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Algomint cross-chain baskets
APPLICANT
Type: Direct Application
Email: [email protected]
Discord: MISA#4005
Twitter: @Algomint_io, @theactualmisa
Stacks Forum: Misa
GRANT BASICS
Grant Name: Algomint cross-chain baskets
Total Budget: 500,000
Total Duration:
Grant Type: Stacks Foundation Resident Program
Grant Track: Cross-Chain & Off-Chain
Grant Goal: Integrate Between Technologies
Grant Audience: End Users (Consumer)
Specific Audience: Those who wish to access consolidated liquidity on and cross chain
Grant Team: amit-meld, clooneyr, gaurav-algomint, owanhunte, redditech, TheActualMisa, UmarFarooq-MP
Previous Grants: we have not applied for a Stacks grants before.
Ecosystem Programs: I have been invited to enroll into the Clarity Camp for Chapter Instructors by Adam Haun and have submitted my application.
I have met with Will Corcoran and several other Stacks team members and have been introduced to some great Stacks projects to collaborate. In particular we found great synergy with DLC Link, Zest, ALEX, and potentially Arkadiko.
Some of the potential partnerships include: *DLC Link - create decentralised BTC custody. *Zest - goBTC could be the asset used to supply into Zest allowing a broader range of BTC assets to be utilised. Also the ability for LP tokens issued if this comes to fruition could be included in the BTC baskets allowing Algomint baskets to hold yield generating BTC assets. *ALEX - utilisation of their stable swap pools to house the goBTC basket liquidity. Joint rewards programs around the different forms of liquidity provision. *Arkadiko - Including USDA into the goUSD basket to create price stability and deeper liquidity - by being included in the basket USDA could be traded with USDC, USDT, goUSD and others.
GRANT MISSION, IMPACT, RISKS & REFERENCE
Grant Mission: At its core, Algomint is a bridge but bridges have traditionally sacrificed capital efficiency for certainty of interoperability. Algomint solves this by combining bridging, basketing like-for-like assets, stable swaps and multichain aggregation allowing anyone to bridge at low cost while having truly dynamic asset entry and exit options.
Here are the benefits of this basket model for your ecosystem and for blockchain in general as a fledging sector:
- Capital efficiency: consolidation of different types of like for like assets reduces fragmentation of liquidity. Stable coins locked into the bridge on the blockchain are then deployed into stable swap pools on native DEXes meaning every dollar of TVL actually at a minimum achieves $2 of TVL.
- Ecosystem growth: improved interoperability brings liquidity flow. Algomint TVL is proven to increase the utility of DEXes and bring multiple times liquidity to partner protocols
- System stability: Algomint runs automated arbitrage to keep the market stable with the baskets and bridge allowing cross-chain arbitrage, increasing on-chain trading volumes and providing strong stability in the stable coin pool and other stable coin pairings, which increases trading utility allowing for larger volumes to be traded.
- goUSD is only the beginning: with BTC, ETH and GOLD on the list additional baskets will also be introduced delivering the same value across a larger range of assets.
We would like to explore how we could build the basket into your ecosystem and collaborate with local DEXes.
Grant Impact: TVL of the baskets, bridged tokens circulation, trading volume. More intangible is community activities and social media engagement.
Grant Risks: The stable coins de-pegging may bring systemic risk to the basket. We are developing evaluation criteria and building financial models to manage the risks. We are also working with smart contract auditors and will issue bounty to minimise security risks.
Support Link: Here is a sample Tweet, see comment section where users discuss their favourite Algomint tokens: https://twitter.com/Algomint_io/status/1570553036547956739?s=20&t=05GCdiJlAZwv5wgQQK1rIQ
GRANT ROADMAP & DELIVERABLES
MILESTONE 1:
Deliverable: Deployment of token smart contracts (e.g. goUSD, goBTC, goETH, goMint)
MILESTONE 2:
Deliverable: Deployment of "lock/mint" and "unlock/burn" bridging smart contracts
MILESTONE 3:
Deliverable: Development of blockchain light-client for Algorand on Stacks
MILESTONE 4:
Deliverable: Cross-chain messaging smart contract (or centralised components if need be)
MILESTONE 5:
Deliverable: Deployment of smart contract on Stacks for Algorand message validation
MILESTONE 6:
Deliverable: Basketing mechanism including bridged and local tokens
MILESTONE 7:
Deliverable: Security and Smart Contract audits
MILESTONE 8:
Deliverable: Testnet deployment
FINAL DELIVERABLE
Deliverable: Build Algomint asset baskets including bridged and native tokens on Stacks
👋 @TheActualMisa Thanks for your application! We will do a pre-review and let you know if we have any immediate questions. In the mean time please refer to our review schedule here for a detailed timeline and response dates. Best, Will
Thanks Will, I look forward to progressing this application with the Stacks team :) Cheers, Misa
Hi @TheActualMisa
Right now and for the next quarter or so, grants are going to be reserved for critical blockchain related work and addressing priorities outlined from community feedback, which you can find here. As such, we are going to pass on this grant, but invite you to submit a smaller application - possibly a research paper comparing and contrasting the developer environment, resources, and tooling available between the Stacks and Algorand ecosystems. Hope you do!
Best, Will
