[1IP-65] P2P Network: Grant Request for POC

Author: Danylo

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P2P Network: Grant Request for POC

This proposal outlines the scope of work, timeline, and team responsibilities for delivering the 1inch P2P network POC, a decentralized and highly private API gateway aimed at supporting Web3 developers and enhancing the functionality of dApps.

Summary:

The idea for the P2P Network System was initially conceived by the 1inch Co-Founders and shared with Boosty Labs as a desired web3 experienced development partner. Boosty Labs has concurred to take on the responsibility of P2P Network idea processing, system designing, and, eventually, system development. Here are the salient points of the proposal:

• The Network aims to deliver a secure and practical interface for accessing the 1inch API

• The primary objective of the Network is to forge a highly secure communication channel between users and the 1inch API, ensuring optimal data integrity and privacy.

• An extensive P2P Network Toolkit will consist of crucial development tools such as an intuitive SDK for dApp owners and readyto-use Sync Clients to enable secure and efficient establishment of communication channels with the P2P Network.

• The initiative aspires to augment the 1inch ecosystem, promote broader adoption of decentralized networking solutions, and foster the advancement of decentralized applications and services.

• By providing robust and quality solutions to user requests, the P2P network offers a significant competitive advantage over centralized solutions.

WhitePaper Results https://docs.google.com/document/d/1dGBo4zC1NslS2uEDg888PVfZJW4JacL_/edit?usp=sharing&ouid=117229986640986347118&rtpof=true&sd=true

Solution:

• Build an eventdriven RPC-based network comprising users, dApp developers, relayers, and resolvers.

Goals:

• Ensure user privacy by decentralizing 1inch API calls.

• Improve scalability for dApp development.

• Provide seamless access to 1inch APIs.

Motivation:

• Address privacy, scalability, and ease of access to DeFi features by transitioning from centralized clientserver architecture to a decentralized P2P network.

1inch APIs:

• Leverage existing 1inch API solutions to offer enhanced features through the decentralized network.

Scope of Work

The purpose of this Statement of Work (SoW) is to outline the objectives, deliverables, and milestones for the Proof of Concept (PoC) phase of the 1inch P2P Network project. This project aims to establish a decentralized, secure, and scalable P2P network that enables private and efficient communication between decentralized applications (dApps) and the web3 API providers. The PoC will lay the groundwork for further development and refinement, ultimately leading to the MVP stage.The primary objective of this PoC is to implement a functional network infrastructure, secure messaging between nodes, and a fully integrated SDK, all without the Dutch auction mechanism, which will be introduced during the MVP phase.

• The POC project involves building and deploying the network in three main stages:

(POC) Stage 1. Implement initial network without validation groups

Objective:

• Develop the basic P2P network architecture.

• Implement Relayer and Resolveer nodes without the validation group mechanism.

• Implement a Resolver node based on a simple functionality, e.g., getWalletBalance.

Task Decomposition:

1. Project Planning and Requirements Gathering

• Define project goals, plan,s and deliverables.

• Elicit and document requirements.

• Allocate resources and assign tasks.

2. Network Infrastructure Setup

• Set up the basic P2P network infrastructure.

3. Backend Development

• Relayer Node Development:

  -Implement relayer functionality to forward user requests to resolver nodes.

• Resolver Node Development:

  -Implement resolver functionality to process and respond to user requests.

  -Develop encryption and decryption mechanisms for secure data transmission.

4. SDK development

• Work with protocol requests to getWalletBalance API

• Develop JS SDK

• Work with protocol requests to getWalletBalance API

5. Testing and Quality Assurance

• Perform unit and integration testing on relayer and resolver nodes.

  -Ensure secure and reliable communication between nodes.

6. Documentation and Training

• Create comprehensive documentation for the network setup, and SDK usage.

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Due to the Snapshot character limit, this proposal is abridged. Refer to forum thread for full text

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Milestones and Deliverables

The Proof of Concept will consist of such milestones:

Stage 1: Initial Network Implementation

S1. M1: Discovery Phase + Basic Flow Definition (Weeks 1–3)

Objective: Conduct a discovery phase to finalize the product's technical and functional requirements, ensuring alignment between business needs and technical capabilities. Additionally, define a basic flow that outlines how the system will handle the request-response cycle.

Deliverables:

• Requirements Documentation:

• [ ] Finalize and document all key requirements for the PoC, including technical, functional, and performance aspects.

• [ ] Define the minimal viable product (MVP) requirements for key components like relayers, resolvers, and SDK integration.

• Basic Flow Definition:

• [ ] Design the flow for a basic request-response cycle from dApp to relayer and resolver, without encryption. This flow should cover the success path using a mock API or simple method (getWalletBalance).

• [ ] Ensure the basic flow is documented and includes initial assumptions and limitations for the PoC stage.

Acceptance Criteria:

• A finalized and documented set of product requirements is agreed upon and approved.

• Basic flow for the system (without encryption) is defined and documented.

• A technical architecture diagram that clearly outlines the overall design of the system.

S1. M2: Full Flow, Including Encryption and Error Cases (Weeks 4–12)

Objective:

Implement the full flow with encryption and add error-handling mechanisms to ensure robust communication between relayers and resolvers.

Deliverables:

• Encryption and Decryption:

• [ ] Implement end-to-end encryption of messages between relayers and resolvers.

• Error Handling:

• [ ] Develop logic for handling unsuccessful cases such as node failures, invalid requests, and timeouts.

Acceptance Criteria:

• Successful completion of the encrypted requestresponse cycle.

• Error cases are correctly handled and documented.

S1. M3: 1inch API Support For resolver node (Weeks 13–15)

Objective:

Integrate the full 1inch API functionality (Get wallet balance) into the resolver, enabling real-world use cases.

Deliverables:

• 1inch API Integration:

• [ ] The resolver fully supports 1inch API methods, enabling developers to access key functionality such as swapping and querying prices.

Acceptance Criteria:

• Resolver can execute API calls through the 1inch API and return correct data.

S1. M4: SDK Working with the 1inch API (Weeks 15–18)

Objective:

Provide a developer SDK that interacts with the 1inch API through the P2P network, ensuring ease of use for dApp developers.

Deliverables:

• SDK Development:

• [ ] Create a JavaScript SDK for dApp developers, with clear API calls that interface with the 1inch API through relayers and resolvers.

Acceptance Criteria:

• SDK is functional, welldocumented, and tested with 1inch API examples.

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Due to the Snapshot character limit, this proposal is abridged. Refer to forum thread for full text

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Financial Plan Breakdown for POC

Project Duration: 4,5 months

Total Budget for POC: 141,000 USD (equivalent to 141,000 USDT/USDC)

Milestone Budget Breakdown:

S1. Milestone 1: 21 000 USD

S1. Milestone 2: 63 000 USD

S1. Milestone 3: 28 500 USD

S1. Milestone 4: 28 500 USD

Payment structure: We expect 50% of milestone cost upfront and 50% of milestone cost when the milestone is delivered and approved by 1inch team.

Payment Transaction Details:

• Wallet address: 0xC39f5f17578f44EAceaf85BC00879aAFDa370E45

• Blockchain Network: Ethereum Mainnet

• Token: USDT or USDC

• Token Standard: ERC20

• Funds will be allocated to the 1inch DAO Operations Multisig (0x45e84e10e8E85c583C002A40007D10629EF80fAF), then transferred to Boosty Labs

• Payment Transaction Flow (Required by Boosty Labs): To ensure a secure and accurate payment transaction, 1inch is requested to follow these steps:

• First, 1inch should send a test transaction of 5 USDT/USDC.

• After the test transaction is verified on the blockchain with the “Success” status, Boosty Labs’ Finance Department will review and confirm receipt of the test amount.

• Upon receiving confirmation from Boosty Labs, 1inch is requested to proceed with the transfer of the remaining cost.

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Due to the Snapshot character limit, this proposal is abridged. Refer to forum thread for full text

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