{"signature": "0x4e47cb33056e3b98d22a1befe3ddb854a0546e0761c51a2b29bb5fb7c8927d281bd393f9016af16f43168722cad602c5ab6566c03139b97029db04a443b8c0a11c", "application": {"round": "0x0b33428de19ae46f72e8888cd1c0102ed49afa87", "answers": [{"type": "email", "answer": "stefan.iliev545@gmail.com", "hidden": true, "question": "Email Address", "questionId": 0}, {"type": "short-answer", "answer": "@incompetentengineer", "hidden": true, "question": "Telegram Handle (you can answer N/A)", "questionId": 1}, {"type": "link", "answer": "https://discord.gg/kurDepKWPN", "hidden": true, "question": "Link to your Public Group Chat (Discord or Telegram)", "questionId": 2}, {"type": "paragraph", "answer": "The project is currently based around the main feature - migrating debt positions. If a user has some collateral + debt on Aave, but no funds to repay the debt in order to move the collateral on Venus and take on the debt again, this project can be used in order to migrate the collateral + debt atomically. As long as the market is available in Venus. Note that the Venus integration is currently in development and should be finished sometime this week. If the project takes off, the next step is adding the ability to migrate cross chain. \n\nThe migration feature can be used to amplify advertising/marketing efforts on the side of Venus as it enables the protocol to tap into the current users of Compound and Aave on markets with better rates. Note that DefiSaver has such a feature, but its dated and DefiSaver does not support Venus Protocol. Furthermore they require users to migrate to a smart wallet, which carries some drawbacks.", "hidden": true, "question": "Please explain how your project aligns with the Venus Protocol ecosystem and contributes to its growth and development", "questionId": 3}, {"type": "paragraph", "answer": "The debt transfer enables users who have the debt asset staked, locked or sold to migrate their loan to a lower interest rate. Or even farm rewards. Without having to repay first. \n\nWe utilize flash loans from Balancer as they are free to make the whole process cost nothing besides gas. However, big loans might require aggregation from multiple flash loan providers and would have a fee.\n\nThe specific aim of this grant is to acquire capital to incentivise the transfer of debt for appropriate markets where users can save. As the grant would be from the Venus Protocol, the capital would only be deployed to incentivise migration to Venus. \nThe approach for this incentive would be:\n1) Snapshot users with debt on one of the other protocols for a market we want to incentivise. Ensure users have maintained their debt for a while above some collateral utilization percentage. \n2) Track users who migrate debt positions to Venus and ensure they stay for a while. \n3)  Users are randomly selected and have their debts partially repayed. Repayment would be some percentage 5%-10%, capped at some hard maximum in order to maximize how many users would benefit. \n\nThe specific markets I would like to target, on Arbitrum initially would be ETH and arbitrum as borrow rates provide 50-75% over aave (and compound for eth) \n\nExpectation is that Venus protocol would amplify marketing efforts as Kapan is just starting out so naturally traffic has been low especially without having any incentives so far. ", "hidden": true, "question": "Describe the innovative ideas, technologies, or approaches your project brings to the Venus ecosystem and their potential impact", "questionId": 4}, {"type": "paragraph", "answer": "For now \"we\" is only a solo-prenuer - Stefan Iliev, 10 years of software engineering experience, 5 of them as a blockchain developer. Working on the TEN layer 2 full time with Kapan being a side project born out of my own necessity for it that I've worked on for the past 2 months.", "hidden": true, "question": "For projects focusing on technical innovation, please demonstrate your team's technical expertise and ability to implement the project successfully within the proposed timeline and budget", "questionId": 5}, {"type": "paragraph", "answer": "5 000$ - Going towards a security audit of the integration and the debt migration flow. \n20 000$ - Going towards the incentives to migrate to Venus. These can be deployed to a smart contract that specifically only allows to use it to repay debt, but this would increase development time. ", "hidden": true, "question": "Provide a breakdown of your project's budget and clearly explain how the requested funds will be allocated", "questionId": 6}, {"type": "short-answer", "answer": "https://github.com/StefanIliev545/kapan", "hidden": true, "question": "Project GitHub Repo (Not Team Page)", "questionId": 7}, {"type": "short-answer", "answer": "I would post on discord and could also post on the Venus discord. Furthermore I would be tweeting progress.", "hidden": true, "question": "How do you plan to provide regular progress updates and maintain open communication with the Venus community throughout the grant period?", "questionId": 8}, {"type": "paragraph", "answer": "The plan is to expand to more networks soon, which would make this project even more beneficial. Apart from this, I'm open to any type of collaboration with the Venus Community as honestly trying to build a legitimate dApp in a market full of memecoins is insanely hard and full of catch 22 moments. \n\nYou can check ten.xyz and r3.com for my previous work.\n\nAnd regardless of the outcome of the grant application I would be happy to collaborate on some marketing amplification.", "hidden": true, "question": "Is there anything else you'd like to share about your project, previous work, or other affiliations? Is there anything you'd like to add that may help determine project eligibility?", "questionId": 9}], "project": {"id": "0xd9b1d85b459118b33c83e4e40a5b3500b691600ff98bc79c49a2377b51d66ba9", "title": "Kapan Finance", "logoImg": "bafkreiahfmw3di6uuqpl5seaa56z7tysdjqaqrfusxvwcubuplwgajauoi", "metaPtr": {"pointer": "bafkreiayrvvywij4rubbbeeqd5pjh6k5nrry4glw34mrpsury5ui63ahjm", "protocol": "undefined"}, "website": "https://kapan.finance", "bannerImg": "bafkreic5eiwesaxqzjfznflansx75bzlyal6mmhom6b42cckdpbly5utaa", "createdAt": 1740918506889, "userGithub": "StefanIliev545", "credentials": {}, "description": "One-click debt optimization by migration across lending protocols, powered by flash loans.\n\nProblem\nDeFi users struggle to capitalize on fragmented lending rates:\n\nCostly inefficiency: Interest rates vary wildly across protocols for long periods of time. Moving debt positions can help save users money on interest rates and equalize protocol rates, which is beneficial for liquidity providers.\n\nProtocol loyalty traps: Users stick to one platform despite better rates elsewhere, wasting thousands in avoidable interest.\n\nMEV for whales only: Flash loan arbitrage is reserved for bots and institutions, leaving retail users behind.\n\nSolution\nKapan Finance automates cross-protocol debt optimization for everyday users:\n\n🔄 Atomic Debt Migration: Refinance loans between Aave and Compound in one transaction, using flash loans to eliminate upfront capital.\n\n📊 Rate Compariso: Instantly surfaces the best borrow/supply rates for assets shared across protocols (e.g., USDC, ETH).\n\n⚡ Arbitrum Alpha: Live on Layer 2 for fast, low-cost transactions (currently in alpha testing).\n\n🔓 Non-Custodial & Permissionless: No deposits; users retain full control of their positions.\n\nImpact\nBorrowing costs can be reduced up to 60% on some markets before applying incentive rewards.\n\nDemocratize MEV: Turn “extractive” flash loans into a public good for retail DeFi users.\n\nTechnical Differentiation\nGas-Optimized Execution: Tightly integrated with Arbitrum’s low-fee environment.\n\nGitcoin Alignment\nPublic Good: Traditional banks provide such utilities to retail users, but DeFi users currently are locked in or forced to migrate their debt to smart wallets in order to migrate, which locks them to a specific vendor. This project helps with this as it is agnostic of the type of address using it.\n\nEthereum-Centric: Built on Arbitrum, composable with Aave/Compound’s L2 deployments. Venus protocol to be added next.\n\nOpen Roadmap: Core contracts will be open-sourced post-audit.\n\nProgress & Next Steps\n✅ Current Status: Live alpha on Arbitrum (supply, repay, debt migration).\n\n🚧 Next Phase:\n\nSmart contract audit (Q3 2025).\n\nExpand to Optimism, Base, and other Aave/Compound/Venus supporting networks.\n\nIntegrate rate alerts (e.g., “Notify me when USDC borrow rates dip 3%”).\n\nFunds will directly accelerate:\n\nSecurity: Cover audit costs for user trust.\n\nProtocol specific incentives: We will be launching an incentives program with the funds targeting markets where users can save significantly. \n\nFor example Aave USDC.e -> Compound USDC.e\nOr Aave Arbitrum -> Venus Arbitrum. \n\nWith the idea being using the funds to partially repay debt of users who have migrated and held, selected randomly. \n\nMulti-Chain Expansion: Deploy to Optimism and Base.\n\nCall to Action\nTest the Alpha: Try Kapan on Arbitrum and share feedback.\n\nJoin Governance: Help prioritize future integrations (Euler, Morpho).\n\nSpread the Word: Educate users trapped in suboptimal debt positions.\n\nDemo: www.kapan.finance | Twitter: @KapanFinance\n\nWhy This Matters\nDeFi’s promise is diluted when users overpay for loyalty. Kapan Finance fixes this by making rate arbitrage simple, accessible, and fair — a true public good.\n\n", "lastUpdated": 0, "projectGithub": "stefaniliev545/kapan", "projectTwitter": "KapanFinance"}, "recipient": "0x02aD0f9CaB40dEf1D6563bfC84F5AeA4282842aF"}}