PrivD - Bringing Secret privacy to existing DeFi TVL #188
Description
PrivD (Private DeFi, very TBD name)
Problems
Secret Chain wants more users addresses TVL and interest in the chain.
DeFi users want privacy but don't want to give up the security and liquidity of their existing chains.
Project Description
Build a DeFi app on Secret that takes deposits and places them in the user’s preferred DeFi app on mainnet (or other DeFi chains). This will give Secret privacy to existing DeFi. The goal of this project is to do all the prep work towards launch.
Detailed product description
This section will describe a more mature version of the final product, in order for the reader to understand where we are going. In this example will use Ethereum mainnet as the destination DeFi chain. It can be any EVM chain. At this point, we are not considering Solana. For simplicity, this example ignores both Secret and Ethereum gas.
The scope of this grant is building a complete plan (but not executing that plan) of the development of the initial version of PrivD. The scope of the initial version will be defined during this grant.
User perspective:
- User bridges $10,000 USDC onto Secret into their personal wallet
- User goes to the PrivD website. On it he sees a number of different pools on different protocols on different chains.
- On PrivD, user selects Ethereum mainnet (from the list Mainnet, Arbitrum, Base, Optimism)
- User can select a sequence of actions. First he selects to convert USDC to Eth using Uniswap. Next he selects to deposit the Eth onto Compound Eth/USDT pool that he sees pays 5% interest.
- User transfers the $10,000 USDC into PrivD to trigger this sequence. This Tx takes place on the Secret blockchain.
- User sees the status of the action change: Bridging, Bridged, Uniswap Tx Complete, Compound Deposit Complete. His funds are now within the Compound pool on mainnet
- User has the option to select either withdraw funds and bridge back to Secret or withdraw from compound and deposit in another pool.
Go-to-Market plan
This section describes all the steps we will take during the execution of the program. The goal is to have an estimate, team, software requirements and a complete plan ready to launch PrivD at the end of the program.
- Technical test – In this step we will build a simple example of the full flow of the contracts. We will bridge the value onto the target chain and deposited into an example protocol. This step will use contracted developers.
- Security Assessment – When I discuss the privacy of PrivD with existing protocols and DeFi whales, I need to be able to explain with technical examples what the privacy will look like and it's capabilities and limitations. Using the example transactions built in the previous step I will make a report describing this clearly.
- Demonstrate proof of transactions. Sometimes users of our protocol will want to prove to 3rd parties what the transactions did. This document will describe and give examples of exactly how this takes place. Once again giving the privacy and disclosure capabilities explicit examples with clear description.
- Describe the onboarding process – The process to open a wallet and bridge value onto the Secret chain must be clearly described. This will form part of the presentation to potential users.
- Partner assessment with Compound and Euler. I have personal contacts at these protocols. I will present PrivD for validation, comments and feasibility. Ideally they would partner with us and co-market for this new capability. Perhaps they can suggest investors also.
- Market validation – Using my contacts built up over five years with DeFiSafety I will present PrivD, looking for investors and depositors. The goal is to build an initial user group and find the initial list of protocols and pools for the first version of PrivD.
- Write requirements for coding of initial version – Given the list of initial protocols and pools we just developed along with the requirements of the initial user group, I will write the software requirements for the launch version of PrivD. This will give me enough information to estimate the code development, test development and audit requirements of the software.
- Website plan – With the list of initial protocols and pools that PrivD can facilitate, we will have a list of data we need to present (such as interest rate and TVL deposited) for each pool on each chain. This will be the input data to the website. With this information we can estimate the website development cost. We will include active monitoring to mitigate front end attacks.
- Evaluate tokenomics and fee structure
- Estimate legal requirements for project launch
- Estimate launch marketing and branding program
- Build a team
- Estimate complete program launch
Value capture for Secret Network ecosystem
PrivD will bring existing DeFi TVL onto Secret chain. This will bring new users, new addresses, new transactions and a massive increase in TVL. Admittedly the TVL will not stay on Secret. But even while it rests in a DeFi protocol on Ethereum mainnet, it still must go through Secret in order to be withdrawn. This means it can be considered trapped within the Secret chain and therefore applicable to be counted as TVL.
Most importantly PrivD will significantly raise the profile of Secret chain and increase the amount of conversation around the chain and the privacy it brings.
Team members
- Rex Hygate (just me to start)
Team Website
No website as yet.
Team's experience
Rex has been in DeFi security full-time for five years with DeFiSafety. In that time I have analyzed and measured security incidents in DeFi continually. I know what happens. I know why it happens. I know how to mitigate the risks.
I have built up an extremely rich network of contacts. I can find developers by asking security experts that I've known for years. When looking at monitoring systems I know who to speak with and how the judge quality.
In addition to security contacts, I have a significant number of DeFi investors, degen and whale contacts. These are the people who would use PrivD. I will get their inputs in defining the system and its capability.
Team LinkedIn Profiles
Development Roadmap
We expect this process take four (4) months, though it may be quicker. Some elements can be done quickly. Some, including the external estimates may take some time.
Subs: Coders, marketing, perhaps legal.
Total grant request: 30k USD
Milestones:
33% on grant award
33% on completion of market validation
33% on completion of the program launch plan.