Snaps Sub DAO Grant #006 - Audit grant for Xtreamly

The MetaMask Grants DAO has approved a sub-DAO specifically for Snaps with a budget of 70k USDC per quarter. As part of our Open Beta, the Snaps team wishes to use this sub-DAO to cover the audit costs for teams joining our allowlist. A snap must meet the following criteria to be on the allowlist:

• Source code is public
• Audited by an approved audit partner that can audit JavaScript code
• The audit report is shared with the MetaMask Snaps team for internal review

These audits can range from $1k to $30k or more and for some teams this cost can be onerous. If a Snap has a use case that we consider strategic (interoperability, security, communication, etc.) then it is in our best interest to help that Snap be part of our allowlist.

This proposal is for the Xtreamly Snap Category: Security

Description from Xtreamly: "we are pioneering an Artificial Intelligence (AI)-based solution for a 'Dynamic Fee Model with Slippage-Minimized Extractable Value (MEV) as a Service'. This innovative tool is designed to dynamically predict slippage, taking into account various factors such as MEV activities, and to seamlessly integrate this functionality into our primary product, thereby optimizing dynamic fees. Our aim is to foster a more equitable distribution of trading benefits, ensuring that LPs can capitalize on high volatility and arbitrage opportunities without disproportionately disadvantaging average traders. We explore the interplay between asset pool liquidity, asset pair volatility, and fee generation."

"Our flagship product encompasses three core features, each representing a milestone in our release strategy. These features are designed to be both standalone and integrated, facilitating initial market penetration and enabling us to refine and validate our technology through real-world application."

"Phase 1: (current Snap) AI-powered dynamic slippage prediction for current and upcoming blocks: This involves analyzing multiple price movement factors, including Automated Market Maker (AMM) fees, liquidity depth impacts, centralized exchange (CEx) data, and on-chain slippage."

"Phase 2: Focuses on analyzing slippage distributions within liquidity pools, assessing the impact of MEV attacks, and identifying arbitrage patterns in the mempool to refine our AI model. This enhanced model aims to provide more accurate slippage predictions, benefiting a wide range of users including flashbots, MEV shops, aggregators, retail traders, and decentralized exchanges (DEXes). This phase, estimated to last 2-4 months, aims to bridge the gap to early adopters, offering strategic advantages to those willing to embrace new, yet unproven technologies."

"Phase 3: Targets the early majority, characterized by a moderate to high level of tech competence, high quality and product requirements, and moderate price."

Grant request: 10k USDC to cover the cost of the audit.