{"signature": "0xd0f8d1431dc82a606a7ec811d2a7f41ff9b039e8b3b16eb2a2e4facaaf4c3b31512604301d3a203043fef87a01b9ba4dba3283819117fe6c21b76bc4055c427c1b", "application": {"round": "0x5f831ef67fc4e75a8016023333c132fda6fdc232", "answers": [{"type": "email", "hidden": true, "question": "Email Address", "questionId": 0, "encryptedAnswer": {"ciphertext": "Eji/VWq2vJg5rILKEHsfAMBqGcN1d6wRQG7DQBJAEtiokVXxInQV/p235dWF6VDz", "encryptedSymmetricKey": "e15fd8119b144f76cfac763543539a15014bed8ace95b27bc8b501eb4174d65fa482c624990f44152cada3c8f9b8e90d3636c2f3a846195f347aa305685e7152e4f469ac009c1a6cc7d6971cfbf5d4e57630f1734318fae95eca7e3e43f5c9b7530a48305c9f6c51fe99df4ce7382ce0b15b0c66a4302aee37eef926fca3d7e9000000000000002005f2461ef551ade9a3ace0233be9f7b7882b6e0e2a68d509e534ab32b8ad01aa2232ff72a4d0e9fdae7be672d288b38c"}}, {"type": "number", "answer": "60000", "hidden": true, "question": "Amount requested", "questionId": 1}, {"type": "multiple-choice", "answer": "RFP 3: Uniswap on Arbitrum Ecosystem tools or products", "hidden": true, "question": "What RFP does this project cover?", "questionId": 2}, {"type": "paragraph", "answer": "Fairblock is applying to the Uniswap-Arbitrum Grants Program to build an auxiliary application for Uniswap on Arbitrum that allows users to encrypt their trades until execution. This app will be called Fairyswap, and it will integrate directly with Uniswap on Arbitrum to improve the trading experience of Uniswap-Arbitrum users by increasing capital efficiency and protecting against pre-execution order leakage without reliance on centralized parties.\n\nWhy does Fairyswap warrant UAGP\u2019s attention? \n\nUniversal onchain transparency before and after execution keeps many retail and institutional parties away from DeFi. Pre-execution transparency exposes users to bad-MEV opportunities like frontrunning and sandwich attacks, decreasing capital efficiency at the user\u2019s expense. Post-execution transparency keeps many high-net-worth and sophisticated traders away from DeFi because of the exposure of their trading strategies and wallet balances, revealing more than most users are comfortable with and making trading information public to competitors. Bad MEV exposure and the over-transparency of onchain activities restrict the functionality of DeFi; it is the industry\u2019s responsibility to build supporting infrastructure that better serves users and their needs \u2013 for greater capital efficiency, information flow control, and bad-MEV prevention.\n\nWe need to build secure encryption-enabled infrastructure within DeFi, and pre-execution encryption is the first step towards the larger goal of embedding encryption as a standard at the baselayer of every onchain experience. Fairyswap, as an auxiliary application for Uniswap, is the first phase of a longer effort to support the Uniswap ecosystem with programmable encryption, greater capital efficiency, and improved functionality within onchain trading to strengthen Uniswap\u2019s position as the go-to DEX in DeFi. Greater capital efficiency will be achieved by decreasing exposure to bad MEV opportunities for traders.\n\nHow Fairyswap Will Work:\n\nAt a high level, a user will sign a trade on the FairySwap frontend that specifies a designated block height at which their trade should be decrypted and executed. This encrypted trade is then submitted to FairyRing \u2014 Fairblock\u2019s encryption coprocessing chain \u2014 where it remains encrypted until the predetermined block height is reached. Once the designated block height is met, the encrypted trade is automatically decrypted and sent by the Fairyswap relayer to Uniswap for execution.\n\nConditional decryption will be available for block height triggers in FairySwap V1, and will increase to additional onchain conditions in the future, such as the prices of assets. Conditional decryption can also be added for private governance, such that all votes are decrypted and executed once a poll concludes, providing more credibly neutral governance outcomes.\n\nHow the funds will be used:\n\nFunds awarded from this grant will be used to support the efforts of two engineers from Fairblock who will be spending 50% of their time on this project for the next 3 months. These two engineers will be a protocol engineer who will be developing the necessary smart contracts for this effort and a full stack engineer responsible for building the application frontend and backend.\n\nCalculating the Ask:\n2 engineers * 200K/year = 400K/year\n3 months total project. Engineers spend 50% of their time on it.\n100K * 0.5 = $50K USD in engineering expenses\n10K USD will be allocated to marketing and BD for exposure and educating the Uniswap-Arbitrum community about the application through devrel, blog posts, Twitter space, and documentation.\nAll in all, Fairblock is requesting $60K USD from the UAGP to deliver encrypted trading to Uniswap through Fairyswap.\n", "hidden": false, "question": "How will you use the funds? Please make a detailed plan for expenditures.", "questionId": 3}, {"type": "short-answer", "answer": "The success of Fairyswap will be measured by three KPIs:  KPI 1: Capital passed back to users from avoiding bad-MEV exposure: This KPI will be determined by calculating the MEV exposure on similar trades made during the same time frame as a transaction and estimating how much a user saved by encryption their transaction. KPI 2: Number of encrypted transactions: This KPI will give material data on how much users demand encryption. KPI 3: Average increase in capital efficiency: This KPI will be used to show how much users\u2019 capital efficiency increased by using Fairyswap instead of Uniswap directly. Capital efficiency for Uniswap users can be measured by the assets received in a trade divided by the total assets used for the conversion (swap amount + gas expenditures + slippage).", "hidden": false, "question": "How do you measure the success of the project? Explain your key KPI", "questionId": 4}, {"type": "paragraph", "answer": "Fairyswap will be an important addition to the Uniswap-Arbitrum ecosystem today and in the future:\n\n1. Today, Fairyswap adds more functionalities into Uniswap on Arbitrum, such as the ability to encrypt trades that only decrypt when certain onchain conditions are met and schedule encrypted trades into the future. These onchain activities will be encrypted through identity-based encryption, which is a lightweight encryption solution that allows users to encrypt and decrypt their transactions according to designated onchain conditions.\n\n2. For the future\n- Fairblock is working closely with Arbitrum to integrate the necessary precompiles to enable decryption contracts and allow for fully onchain decryption and greater pre-execution activity protection inside applications. This will bring many benefits and utilities to the Uniswap-Arbitrum trading experience, such as increased capital efficiency for users from bad MEV prevention and protected trading strategies. Encryption availability in DeFi expands the versatility of the Arbitrum ecosystem by offering encrypted trading experiences, such that users seeking more efficient trading experiences and bad-MEV protection are encouraged to stay within the Arbitrum ecosystem instead of bridging their funds elsewhere for the same benefits. \n- When onchain decryption is available within Arbitrum after the integration of the necessary precompiles, Fairyswap will make Uniswap a better environment for all forms of trading, both institutional and retail, as anyone can perform strategies onchain, capture some identified alpha, and then schedule encrypted trading strategies that will be executed in the future, all because of pre-execution encryption.\n- As FairySwap is just the first step in bringing encryption to Uniswap users, once the necessary precompiles are available in Arbitrum, Fairblock can build an encryption SDK for Uniswap on Arbitrum that allows users to encrypt their transactions natively inside the application and bring all the benefits of FairySwap to Uniswap directly.\n- We are considering adding additional encryption libraries to our product suite to add more encryption functionality for users, including FHE for fully private trading experiences before and after execution.", "hidden": false, "question": "How do you envision this project aligning with Uniswap's goals, and what specific benefits do you anticipate it will bring to the Uniswap ecosystem within Arbitrum?", "questionId": 5}, {"type": "short-answer", "answer": "Fairblock will provide pre-execution encryption to every Uniswap-Arbitrum user. Every user can benefit from this, but the ones who will care the most are sophisticated traders with the most to lose from strategy leakage and bad MEV exposure. The cost of encryption will be reasonably low for users making both small and large trades, such that pre-execution encryption will be available to any user who seeks it. Encryption availability for Uniswap users is just a first step in a greater plan to incorporate encryption at the baselayer of Arbitrum once the right precompiles are integrated for decryption inside smart contracts. We are working closely with the Arbitrum team to first build these precompiles into Orbit chains first and then eventually on Arbitrum One.", "hidden": false, "question": "What is the target audience for this project? ", "questionId": 6}, {"type": "paragraph", "answer": "Milestone 1\n- Goal: FairyRing contract deployment on Arbitrum One testnet. Frontend and backend development of the application. Fairblock engineers will write the necessary smart contracts on FairyRing, and build a relayer to communicate Uniswap-Arbitrum state changes to FairyRing. In parallel, the backend and frontend of the application will be built.\n- Tracking progress: Share Github repo with necessary members of Uniswap grants committee. \n\nMilestone 2\n- Goal: Fairyswap testnet launch and audit\n- Tracking progress: Arbitrum Sepolia Explorer\n\nMilestone 3\n- Mainnet launch, KPI tracking dashboard, and 5,000 encrypted transactions. \n- Tracking progress: Build Uniswap-specific dashboard to track the indicated KPIs", "hidden": false, "question": "What are the Project Milestones and how do you plan to reach these? Be specific and highlight critical deliverables of the project", "questionId": 7}, {"type": "paragraph", "answer": "Peyman Momeni: Co-founder and CEO\n- Peyman graduated with a Master\u2019s of Computer Science in Cryptography, Security, and Privacy from the University of Waterloo. During his thesis under the supervision of Sergey Gorbunov (Founder and CEO of Axelar), he completed extensive research on applied cryptography, privacy, and blockchain Maximal Extractable Value (MEV). He has surveyed the trade-offs of harmful MEV prevention methods and published his thesis and two academic papers (one accepted and one under review) on using identity-based encryption and threshold cryptography to protect user transactions in various blockchain architectures. He also leads the R&D team of the  UWaterloo Blockchain Club, and has previous industry experience in advanced cryptography, including designing the architecture of zkMIPS and Entangled Eollups for the ZKM project.  \n\nBowen You: Co-founder and CEO\n- Bowen graduated with a Master's of Mathematics in Statistics at the University of Waterloo focused on deep learning. He developed his technical expertise in blockchain by working as a quantitative researcher at e^{i} Ventures and from running his own trading and MEV bots on various L1s (Solana, Ethereum) and L2s (Optimism, Arbitrum). As a quantitative researcher, he played a vital role in incubating early-stage protocols in the Solana and Ethereum ecosystems. Working collaboratively with teams, Bowen applied his statistical and analytical skills to identify valuable insights and opportunities for these protocols. His additional accomplishments include winning multiple prizes at AI and Web3 hackathons, including ETH Denver and the Toronto AI Hackathon.\n\nWindy - Full-Stack Engineer\n- Windy has over a decade of experience in web application development and transitioned to crypto in 2019, developing a substantial portfolio of decentralized applications including a bug bounty platform and P2E games for Look Labs.\n\nMartin  - Protocol Engineer\n- Martin has 5 years of blockchain experience as a smart contract developer and blockchain engineer building a DEX with yield farming, an EVM trading bot, as well as NFT marketplaces and a DAO platform.\n\nLiam McDonald - Head of Growth\n- Liam graduated from Loyola University Maryland with a degree in Economics and Finance. He's been working in crypto for 5 years across a number of different startups in business development, strategy, and product roles. These companies include Sarson Funds (liquid crypto fund), Photon Finance (Stablecoin protocol), and most recently Movement Labs (Ethereum L2). Liam spends his free time researching and writing about the intersection of modularity, cryptography, and DeFi.", "hidden": false, "question": "What are the roles and experience of project team members?", "questionId": 8}, {"type": "short-answer", "answer": "Fairblock has received grants from Arbitrum and the Atom Accelerator DAO (AADAO).", "hidden": false, "question": "Is this project already funded by other grant programs? If funded by any Uniswap or Arbitrum-related programs, please specify.", "questionId": 9}, {"type": "short-answer", "answer": "Fairblock has undergone one round of audits. We will be entering a second and third round of audits before Mainnet launch at the end of this year.", "hidden": false, "question": "Has this project undergone a security audit? If not, are you planning to undergo it?", "questionId": 10}, {"type": "short-answer", "answer": "Yes. https://github.com/Fairblock", "hidden": false, "question": "Is this project open-source? If yes, share the repository link.", "questionId": 11}, {"type": "short-answer", "answer": "Here are all of Fairblock's demos: https://www.fairblock.network/demo . A demo for FairySwap is not yet available.", "hidden": false, "question": "Does this project have a demo? If yes, share a public link.", "questionId": 12}, {"type": "checkbox", "answer": ["I confirm"], "hidden": false, "question": "I confirm that I have read the Code of Conduct and that I have filled out this form correctly and truthfully.", "questionId": 13}, {"type": "checkbox", "answer": ["I understand"], "hidden": false, "question": "I understand that I will be required to provide KYC/KYB information by the UAGP team in case my application is accepted.", "questionId": 14}, {"type": "dropdown", "answer": "Other", "hidden": true, "question": "How did you find out about UAGP?", "questionId": 15}], "project": {"id": "0x301e7027966948f73721b2144c47ce126a4454c883ef6e9456562dcd56536abe", "title": "Fairblock", "logoImg": "bafkreie4a4ug52mnuc5aog35ql5ks3hghgep6tqp3z6iviqf232pryph7u", "metaPtr": {"pointer": "bafkreid755a5iqpclton6w6b52ywijjfgaqly3eno7w5kcx4pbzq6va6sa", "protocol": "undefined"}, "website": "https://fairblock.network", "bannerImg": "bafkreidtyrp64cbbbe3oygp2y2akezo4tlgd4zlysi6xta7aw5kp2arery", "createdAt": 1716505121820, "credentials": {}, "description": "Fairblock is an encryption coprocessor that unlocks a new generation of onchain experiences by abstracting away the technical and operational complexity of encryption solutions, making them composable and compliant in all major protocols, applications, and wallets.", "lastUpdated": 0, "projectGithub": "Fairblock", "projectTwitter": "0xfairblock"}, "recipient": "0xf4F91bFB659B5d8f90C68120D1f5E1aF3d6c9d1a"}}