LIP55: About WBTC Fixed Investment Project Proposal

Proposal Champion: （Q）

Date: （2024-07-17）

Forum Post: （Forum Link）

TL:DR

We will initiate an on-chain Dollar-Cost Averaging (DCA) product within the community. It will be a decentralized, permissionless DCA product using UNISWAP for DCA on a major L2 chain.

Background

Recently, major exchanges like OKX and Binance have encountered various risks. This led some players to consider creating a public on-chain DCA product for investing in WBTC, as there is demand for such a solution among users. Since UNISWAP and similar DEXs exist on-chain, crypto-native developers do not trust any centralized exchanges (CEX). Thus, there is a need for such infrastructure on-chain.

Why DCA The idea of dollar-cost averaging Bitcoin emerged three years ago, and it has become increasingly feasible over time. DCA is a traditional investment strategy that lowers investment costs when one has long-term confidence in an asset. More benefits are discussed in @bodiesabyss’s post - Community Idea: A Decentralized On-Chain DCA Product - #4 by bodiesabyss.

Why Dollar-Cost Average Bitcoin? Bitcoin, as the leader of digital currencies, undeniably drives the entire cryptocurrency market and is a long-term bullish investment for many, including myself. Given the long-term bullish outlook, DCA is the best investment strategy.

Why DCA Bitcoin Instead of Using CEX? As a crypto-native individual, I do not trust any centralized exchange. Verify, don’t trust. Only when holding the private key oneself can one be assured of security.

Description

We will define this product as a public good and make it open-source, allowing the community to audit it. The goal is to establish the DCA product as on-chain infrastructure.

Details

DCAing Bitcoin is a simple concept but includes many technical and infrastructural challenges.

•	Bitcoin cross-chain: This is currently a pain point without a good implementation. We plan to use a compromise solution, DCAing $WBTC.
•	Smart contract triggering: Since DCA is a strategy executed at fixed times automatically, the triggering of smart contracts is a challenge. Chainlink offers a solution (Chainlink Automation | Chainlink Documentation).
•	Transaction fees: This issue is largely resolved with the increasing popularity of Layer 2 and EIP-4844, significantly lowering Ethereum transaction fees.
•	Trading pair liquidity: This is also not an issue; selecting the appropriate Layer 2 and trading pool is sufficient.
•	Trade routing: Automatically routing to the most cost-effective trading path. There are existing solutions in the industry.
•	We welcome additional discussions on potential issues and solutions.

The prototype shown during discussions is for reference only.

Technology Stack

Smart Contract Frameworks and Libraries:

•	Solidity: The most popular smart contract programming language on Ethereum.
•	Web3.js: A JavaScript library for interacting with the Ethereum blockchain.
•	Ethers.js: A lightweight JavaScript library for interacting with the Ethereum blockchain.
•	WalletConnect: A protocol for connecting decentralized applications (DApp) to wallets.

Frontend Frameworks and Libraries:

•	React.js: A JavaScript library for building user interfaces.
•	Vue.js: A progressive JavaScript framework for building user interfaces.
•	Angular.js: A framework for building dynamic web applications.

These frameworks and libraries are for reference and not limited to the above.

Team Setting

•	PM: Q, who has over 10 years of product management experience and is familiar with blockchain and DeFi products.
•	Product Manager: Emptyman, who is very interested in products and has contributed significantly to the DCA post.
•	Developer: Developers are yet to be determined, with interested individuals already applying. Box will serve as a special advisor to help review code.
•	Designer: Recruitment will be conducted.

Budget

The budget includes fixed rewards (distributed monthly) and bounty rewards.

| Role | LXPU/h | Time/Month | Total (LXPU) | | --- | --- | --- | --- | | Project Manager | 25 | 30h | 750 | | Contract Developer | 35 | 30h | 1050 | | Developer | 25 | 20h | 500 | | Design | 35 | 15h | 525 |

The project will last for 2 months, with a total expenditure of 5650 LXPU. An additional 600 LXPU is requested as supplementary bounty funding. The total budget request is 6250 LXPU.

Bobjiang and his friends will contribute 5000U to the project, so LXDAO will provide 1250 LXP as an incentive.

1 LXPU = 0.8 U + 0.2 LXP

Q, as a member of Forge, will assist and guide Emptyman in progressing the product. Q will not take specific hourly pay but will be compensated according to Bounty if involved in specific tasks.

Milestone

We will present an MVP within 45 days of proposal completion. We aim to attract a total of 10,000 USD in DCA investments within 30 days of the official launch.

Project Benefits Explanation

Ownership: Since it is an open-source public good, there is no actual ownership of the code itself, only an open-source license (GPL license) to prevent misuse by commercial companies. However, we will deploy an official version for public use, governed by a multisig wallet consisting of the project PM, LXDAO, and Bob.

Profit Distribution: This is a long-term project rather than a one-time project. For example, when there are enough DCA users, it could be upgraded to combine with AAVE lending. The DCA assets could be upgraded to something like Yu’e Bao, and to meet privacy concerns, transactions could be hidden using ZK technology. Therefore, for profit distribution, we propose:

External funds such as hackathon prizes, ecosystem grants, and donations will be prioritized for the project team and development, distributed based on actual contributions.

Regarding the distribution of project fees and potential profits (to be determined and can be discussed or adjusted dynamically): 50% will go to the project team, 25% to the LXDAO community, and 25% to Bob and related friends. This will be written into the distribution contract for automatic allocation. In the long term, community voting will be used to decide future fee distributions.

Financing

This project will not involve financing at this stage.

中文：

Proposal Champion: （Q）

Date: （2024-07-17）

Forum Post: （论坛链接）

TL:DR

我们将在社区里发起链上定投产品，他将是链上去中心化的无许可的定投产品，在一条较大的 L2 上 选择 UNISWAP 进行定投。

Background

最近 OKX 以及 币安 等大型交易所都出现了大大小小的风险行为。这让我们一些玩家进行了思考，LXDAO 社区成员 @bobjiang 提出是否可以做一个链上定投的公共物品让大家可以在链上就完成了定投 WBTC，因为他身边有很多这种用户的需求，目前链上已经有了 UNISWAP 这类的 DEX，对于加密货币原生开发者来说，不会相信任何一家 CEX。所以链上需要有这种设施。

为什么要定投 定投比特币这个想法在3年前就有了，随着时间的推移，越来越可实现。 定投，这个投资策略是来自传统投资领域，当对一个投资标的长期看好的时候，降低投资成本非常好的一种方式。更多的好处参考 @bodiesabyss 的帖子 - 社区想法：一个去中心化的链上定投产品 - #4 by bodiesabyss

为什么要定投比特币？ 比特币，作为数字货币的龙头，毫无疑问引领着整个加密货币市场的发展，也是我(包括许多许多人)长期看涨的投资标的。 那么回到刚才上述关于定投的描述，对于长期看涨的投资标的，最好的投资策略就是定投。

为什么要做一个比特币定投，而不用CEX的定投？ 这是最基础的，也是最简单的一个问题。作为一个crypto native的人，我不相信任何一家交易所(中心化的问题)。 Verify, Don’t trust. 只有私钥在自己手里，才放心。

Description

我们将该产品定义成公共物品，且进行开源，让广大社区成员能够审核，让定投产品成为链上的基础设施。

Details

定投比特币，非常简单的产品，但是包含很多的技术挑战，基础设施的挑战。

• 比特币的跨链，这是目前也没有很好的实现方式的痛点。我们打算采用折衷方案.，定投 $WBTC
• 智能合约的触发。由于定投是固定时间自动执行的策略，而智能合约必须由外部触发。那么这个触发智能合约的点，就是一个难题。Chainlink 有一个方案 (Chainlink Automation | Chainlink Documentation )
• 交易费用。这个问题目前已解决，现在越来越多的 Layer 2，以及 EIP-4844的普及，以太坊的交易费用非常低。
• 交易对的流动性。目前这个也不是问题。只需要选择合适的 layer 2，以及交易池即可。
• 交易路由。自动路由到费用最合适的交易路径。行业也有一些方案。
• 欢迎大家补充讨论，都可能出现哪些问题，以及如何解决。

这也是讨论时候展示的原型，仅供参考。

Technology Stack

智能合约框架和库：

• Solidity：以太坊上最流行的智能合约编程语言。
• Web3.js：一个用于与以太坊区块链交互的JavaScript库。
• Ethers.js：一个用于与以太坊区块链交互的轻量级JavaScript库。
• WalletConnect：一个用于连接去中心化应用（DApp）与钱包的协议。

前端框架和库：

• React.js：一个用于构建用户界面的JavaScript库。
• Vue.js：一个渐进式JavaScript框架，用于构建用户界面。
• Angular.js：一个用于构建动态Web应用的框架。

以上框架和库只是参考，不局限于以上

Team Setting

• PM：Q，Q具有 10 年以上的产品管理经验，熟悉 区块链产品以及 DEFi 产品领域。
• 产品经理： emptyman，emptyman 对产品非常感兴趣也在定投的帖子里梳理很多内容。
• 开发：开发还需要寻找确定，已经有意向的小伙伴进行投递，box 会作为特别顾问来帮助开发审核代码
• 设计：设计也会进行招募。

Budget

申请的预算花费，包含固定奖励（每月发放）和 Bounty 奖励

| Role | LXPU/h | Time/Month | Total (LXPU) | | --- | --- | --- | --- | | Project Manager | 25 | 30h | 750 | | Contract Developer | 35 | 30h | 1050 | | Developer | 25 | 20h | 500 | | Design | 35 | 15h | 525 |

此项目将会持续 2个月月，共花费 5650 LXPU Bounty 申请 600 LXPU 作为额外补充资金 共计申请 6250 LXPU

@bobjiang 和他的朋友会出资 5000U 到这个项目中 所以 LXDAO 会配置 1250LXP 进行激励

1 LXPU = 0.8 U+0.2 LXP

Q作为 Forge 的成员，会协助和指导 emptyman 完成产品的进展。所以不拿具体时薪，如参与到具体事情，按照 Bounty 计算

Milestone

我们将在提案完成后的 45 天内 进行 MPV 展示 我们将在正式上线 30 天内 吸引总共 10000 美金的定投金额

项目利益说明

关于所属权：由于它是一个开源的公共物品，实际上只有开源协议（遵循 GPL 协议进行开源，避免商业化公司进行滥用）来限制，代码本身没有所有权。但是我们会部署一个官方版本来上线使用，它将由项目组 PM、LXDAO、Bob 共同组成一个多签。

关于收益分配： 这是一个长期的项目而不是一次性的项目，比如当定投用户足够多的时候是否可以升级成跟 AAVE 借贷结合。定投的币种可以升级成类似余额宝，比如为了满足隐私方面的考虑是否可以用 ZK 的方式隐藏 TX 等等。所以在收益分配方面，我们有以下提议：

关于黑客松奖金、生态 Grants、捐赠等外部资金将优先用于项目组和本身的建设和发展，会通过实际贡献进行分配。

关于该项目手续费以及潜在盈利的分配（待定，可以再聊或者动态的调整）：50% 归项目组所有、25% 归 LXDAO 社区、25% 归 Bob 和相关朋友。这将写进分配合约里进行自动化分配。远期将启用社区投票来决定后续费用的分配。

融资方面

该项目目前不会牵扯融资方面。