testnet deployments. We strongly encourage projects to aim for mainnet deployment as part of their first milestone.
  • Please consider incorporating more robust performance and social KPIs into your Milestone list. Focus on KPIs that provide a clearer picture of the project’s growth trajectory rather than metrics like tracked wallets, which may not accurately reflect growth.
  • Could you clarify how your project contributes to growth on the Conflux chain? Specifically, how does it directly boost trading activity on the platform?
  • Providing more details on your marketing initiatives would be valuable.
  • Please expand on your growth initiatives. What sets your project apart from competing forks, and why is it uniquely appealing to users and projects?

Looking forward to your feedback and your revised proposal!

#4

Hello, thank you for the questions:

  1. The main tools people use to discover top addresses is Nansen’s Smart Money and private TG/Discord. Users would have incentives to bring the knowledge they buy from these services or discover themselves, to Snitch Protocol to generate passive income when someone else uses it.
  2. We will directly target users of centralized services with the message that the knowledge they have bought can be resold. Moreover, we will have a freemium service for data consumers to see some top addresses we collect ourselves. The incentive system and the fact that new top addresses constantly emerge will create a flywheel effect.
  3. No, copy-trading is not included. Most exchanges already include elaborate copy-trading features. They are hard to compete on this, but they need fresh data.
  4. We have a smart contract deployed on testnet. We can share it privately with the grants team for testing.
#5

Thank you for the valuable feedback.

  1. Conflux mainnet deployment was intended in the “Launch & Growth” milestone. I have explicitly added it as a bullet point to clarify.
  2. Added KPIs regarding active users and retention.
  3. The project will compile and provide information about successful traders on Conflux which will encourage others to copy them thereby increasing trading activity. This information cannot be found easily currently. Moreover, scouting and revealing address would be paid transaction on the Conflux network which would increase activity.
  4. We will directly target users of centralized services with the message that the knowledge they have bought can be resold. Moreover, we will have a freemium service for data consumers to see some top addresses we collect ourselves. The incentive system and the fact that new top addresses constantly emerge will create a flywheel effect.
  5. Please note that this is not a fork but 100% original software. We are not aware of any similar service where users can earn passive income from their knowledge of successful trading address. We believe that the fairer incentives that Snitch Protocol provides and its decentralized nature is what sets it apart and will make it preferable to users long terms.
#6

Thanks for your reply. Couple more notes and questionst hat could benefit from refinement:

  • I recommend prioritizing your Launch and Growth Milestone as the first milestone. As mentioned, the Foundation typically does not allocate funds for testnet deployments. Instead, we encourage projects to direct the majority of their grant funding toward initiatives that actively drive growth rather than solely focusing on development.
  • Please consider incorporating more detailed and robust performance and social KPIs into your milestone list (e.g., number of campaigns, website traffic, monthly unique wallet addresses, transaction volumes, etc.). Emphasize KPIs that transparently reflect the project’s growth and impact.
  • Could you clarify how the incentives will be financed?
  • Additionally, please elaborate on the targeted messages and marketing initiatives. How will you onboard users to become scouts, and what strategies will you use to drive engagement?
#7

Thank you for these improvements. We have restructured the proposal and made milestones clearer.
Let me directly address your feedback points by highlighting what we’ve added to address each concern:

  1. Regarding prioritizing Launch and Growth:
  • We’ve modified Milestone 1 to culminate in revenue generation: “Generate first revenue from subscriptions”
  • Added “Launch scout education program” and “KOL campaignes” for early user acquisition
  • Set concrete growth targets in Milestone 2: “50 daily active users”, “250 tracked wallets”, “$500 monthly recurring revenue”
  1. Regarding detailed KPIs:
  • We’ve added a comprehensive “Targeted KPIs” section including:
    • Monthly Active Users: 100 by month 3
    • Transaction Volume: $10k by month 3
    • Wallet Submissions: 100+ monthly
    • Website Traffic: 2000 monthly visits
    • User Retention: 50% month-over-month
    • Scout-to-Subscriber Ratio: 1:5
  1. Regarding incentive financing:
  • Added clear revenue distribution structure:
    • 70% to scouts
    • 30% protocol fee
    • Sustainability through protocol revenue
  1. Regarding marketing and user onboarding:
  • Added detailed “Scout Acquisition Strategy” including:
    • Early adopter rewards program
    • Educational content
    • Weekly leaderboards
  • Added “User Engagement Plan” with:
    • Daily alpha reports
    • Social channels
    • Regular AMAs
    • Gamification elements
    • Revenue sharing events
#8

Thank you for your response and clarification. There are still a few areas in your proposal that require further detail:

  • Could you revisit your budget breakdown and refine the development costs? Currently, the figures for the development phase do not align clearly.
  • Could you elaborate further on the subscription fee and user onboarding model? Specifically, how does the freemium service differ from the subscription? Is the revenue solely derived from subscription fees?
  • I recommend including targeted KPIs in your Milestone list, as budget unlocks will be tied to these milestones. The KPIs will serve as key indicators of your project’s growth. You might also consider introducing sub-milestones to further detail your budget allocation and align them with the proposed KPIs.
  • Since a significant portion of your budget is allocated to initial marketing efforts, it would be beneficial to link these to specific KPIs and include them in your Milestone list.