Grant Funding to Fort Knox Vaults Team

Executive Summary

The Knox Vault team is seeking a grant from Premia to build passive DeFi options vaults (DOVs) on top of the Premia Protocol to facilitate the next $100M+ of capital into the ecosystem.

Knox Vault Team

Our core contributors came together while building on the hackathons circuit. We cover the gambit of full-stack blockchain-engineer, monetary policy, data analytics, and community building. We have been in it for the tech since 2016.

Courtney - Over 5 years of experience as a full stack developer and analyst for startups and enterprise companies. Contributed to several production web3 projects in the past including beefy.finance.

Caesar: Initially joined the web3 ecosystem in 2016, leading operations and community engagement including participating and building relationships with market makers to create index products and DAO support for this community. Startup experience, successfully scaled teams and revenue, within the DeFi ecosystem.

Additional support will come from Knox Vault DAO contributor group. This includes full stack developers and financial engineers with experience building, trading, and creating algorithms for option and equities markets.

How Fort Knox works

Fort Knox team is creating passively managed options strategies better known as DeFi Options Vaults (DOV)

• Each week users can deposit assets into the DOV to be utilized in predetermined option strategies
• Initial strategies will include Covered Calls & Put Selling
• The Fort Knox vault utilizes users' capital to collateralize and generate the appropriate amount of options contracts to be sold in the epoch.
• Options are available for purchase by anyone until 48 hours prior to the end of epoch
• At the end of the epoch the premium earned is distributed to vault participants
• Vault users can either exit the vault or allow assets to roll over to the next epoch
• Fort Knox team aims to give premia users access the best yield earning structured products and diverse risk profiles Benefits to Premia
• Fort Knox vaults offer Premia users a consistent and known weekly yield on users assets.
• Fort Knox will distribute 20% of the revenue generated back to Premia treasury for vaults built utilizing the Premia Protocol.
• Fort Knox team will build and open-source the infrastructure tools needed to enable others to build more structured products on top of Premia
• The options volume generated by the initial structured product strategies will be sourced from Premia.
• Fort Knox team plans to educate and bring new market makers into the Premia Options ecosystem.
• Fort Knox team will engage with Premia and partners to co-market and educate new and old user base
• The Fort Knox team reasonably expects to drive at least 20m-100m liquidity to the Premia ecosystem.
• Post Initial Launch exclusivity to the Premia Platform for 3 months, post this time the strategies will become more complex thus additional protocols will need to be utilized.
• To keep the Fort Knox team accountable, their team will submit a transparency report in relation to the use of grant funds monthly until funds have been fully utilized.

Grant Funding Request

The Knox vault team is asking for 250,000 USDC tokens to be distributed as needed by multi-signature release. In addition Knox is requesting 50,000 PREMIA tokens to be allocated and locked for max duration to reduce fees paid by Knox and align incentives of both communities.

Expected expense items highlighted below:

• Solidity Development
• Financial Engineering
• Design Services
• Software Engineering
• Audits & Security
• Freelance Services, as needed
• Infrastructure & Data Services
• Legal, Entity Structuring, etc.
• Miscellaneous/Other