Grant application - DeFi Interface

Grant Title:

CowSwap Hook DeFi interface

Authors:

@octavionotpunk @tche

About You:

Octave: Valha co-founder. Actuary, Former TradFi guy (catastrophe modelling and ILS analyst at AXA IM). Started Valha in September 2022. Thomas: Valha co-founder. In crypto since 2020 and worked on several POCs (including a transaction simulator chrome extension called Ratl and a Yield Aggregator Dashboard called CompAPY) before working full time on Valha since September 2022.

Additional Links:

Valha widget showcase

Grant Category:

User interface and user experience (UI/UX)

Grant Description:

Valha is developing APIs and smart contract to simplify the integration of DeFi protocols in any interface. We think that CoWSwap Hooks have the potential to allow users to access DeFi in a simpler way by bundling complex transactions together.

We offer to help develop a web interface (the “Interface” ) to allows users to access yield opportunities in any DeFi vertical (staking, lending, yield aggregators, rwa) in one centralized place.

Motivation:

We think that developing an Interface is needed for three major reasons:

• User stickiness: It is hard to capture long-term attention from DeFi users. There is no platform offering an extensive and aggregated experience for DeFi users on both analytics and interactions.
• Better UX for users: Thanks to CoW Hooks combined with Valha API, we can perform multiple actions (zap-ins, zap-outs, position rebalancing, claim multiple rewards, claim and swap) in only 1 transaction.
• Awareness of Hooks capabilities: With this Interface, we want to showcase the major UX improvement that Hooks offer and that the technology is already safe and available for all to build on top.

Grant Goals and Impact:

The Interface north-star metrics is volume amount in $.

Lido’s (resp. Aave V2) OKX integration represents an annualised volume of $50M (resp. $80M). OKX DEX annual volume is $1.8B. Aave and Lido integrations stands for 7% of OKX DEX volume.

Given that Cowswap generates $12B volume per year, we can expect $840M (=7%*12B) yearly volume for all DeFi (as Lido and Aave v2 approximately accounts for 33% of total DeFi TVL).

Based on OKX trend, we think we can reach:

• 6 weeks after validation: $10M generated: 10% of theoretical OKX volume (10*(52/6) / 840)
• 12 weeks after validation: $50M generated: 26% of theoretical OKX volume (50*(52/12) / 840)
• 24 weeks after validation: $300M generated: 78% of theoretical OKX volume (300*(52/24) / 840)

Milestones:

As Hooks are only live on mainnet yet, we should focus on a curated list of DeFi vertical at first: liquid staking, overcollaterized lending and bridge liquidity.

• 4 weeks after proposal validation: v0 Interface with the 3 main liquid staking protocols, 3 lending protocols (Aave, Compound, Flux Finance) and 2 Bridge protocols (Stargate, Across) live. Interactions features: zap-in, zap-out Analytics features: 7d_apr, 30d_apr, lifetime-rewards, user-balance.
• 6 weeks after proposal validation: 10 new protocols among liquid staking, lending, bridges and yield aggregators.
• 8 weeks after proposal validation: Add claim and swap in one-click to claim rewards in the token of your choice.

• Milestone 1. v0 Interface with the 3 main liquid staking protocols, 3 lending protocols (Aave, Compound, Flux Finance) and 2 Bridge protocols (Stargate, Across) live. Interactions features: zap-in, zap-out Analytics features: 7d_apr, 30d_apr, lifetime-rewards, user-balance. ETA: 4 weeks after proposal validation
• Milestone 2. 10 new protocols among liquid staking, lending, bridges and yield aggregators. ETA: 6 weeks after proposal validation
• Milestone 3: Add claim and swap in one-click to claim rewards in the token of your choice. ETA: 8 weeks after proposal validation.

Afterwards: Protocols added weekly based on user demands and CoWSwap readiness to open new chains.

Funding Request:

We are requesting funding of $3,000 and a maximum of 420,000 COW tokens for successful completion and deployment of the Interface.

Afterwards: Protocols added weekly based on user demands and CoWSwap readiness to open new chains.

Funding Request:

We are requesting funding of $3,000 and a maximum of 420,000 COW tokens for successful completion and deployment of the Interface.

We ask for $2,000 on the completion of the v0 (4 weeks after the validation of the proposal) and $1,000 upon new added features (8 weeks after validation proposal).

The COW token would be distributed according to transaction volume on the Interface according to those targets:

• $10M cumulative volume: + 60k COW
• $60M cumulative volume: + 120K COW
• $260M cumulative volume: + 240K COW

We ask for $2,000 on the completion of Milestone 1 (4 weeks after the validation of the proposal) and $1,000 upon Milestone 2 & 3 (8 weeks after validation proposal).

We also request to be included for the Volume-based Partner Reward Program.

Other support

In order to attract users, we would need some support on:

• Co-marketing (through articles, podcasts). We should raise awareness about the Hooks possibilities and how we leverage them through the Interface.

Budget Breakdown:

The funds will cover labor costs and related development expenses.

Gnosis Chain Address (to receive the grant):

gno:0x3191942677ae623B0465f029F01e7b242FAC000d

Terms and Conditions:

By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement and the CoW Grant Terms and Conditions.

Happy to collect your feedbacks and answer your technical and non-technical questions regarding what we look to achieve with the ‘Interface’.

Appendix:

Why sometimes is better to stake directly rather than swapping?

1. Access to insightful analytics that you do not get on Swap interface: lifetime_rewards, current and historical APY.
2. Less/No slippage: no need to maintain liquidity pools to ensure parity on primary markets
3. Similar to lower gas fees

→ It is possible to offer an optimisation route in the Interface to select swap/direct deposit depending on secondary vs. primary total action cost.

Design Ideas:

Screenshots linkOther support

In order to attract users, we would need some support on:

• Co-marketing (through articles, podcasts). We should raise awareness about the Hooks possibilities and how we leverage them through the Interface.

Budget Breakdown:

The funds will cover labor costs and related development expenses.

Gnosis Chain Address (to receive the grant):

gno:0x3191942677ae623B0465f029F01e7b242FAC000d

Terms and Conditions:

By submitting this grant application, I acknowledge and agree to be bound by the CoW DAO Participation Agreement and the CoW Grant Terms and Conditions.

Appendix:

Why sometimes is better to stake directly rather than swapping?

1. Access to insightful analytics that you do not get on Swap interface: lifetime_rewards, current and historical APY.
2. Less/No slippage: no need to maintain liquidity pools to ensure parity on primary markets
3. Similar to lower gas fees

→ It is possible to offer an optimisation route in the Interface to select swap/direct deposit depending on secondary vs. primary total action cost.

Design Ideas:

Screenshots link