DEFI Limit Orders - Community Spend Proposal

Why you should vote “yes” to DEFI Limit Orders - Community Spend Proposal

btn.group is soon to launch Limit Orders. We are thinking it could be a big deal for the network and would be good to have some funds to ramp up the number of servers, other cloud services, auditing etc so that users are more likely to have a positive experience with the network.

Details of funding request

  • 3 months of funding paid on approval date.
  • Total ask for 3 months $10,568.00 * 3 = $31,704
  • General monthly break down in USD:

Airbrake - Growth Bundle - $299.00
Rails Autoscale - Platinum Performance - $599.00
Heroku Postgres - Private 3 - $1000.00
Heroku Data for Redis - Premium 3 - $120.00
Heroku Dyno hire - Scale up to 99 web servers / background jobs - $4950.00
Secret Network api cluster hire - Based on quote from service provider from community - $3600.00
Smart contract auditing - This will mostly be a first month expense, but divided by three to simplify things - $1000.00
External manual testing & UI/UX review & design - This will mostly be a first month expense, but divided by three to simplify things - $1600.00
Total per month - $10,568.00

Use of cloud services and other expenditure will depend on date, but to simplify, have combined. There will be significant usage of SCRT for gas during testing also, but I have not included it and it will come from anything left over.

Have you received funding for this project before?

This project and btn.group have not yet received any funding.

Have you received funding for a different project before?

I have received a grant from Shade Protocol for a different project which was finished and will be released in the next couple of months.

What will happen after the three months?

Hard to say for sure but we have always built the project with self sufficiency in mind. If the community decides on no more funding, things will continue. As can be seen, we have not requested any funding for the project for development so it wouldn’t make any sense for us to give up after 3 months considering the work put into it so far.

Final thoughts

No matter what, the project is going ahead, but I truly believe this funding will make a difference and it will be a win win for everyone.
Let me know your thoughts or if you need any more details.
Thanks for your time.

Steve
btn.group


How the communities’ funds have been spent so far.

Date Description Amount (SCRT)
16/8/22 Trivium: api access to production node 567
17/8/22 Leaseweb: 2 servers 137
23/8/22 Leaseweb: Load balancer 59
24/8/22 Secret Saturn: Setup of production node apis 257
29/8/22 Secret Saturn: 12 months public api setup and maintenance 3187
30/8/22 Audit by Baedrik 2570
31/8/22 Coingecko api year subscription 1075

Other expenses that will have to be added later as they are based on scaling usage

  • Upgraded Cloudflare to have Argo routing.
  • Upgraded Rails autoscale
  • Upgraded Heroku Redis
  • Increased Heroku web server and background job capability
  • Upgraded airbrake error monitoring
10 Likes

this is a good idea. Btw who is doing your audits for $1k?

1 Like

I’ve actually budgeted 3k for this and in the past I have asked certain members of the community.

Some members of the community have requested that I make the code for the limit order contract public. I think this is more than fair as I am asking for funding:

Let me know if you have any questions.

6 Likes

Update: Baedrik has agreed to do this.

:robot:

3 Likes

So this is an orderbook based dex essentially? Or do the orders also get filled by Sienna/Sefi and other dexes on the network?

I though $1k was very cheap so I wanted to know who did it XD

1 Like

I think Steven’s worth supporting, I can’t comment much on the infra fees so hopefully someone chimes in on that front (they seem very high) but nevertheless hope this comes through.

2 Likes

This is great! Thanks Steven for all the stuff you are building, I think we should support this. That said, I would like to see a better/longer description of what it is, what problem it solves, what functionality it has, where it will be implemented, etc… so aside from technical details the wider community could better understand what they are voting for.

cc: @scrtkeepernode

So this is an orderbook based dex essentially?
Yes

Or do the orders also get filled by Sienna/Sefi and other dexes on the network?

I just wanted to spill my thoughts here and the general plan.

  • We decided to build it because many people weren’t happy with the slippage on Secret Network Dexes.
  • The biggest issue with building a limit order based dex is the user experience associated with gas.
  • The idea is to have a contract where people put their orders into and send the funds into:
    e.g. 1 scrt => 1 fat
  • We would process those orders where applicable (any combination of other limit orders and swapping via secret swap and sienna swap pools) via bots.
  • This would enable a user to set a limit order between any pair.
  • The admins only have the ability to process the user’s order, so at no point take custody of any of the funds.

Please let me know if you would like more details.

4 Likes

Is there any degree of automation on processing orders or is it manual?

1 Like

Automated via the bots.

1 Like

wait why do y’all need 5k monthly heroku spend, that’s waaaaaay more than yall should need for infra

1 Like

Order book. Limit orders. Dex aggregator, prifi.

Interchain contracts are coming soooooooon.

= i like it.

Hey Avret, that is on the higher end but in our thoughts:

  • We are asking for funding to have things run smoothly so we don’t want to under estimate.
  • Previously just with the aggregator we’ve had autoscale crank up to 50+ severs on a regular basis until we got cloudflare.
  • It’s early days and we’re in uncharted territory so if problems arise, we’ll need brute force to get things over the line.
  • We have most likely underestimated api hire, auditing, qa and other expenses but think the grant will just even out.
  • There’s a million+ swap paths that we are processing without limit orders. Swap paths from Secret Swap + Sienna + Limit Orders + Polymer (supposedly releasing this month) may need a lot of computational power.
  • From our experience, most development jobs, physical and virtual tend to get underestimated so it’s best to over estimate to align with reality.
3 Likes

How easy will it be to pull in additional DEXs in the future? Will this be included in the efforts? I see Polymer mentioned.

1 Like

The back end structure is mostly set up. Some adjustments may have to be made to the DEX aggregator contract depending on the contracts from polymer etc.

It is in our best interest to integrate as much as possible so efforts will be made with or without funding.

5 Likes

As I understand, the orders will be kept in the smart contract but a trading bot will try to trade the orders against AMM(s). Ok but how will you pay network fees of the failed attempts?

Hi abduraman.
This is correct, except that the limit orders will also be traded against each other which will make transactions more likely to succeed.

We are also trialling charging a small execution fee in sscrt to cover those costs.

1 Like

Voting is now open for this proposal:

https://secretnodes.com/proposals/105

Let me know if any issues or questions.

2 Likes

Domerium Labs will be voting ‘No’ on this proposal.

We do so with conflicted minds. Let me first say that we have nothing against btn.group, and we celebrate the efforts made her for moving the DeFi space of Secret Network forward.

We have intentionally waited for the last 24 hrs to vote, as we would not have voted ‘No’ if the voting was a close call. Based on current voting progress our ‘No’ vote will not impact the outcome of the proposal (pass), and if it did we would have voted to see the proposal pass.

Our ‘No’ vote should be seen as a statement for future proposals and bring more professionalism to Secret Network Governance.

  • As per our validator constitution, we support proposals that aim toward self-sustainability. The open-ended question and answer of the OP: ‘What happens after 3 months’: ‘we don’t know’, is not a plan for self-sustainability. The OP mentioned that the work will continue, with or without funding, but also states that this community grant will be a win-win and will make the experience better. Does that mean that if the app is not self-sustainable and we decide not to fund it after 3 months it will become a dead app due to bad user experience? It is not clear, and that has us worried that the 30k asked, could be wasted unless we fund it further in the future.

The proposal does not read like a business plan, only the implementation of technology. As a network, we have to aim for applications that do not only make the technological threshold of launching to mainnet. We have to ensure that the investment we make with community funds results in long-term value accrual of SCRT as the network token. Such long-term value accrual means that we need to have applications and teams that strive towards long-term business success and plan accordingly.

btn.group is one of the first dev teams on the network, they have built valuable products. We recognize and celebrate that. However, that shouldn’t lower the expectation of detail in their proposal. If anything, I would like to see btn.group utilize their experience to put forward proposals that go beyond what any other team brings to the table in terms of professionalism, to set an example for other teams on how applications can be planned, funded, and ultimately succeed.

Edits:
Note: Due to holidays and governance call’s new timeslot we have not been able to actively participate during the discussion phase of this proposal.