Grant Proposal: SmartWhales

[admin]

Grant ID: 8685yrubz

Summary:

SmartWhales builds an on-chain copy-trading platform to allow investors to follow the smartest DEX traders and invest together with the most profitable Crypto Funds. We utilize multiple chains (e.g. Optimism, Arbitrum, BSC) to capture the most profitable wallets and “mirror” their trades to capture most of the market potential. Our decentralized infrastructure allows users to take gains at any time and hold funds in their wallets. We aim to foster the adoption of The Graph buy utilizing subgraphs and substreams for ERC20 transfers and balances.

I have read and agree to the privacy policy:
true

Describe what your project does or is aiming to do in 50 characters or less:
SmartWhales builds an on-chain copy-trading platform to allow investors to follow the smartest DEX traders and invest together with the most profitable Crypto Funds.

If available, please enter a link to your project below:
http://www.smartwhales.ai

How far along are you?:
We aim to launch MVP in November 2023.

Why did you pick this idea to work on? Do you have domain expertise in this area? How do you know people need what you’re making?:
We started bootstrapping on the product at the beginning of 2023 when we started seeing lots of great activity on DEX trading and the emergence of multiple blockchain analytics tools. Our team has been trading on various DEXs and tried to follow smart DEX traders while seeing multiple issues while trying to catch the same wallet trades. That’s why we decided to start building a fully automated system to find and copy trade smart traders and institutions fully on-chain. DEX Volume is grown in the last 2 years, from less than 1% in 2020 to around 12% now.

What’s new about what you’re making? What substitutes do people resort to because it doesn’t exist yet (or they don’t know about it)?:
There is no one-stop shop for DEX trading so far deployed on multiple chains. That’s why we aim to become DEX multichain trading platform for retail customers. Most people are still in the process of adopting DEX trading, so we believe our solution will foster the adoption of both DEX trading and the usage of the Graph.

What’s your vision for how your project will impact The Graph and/or web3?:
There is no single one-stop-shop for DEX investors and traders so far. While aiming to become no.1 platform for on-chain investors we will push adoption if the Graph significantly.

How will you measure success?:
Three metrics we will use: TVL (total value locked), number of users and the number of transactions

What milestones will you achieve in the coming weeks/months, with or without the grant?:
The implementation of ERC20 transfer watcher.

Please select who you think will benefit from your project?:
Subgraph Developers, Indexers

How much funding are you looking for? (USD):
18500

Provide a breakdown of your requested funding:
2.1 Subgraph
BuildersDAO will develop a Subgraph designed to track SmartWhale protocol activity. The Subgraph will follow the schema pattern outlined in the provided GitHub repository at:
Link to the SmartWhales Schema
The Subgraph will be responsible for indexing the vault factory contract and all vaults deployed by the factory.
2.2 ERC20 Transfers Substream
BuildersDAO will develop a Substream service capable of providing real-time streaming data. This service will be integrated into the SmartWhales backend and will facilitate the monitoring of ERC20 token transfers for a customizable list of tokens received by a specified list of addresses. The address list will be parameterized, offering flexibility to the SmartWhales Team for adjustments as needed.
2.2 ERC20 Balances Substream Powered Subgraph
BuildersDAO will develop a Substream Powered Subgraph service capable of providing real-time token balance information. This service can be queried to retrieve a list of token balances by any address. This data can then be compared to pricing information to display desired metrics for the ‘‘Add Wallet’ page in the Vault Creation process - P&L for a wallet will not be easily retrieved by this.

In consideration of the aforementioned deliverables, the SmartWhales Team agrees to remit a payment of $18,500 USD in USDC, denominated on the Arbitrum network. BuildersDAO OpCo will hold onto these funds until the respective DAO member(s) have completed the above deliverables and will then route payment on successful completion.

Here is a full proposal of Builders DAO: SmartWhales Work Proposal - Google Docs

Have you applied for (or already received) funding from somewhere else?:
No

If yes, please describe where you’ve received funding from and how much you have, or will, receive:
No

Can you share any information about current/past web3 experience?:
We have been advising various Defi Protocols on the development and have been building on Terra Ecosystem before the collapse.

Why are you interested in contributing to The Graph and/or web3?:
We have a great collaboration with scoping the project with Builders DAO so far and we are interested working with competent teams. Beside that, we observe a sustainable grow of Graph ecosystem which is a great match for us on what we build.

Are you applying as a team or individual?:
Team

What type of grant are you pursuing?:
Long-term (continuous)

Please select the category your project best fits into:
Other

Primary Community Poll

Do you fundamentally support this grant application, knowing that the final scope and grant amount may differ from the requested proposal?

• Yes
• No

Grant Committee Vote

Do you recommend this grant to the DAO?

• Yes
• No

[juliannaMLN]

Thank you for your proposal! I searched for projects similar to what you are proposing and found a few comparable websites, this is one example: Explore all ERC-20 tokens whales in real time - ClankApp

Can you explain how is your project different to the example above and what benefit will it bring to the Graph community? (except for utilizing subgraphs and substreams)

And also I couldn’t view your GitHub repository, and I assume you haven’t started with the project yet as even the domain is not bought yet.

[mjohan]

Can you provide more details on how the requested $18,500 funding will be distributed among the various components of the project? You should break it down.
I also think you should share more about your team’s experiences in the web3 space and any notable achievements or projects you’ve worked on in the past? You didn’t mention any.

I also don’t think a “copy trading bot” is something that gets funded by the DAO but who knows anyway.

[Lorena]

Thanks for your application:
In addition of the previous questions I would like to know:
1.- How the project could push the Graph adoption?
2.- How this proposal is connected with The Graph ecosystem?
3.- Are you plan to create any subgraph?

[doxe01.eth]

Greetings!

It’s great that you find time, to apply for the community grant program. In the process of reviewing your proposal, i want to clarify some questions:

• How will you incentivize users to contribute to the SmartWhales ecosystem?
• How will you measure the success of your platform in fostering the adoption of The Graph?
• What are the biggest challenges you face in building a DEX copy-trading platform?
• How will you ensure that your platform is secure and transparent?

Thank you!

[smartwhales.ai]

Hey Juliana, we are very happy with your questions and truly appreciate the time you’ve invested in researching similar projects. However, I want to clarify that, as of now, there are no comparable projects in the market.

ClankApp stands out by offering alerts about whale transfers, and beyond that, we filter, index, and empower users to create Vaults. They can invite others for copy-trading, allowing them to earn commissions from the fees generated within their Vaults. SmartWhales enables DeFi analysts to monetize their work for the first time. On platforms like Twitter, many individuals are keen on identifying profitable wallets and mirroring their trades. With SmartWhales, they can set up custom Vaults, establish advanced settings (including pre-purchasing, selling based on specific conditions, and more), and earn commissions from fellow users who copy-trade the wallets they’ve identified.

For Graph to truly flourish, gain maturity, and achieve widespread adoption, it’s extremely important for prominent projects to integrate it. Graph plays a vital role in our infrastructure by indexing profitable whales, calculating wallet profits and losses, and offering essential data about DEX traders, such as focus, trades per week, and changes in top holders of specific tokens over time.

Imagine the impact if people, especially Twitter influencers using our platform to earn commissions, discovered Graph for the first time while searching for their ideal wallet and saw “Powered by Graph” in the corner of the page. By clicking the icon, they could delve into the intricate details of how Graph supports SmartWhales in providing this invaluable information.

While participating in conferences and fostering Graph communities is essential, it’s equally crucial to empower a project that achieves widespread adoption.

We’ve dedicated ourselves to SmartWhales since Q2, and we’re gearing up for the launch of the V1 version at the end of November. Currently, we’re 80% through the development process. Importantly, we’re entirely self-funded (by copy-trading funds, whales, and profitable DEX traders ourselves), without any tokens or venture capital backing us up.

Here is our GitHub created with Builders DAO: https://github.com/Graph-BuildersDAO/SmartWhales/blob/master/schema.graphql
Feel free to share your email and we will ask Builders DAO to add you.

Please visit our website at www.smartwhales.ai to learn more.

[smarthales_2]

The entire $18,500 funding will be dedicated to implementing subgraphs and analyzing Whale Wallets, a pivotal step for SmartWhales (see below). Thanks to Graph, we can provide our users with real-time insights into Whale Wallets, including their profit and loss data, focus, weekly trade volume, and percentage of Stablecoin holdings. Utilizing Graph’s data, SmartWhale users gain the ability to analyze blockchains, pinpoint profitable transactions, identify smart wallets, and earn commissions by creating Vaults.

Crucially, this development is entirely self-funded. The $18,500 will be directly paid to the Graph developers (BuildersDAO), with whom we maintain weekly communication.

Our team comprises three Business Development experts, each with substantial experience at major centralized crypto exchanges such as Bitget, Gate, and MEXC. Together, they have overseen a combined monthly futures trading volume exceeding $500 million. Therefore, we already have a substantial network of traders and influencers who are ready to start onboarding users once substreams and a subgraph are implemented.

Additionally, we boast five IT experts, including two backend developers based in Zug, Switzerland, with previous experience in renowned Swiss companies. Furthermore, we have two Solidity Developers renowned for releasing multiple DeFi protocols and a Frontend expert responsible for the visually appealing graphics featured on our website.

Recognizing the legal complexities, we’ve enlisted the expertise of a legal advisor who ensures we navigate all legal aspects seamlessly, operating our business successfully from Europe.

SmartWhales is a much bigger platform than simple copy-trading; it’s a comprehensive ecosystem transforming the way users engage with the on-chain data. For a deeper understanding, I invite you to explore our website at https://smartwhales.ai and refer to our previous response to Julianna.

Here is a breakdown of deliverables:

2.1 Subgraph

BuildersDAO will develop a Subgraph designed to track SmartWhale protocol activity. The Subgraph will follow the schema pattern outlined in the provided GitHub repository at:

Link to the SmartWhales Schema (feel free to request access, Builders DAO will add you)

The Subgraph will be responsible for indexing the vault factory contract and all vaults deployed by the factory.

2.2 ERC20 Transfers Substream

BuildersDAO will develop a Substream service capable of providing real-time streaming data. This service will be integrated into the SmartWhales backend and will facilitate the monitoring of ERC20 token transfers for a customizable list of tokens received by a specified list of addresses. The address list will be parameterized, offering flexibility to the SmartWhales Team for adjustments as needed.

2.3 ERC20 Balances Substream Powered Subgraph

BuildersDAO will develop a Substream Powered Subgraph service capable of providing real-time token balance information. This service can be queried to retrieve a list of token balances by any address. This data can then be compared to pricing information to display desired metrics for the ‘‘Add Wallet’ page in the Vault Creation process - P&L for a wallet will not be easily retrieved by this.

[smarthales_2]

Thanks for your questions, Lorena! Answers below:

1. With the help of Builders DAO, we are building a subgraph and two substreams to track whales’ wallet events on various chains (Optimism, Arbitrum, Ethereum, and others). Using these substreams and a subgraph we can build the entire ecosystem for on-chain DEX traders to invest and trade various assets. Since last year, we have observed a steady increase in DEX trading, therefore we aim to bring The Graph as the number one infrastructure provider in the on-chain crypto trading space.

2. It is connected in various ways. First of all, we are already working with Builders DAO to find the best schemas to build substreams and a subgraph - we have received a proposal from them and discussed the development process. Also, substreams and a subgraph benefit the Graph Community directly as they open real-time data feeds of various wallet transactions, token balances, ERC20 transfers, P&L analyses of various traders/investors

3. Yes, our entire development proposal consists of two substreams and one subgraph.BuildersDAO will develop a Subgraph designed to track SmartWhale protocol activity. The Subgraph will follow the schema pattern outlined in the provided GitHub repository at:
   Link to the SmartWhales Schema (feel free to request access, Builders DAO will add you)

The Subgraph will be responsible for indexing the vault factory contract and all vaults deployed by the factory.

[smarthales_2]

Great talking to you Doxe. To the answers:

1. To encourage user participation, we’ve established a fully transparent, smart contract-based affiliate system that rewards every contributor based on their performance. We invite all DeFi analysts (Influencers) and traders to create a strategy (vault) and earn a percentage of commission from users and TVL (Total Value Locked) that invest in their created vault. Moreover, influencers are encouraged to become affiliates, earning rewards of up to 50% of commissions based on TVL and the number of users they attract to the platform. Leveraging the extensive experience of our founding team members, who have previously worked at top crypto exchanges, we have gathered a significant network of Key Opinion Leaders (KOLs) generating over 500M USD monthly in trading volumes on CEX.

2. Our success will be measured through two key metrics: Total Value Locked (TVL), DAUs (Daily Active Users), and FTCTs (First Time Copy Traders). Increased inflows of funds and users will necessitate the utilization of more substreams and subgraphs, thus driving the adoption of our platform.

3. The primary challenge lies in ensuring minimal slippage and executing “buy” orders at the same (or very similar) price as the original trader. This demands a meticulous approach to maximize the profitability of every trade within our Vaults. Additionally, we face the dynamic challenge of measuring the capacities of every Vault, accounting for the limited liquidity available on Decentralized Exchanges (DEXs). Furthermore, creating a user interface that is inviting for both DeFi beginners and advanced users presents another significant hurdle.

4. To enhance transparency, all trades and wallet performances are fully deployed on-chain. This means that we display all wallet and trader activities on our front end, allowing users to track every transaction on blockchain scanners. We provide detailed metrics such as the number of trades, Profit and Loss (PnL) of wallets, and tokens traded. Our affiliate system operates with unparalleled transparency, offering affiliates insights into their volumes and earnings from users’ trades, making it distinct from Centralized Exchanges (CEXs).

In terms of security, we collaborate with a cybersecurity expert who has over 7 years of experience. He has worked extensively with medium-sized companies, building Fintech products. Moreover, we will collaborate with multiple smart contract auditing companies to maximize the security aspect of the platform. Finally, the crucial part of our application will be developed by BuildersDAO.

[doxe01.eth]

Greetings!

The presentation of the project will be in the public-voice-chat channel on the Graph AdvocatesDAO Discord server on October 24th at 18:00 UTC. Entrance is open and everyone is welcome to come in and ask their questions during the presentation!

Thanks everyone for your attention!

[JonathanZy]

Thanks for writing this great proposal here, Actually, I am also building this kind of platform, So I have some questions below:

1: I think the most important factors of this kind of platform is the strategies generated by On-chain data analysts since lot’s of team doing this business now. So how you curate or filter best top On-chain data analysts is the key problem here for attracting users.

2: Since end-users, they are all using this front-end service, what The Graph can be benefit from this initiative?

3: What’s your go-to-market strategy, I think this is also important thing.

[smartwhales.ai]

Thanks Jonathan. That’s awesome that you are creating something similar. Let’s get in touch on Telegram. There are many challenges in creating this kind of platform and we could help you with some potential pitfalls that we identified and challenged along the way.

1. We let the market dictate itself. On-chain analysts are free to create vaults containing their strategies and it’s up to the users to decide whether they would like to use it. At the moment, we have identified over 30+ strategies ourselves and will be the first ones published on Smarthwhales. It’s already more than most of the DeFi protocols these days, and our initial onboarded on-chain analysts will contribute many more. We select traders looking into their realized profits %, distribution of multiple assets, chains they trade on, win ration.

2. We are collaborating with Builders DAO to create a subgraph and two substreams that monitor significant wallet activities of large cryptocurrency holders across different chains such as Optimism, Arbitrum, and Ethereum. By leveraging these substreams and the subgraph, we are establishing a comprehensive ecosystem for on-chain decentralized exchange (DEX) traders, allowing them to invest in and trade a variety of assets. Over the past year, we’ve noticed a consistent rise in DEX trading volume. Hence, our goal is to position The Graph as the leading infrastructure provider in the on-chain cryptocurrency trading realm.
   Our partnership with Builders DAO involves identifying optimal schemas to construct these substreams and the subgraph. We have reviewed their proposal and engaged in discussions about the development process. These substreams and the subgraph not only assist us in gathering real-time data on wallet transactions, token balances, ERC20 transfers, and profit and loss analyses of traders and investors, but they also directly benefit the Graph Community.

Finally, we will encourage other projects (like yours) to use the substreams developed by BuildersDAO. You will be able to launch your projects and perform wallet analysis much faster than doing it on your own.

3. As mentioned above, we work with on-chain analysts and crypto influencers who will be onboarded once the platform is live.

On top of that, we work with trading groups and other copy-trading platforms that will provide their services on SmartWhales.

Our primary market approach involves utilizing an affiliate system, where established traders receive a share of profits from the fees generated. Our team consists of three highly skilled Business Development experts, each with significant experience in prominent centralized cryptocurrency exchanges like Bitget, Gate, and MEXC. Together, they have managed a total monthly futures trading volume surpassing $500 million. As a result, we have an extensive network of traders and influencers prepared to onboard users as soon as the substreams and a subgraph are integrated.

[JonathanZy]

Thanks for the replying and sharing experience here, you have shared a good knowledge to me, I still have some questions below.

1: Since you have collaborated with BuilderDAO to Create the Subgraph and two Substreams, What’s your program logic or Algorithm to use the Subgraph to fetch or filter the best traders, only top holders of specifc ERC20?

2: How many traders you already have now, and they will all to create vaults in your platform? I think this kind of platform need traders to create vaults on platform firstly, right?

3:A subgraph and two substreams will deployed initially, and you will expand more? All code including the platform will be open source?

[smartwhales.ai]

Fantastic questions, let me go over them:

1. See the subgraph and substreams as an indexed database of information - it provides PnL for any given wallet, calculates the number of average trades per week, calculates Stablecoin vs Tokens ratio, and many other small things that allow you to identify the profitable/smart wallets. What we/you do with this data it’s up to the Dapp (in our case that’s Strategy + copy-trading + Vaults)

2. At the moment we have 16 influencers/traders that will immediately create their Vaults and offer over 30+ strategies since Day 1 (which is already more than any given DeFi protocol at this time). The goal is to have over 100 strategies by the next 3 months and become the Nr. 1 marketplace of DeFi strategies.

3. YES, open source! Few people understand that, but everybody will be able to create their own Dapps and not rely on expensive data offered by centralized entities such as Nansen or Arkham Intelligence (which are awesome tools of course!).
   Yes, we will be constantly expanding. New pieces of information that will be added to the subgraphs immediately after launch:

• Average Purchase Price of tokens in a wallet (e.g. you want to know what the average purchase price of every token that any given wallet holds)
• Last Purchase Price of tokens in a wallet
• Token Top Holders Change Over Time - You will be able to see what whales of a specific token have been doing between 2 given dates (new whales and old whales). You will be able to identify patterns (e.g. maybe all whales sold off to new retail whales, or maybe even more people are becoming whales in a specific token).

All this information will be used to establish strategies that will run in the Vaults.

[doxe01.eth]

The majority decision of the Grant Committee concludes to not recommend this proposal for DAO funding. Please recognize that this is not a statement on the proposal itself, but rather an aggregated reflection by committee members taking into account a number of factors, such as alignment to The Graph and web3 ecosystem, budget available to support grants and prioritization relative to other proposed grants.

Below you find brief feedback brought up within the committee to not recommend DAO funding that may help you to submit successful grant applications in the future:

After reviewing all the points that were described at the forum and viewed during the presentation, the grant committee, came to the following decision. The proposal itself looks pretty interesting and has issues and problems which it solves. But the problems and suggestions that the grant proposal brings are more technical and indirectly related to the theme of the community and the goal of The Graph AdvocatesDAO. You can submit your proposal directly to the Graph Foundation following this link: The Graph: Grants Application.

Thank you for submitting this proposal, and you are encouraged to stay engaged in the Graph community. You are also welcome to submit new grant applications in the future with proposals that may generate stronger support from the committee.

Sincerely,
Graph AdvocatesDAO

[smartwhales.ai]

Hi Doxe,

Thanks for the feedback. We just applied the Dapps section.

Looking forward to continue talking.