Beefy x Stargate: Integration Proposal

Brief intro about Beefy: Beefy is a multi-chain yield optimizer present in 19 different blockchains (8 of which are shared with Stargate). Currently offering more than 600 vaults that compound rewards generated by almost $400M TVL. Beefy has many strong traits, two of the most outstanding ones are a big focus on security, and great user experience.

User experience wise, we are constantly improving our contracts, design, and application, to make DeFi available for everyone. This can be seen in our app, which loads info from +600 vaults with efficient RPC calls, and displays everything without focusing on which chain you are connected to, giving our users a see-through view of all DeFi opportunities, allowing them to choose the best yields.

We just integrated 1inch in the back, so you can enter any vault, with any token with 2 transactions (1 approval and 1 contract call). This is a huge leap in user experience, since in the past, you would need up to 7 transactions, and jump between different protocols, making the DeFi experience overwhelming and cumbersome.

Issue Statement: There are still things to improve in the DeFi experience. The biggest one is moving value across different blockchains. Getting the correct tokens, the right amounts, and finding an appropriate bridge can still be a daunting experience for some inexperienced users.

It's also worth noting that you have to pay transaction fees for all of this.

Solution: Now, we are making another leap in terms of UX, making the cross-chain experience even easier thanks to technologies developed by Stargate that haven't been available in the past.

Stargate technologies are empowering the Beefy engineering team to create a truly cross-chain seamless experience. Allowing users to enter and exit vaults without leaving the app, without the need to know how to use DEXes, bridges, get gas on the destination chain, etc.

We want to incorporate into our solution, a reward-system that compensates the gas paid for bridging in and out of Optimism. Bridging through Stargate currently costs 6bps of the transaction. We would develop a smart-contract that reimburses those 6bps back to the user in OP tokens. This would motivate users to use this newly implemented solution, bringing more TVL to Beefy, more volume to Stargate bridges, and overall more adoption to the Optimism ecosystem.

Since Beefy is completely open-source we are sure this functionality (like many before) will be replicated by other protocols, making Stargate the de-facto bridge to transfer tokens seamlessly between chains, without leaving said dApp.

We are requesting 75,000 OP tokens. 80% will be used to periodically fund the contract that reimburses the bridge costs, and the remaining 20% will be used for marketing and promotions around the launch of this revolutionary feature.

Success: We aim to distribute the whole amount in a course of 12 months, bringing around $40M of bridged volume to Stargate. If we manage to capture that amount we will call the initiative a success.

Execution: The Beefy team will create a new section in our app, where users will see all of their stablecoins (USDC, USDT, DAI) and ETH no matter what chain they are connected to, and they will be able to choose to which of the vault they wanna deposit in (from the 8 chains Stargate and Beefy share). So if you are connected to Polygon, and wanna zap+deposit the stablecoins that you have in Arbitrum into the wstETH-ETH vault on Optimism, the app will prompt you to change the network, and do 2 transactions (approval and contract interaction). The app and contracts in the back will take care of bridging your stablecoins, trading them on the most efficient routes through 1inch to get wstETH and ETH, provide liquidity, and deposit the LP tokens in your behalf, also you will be reimbursed of the 6BPS that Stargate charges you (discounted from your initial stablecoins) in OP.

Withdrawing from vaults will also be possible with this feature. You will see the Beefy vaults where you have deposits (limited to the 8 shared chains), and will be able to exit your position and bridge with just 2 transactions. (and get reimbursed for the bridge fees).

In the future we will extend the future so you can start the flow with any token, and our Zap will take care of getting the USDC/USDT/DAI/ETH to bridge (and the same for withdrawal).

Timeline and costs: Our team is working hard to have the most complete and easy to use DeFi app in the space. For this we need to keep adding features in a way that respects our design, and does not collide with other characteristics of our app. We also need to restructure our API to support this feature, deploy new contracts, and test exhaustively the feature to make sure our users have the same amazing experience as always using Beefy. We are aiming to have all of these tasks completed by Q3 2023. There will be no extra costs that need to be considered in this proposal.

Summary: Beefy will develop a new feature to enter and exit vaults no matter what chain you are connected to. To promote the adoption of the feature we will incentivize users reimbursing the Stargate fees with OP tokens. We will leverage our socials and partners to bring excitement to the feature. Tokens will be distributed in a period of 12 months, features will be live in Q3 2023 and we expect to bring around $40M of Volume.