Bridgesplit Grant Proposal

Hello hello!

Luke here from the Bridgesplit team to propose a collaboration with the Serum community to power the adoption of a Unique Asset market running on Serum’s CLOB. The Bridgesplit core team has helped develop a new application, Elixir, that is an NFT marketplace and defi platform built on top of the Serum Orderbook. At the surface, Elixir looks and feels like a typical NFT marketplace, however all activity on the app runs through Radium AMM pools built on top of Serum. This allows for instant sales, more concentrated liquidity (especially at the floor) and ultimately brings buyers and sellers closer together.

About Elixir

elixirnft.io

Similar products have been launched in different capacities, but the closest in feeling is an application called Sudoswap on Ethereum that has recently taken nearly 20% market share from OpenSea. Elixir’s platform fees are much lower than typical

We believe an AMM equivalent trading experience will enable a larger and more composable NFT trading experience. We have partnered with over 50 NFT projects who will be inaugural members of the Elixir Parliament, we’ve developed a storyline based NFT project to supplement engagement with the core platform, and have had the product in testing for nearly 3 months as we work to understand what the true value prop of the product is to NFT traders.

Beyond this, Elixir natively supports a money market style lending pool that accepts whole NFTs and NFT derivative tokens as collateral, instant shorting of NFT collections, margin trading, passive income earning via AMM and lending markets, dollar cost averaging, etc.

Currently the app is in private alpha being tested by a small group, if you want access to check out NFT trading powered by Serum let me know and I will get you access.

About Bridgesplit

bridgesplit.com

Elixir is built on Bridgesplit, which is a protocol for building structured products on-chain, acting as a liquidity and pricing layer between newly created assets with no market price and financial products. The Bridgesplit network is comprised of a series of engines (function specific programs) and vaults (identity specific, programmable accounts) and has served as infrastructure for NFT finance use cases, RWA asset financing, and concentrated liquidity position finance. The core features of the Bridgesplit Protocol include:

  • Fractionalization Engine - Allowing applications to create permissioned financial ownership and governance over Vaults
  • Syndication Engine - Allowing applications to pool funds to purchase assets or fund investments
  • Margin Engine - Collateralize vaults to access margin on a much more diverse range of assets
  • Pooling Engine- Create structured pools to concentrate liquidity, tranche exposure and diversify risk
  • Uncollateralized Borrowing - Allow vaults to integrate with KYC/AML partners, on/off ramps, and traditional contract based lending using crypto payments and settlement
  • Pricing Engine - Access and integrate pricing information for all assets supported on the Bridgesplit network

At Bridgesplit, we don’t only see NFTs as artwork, engagement tools, or collectibles, we view NFTs as powerful, generic financial primitives representing ownership of complex assets. We’ve seen it begin to develop in several ways already with Orca Whirlpool LP positions, off-chain financial contracts in protocols like Centrifuge and Maple, and more intricate on-chain financial assets such as orderbook and options vault positions. This evolving landscape of unique assets is why we built Bridgesplit, to develop structure products using the value of these assets to make them interoperable with current and future DeFi protocols, advanced marketplaces, and institutional financial products. Our intent with the flexibility of the protocol is to enable applications to continue to be built tapping into this new value. Further, we are working with Wormhole on developing a multi-chain application settling on Solana using their omni-chain messaging protocol.

Ask

Bridgesplit has enjoyed building with the Serum community over the last year and look forward to continuing to collaborate on a new vertical of decentralized financial innovation, focused on assets that are not natively fungible. All asset value trading on Bridgesplit is currently traded on Raydium, and Bridgesplit is actively working on an open sourced alternative that will fully settle on Serum. We see this bringing Serum value primarily in the ability for Serum to expand its addressable market over the next several years to a much larger range of assets. We want to provide an interface for this new category of assets to the Serum ecosystem, bringing in value both in the immediate term through digital native assets (JPEGs, concentrated liquidity positions, and gaming assets) and in the longer term, different off-chain assets that build on Bridgesplit.

Bridgesplit is requesting a 1M $SRM grant for a one year farming program to build out a sustainable base of liquidity across three key phases:

  • Digital Collectible Markets - 33%
  • Esoteric DeFi Asset Markets - 17%
  • RWA Secondaries - 50%

The first half of the grant would be focused on digital native NFTs, namely complex liquidity positions and collectible/gaming assets. The second half of the grant would focus on incentivizing liquidity for off-chain asset markets.

We don’t believe high APY alone will significantly increase liquidity, but rather building it into a broader useful product and go-to-market beginning this week that brings key stakeholders together and look at the APY as justification to make larger commitments. The assets we would be incentivizing activity on are:

First batch:

  • Solana Monkey Business
  • Crypto DuckPunkz
  • Okay Bears
  • Degen Ape Academy
  • Catalina Whale Mixer

Second Batch:

  • y00ts
  • Boryoku Dragonz
  • Serum Surfers
  • Cets on Crek
  • Trippin Ape Tribe
  • Primates

Third Batch:

  • Community determined

Bridgesplit will use the SRM based on a target APY at steady state of 33% post pool launches, given the minimum viable number of assets per pool. Liquidity powers all of the financial products in the Bridgesplit protocol which is used as a backend for a number of other DeFi applications and marketplaces to perform more complex financial services using NFTs.

Phase II of the grant would be focused on providing incentives to secondary market liquidity options for complex DeFi assets. Some of the products we have here are auto rebalanced Orca Whirlpool Positions, collateral markets for Whirlpool positions and bridged assets included native bitcoin escrow and Uniswap v3 position, and potentially build out secondary liquidity for Serum Open Orders via NFTs. This would primarily be to establish an extra layer of liquidity on top of existing products and highlight the composability advantages of Solana and Serum.

Phase III of the grant will incentivize liquidity on our uncollateralized, off-chain lending secondaries. All primary liquidity is done via direct offerings, but each pool can have up to $5M of retail investment and secondaries trading. For this tranche, we’d like to showcase many of the value props of having this debt trade on Serum Markets.

Over the next year, a steady pool of liquidity will generate significant opportunity for other applications to build on the value of Unique Assets and incentivize the creation of new verticals of NFTs all powered by and settled on Serum. We firmly believe this is the next important step for DeFi. As DeFi continues to grow, it will augment traditional, centralized financial services. Bridgesplit is positioned to capture significantly more value to be locked in uniquely priced, non-fungible assets: Debt, Real Estate, Private Equity, and much more. Through this, Bridgesplit intends to partner with Serum as the settlement layer for this new area of growth.

5 Likes

Hey, personally I think there should be no more grants until the recently voted on and paassed veSRM and other things are implemented. We should be moving away from grants and insted issuing tokens to offer fee reduced/free trading. This recent swathe of requests to me looks a bit mercenary and bear market things. This is no comment on the project above, its a comment on the stage of the Serum ecosystem.

I can bring more community members in to chat about this if you want? We’ve been working with members of the Serum ecosystem on this proposal since March but wanted to wait until we had a sustainable model for deploying rewards. Since this post was made we’ve launched the marketplace product Elixir’s first version and received significant buy in from large collectors and NFT projects. NFTs are proving to be more resilient to the bear market than most of DeFi and I think Serum putting resources toward this would be an important step to diversify its TVL and volume.

2 Likes

In their current state NFT markets microstructures are highly inefficient. Matching buyers and sellers is a cumbersome and expensive process. In order for NFTs to become an asset class that can attract players that operate in size, better mechanisms of price discovery and demand/offer matching need to be in place and scaled to a large enough size that makes sense for these deep pocketed players to operate. Elixir (and Bridgesplit tech under the hood) represent a first, pivotal step in this direction for solana imo. This is akin to unlocking a new DeFi primitive and I think Serum should be involved in this given its role within the solana ecosystem.

4 Likes

This is for sure the next logical step for Serum, its clear where adoption is strongest on Solana and its not DeFi. It would help solve one of the biggest pain points for NFTs which is illiquidity, Serum has the established infra to support this next step in NFT-fi + DeFi evolution, if it doesn’t do it someone else will.

3 Likes

The current meta is clearly shifting towards finding liquidity solutions for NFTs. Elixir’s approach allows ANY collection to achieve instant liquidity on their floor providing a new solution for any holder and opening doors for traders to enter this asset class. I think Serum has to play a central role in supporting players in this new vertical such as Bridgesplit and Elixir.

1 Like

NFT fungibility, liquidity and market making provides a much better end-user experience. Over time, more users will opt for solutions that enable greater capital efficiency. If serum wants to benefit from this emerging market they should support teams in the space. NFT volume has done better than most other asset classes in the bear market, and diversifying TVL is necessary for serums long term viability and survival.

1 Like

Do we know how far are these updates from being deployed? Proposals passed mid-May if I’m not mistaken.

I’d like to raise this again, as with the other grant proposal: Is DAO going to wait until veTokenomics and other changes are implemented and miss the opportunity to kickstart wider adoption with projects like Bridgesplit?

Thanks

2 Likes

With the way the NFT ecosystem is shifting as a whole, I think Elixir is a no-brainer.

People are striving for liquidity solutions and this just about nails it. Elixir seems like a positive forward movement for the entire Solana ecosystem.

1 Like

Elixir and, to a larger extent, Bridgesplit are making considerable strides in releasing the choke points of NFT investing. Much broader adoption of cryptocurrency and blockchain finance can be achieved by developing novel protocols that allow investors to realize the trapped value of NFTs. The larger the user base, the more foundational providers, such as Serum, benefit from increased transactions.

This grant would provide the needed catalyst to jump-start the engine of change. Where it can be challenging to explain a larger vision, a short-term solution, such as farming rewards, can often be what is required to bring people to an understanding of what is trying to be accomplished. They come for the rewards but stay for the innovation.

The Elixir team comprises knowledgeable, extremely hard-working, and dedicated individuals. Their vision is one of change and innovation. Undoubtedly, they will bring a much-needed improvement to what can be accomplished with NFTs as an investment vehicle.

2 Likes

Agree with this. The (important) work of optimizing tokenomics shouldn’t stall Serum’s progress to extend its category leadership as the go-to liquidty infrastructure on Solana. Wouldn’t want to cede our strategic position to someone else as the narrative and adoption on Solana shift towards NFTs.

1 Like

the first batch should have serum surfers and bonfida wolves.

12 month grant is nice

do you have your own token.any other tokens you are using to LM?

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Hey, yes Elixir has the Ovostone token and that will be used for supplementary rewards. The Ovostone token is bought back using platform fees and is distributed amongst creators, LPs and traders.

Do you have any clearer sense on how you plan to use your own token in conjunction with serum to LM

1 Like

Like how we would manage doing them in conjunction? Effectively we’ll have our constant distribution plan for Ovostone that will occur regardless and is spread out across all participants in the marketplace (LPs, traders, and creators), and plan on directing the Serum rewards exclusively to LPs on top of the OVO rewards distributed to LPs. The specific distribution schedule will be based on a weighting with respect to how much liquidity has been provided, with a target of 30 assets + equivalent SOL per pool. So assigning higher SRM rewards (along with higher OVO rewards) to pools below this.

nice ok. well as long as you put serum surfers and bonfida wolves in, you have my vote :slight_smile:

didn’t have the wolves, will add:) :saluting_face: