subDAO Grant for API3<>QP<>QuiD Team Proposal (Undertaking #1)
Team: QuiD Protocol
Period: Q4 2021 - Q4 2022
Re: Saśa’s dAPI team; subDAO incentivisation via 8.64 QP: quiDAO NFT shares, vest over ~2yr as
value-add 2 API3 token via bootstrapping QuiD x ETH + NEARainbow…more @book.quid.io/other-faqs
Amount: $325,000 in API3, in exchange for 4% QuiP allocation in quiDAO’s Team Pool (Council seat) Milestone #0: $100k, in Head Chord: $200k, seat to be worth $600k; Base Chord likely x10 growth
Context
QuidMint won API3’s partner prize in Sovrynthon for our portfolio risk based synths DeFi protocol.
Saśa has relevant prev. experience from a Gauntlet audit of our closest competitor, and Hitesh has quant experience that will be useful in developing our dAPI feed for aggregating Risk API Airnodes.
Ethos
The goal of subDAO <> Authoritative DAO collaboration is to enrich what is uniquely made capable by Airnodes while serving as a vehicle for collaboration-based value accrual for all parties involved.
Requested Funds
The $100k-worth of API3 tokens will be staked inside of QuiD’s Guarantee Fund, while provisioning a query quota for our initial consortium of Airnodes operated by Council members & launch partners
Deliverables
Summary - as part of solving QuiD’s scaling issue related to statistical computation for risk management, we propose jointly tackling the “Non-goals” listed in Saśa’s #proposals-official#7, in alignment with the [SC] - Introducing dAPI Monolith - #5 by sashkica as a DeFi plug:
dAPI insurance model: QuiD prices borrower risk using a Basel II based insurance framework
pub-sub data feeds: every user is subscribed to both the global feed and their own irt QuiD
dAPI pricing strategy: staking API3 + same value in QP to provision daily quota of 96 requests
data feed monitoring: quiDAO governance dashboard will include statistics regarding Airnodes
Scope - a more detailed timeline around the above will progress and evolve in Gdocs@ document/d/1Oc3581v4SAkIh_bQjBSMt4ZZMJdZ6BgJOvx8HbizZDw incl. Aurora deployment
Spec - prior to pub-sub we need a way to receive multiple response fields in one Airnode request, executed on Aurora (where a deployment of core API3 protocol contracts is needed), and queried by QuiD’s protocol contract, upgraded by quid.sputnikdao.near-based contracts take care of QP allocation (time) arbitrageXchainz - slashing from Airnode-staked QPy…pronounced “кУпи” in Russian (means “buy”, as DAI means “give”), but QuiD has a plan for synthesis options, they are used in a la API3 insurance for crypto-backed loans minting $QD
Since this hasn’t been submitted yet it might be more appropriate in #governance-meta, but I just wanted to paste some explicit links from the above for those trying to parse through quiDAO like me: quiDAO FAQ, quiDAO undertaking. To be clear, the proposal would request $325k worth of $API3 for the full year undertaking? (also, might need to specify token amount rather than dollar equivalent, or an agreed method of calculation at time of proposal submission)
Congrats again on the Sovrynthon win, this is a cool and ambitious idea
Would you mind taking a step back to provide some background on QuiD and a more detailed breakdown of your all the funding? Personally also lost in the “Amount” paragraph.
Thanks for pasting out those links, the forum wouldn’t let me post more than two (as a new member) so I had to be a little crafty with how I included links. Apologies about the density / lack of clarity…the request is based on API3’s offering of a 100k grant to winners of its challenge in Sovrynthon. The 25k is already being paid out as a prize. The extra 200k is strictly based on performance in the next 3-4 months, and dependent on the launch of our DAO token offering. What is essentially being proposed for that specific amount is to participate in the offering.
QuiD is based on work from a project I co-founded >2 years ago called vigor.ai, and wisdom gained from working on Bancor & Liquity in the time since then, till around February when I wrote book.quid.io We have a Rust implementation that’s being audited soon, and it does all risk stats and accounting on-chain. The Sovrynthon implementation did most of the computation-heavy parts inside Airnodes, as a means of helping scaling, but it doesn’t need to be the version we go to production with. As we iron out the kinks with that design, and build other ancillary components, we can launch our fully on-chain version and let that start accruing TVL…then later upgrade the protocol through our DAO (where a seat is being offered to Saśa’s dAPI Team) to scale with API3 (as described in our FAQs).
A few queries, as i am trying to understand the proposal and quiDAO
The faqs page mentions - “QP must be staked by Airnodes, in value proportional to frontends/apps’ API3 tokens staked in order to provision their weekly request quotas”. Just checking whether this means that the API providers will need to stake tokens. My understanding about API3 in general was that the API providers do not need to stake anything, it is a plug and play
Is my understanding correct, that the thought is that quiDAO will provide insurance for all the feeds run through dAPI
Is the basic approach that the risk is being transferred to QuiP token holders who are taking on the role of council members. They will be slashed if something goes wrong with the data feeds
I did want to wrap my head around what’s being proposed. Will perhaps have follow up clarifications once i get clarity on these points.
Thanks Ashish, will expand on your questions in FAQs, or a subsection thereof (FAQs probably will be turned into a section in the Gitbook)…but as a first attempt: the first API providers will have QP vesting to them, which will be auto-staked on their behalf…so they don’t have to keep track of staking QP tokens (maybe future API providers will), but they can unstake them if they want to cash out from earning in the system, by having their staked tokens converted to QD, which is a dollar value they can pull out with any off ramp they want into their bank accounts. This is a design pattern that future subDAOs could re-use. Our insurance is for all synthetic assets we mint, that dAPI feeds get market data for, via different price aggregators (some might specialize in specific asset classes of NFTs, like REITs). Risk is not transferred to QuiP token holders except in 3-sigma type events (Guarantee Fund). QuiD Solvency Providers make a generous APY on securing expected market stress (2-sigma) with leveraged deposits (stake crypto, borrow $QD against it, stake the $QD), from APRs & QD<>crypto (and vice versa) swaps.
Another suggestion to structure the explanation: explicitly write out all “actors” in the system, what actions can they perform? What are their incentives?
