Overview

• Venus employs an innovative way to launch new lending markets in a flexible manner

• The asset availability on Venus is therefore higher than on most other lenders

• However, Venus users only have limited access to the full potential of margin lending since opening positions with high leverage requires manual looping. This results in high gas costs and a UX accessible only to experts.

• At 1delta, we already solved this issue for a broad variety of lenders (see https://app.1delta.io/)

  • Users can swap collaterals, increase leverage, decrease position and swap debts seamlessly
  • Users do not need to migrate their positions to smart wallets or any other type of smart contract that holds positions of their behalf
  • Users do not rely on any single UI and can always go back to the lender’s page to see their positions
  • The product extends the base lending experience by adding capabilities like spinning up a leveraged position with the lender with a minimal amount of steps

• We want to build this experience for all Venus markets that technically allow that

  • BNB Chain: All markets (Excluding the native asset BNB for borrowing as it does not implement borrowBehalf)
  • Ethereum: All markets

Milestone 1: Implement Ethereum Mainnet Version ($10,000)

• Implementation has to pass margin trading tests successfully on a fork-based test using forge

• Available trade types:

  • Open (Borrow->Swap->Deposit)
  • Collateral Swap (Withdraw->Swap->Deposit)
  • Debt Swap (Borrow->Swap->Repay)
  • Close (Withdraw->Swap->Repay)

• The implementation has to work for multiple Venus markets at in the same contract and must not require a smart contract upgrade in case Venus launches additional markets

• Swap variations:

  • Flash Loan-based swaps
  • Flash Swaps (e.g. with Uniswap V3), these are more cost efficient than traditional flash loans

Milestone 2: Provide Typescript SDK ($5,000)

• Create an SDK that allows creating calldata for the margin trade actions

• Native routing for flash swaps as well as generic swap aggregator calldata as inputs

Milestone 3: Deploy Smart Contracts to Ethereum and integrate it into 1delta UI ($7,500)

• Deploy the contracts on Ethereum Mainnet and integrate them into our app: https://app.1delta.io/

• All markets (Core & ETH market) will be integrated

Milestone 4: Extend Smart Contracts and Tests to BNB Chain ($5,000)

• Create the smart contracts for BNB Chain markets

• Write tests for the margin operations

Milestone 5: Deploy Smart Contracts to BNB Chain

• Mainnet and integrate them into the 1delta UI ($10,000)
• Deploy to BNB Chain and integrate all 6 markets into 1delta UI

Total grant request: $30,000