In this report, we recap what the OGP has been up to from June to August, including funding breakdowns, grantee updates, and data into operational expenses.
Funding Breakdown to Date
Over the past three months, we've approved 8 grants for a total of $294k in funding. This brings the total funding approved to $4M+ across 81 different projects.
We saw an overall decline in funding activity over the past quarter due to the current market conditions forcing us to be more frugal with our grants. That said, we still funded a number of highly impactful projects over two different batches of funding:
- Batch 15 included a variety of grants aimed at preserving Osmosis’ top notch UX for both retail and sophisticated traders with the launch of Supercharged Liquidity. We funded valuable trading infrastructure with the Hummingbot Connector and the integration of real-time notifications into the Osmosis frontend via Notifi, as well as a number of tools catered towards apps deploying on Osmosis, such as DAO DAO and Genie.
- Batch 16 focused on funding infrastructure to enhance Osmosis’ performance and user experience, with the Newmetric and Interactive dApp Passthrough grants, in addition to LP tooling to help passive LPs optimize their earnings.
Infrastructure is the category that received the most funding over the past quarter, as its total share of funding increased by 5%. This was due to our funding of the Hummingbot Connector, Newmetric, and the Interactive dApp Passthrough for a total of $120k. In contrast, "Other" was the category that lost the most funding share (2.5%) as we didn't fund any grants in that category over the past quarter.
Out of the eight grantees that were approved over the past three months, more than half of them were companies. This caused a slight increase of 0.9% in their total share of funding from our previous quarterly report. The funding share of Protocols grew the most over the past quarter, having increased from 13.7% to 16.0%. This was because we funded a couple of Protocols recently, such as DAO DAO and Hummingbot.
Communication and Transparency
Over the past quarter, we continued to uphold our commitment to communication and transparency through a number of initiatives. We held monthly Discord Office Hours and published monthly transparency reports, in addition to hosting a number of different sessions of Updates from the OGP. We heard about Cosmoswap and Fee Abstraction in June, Starship and Hummingbot in July and, most recently, Genie and DAO DAO in August.
That said, there are still a number of open RFPs. On top of a couple of outstanding ones, such as Interactive CosmWasm Tutorials and Osmosis Merch Stores, we recently announced a high priority RFP for Cosmos SDK governance improvements. We share more details on what we're looking for in this blog post.
A total of seven grantee projects have been completed over the past three months.
Antoine has completed his research paper on the market and incentive implications of implementing threshold encrypted mempools as MEV mitigation techniques. In the paper, Antoine presents various solutions for mempool encryption with a focus on threshold encryption, digs into the potential drawbacks to these solutions, and looks at Osmosis as a case study.
Our agreement with Oak Security for an initial 12 weeks worth of audits has been used up. Projects that received an audit include Cron Cat, Phase, Streamswap, IBCX, Membrane, CALC Finance. Zodiac Protocol and Prism Protocol's Osmosis LP refracting contract were also included in this package, though their audit reports have yet to be published. We have since renewed our agreement with Oak for an additional 12 audit weeks.
Since the completion of the Fee Abstraction module, a signaling proposal to add the module to the Cosmos Hub has passed. There are a number of other chains looking to integrate the module too, such as Akash and Burnt. This will help return direct value to Osmosis in the form of additional fees from swaps, as well as by making its pool oracles more widely used.
The initial phase of backend development for Mesh Security has now been completed by Confio. This work included a detailed overview of the various components of Mesh Security (Milestone 1) and the integration of the Mesh Security MVP into the Osmosis and Juno codebases, demonstrating functionality on devnet (Milestone 2). We are currently finalizing the scope of Phase 2 with the Confio team.
Josef has completed the initial MVP of the Mesh Security web application frontend after having worked closely with both Cosmology (frontend tooling) and DesignDAO (frontend design). The functional UI was presented for the first time during the Mesh Security panel at Osmoscon – check out the recording!
Numia completed the initial version of the Osmosis analytics dashboard, which includes never-seen-before data on Osmosis revenue, wallet activity, and network wealth distribution. The dashboard also includes a contact form for feedback so make sure to fill it out if you have any feature requests or find any bugs.
Dfuse has completed the required functionalities needed to create and maintain positions with Supercharged Liquidity pools. This is in addition to the initial release of their open-source Python trading SDK built to trade on the Osmosis DEX, with examples for CEX to DEX arbitrage and momentum strategies. The trading SDK allows traders to easily set up any alpha based strategy on Osmosis.
The Starship team has successfully integrated Starship with both OsmoJS and Mesh Security, in addition to having delivered the Typescript testing framework and integrated it with Github actions. They're also running tests for a two-way Mesh connection and have been helping out the Mesh contributors with bugs and fixes for the mesh-security-sdk. Starship is a unified development environment that allows Cosmos developers to spin up a fully simulated mini-cosmos ecosystem and write end-to-end test cases.
Below we share some updates from active grants projects.
Since the renewal of our agreement, Oak Security has completed and published the audit report for WBTC's CosmWasm contracts on Osmosis. Oak is currently busy auditing Margined Protocol, DAO DAO's Tokenfactory contracts, Genie, and the Osmosis Transmuter to prepare them for mainnet deployment.
The Mystic Labs team has completed the Metamask Snap implementation, which has already been audited by Ottersec and accepted by the Metamask team. The Snap is ready to launch in mid September. The team has also completed the frontend to interact with the Snap, which is currently being tested internally.
Alles Labs are very close to completing milestones 1 & 2 of their grant. Their indexer has already been open-sourced and is supporting v16 through v19. They also have corresponding docs being drafted. They're currently making some final changes to their frontend that will modify certain configurations which will be merged and wrapped up shortly.
DAO DAO has deployed their multi-sig contracts and Polytone on Osmosis. The team has also finished updating the contracts for NFT and Token Factory DAOs, which are currently being audited by Oak Security.
The Coinhall team has completed the refactoring of their existing rewards contract that supports fixed and linear rewards for Osmosis. While this contract is being audited by Oak Security, the team is working on another smart contract which supports chance-based outcomes, which will allow them to run loot boxes, raffles, and much more!
Pecunia Finance are very close to completing the first milestone of their grant, which includes the development of the Hummingbot core connector, endpoints, and testing. Specifically, they are progressing with strategy development now to make sure they won't have to make changes to the connector code later on to accommodate Supercharged Liquidity pools.
The Range team is currently finalizing the first draft of their R&D report on IBC Rate Limits. To make the output of the report even more practical, they've also been building some PoCs of new features that could be added to the current rate limits design, which will be included in the report.
Chaos Labs and Hathor Node have submitted the proposal to implement their incentives optimization model a few days ago. This means that the first version of their incentives model will be live and implemented very soon, if the proposal is approved.
Now that Oak has completed the audit of Margined's core contracts, the Margined team is working through some of the issues that were found in the audit. As soon as these issues are addressed, Oak will publish their audit report publicly and the Margined team will go through the governance process to deploy their contracts on Osmosis.
The Notifi team has completed the initial implementation of notifications and real-time alerts on Osmosis. Both notifications and alerts are now live on the Osmosis frontend! Make sure to sign up for them to never miss an important update again, from new token listings to critical position statuses.
Over the past month, Serotonin worked on scheduling a number of interviews for Osmosis team members. These included an interview for Aaron Kong at ETHCC from Web3TV and a couple of interviews for Sunny from Journal Du Coin and the Making Sense of Crypto podcast, which have yet to be published.
The Zodiac team is currently working on their frontend implementation, which is now fully usable with a few pending changes. They also plan to resume their Oak audit this week, given the Tokenfactory hooks have been pushed back live a couple of weeks ago.
Two projects were discontinued over the past three months.
After having completed Milestone 1 of his grant, Maxime has decided to discontinue the remaining deliverables due to a lack of bandwidth, so we will not be issuing the final Milestone 2 payment. That said, the app he's built is functional and open source, so it can be used or forked by anyone.
Tom hasn't been able to dedicate much time to build out the AuthZ delegation tool as he's gone back to his full-time job. While this is a feature he'd definitely like to incorporate into REStake eventually, he's decided to discontinue the project for the time being as he's unlikely to have time to spend on it in the near future.
Current State of the OGP
We share a breakdown of our current assets, liabilities, and expenses below.
- Total OSMO: 2,030,990
- Total USDC: 2,902,692
- Total funding approved: $4,039,290
- Total funding paid out: $2,532,442 or 63% of total funding approved
- Funding due at grant completion: $1,506,848, or 37% of total funding approved
The table below details our operating expenses over the past quarter: