{"signature": "0xcdfcce65bfd8c6943aeeeae993c2ff58f22a86d80332c15733e53d43c77350825750ba5a642b71017a732c9cfe453c67376349e1d92f31f4b250da294ac9ed4d1b", "application": {"round": "0x347ff9951d24e29b559e3323b5370aa29993e613", "answers": [{"type": "email", "hidden": true, "question": "Email Address", "questionId": 0, "encryptedAnswer": {"ciphertext": "eYxTmS+g5AjB/5uNwFkyjpddxqzuaQwnzjDgUDg33HiYKSyYSZwPncjdGm0WIlWb", "encryptedSymmetricKey": "d774941390442dc54f4c4a0ab0ba70b46bbc5db109d048051e305056044aebd43180f094606f203c7c665a22307c120a24da4d22d037e276eb0d73c3f92efb895d44d3c5af0f3480b48ddd12314b4a2882a7860e6dfe2cc1f4dacd4d99840fa30471449a9137fb7c4401760154be19352adc3552eccfaeead307a8d990a1cfc20000000000000020ee716ddbd188def1ccc39f2706adce1fdec53169b066208579445dc1e87d3a5763643986ab78dace84b59dff1bf51aa8"}}, {"type": "short-answer", "answer": "Grants and little bit of VC funding", "hidden": false, "question": "Funding Sources (how is the project financed outside of this round)", "questionId": 1}, {"type": "number", "answer": "9", "hidden": false, "question": "Team Size (including full and part time)", "questionId": 2}, {"type": "paragraph", "answer": "The project is pioneering the development of smart contracts that serve as foundational building blocks for DeFi composability. By providing tools that others can build upon, the project facilitates the evolution of B2B SaaS within the crypto space, supporting the future of work and community-driven innovation.\n\nIt strives to advance governance and decision-making processes, enhancing operations, and providing contributor tooling. These meticulously designed smart contracts offer a collaborative framework where developers can innovate and expand upon existing solutions, creating a more interconnected and robust DeFi ecosystem.\n", "hidden": false, "question": "How is the project CollabTech?", "questionId": 3}, {"type": "paragraph", "answer": "The primary target user group consists of DeFi liquidity providers, developers, and investors who seek to manage risk and enhance their returns. These users often face challenges related to Impermanent Loss, which can significantly impact their earnings and asset stability.\n\n### Needs and Problems Addressed:\n1) **Impermanent Loss Mitigation**:\n- The smart contract provides a hedging mechanism to mitigate this risk, allowing liquidity providers to safeguard their investments.\n2) **Risk Management**:\n- The project empowers users to hedge their positions and reduce exposure to market fluctuations, enhancing their financial stability.\n3) **DeFi Composability**:\n- By offering smart contracts that can be built upon, the project enables developers to create innovative solutions that enhance the DeFi ecosystem's composability. This encourages collaboration and innovation, leading to more robust and diverse financial products.\n4) **Community Empowerment**:\n- The governance framework, Konoha, empowers community members to participate in decision-making processes, fostering a sense of ownership and collaboration within the ecosystem.\n5) **Accessible Tools for All**:\n- The aim of the project is to make advanced financial tools accessible to all users, regardless of their technical expertise, enabling more people to participate in and benefit from the DeFi space.\n", "hidden": false, "question": "Who's the targeted user group and what's the need/problem being addressed?", "questionId": 4}, {"type": "paragraph", "answer": "**Open-Source Commitment**:\nThe project is open-sourced under the MIT License, which allows developers worldwide to access, use, and build upon the smart contracts. This open-source approach ensures that innovations can be adapted and expanded by the community, fostering a culture of continuous improvement and collaboration. By providing the foundational building blocks, diverse financial solutions can be created, amplifying the impact across the DeFi landscape.\n\n**Carmine Options AMM Integration**:\nCarmine Options AMM will integrate the Impermanent Loss hedging smart contract into its ecosystem, providing a seamless and accessible tool for liquidity providers. By running this smart contract, tangible benefits are delivered to users, enabling them to manage risk and enhance returns. The fees collected would go into further development of the project.\n", "hidden": true, "question": "How do you ensure value keeps being delivered after the round is over? (How will the project become commercially sustainable or a perennial good? )", "questionId": 5}, {"type": "paragraph", "answer": "1.5 months to build the smart contracts and build unit/integration tests. Additional 1 month for testing on testnet and additions for the test coverage.", "hidden": true, "question": "How long will it take after funding is received to deliver value? (share a high level timeline)", "questionId": 6}, {"type": "paragraph", "answer": "https://t.me/Marek314", "hidden": true, "question": "Contact info (telegram handle or whatsapp)", "questionId": 7}], "project": {"id": "0xb6ef3de56ec058374cd8fbb76b2385811646e959b7731ed168716ca7a55fc562", "title": "Hedging Impermanent Loss - Carmine Finance", "logoImg": "bafkreigux6kld4cdnkdojiib3cqp6elnhznrzd3tgvtedyyhhqw3z7lhxu", "metaPtr": {"pointer": "bafkreiedt25bwxzc424xa7ryevxyvn3jfffcppr3aa3uf3lbrewfboxuee", "protocol": "undefined"}, "website": "https://carmine.finance", "bannerImg": "bafkreicso3z6qskuafwywlaw52wydolpxzwbah3fbmsmkgiroqre4pnlgu", "createdAt": 1722638834590, "userGithub": "MarekHauzr", "credentials": {"github": {"type": ["VerifiableCredential"], "proof": {"jws": "eyJhbGciOiJFZERTQSIsImNyaXQiOlsiYjY0Il0sImI2NCI6ZmFsc2V9..G5CEvxJJRS9bsL_XUTdMtCyRnOCiP74FRNjnTptW9U2z0-5BYRLjCLu6aP3WIiRB2DpwZMG0YzTyEEOOIiOZBg", "type": "Ed25519Signature2018", "created": "2024-08-02T22:34:40.693Z", "proofPurpose": "assertionMethod", "verificationMethod": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC#z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC"}, "issuer": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC", "@context": ["https://www.w3.org/2018/credentials/v1"], "issuanceDate": "2024-08-02T22:34:40.693Z", "expirationDate": "2024-10-31T22:34:40.693Z", "credentialSubject": {"id": "did:pkh:eip155:1:0xa4ad2Ee4f67C3C83a0081060b6AeA2c88dFc36f3", "hash": "v0.0.0:JAS8uz296DOPQ9sRKz0ylsZPylXd712Wb2VccPneRKA=", "@context": [{"hash": "https://schema.org/Text", "provider": "https://schema.org/Text"}], "provider": "ClearTextGithubOrg#CarmineOptions#8970363"}}, "twitter": {"type": ["VerifiableCredential"], "proof": {"jws": "eyJhbGciOiJFZERTQSIsImNyaXQiOlsiYjY0Il0sImI2NCI6ZmFsc2V9.._1qU8octOchSLUeZPQ9oNNL19VSCi9JBPCHXTxGkUWUcMjdmgrB9nEQlZciD2eKEnQ2bJsDRhJ7rf8KqHmHVCQ", "type": "Ed25519Signature2018", "created": "2024-08-02T22:34:12.533Z", "proofPurpose": "assertionMethod", "verificationMethod": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC#z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC"}, "issuer": "did:key:z6MkghvGHLobLEdj1bgRLhS4LPGJAvbMA1tn2zcRyqmYU5LC", "@context": ["https://www.w3.org/2018/credentials/v1"], "issuanceDate": "2024-08-02T22:34:12.533Z", "expirationDate": "2024-10-31T22:34:12.533Z", "credentialSubject": {"id": "did:pkh:eip155:1:0xa4ad2Ee4f67C3C83a0081060b6AeA2c88dFc36f3", "hash": "v0.0.0:qV06sSdtpQ7+Uh76iKrEExK5BscVkbueF7emVwGRg08=", "@context": [{"hash": "https://schema.org/Text", "provider": "https://schema.org/Text"}], "provider": "ClearTextTwitter#CarmineOptions"}}}, "description": "# Hedging against Impermanent Loss\n\nHedging against Impermanent Loss smart contracts is a simple tool that will enable AMM liquidity providers to hedge against Impermanent Loss. In today's high-volatility and price-uncertain environment, the need for effective risk management tools is more critical than ever.\n\n**Carmine Finance has a simple goal. Take care of crypto risk.**\n\nThe team behind Carmine Finance has been building risk management solutions for a couple years. Right now we are working on a smart contract that will hedge Impermanent loss and will enable the community to manage this risk and mainly build novel solutions on top of it thanks to the composability in DeFi.\n\nThe smart contract that will allow for hedging the Impermanent Loss will be built as a portfolio of options that has an opposite P&L curve to the Impermanent Loss. Because of the discreteness of options’ strike prices the hedge will not be perfect.\n\nThe initial version will cover Impermanent Loss of constant product function AMMs and the consequential versions will allow for a more generic version that will cover concentrated liquidity AMMs. \n\n### Example Implementation:\n\nFor example, consider a user who is providing liquidity to an AMM on Polygon. The objective is to offer a B2B2C solution with the AMM, allowing the user to hedge against impermanent loss directly. Here’s a breakdown of how it works:\n1) **User Interaction**: As the user engages with the AMM, they are presented with an option to hedge against impermanent loss, seamlessly integrated within the AMM’s interface.\n2) **Hedge Purchase**: The user decides to purchase the IL hedge. Behind the scenes, this process is efficiently managed to ensure ease of use.\n3) **Cross-Chain Operation**: Funds are securely bridged from Polygon to Starknet. Once on Starknet, the IL hedge is executed using specialized smart contracts.\n4) **Tokenization and Bridging**: The user receives an IL hedge token representing their hedged position. This token is then bridged back to the user's wallet on Polygon, enabling them to manage their hedge directly from their wallet.\n\nCarmine Finance team has been working on and delivering on following projects\n- **DeRisk:** A platform that facilitates independent risk monitoring and mitigation strategies, enabling users to safeguard their digital assets proactively.\n- **Options AMM:** A foundational tool for the community to create diverse hedging products, allowing for flexible risk coverage tailored to their needs.\n- **Konoha:** Governance framework that is an accessible and customizable system that empowers any Starknet protocol to innovate with token creation, distribution, and staking, reinforcing community-led governance.\"\n\n", "lastUpdated": 0, "projectGithub": "CarmineOptions", "projectTwitter": "CarmineOptions"}, "recipient": "0xa4ad2Ee4f67C3C83a0081060b6AeA2c88dFc36f3"}}