{"signature": "0xf68845950f18d313bac485abd553c48914f839cd70bf290ddb2829694cf29f024cc754d01b761c2e8e2677acc36dde55a23d374f5a4ff32b388547541b3d843e1b", "application": {"round": "0x6142eedc06d80f3b362ce43b4ac52fad679dc850", "answers": [{"type": "email", "hidden": true, "question": "Email Address", "questionId": 0, "encryptedAnswer": {"ciphertext": "R/4MK/2Bqe2VvxE2od2cCojhcO8x5ivs2Po8ys2Luq6T6SE67l6LRqNN+SgK7fe4", "encryptedSymmetricKey": "21ba1f91cdc378be0a592bdc16eb8e718b69cf6efb58bcf6d488c1f66003539018fb914099ca617a1b606359a95760052f52f43beb651f3b34029865e6d72b171e757feba69ccff84ef325f83cd0e173f218c8966268ad4e4f0e1bd693199a911e54daadf19c5a29a8660173ea815e202072be234b3d771320f1fea7297c05530000000000000020b106960724e4fbe16650d5925d94a4943d69a4d416995fd76d36598efa86b0acedae3ff68e95a9dfc3b3b942e3b953a8"}}, {"type": "paragraph", "answer": "Parallax Finance, as an Arbitrum-native project, is pioneering AI-driven liquidity management, tailored to maximize APYs in Uniswap v3\u2019s concentrated liquidity pools. We offer a dynamic, real-time solution for liquidity optimization. \n", "hidden": false, "question": "Application detail", "questionId": 1}, {"type": "number", "answer": "150000", "hidden": true, "question": "Amount requested (in $)", "questionId": 2}, {"type": "dropdown", "answer": "ARB", "hidden": true, "question": "Payout token", "questionId": 3}, {"type": "short-answer", "answer": "We seek this grant to promote the adoption of our newly launched on-chain product \u2013 Concentrated Active Liquidity Management (CALM) and AI strategy manager \u2013 HAL9000. Both CALM and HAL9000 are Parallax\u2019s new products (approved via Parallax Governance), designed to bringing liquidity providing automation, optimal fee generation, and efficiency to Uniswap v3 pools. This grant will play a pivotal role in allowing us to achieve broader adoption and collaboration within the Arbitrum ecosystem.  Incentivizing Product Usage: Implement a reward system that incentivizes users to participate in CALM vaults. This involves distributing ARB and PLX tokens rewards to LPs actively using CALM.   Fostering Strategic Collaboration with Other Arbitrum Projects: Establish collaborative initiatives with other Arbitrum-based projects. This includes joint incentives for CALM vaults, co-marketing, and co-education to amplify the reach of CALM.   Community Building: Support community-led efforts via workshops, learn and earn campaigns, and other activities to raise product awareness and diversify content from community perspective, such as tutorials and infographics. Doing this allow us to help demystify the complexities of LP via CALM, attract both beginner and sophisticated users on Arbitrum.  Note: The cost of refining our AI-driven strategy manager \u2013 HAL9000, conducting extensive testing for reliability, UX optimization, user feedback mechanism, custom solutions for partners, risk management and security are all accounted for as our project cost. ", "hidden": true, "question": "How do you account for this fund request?", "questionId": 4}, {"type": "paragraph", "answer": "Our detailed plan for the utilization of funds revolves around liquidity providers/users and Arbitrum-based projects. Funding allocation:\n\nCALM Deposit Rewards: $120k or 80% \n\n\n$35,000 - Allocating to major pools\n$85,000 - Allocating to partner pools \n\nCommunity Initiatives: $30k or 20%\n\n$15,000 \u2013 Co-marketing campaigns & educational partnerships from Parallax and partner communities   \n$8,000 \u2013 Community workshops \n$7,000 \u2013 Community content creation\n", "hidden": false, "question": "How will you use these funds? Please make a detailed plan for expenditures.", "questionId": 5}, {"type": "dropdown", "answer": "Liquidity Management", "hidden": false, "question": "Which RFP is this project covering? ", "questionId": 6}, {"type": "short-answer", "answer": "Parallax, centered on our AI-driven liquidity management, aligns seamlessly with Uniswap, particularly Uniswap v3, due to several key aspects:  Concentrated Liquidity Optimization: Uniswap v3 introduced the concept of concentrated liquidity, allowing liquidity providers (LPs) to allocate their capital within specific price ranges. Our HAL9000 strategy manager and CALM product are designed to maximize the potential of this feature by dynamically adjusting liquidity positions based on predictive market analysis. This ensures that capital is not only utilized efficiently but also aligned with market conditions, enhancing yield potential for LPs.  Increased Capital Efficiency: By optimizing the allocation of liquidity in Uniswap v3 pools, our project helps in enhancing capital efficiency, especially for often overlooked long-tail assets which are the key to a vibrant Uniswap ecosystem.   24/7 Automated Management: Uniswap operates around the clock, and our HAL9000 strategy manager complements this by providing continuous, AI-driven liquidity management. This automated system relieves LPs from the need to constantly monitor and adjust their positions.   Risk Mitigation: The Uniswap v3 model, while efficient, has inherent risks like impermanent loss, especially when markets are volatile. Our algorithm is designed to mitigate such risks through data-driven strategies that adapt to changing market conditions, providing a layer of risk management to LPs.  Enhanced Liquidity and Trading Experience: By ensuring more efficient liquidity provision, Parallax indirectly benefits traders on Uniswap by potentially reducing slippage and improving the overall trading experience, especially for long-tail assets. Efficient liquidity management translates into deeper liquidity pools, which is beneficial for the Uniswap ecosystem as a whole.  Supporting Uniswap's Decentralized Vision: Parallax aims to empower individual LPs with tools and strategies that were previously intimidating to most, aligning with the democratizing goals of Uniswap.", "hidden": false, "question": "How do you think this project fits in with Uniswap?", "questionId": 7}, {"type": "paragraph", "answer": "The integration of our AI-driven liquidity management with Uniswap in the Arbitrum ecosystem offers several benefits:\n\nEnhanced Efficiency on L2: Arbitrum, known for its scalability and lower transaction costs as a L2 solution, complements our project's efficiency. By optimizing liquidity on Uniswap v3 within this ecosystem, we ensure that liquidity providers can capitalize on Arbitrum's speed and cost-effectiveness, making high-frequency adjustments feasible and economical.\n\nImproved Capital Utilization for LPs: Our AI-driven approach provides Uniswap liquidity providers on Arbitrum with advanced tools to optimize their capital allocation. This results in better yield opportunities and potentially higher returns, drawing more liquidity providers to the platform.\n\nRisk Mitigation in a Volatile Environment: Arbitrum, while efficient, shares the inherent volatility of crypto markets. Our HAL 9000 strategy manager's predictive capabilities can mitigate risks (not prevent) such as impermanent loss, particularly crucial in a rapidly evolving market environment like Arbitrum's.\n\nScalability and Network Effect: As more users leverage our liquidity management solution on Uniswap within Arbitrum, it can create a network effect, attracting additional users and liquidity. This scalability not only benefits our project but also enhances the overall liquidity and stability of Uniswap on Arbitrum.\n\nInnovative Solutions: Our project embodies the innovative spirit of DeFi, aligning with Uniswap's mission to evolve and improve financial markets. By introducing advanced AI-driven strategies, we are pushing the boundaries of what is possible in DeFi liquidity management.\n\nStrengthening the Arbitrum Ecosystem: By providing tools that maximize efficiency and returns for LPs on Uniswap, Parallax indirectly supports the broader Arbitrum ecosystem. Enhanced liquidity on Uniswap means a more robust and attractive environment for other projects and users within Arbitrum.\n\nCollaborative Opportunities: Parallax could pave the way for further integrations and collaborations between Uniswap and other projects on Arbitrum, fostering a more interconnected and synergistic DeFi ecosystem. \n", "hidden": false, "question": "What benefits will this project bring to Uniswap in the Arbitrum ecosystem?", "questionId": 8}, {"type": "short-answer", "answer": "Security audit is in progress with Hacken.", "hidden": true, "question": "Has this project undergone a security audit? If not, are you planning to undergo it?", "questionId": 9}, {"type": "short-answer", "answer": "No", "hidden": false, "question": "Is this project open-source? (If yes, share the repository link).", "questionId": 10}, {"type": "paragraph", "answer": "Our tech stack includes:  \n\nBackend & Frontend \u2013 Node.JS & Next.JS\nDatabase/Data Management \u2013 MongoDB\nBlockchain Interactions \u2013 The Graph, Arbitrum Node, Ankr & Infura\nData Feeds \u2013 Chainlink\nSmart Contracts \u2013 Solidity & Tenderly\nSecurity \u2013 Hacken Extractor", "hidden": true, "question": "What is the workflow chosen for this project? (You can mention development practices, tools, programming languages, etc.)", "questionId": 11}, {"type": "short-answer", "answer": "https://www.youtube.com/watch?v=2dC-hjScW2k", "hidden": true, "question": "Does this project have a demo? If yes, share a public link.", "questionId": 12}, {"type": "short-answer", "answer": "The target audience includes a diverse range of stakeholders in the DeFi ecosystem, with a particular focus on Uniswap v3 users within the Arbitrum network.   Sophisticated LPs: These are the primary target audience. They are typically more experienced in DeFi and seek advanced tools to optimize their liquidity provision strategies, maximize returns, and manage risks like impermanent loss. Our solution caters to their need for a more sophisticated, data-driven approach to managing their Uniswap v3 positions.  Retail Enthusiasts: While more casual than sophisticated LPs, these users are keen on leveraging DeFi platforms for investment opportunities. Our project aims to simplify the complexities of liquidity management, making it more accessible to this group.  Arbitrum Users: Given our project's native development on Arbitrum, users already engaged in this ecosystem will find our solution seamlessly integrated with their existing activities, providing them with enhanced tools to improve their investment strategies on Uniswap v3.  DAOs and Institutional Investors: This group includes DAOs with significant treasuries, private funds, and other institutional entities that are increasingly using DeFi for portfolio management. They require robust, reliable, and efficient tools to manage large liquidity positions. Parallax offers the sophistication and reliability that they demand.  Our market launch plan is strategically designed to engage and benefit these key groups:  Beta Testing: Our current stage. This will help in gathering valuable feedback and making necessary refinements.  Educational Campaigns and Workshops: To attract retail enthusiasts and less experienced users, we will launch educational initiatives explaining the benefits of our project and guiding them on leveraging our tools for optimal liquidity management.  Community Ambassadors and Influencers : Collaborating with influential voices in Parallax community/users and other influencers will be crucial for wider adoption and credibility. This is especially targetted at sophisticated liquidity providers.   Gradual Roll-Out and Scaling: Following the beta phase, we will gradually expand our CALM vaults and partnerships, ensuring that our infrastructure scales effectively to manage the increasing load.  Continuous User Feedback and Improvement Cycle: We will maintain a strong feedback loop with our users, continually enhancing our solution based on real-world usage and experiences.", "hidden": true, "question": "What is the target audience for this project? (Mention if there is a market launch plan).", "questionId": 13}, {"type": "paragraph", "answer": "9 full-time members\n5 development members\n4 non-development members \n\nArtanis: Co-Founder \nOlx: CTO \nEnder: Smart Contracts \nVlad: Frontend \nDim: Backend \nNox: Project Lead \nOD: Marketing & BD \nSubcaptain: Community Lead", "hidden": false, "question": "Who are the members of the team?", "questionId": 14}, {"type": "paragraph", "answer": "Artanis (Co-Founder):\n\nDecade-long background in building digital businesses with a focus on ecommerce security software, since 2010. \nLed the development of a Cloud Native Application and Protection Platform (CNAPP) for enterprise devops security in the past four years. \nTransitioned to crypto and DeFi in 2021, initially conducted security audits and consulting for Solana protocols before moving to build on Arbitrum.\n\nOlx (CTO):\nOver 14 years of development experience.\nPrior to web3, ran one of Ukrainian\u2019s largest app design companies and WordPress development. \nCurrently leading a team of four core developers building PLX.\n", "hidden": true, "question": "Describe team members' experience and current roles for this project.", "questionId": 15}, {"type": "paragraph", "answer": "Milestones\n\n(Q1 2024) Beta Version Launch and User Feedback Integration (Ongoing)\nDeliverables: Launch of beta version; collection and integration of user feedback.\nSupervision: Deployment of a feedback mechanism and periodic review meetings to evaluate user responses and system refinements/adjustments.\n\n(Q1 2024) Security Audits (Ongoing)\nDeliverables: Completion of external security audits and integrating smart contract monitoring solution.\nSupervision: Engagement with third-party auditors and maintain communication with community.\n\n(Q2 2024) Full Scale Deployment (With Partnerships), Marketing and Community Initiatives \nDeliverables: Full-scale product and reward deployment with our partners on Arbitrum, marketing and co-marketing plans, community workshops, learn and earn campaign. \nSupervision: User of marketing KPIs and analytics tools to track engagement and adoption rates. \n\n(H2 2024 and Beyond) Ongoing Optimization and Expansion\nDeliverables: Continuous system optimization, exploration of expansion to other platforms and partners. \nSupervision: Establishment of an ongoing development and feedback loop, periodic market analysis for expansion opportunities.\n\nKPI \n\nQ1 2024 \nAchieve $1M TVL on Arbitrum\nLine up 10 Partners \u2013 Arbitrum projects and DAOs \nComplete Part 1 of community workshops and monthly marketing campaigns\n\nQ2 2024 \nAchieve $3-4M TVL on Arbitrum \nDeploy 8 partner vaults \nComplete 3 collaborative workshops and co-marketing campaigns\n\nQ3 2024 and Beyond \nFurther efforts to grow TVL and number of vaults \nSelf sustaining business model\nTransition to full DAO model governance\nOnboard more partners and funds into our vaults\n", "hidden": false, "question": "What are the Project Milestones? (Be very specific and write a roadmap highlighting critical deliverables of the project; mention how you will ensure to supervise and track them).", "questionId": 16}, {"type": "paragraph", "answer": "Resource Allocation: We have adequate technical funding and have a skilled team in place, ensuring that we have the necessary resources to achieve each milestone.\n\nTechnical Viability: Our initial deployment for beta testing indicates that the HAL 9000 strategy manager and CALM vault are technically feasible. \n\nIterative Development Approach: By employing agile methodologies, we can adaptively and efficiently develop and refine our system, ensuring constant alignment with our milestones.\n\nUser-Centric Design and Feedback: Our approach to incorporating user feedback from the beta phase guarantees that the final product is aligned with market needs, enhancing the likelihood of successful adoption.\n\nPartnerships and Collaborations: Engaging and onboarding key projects in the Arbitrum ecosystem and leveraging partnerships will be instrumental in achieving broader adoption and system integration.\n\nSecurity Priority: By prioritizing security from the outset, we can mitigate security threats via third-party audit and smart contract monitoring, ensuring a smooth project progression.\nMarketing and Community Building: A well-planned marketing strategy, coupled with community-led initiatives, will play a crucial role in ensuring the visibility and adoption of our solution.\n", "hidden": false, "question": "How do you plan to reach these milestones? (Explain the project feasibility).", "questionId": 17}, {"type": "multiple-choice", "answer": "No", "hidden": true, "question": "Has this project already been funded by other Grant Programs?", "questionId": 18}, {"type": "checkbox", "answer": ["I confirm."], "hidden": true, "question": "I confirm that I have read the Code of Conduct and that I have filled out this form correctly and truthfully.", "questionId": 19}, {"type": "checkbox", "answer": ["I understand."], "hidden": true, "question": "I understand that I will be required to provide KYC information by the UAGP team in case my application is accepted.", "questionId": 20}, {"type": "short-answer", "answer": "Arbitrum Foundation", "hidden": true, "question": "How did you find out about UAGP?", "questionId": 21}, {"type": "paragraph", "answer": "This is the correct Arbitrum payout wallet address. The above entry requires Ethereum payout wallet address, which is incorrect for the purpose of this application?\nMulti-sig: 0x9597beA8F322413C46e19cF5DB902958264A3e08", "hidden": true, "question": "Additional information", "questionId": 22}, {"type": "short-answer", "answer": "N/A", "hidden": true, "question": "Special requests", "questionId": 23}], "project": {"id": "42161:0x73AB205af1476Dc22104A6B8b3d4c273B58C6E27:400", "title": "Parallax Finance", "logoImg": "bafkreidtvdajf57dymlbpfilafaplpk7enz3cvrohh57yyx2oxlvtvifoy", "metaPtr": {"pointer": "bafkreidpq7zh3zxl2g7qftzyz5xniakogi4mxvm256pr7ptlb4xsrsajge", "protocol": "1"}, "website": "https://parallaxfinance.org/", "bannerImg": "bafkreidt7udqypdu2r4zxejbh6g6ssz47gdatuor6al473lqesmo34ncum", "createdAt": 1702485501666, "credentials": {"twitter": {"type": ["VerifiableCredential"], "proof": {"jws": "eyJhbGciOiJFZERTQSIsImNyaXQiOlsiYjY0Il0sImI2NCI6ZmFsc2V9..cdZvToVq8RZUsaFLXiCDi9wn0B0sqtpvC14yWysYIyy8FNSXY5CO63PX0yscPYib--QeUU1nkMTenjA7Uuk3Bw", "type": "Ed25519Signature2018", "created": "2023-12-13T16:35:58.866Z", "proofPurpose": "assertionMethod", "verificationMethod": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC#z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC"}, "issuer": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC", "@context": ["https://www.w3.org/2018/credentials/v1"], "issuanceDate": "2023-12-13T16:35:58.866Z", "expirationDate": "2024-03-12T16:35:58.866Z", "credentialSubject": {"id": "did:pkh:eip155:1:0xc00B8bFf101720F6F835A08E2f939054c79c2691", "hash": "v0.0.0:sdhQclWbt1IL7nmGdBUicQiV7kutzigNFQcj8j6oDHY=", "@context": [{"hash": "https://schema.org/Text", "provider": "https://schema.org/Text"}], "provider": "ClearTextTwitter#parallaxfin"}}}, "description": "Parallax is building a new primitive for AI-driven liquidity management, focusing on maximizing APYs through our AI Liquidity Management (AILM) algorithm, HAL 9000. \n\nWe specialize in optimizing concentrated liquidity provisioning on Uniswap v3 by offering two key solutions: \n\nCALM: An on-chain vault that allows liquidity providers to manage their positions across various risk pools effortlessly. It eliminates the need for constant market monitoring and manual rebalancing, making liquidity provision more accessible.\n\nHAL 9000: Our AI-driven engine, leveraging adaptive learning, ensures optimal 24/7 liquidity management. It enhances capital efficiency and reduces costs and risks by adapting to market conditions in real time.\n", "lastUpdated": 0, "projectTwitter": "parallaxfin"}, "recipient": "0xEA96839668E057f7B3Ee7bFBd29aE48C65F2ABda"}}