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harmony-one / hackathon

repo for harmony hackathons
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Challenge: Sushi #34

Open lijiang2087 opened 2 years ago

lijiang2087 commented 2 years ago

In addition to the 12 Harmony tracks, we are working with Terra, Chainlink, Sushi, Maddock Capital, and Hashkey on a challenge with the following prize structure: $20K for top prize, $10K for second, $5K for pool prize, and 2 follow on grants of $10K to be decided by the prize partners.

Sushi's Challenge:

Open challenge to build the best product using Sushi on Harmony.

gitcoinbot commented 2 years ago

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

This issue now has a funding of 527915.5626 ONE (55017.25 USD @ $0.1/ONE) attached to it.

gitcoinbot commented 2 years ago

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

Work has been started.

These users each claimed they can complete the work by 7 months, 3 weeks ago. Please review their action plans below:

1) developerfred has started work.

Add sushiswap on Harmony 2) powerbombfi has started work.

TradFi to DeFi: What if you could earn interest on your dollars... Except it's paid in bitcoin? 3) usersolidity has started work.

Sushi integration Harmony 4) giahuynh1402 has started work.

Đặt mua và bán như các sàn giao dịch lớn 5) indexzoo has started work.

Work Plan

IndexZoo was launched in May 2021 to provide the most accurate leveraged tokens for long/short exposures on any basket of cryptocurrencies. Layer-1 based index tokens are known for infrequent rebalancing and poor leveraged tracking due to gas cost. IndexZoo fixes this by using DEX derivative exposures, a product design that mirrors TradFi indices.

What it does IndexZoo is built to solve 3 main problems with DeFi indices: 1，Lacking of Index Exposures (Long only, low leverage) 2，Inaccurate Tracking (Infrequent rebalancing, high gas fee) 3，Gatekeepers (Slow product launch)

How we built it The current tokenized indices get exposures by holding the underlying tokens, and rebalances through Layer-1 spot markets. This is highly inefficient and costly, resulting in the the lacking of index product diversity, inferior performance tracking and high fees.

Compared to other DeFi index projects, IndexZoo's key differentiator is where the index gets exposure: IndexZoo uniquely sources exposures from DEX derivatives contracts (perpetual futures contracts and options contracts), neither from the spot market nor synthetic exposures between long and short users. This method enables IndexZoo to actively rebalance its ETF tokens intraday at a very low cost, and provides the most accurate index tracking to investors, which is essential for any tokenized index products. The fact that most DEX derivative contracts are settled on Layer-2 made it possible.

IndexZoo is also able to provide high leverage tokens (up to x5) using derivatives contracts and margin trading, providing the maximized capital efficiency for hedging and speculation. In addition, IndexZoo does not require a debt position on lending protocols to achieve leverage, hence further minimizing fees and passing along savings to users.

Challenges we ran into The Achilles heel of leverage index product is accuracy. Current products, either CeFi tokens such as FTX and Binance, or DeFi tokens such as FLI 2x series, all utilizes a leverage range (1.7x - 2.3x) instead of a fixed target (2x). This results in a less predictable exposure, coupled with infrequent rebalancing that is often manual and intransparent, entirely defeats the purpose of leverage token. Our goal was set out to provide the most accurate fixed leverage target, and ensure the most predictable tracking exposure possible. The challenge was to originate a unique margin trading based leverage management mechanism. With our previous experience trading TradFi instrument (FX, Futures, Equity derivative and etc.), we were able to design a rebalancing scheme that is suitable for DEX perpetual futures (Dydx Layer-2 Perp and etc.) and provide the tokenized exposure with accurate leverage tracking.

Accomplishments that we're proud of We are busily testing our leveraged token internally, and are looking at a testnet deployment by end of September/early October. Importantly, our Bear Inverse Token will be the first leveraged inverse index for DeFi. This will add an infrastructure tool for investors to hedge or speculate against market downturns as it is commonly used in the stock markets. Our Fear Volatility Token is also under development. It will be the first DeFi volatility protocol that tracks DEX options protocols (OPYN and etc.) instead of synthesizing from CEX avenues.

What we learned Since our launch, we have learned the enthusiasm from DeFi community towards index and leveraged token products. We've seen exponential growth of DPI (DeFi Pulse Index), as well as the disappointments to FLI 2x series. Our goal is to provide a better and smarter indices that is catered to the community's needs.

What's next for IndexZoo IndexZoo's ultimate goal is enable permission-less user index creation for any basket of cryptos with any leverage. Therefore, anyone can create a customized hedging or speculation solutions for any individual wallet, because smart investment tools like these are what DeFi is all about.

Traction By late August, we've completed our pre-seed round financing, launched our website, whitepaper and social media. Product development for Bear Inverse Token is underway, and we are shooting for ETH Testnet deployment by the end of September, followed by Mainnet launch in October. 6) adirery has started work.

Today, only a small percentage of people are invested in or even knowledgeable about crypto assets. NoBank aims to give access to crypto markets, products and DeFi in the simplest possible way – to everybody. We combine best in class user experience with a smart wallet foundation. We explain the DeFi world and give full access to it – multi-chain.
Built around the truly simplified user experience and step by step explanations of transactions and mechanisms, customers will be able to buy, swap and transfer crypto assets on the NoBank platform. Additionally, NoBank aims to offer a variety of savings-products that enable users to gain interest on their money - like they used to before the time of negative interest rates. In order to reach investors rather than gamblers, NoBank empowers its users to make conscious investment decisions. All products come with a documented risk-return profile. The participation in the Harmony Hackathon is just the start of NoBank’s story. On this foundation we will continue to build our platform. Due to its holistic approach, the NoBank platform addresses several challenges in the Hackathon. Hereafter you find the reference to the relevant challenge: 7) maxklenk has started work.

Li.Finance is a mesh of aggregated cross-chain liquidity networks and protocols to power next-gen DeFi projects with superior UX by making liquidity available when needed.

For starters: „Think of LiFi as a 1inch for cross-chain liquidity networks (Harmony - Hyphen, Connext, Hop, UMA, Biconomy, cBridge, Anyswap, etc..)“

Our Thesis

Problem

The major problem is that users need to be able to move funds from chain A to chain B. No matter if they are different layer 1s or one of ETH's layer 2 scaling solutions. Turning to bridges, adding more friction to dapp adoption than necessary and overwhelmed community managers are the current status quo. We'll change that.

Solution

A data mesh of cross-chain liquidity sources: cross-chain liquidity networks, bridges, DEXes and lending protocols.

We'll aggregate cross-chain liquidity networks like Horizon, Connext, Hop, RouterProtocol, Thorchain, Chainflip, Anyswap, etc. to find the best possible cross-chain swap. On top of that, connect to all DEXes and DEX aggregators like 1inch and Paraswap on all chains to be able to to facilitate any-to-any swaps.

All of that will be made available on an API/Contract level, as a dapp and as a dapp-widget for other developers to be plugged-in directly into their own products. No need for users to leave dapps anymore.

Team

Max and Philipp have been working together for over 8 years, spent 6 years bootstrapping stomt.com and developed over 30 third party integrations, a highly scalable web platform, APIs and cross-platform mobile apps. Philipp did business development in >14 countries and was frequently booked as speaker. Max designs the software architecture to ensure high performance, scalability and stability. For the hackathon they teamed up with Adrian to build a smooth UI and Ed to ease the process for the users by providing a custom smart contract which executes multiple steps for the user at once.

What was there before?

We have been interested in cross-chain solutions for a while already. In previous hackathons we built a dashboard to give users an easy overview of all the tokens they own on different chains: https://li.finance/dashboard We also built a first prototype using the state channel based vector protocol to transfer funds between L2s, which is now deprecated. These parts are not part of our submission to the Harmony Hackathon.

How it's made

For this Hackathon we analysed the bridge interfaces of the Horizon Bridge, the NXTP protocol by Connext and Hop and combined them in a unified experience. Combined it allows users to make transfers between 8 different chains. But we didn't stop there, in addition to that we have integrate various DEXs (Sushi, ViperSwap, Uniswap, Pancake, HoneySwap, QuickSwap, SpookySwap) and DEX aggregators (1inch, paraswap) to be able to swap tokens before or after they have been bridged. Doing so users can benefit from better exchange rates, because liquidity pools on different chains provide different rates. This is especially interesting for the usage of the Horizon Bridge. While it is able to bridge any token, liquidity pools for the resulting bscXXX token on Harmony differs a lot which can result in bad exchanges before the token can actually be used. By analysing the full route (swap-bridge-swap) in advance we can estimate which would be the best token to bridge and how to swap it. The user can then execute the steps in our interface where we take care that he adds new chains and tokens to his wallet and switches the chain when needed to trigger different transactions.

What is next?

It is nice to provide a unified experience across chains on our platform. But we believe this functionality should be were the user is and not where we are. We will warp our functionality in an easy to use SDK and a React-Widget, which will allow Wallets and Dapps to include any-to-any cross-chain swaps in their applications. Wouldn't it be nice if users could transfer their token from ethereum directly into a liquidity pool on Harmony without leaving the staking website? This is what we are aiming at and why we see us as Middleware Cross-Chain Infrastructure.

Technologies used

1inch, Arbitrum, Connext, Covalent, ENS, Ethereum, DeBank, Hardhat, Harmony, Horizon, Hop, Infura, MetaMask, Optimism, ParaSwap, Polygon, Pocket, Solidity, SushiSwap, The Graph, Truffle, Uniswap, ViperSwap 8) coco-sha has started work.

A no-loss lottery for liquidity provider tokens, Buy a ticket for the no-loss lottery. Each week, the interest generated from the entire ticket pool is sent to one lucky winner. Get your money back whenever you like. 9) bmgalego has started work.

Lending Protocol For the sushi challenge we wanted to use a sushi farm as collateral for a borrow

Learn more on the Gitcoin Issue Details page.

gitcoinbot commented 2 years ago

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

Work for 527915.5626 ONE (92205.2 USD @ $0.17/ONE) has been submitted by:

gitcoinbot commented 2 years ago

Issue Status: 1. Open 2. Started 3. Submitted 4. Done

Work for 527915.5626 ONE (80064.20 USD @ $0.15/ONE) has been submitted by:

  1. @realdiganta

@lijiang2087 please take a look at the submitted work: