1.2 Financial Architecture Improvement

We are pleased to provide an in-depth overview of the second category within the MetalSwap Grant Cycle 1: Financial Architecture Improvement. This segment is pivotal in enhancing the robustness and effectiveness of the MetalSwap protocol. Let’s explore the intricacies of this endeavor in detail.

Scope of Financial Architecture Improvement:

We are inviting proposals for a comprehensive analysis of the current smart contracts and financial architecture underlying the MetalSwap Protocol. The objective is to scrutinize and enhance several vital aspects, including:

Product Pricing System: Evaluate the current pricing mechanism of the Hedging Swap tool and propose enhancements

Liquidity Providing System: Examine the existing liquidity provision framework and recommend improvements.

Protection of Deposited Liquidity: Analyze mechanisms to safeguard deposited liquidity and suggest enhancements.

Liquidity Reward System and XMT Incentives: Evaluate the Liquidity Reward system and incentives in XMT tokens, proposing optimizations.

Position Liquidation System: Assess the feasibility and effectiveness of introducing a position liquidation system.

Key Deliverables:

The selected proposal will encompass a comprehensive analysis report of the current smart contracts and financial architecture. This report should elucidate strengths, weaknesses, opportunities, and threats within the existing framework. Additionally, it should culminate in a proposal for enhancements that enable the realization of a Version 3 of the smart contracts. These enhancements should strive to achieve the following objectives:

Competitive Product Pricing: Develop a product pricing system that safeguards liquidity and remains competitive in the market.

Attraction of Liquidity Providing: Design a compelling liquidity providing system that encourages protocol growth.

Enhanced Liquidity Protection: Strengthen and streamline mechanisms for safeguarding deposited liquidity.

Intelligent Liquidity Reward: Devise a Liquidity Reward system that intelligently distributes governance power in XMT to tool users.

Consideration for Liquidation: Evaluate the feasibility of implementing a position liquidation system that adds value to the dApp.

Balanced Enhancements: Strike a balance between achieving objectives and maintaining the architecture’s security and audit history.

Application Requirements:

Detailed Approach: Clearly outline the methodology for analyzing the current financial architecture.

Team Expertise: Share the expertise and relevant experience of team members, substantiated by LinkedIn profiles.

Proposed Enhancements: Provide an in-depth overview of the proposed improvements for the pricing, liquidity providing, liquidity protection, rewards, and liquidation mechanisms.

Implementation Roadmap: Present a coherent roadmap detailing the implementation of proposed enhancements.

Application Details:

  • Company Name or Name and Surname
  • Company Name or Personal Nationality
  • Company Name or Personal LinkedIn Profile or Twitter Handle
  • Company Name or Personal Experience (long text or link)
  • Projects Document (pdf)
  • Grant Request (in USDT, with optional XMT Amount)

Evaluation Criteria:

Submissions will be evaluated by the Foundation’s Board based on the following criteria:

Analytical Rigor: The thoroughness and depth of the analysis conducted on the current financial architecture.

Feasibility of Enhancements: The practicality and viability of the proposed enhancements.

Innovative Insights: The level of innovative insights presented in the proposed improvements.

Alignment with DeFi Principles: The extent to which proposed enhancements align with decentralized finance principles.

Implementation Roadmap: The clarity and feasibility of the proposed implementation roadmap.

Additional Information:

  • During this phase, our goal is not to write new smart contracts, but rather to identify the most optimal financial architecture. The rewriting of smart contracts will occur in a subsequent stage. Therefore, we’re seeking solutions that have minimal impact on the existing protocol while delivering the best enhancements.

  • Team Support: Existing project contributors are readily available to provide all necessary information to assist in creating a comprehensive and valid application. Feel free to reach out to us at info@metalswap.net for any clarifications.

  • Proposal Requirements: We kindly request that proposals encompass a well-structured document that explicitly addresses all the points detailed in this post. Clarity and comprehensiveness in the proposal will greatly aid in the evaluation process.

Compliance Requirements:

Upon contract signing, we will collect all necessary data to ensure compliance with Swiss regulations.

Grant Amount: Up to 90,000 $USDT and/or a portion of this amount can be requested in $XMT

Application Link : Google Form

Application Deadline: September 22, 2023

We eagerly anticipate transformative proposals that will elevate the financial architecture of the MetalSwap Protocol. Join us in driving progress and excellence within the realm of decentralized finance.

-DeFi Foundation

1 Like