[Proposal]Xave Deployment Grant Proposal

chris_xave — Wed, 30 Aug 2023 06:10:26 +0000

Motivations

Xave has brought liquid FX markets to DeFi, via its’ novel FXPools built on the Balancer v2 Vault. Stablecoin issuers (Circle, Stasis and StraitsX) have created 3 FXPools on Xave and have seen ~$37M worth of forex trades settled on the platform across EUROC, USDC, EURS and XSGD stablecoins.

Xave now intends to bring liquid FX markets and unlock 24/7 FX trading (even on weekends!) to XDC’s enterprise network.

Ecosystem Benefits

Deploying Xave’s FXPools on XDC would unlock major use cases, such as 24/7 Real World Asset (RWA) trading and tokenization, cross border settlement (such as bonds and remittance), 24/7 stablecoin FX and basically anything that requires real world asset liquidity beyond just USD pegged stablecoins.

The “FX Invariant” vs StableSwap vs Constant Product

Read detailed behaviour here https://docs.xave.co/product/amm.

The novel “FX Invariant” is built and optimised for;

24/7 FX trades (even on weekends!)
auto rebalancing FX LP ranges (unlike Uni v3 that needs manual range management)
Bringing live off chain price on chain

Property	FX Invariant	StableSwap	Constant Product	Concentrated Liquidity
Type of Trading	Real World Assets (gold, silver, oil, currencies, etc) Any tokenized asset where pricing is off chain	For like-priced stablecoin trades	Volatile tokens where pricing is on chain	Volatile tokens where pricing is on chain
Capital Efficient for FX	Yes “$1M TVL enables ~$300k FX accurate trading”	No Needs multiple millions of USD to enable ~$300k FX accurate trading	No Needs multiple millions of USD to enable ~$300k FX accurate trading	Yes
LP Management	Passive Real time FX market pricing via Chainlink integration Auto LP range adjustment via Chainlink	Passive	Passive	Active FX LPs have to manually adjust LP range based on off chain FX markets

Deployment Cost Rationale

Typically, Xave expands to new chains only where the Balancer v2 Vault is present (takes roughly 1 week). Expanding to XDC would require the Xave team to fork and deploy the Balancer contracts, significantly adding to the work and time needed.

See Component Dependencies here https://drive.google.com/file/d/1LPS1I1GBQf3G_Sj75pDCBPJN-cm0Yo1l/view?usp=sharing

Rates

Role	FTE / mo	Rate / mo (USD)	Cost / mo (USD)
Senior Front End Dev	1	7,000	7,000
Senior Full Stack / Solidity Dev	1	8,000	8,000
Technical Project Manager	0.5	6,000	3,000
Product Manager	1	10,000	10,000
Technical Lead/Architect	1	10,000	10,000
Total	4.5		38,000

Milestones

Phase	Estimated Time (weeks)	Component(s)	Activity	Estimated Man Months
0 - Kick off	T		Identify stakeholders to participate in “pilot FX transaction”	0
1 - Pre Pilot	T + 2	Testnet Deployment: Xave’s FXPools, Balancer’s Token Vault	Stakeholders to see demo of FXPool (FX swaps, arbitrage incentives, fee structure, etc)	0.5
2 - Production Pilot	T + 6	Deploy Xave’s FXPool, Token Vault, Incentives Module and FX Feed on XDC mainnet	Chainlink to setup FX Feeds for production Identify initial liquidity provider for at least 1M USD (like 50:50 EURS:USDC)	1
3 - Seed + Incentivise Liquidity for more FXPools	T + 8-10 (Depending on comms/logistics)	Non gauge rewards contract for single token rewards Allocate incentives to FXPools	Determine list of initial FXPools to seed Acquire incentives / decide what target incentives APR is competitive on XDC network	0.5
Total				2

Total Cost

Cost / mo (USD)	Man Months ( + 10% margin)	Total Deployment Cost (USD)
38,000	2.2	83,600

About Xave

Xave Finance (pronounced “Save Finance”) has built liquid FX markets for DeFi. Xave's core product, the "FXPool", integrates our novel "FX Invariant" with the Balancer V2 Vault.

Website: https://www.xave.co/
Stats: https://dune.com/xavefinance/amm

App Links (Ethereum, Polygon POS, Avalanche):
Swap: https://app.xave.co/#/swap
Pool: https://app.xave.co/#/pool

Original FXPool Announcement with Balancer (under old brand): https://medium.com/balancer-protocol/halodao-aims-to-bring-defi-to-the-masses-with-custom-amm-built-on-balancer-v2-534c2d72312

See upcoming upgrade to FXPools: https://medium.com/@BalancerGrants/xave-finance-integrating-bb-a-usd-to-their-custom-fx-pools-7372eecc790e

Traction Elsewhere

As of August 2023:

~$37M FX trades
~$3.6M TVL/AUM

Networks:

Ethereum Mainnet
Polygon POS
Avalanche

Past Integrations:

Integration	Integration Type	Resources
http://circle.com/	EUROC:USDC	https://twitter.com/XaveFinance/status/1686689252334280704
https://stasis.net/	EURS:USDC	https://twitter.com/smartcryptonew1/status/1690522225152335872?s=61&t=H2gLKX5R-g96RvBUhPZh9g
https://straitsx.com/	XSGD:USDC	https://twitter.com/straitsx/status/1686915432551489536?s=61&t=_TD4VuTw5mac-p4vL2GfuA
https://balancer.fi/	Infrastructure

Developers Forum for XinFin XDC Network: chris_xave