Lybra Grants for Ecosystem Advancement & Development

1. Vision and Mission of the Grants Program

1.1. Vision

Building a Full Service DeFi Ecosystem on the Foundations of eUSD and peUSD.

In a financial landscape where centralized stablecoins dominate, the vision of the Lybra Grants Program is to establish and cultivate a comprehensive DeFi ecosystem firmly rooted in the principles of decentralization, robustness, and inclusivity, with the potential for real and sustainable yield generation. By leveraging the unique potential of hard money ETH LSTs and the Lybra’s associated yield-bearing/dollar pegged stablecoins - eUSD and peUSD, Lybra envisions a DeFi realm were every transaction, whether lending, trading, or beyond, is conducted with full transparency, resilience, and inherent earning potential. The Lybra Grants Program is designed to make this vision a reality.

1.2. Mission

Fueling the Next Wave of DeFi Innovations Atop Lybra’s Breakthrough Innovations.

1.2.1 Capitalizing on Initial Success

The incredible strides made by Lybra Finance in just sixthree months since its inception are not just milestones but testament to the product's intrinsic product market fit. The Lybra Grants Program aims to propel this momentum forward, inviting innovators to build and expand upon this initial success.

1.2.2 Unlocking DeFi's Full Spectrum

Harnessing eUSD and peUSD, we aim to set the stage for a myriad of DeFi applications, spanning from decentralized lending platforms to user friendly decentralized (perpetual) exchanges and more. The intention is not merely to replicate existing offerings but to elevate them with the unique attributes of Lybra’s stablecoins.

1.2.3. Fostering Cross-Chain Operability

With peUSD's intrinsic omnichain functionality, the Grants Program emphasizes the significance of cross-chain solutions. We seek to fund projects that push the envelope in this domain, ensuring liquidity and interoperability are never constraints.

1.2.4. Community at the Core

Central to our mission is the belief that the Lybra community plays a pivotal role in shaping the future of DeFi. As such, we commit to backing proposals that align with community sentiments, prioritize user benefits, and actively engage with the wider Lybra ecosystem.

1.2.5. Educating and Engaging

The future of DeFi lies not just in innovative platforms but in an informed and engaged user base. The Grants Program will also focus on initiatives that demystify DeFi complexities, empower users with knowledge, and foster a culture of collaborative growth.

2. Grant Categories

2.1. Research Grants

2.2. Development Grants

2.3. Integration and Interoperability Grants

2.4. Community and Education Grants

3. Eligibility

3.1. General

• Individuals: Independent developers, researchers, or contributors passionate about advancing the DeFi space and Lybra's mission.

• Teams: Small to large groups with a cohesive goal related to enhancing Lybra's ecosystem.

• Organizations: Established firms or startups with a track record in the DeFi sector or related fields.

• Applicants must have no affiliation with malicious activities or projects that undermine the DeFi space and must provide no evidence of any previous fraud or misuse of funds.

• Applicants should demonstrate expertise in the domain for which they are applying, with a preference given to those who have previously made a positive impact in the DeFi realm.

3.2. Project-Specific

• A clear objective that intersects with Lybra's goals, particularly the expansion and adoption of eUSD and peUSD.

• A detailed plan showcasing the potential success of the proposed project, with realistic timelines and milestones and clearly defined risks and mitigation strategies.

3.3. Compliance and Legal

• Projects must comply with local and international financial regulations in relation to cryptocurrencies.

• All projects must ensure data protection standards are maintained, especially if user data is involved.

• A clear stance on IP: open-source projects are encouraged, but proprietary projects can also apply with a proper IP framework.

4. Application Process

4.1. Pre-Proposal

• Initial Contact: Engage with Lybra official forums.

• Submit Project Outline: Draft a concise outline detailing your project's essence, focusing on its alignment with Lybra and the benefit to eUSD and peUSD.

• Receive Feedback: The Lybra core team or designated committee will provide initial feedback on the project's potential fit within the ecosystem.

4.2. Full Proposal

• Comprehensive Documentation: Dive deep into the project's specifics, laying out technicalities, objectives, execution plans, and desired outcomes.

• Team Introduction: Provide details on team members, their past achievements, expertise, and roles in the proposed project.

4.3. Review

• Expert Evaluation: Lybra core team, DAO Committee and others familiar with the Lybra ecosystem, will review the proposal for its viability and alignment.

• Feedback Loop: The reviewing team might ask for clarifications, additional details, or modifications to ensure the project aligns with Lybra's Rroadmap.

4.4. DAO Governance

• Proposal Submission on Snapshot: Once the proposal clears the review stage, it will be submitted to Lybra DAO (esLBR token holders) on Snapshot for a community-driven decision-making process.

• Voting Period: A 7-day window will be established for esLBR holders to cast their votes. The voting power of each holder is generally determined by the amount of esLBR they possess.

4.5. Award

• Notification: Successful applicants are informed, emphasizing the community's endorsement through the DAO voting mechanism.

• KYC: The Lybra Core Team will conduct a thorough KYC process, which includes reviewing contracts of the respective projects, team members, and financial backgrounds, etc.

• Fund Disbursement: Grants are disbursed in the agreed-upon tranches. Typically, these releases are tied to achieving specified milestones, ensuring accountability.

5. Funding

5.1. Grant Phases and Budget

• Launch Phase: The pilot grants launch Program will commence from 1 November 2023 and extend until 30 April 2024, with a soft budget allocation of 500k esLBR.

• Applications and Review: Proposals can be submitted at any time within this period, and they will be evaluated and voted upon. The team holds the discretion to prolong the initiative if the cap is reached prematurely and if the preliminary outcomes are positive.

• Evaluation Period: After the application review, there will be a dedicated phase for assessing the results and deliberating on the potential benefits of continuing with further grant Programs.

• Funding and Future Phases: Grants will be allotted based on community votes. There's no compulsion to exhaust the entire budget in this phase. The decision regarding subsequent phases will hinge on the success and insights gathered from this initial phase.

5.2. Grant Amounts

5.3. Disbursement Methods

• Milestone Based: Funds are released upon achieving predetermined milestones. This approach ensures accountability and progress tracking.

• Upfront Payment: For projects requiring significant initial capital, a portion of the total can be provided upfront, with the rest following the milestone-based method.

5.4. Reporting and Accountability

• Financial Audits: Grantees must maintain detailed financial records. Random and periodic audits may be conducted to ensure grant funds are judiciously utilized.

• Progress Reports: Periodic progress reports might be required. These should detail the achievements, challenges faced, and future outlook.

5.5. Return of Funds

• Project Abandonment: If a project is terminated prematurely without achieving its key deliverables, grantees may be required to return the unutilized funds.

• Misallocation: Funds used outside the grant's stated purpose or misappropriated will warrant a refund. Such instances may also affect eligibility for future grants.

5.6. Currency of Grant

• LBR/esLBR: Funds will be disbursed in the native LBR token, with the potential to be distributed in locked esLBR offering voting and revenue share rights.

5.7. Additional Support

• Technical Support: Lybra might provide technical support or consultation, ensuring successful project implementation within the Lybra ecosystem.

• Networking Opportunities: Grantees might get the chance to present at Lybra-sponsored events, facilitating networking and partnership opportunities.

6. Accountability and Reporting

6.1. Regular Check-ins

• Scheduled Updates: Grantees are expected to provide regular updates, typically on a monthly or quarterly basis, to keep the Lybra community and team informed about the project's progression.

• Ad-hoc Meetings: Depending on the nature of the project, there may be spontaneous meetings to address any emergent concerns, changes in the project scope, or to seek guidance.

6.2. Progress Reports

• Milestone Achievements: Detailed documentation showcasing the completion of specific milestones, including technical developments, community engagement metrics, or any other predetermined targets.

• Challenges and Solutions: An honest reflection on any challenges faced during the project's course and the measures taken to overcome them. This provides invaluable feedback to Lybra, allowing for improved grant frameworks in the future.

6.3. Audits

• Financial Audits: Lybra may, at its discretion, conduct financial audits to ensure funds are used judiciously and in line with the proposal's outline to ensure that the protocol is receiving value for money.

• Technical Audits: For technical projects, especially smart contracts or platforms interfacing with the Lybra protocol, periodic technical audits might be mandated to ensure security and reliability.

6.4. Feedback Loops

• Community Feedback: Grantees are encouraged to engage with the Lybra community, gathering feedback on their projects. This direct interaction can offer unique insights and foster a sense of community ownership.

• Team Evaluations: The core Lybra team may work directly with the project team to provide iterative feedback, guiding projects to better align with the overarching goals of the Lybra ecosystem.

6.5. Project Completion and Review

• Final Report: Upon project completion, a comprehensive report detailing all deliverables, outcomes, learnings, and future prospects must be submitted along with a final budget.

• Impact Assessment: This report should include a detailed evaluation of the tangible and intangible impacts of the project on the Lybra ecosystem and the broader DeFi community.

6.6. Non-compliance Consequences

• Funding Halts: Non-adherence to reporting requirements, significant deviations from the project's initial proposal, or unethical practices/misconduct may result in the halting of fund disbursements without prior warning.

• Public Notifications: In cases of severe non-compliance or misappropriation of funds, Lybra may communicate these issues publicly, ensuring community transparency.

6.7. Intellectual Property

• Intellectual Property Ownership: All IP remains with the grantee, but projects are encouraged to adopt open models beneficial to the Lybra community, in the spirit of censorship resistant decentralization that sits at the Lybra’s core.

• Preference for Open-source: Open-source projects are strongly encouraged to ensure widespread adoption and community engagement, with the potential to foster further growth and development.

7. How to Apply?

The Lybra Grants Program isn't merely a financial endeavor; it's a vision for the future of DeFi. We hope to find partners in developers, researchers, and innovators who see the potential of eUSD and peUSD as we do. Let's co-create an ecosystem that fulfills DeFi’s potential!

To kickstart your application and make a mark in the Lybra ecosystem, please visit the Lybra DAO Forums. There, you can introduce a pre-proposal or engage in detailed discussions with Lybra's core contributors and community members. For specific inquiries or clarifications related to the Grants Program, we invite you to join us on Discord, where both our team and the community are eager to assist.