Introduction - Cosmos Option Vaults Proposal

The full PDF of this proposal (complete with helpful graphics) is available on IPFS

Commonwealth Discussion

CzarDAO is building a suite of DeFi dApps on the Juno blockchain. The DAO’s first product, Førecast, launched successfully in November 2022 and has facilitated over 40k JUNO in volume in over 4,500 rounds on the platform. Førecast is a predictions market which sells binary options (“up” or “down” bets) on the underlying asset.

Now CzarDAO seeks to expand its options offerings by building an options vault on Cosmos based on Ribbon finance’s option vaults. Ribbon finance has long dominated the DeFi option space since its launch, in large part because it operates in a ‘set it and forget it’ fashion where users can earn real yield on their assets without having to constantly monitor their positions. With a quickly growing and vibrant set of assets native to Cosmos via IBC, there is a real need for this type of DeFi primitive.

With our experience, we are excited to propose, build, ship and open source a DeFi Option Vaults dApp to the Juno Network!

Product Details

This proposal contains 6 milestones, beginning with the submission and acceptance of this proposal. Upon completion of the 6 milestones contained in this proposal CzarDAO will furnish a complete product offering access to yield-bearing vaults that sell covered calls with weekly expiries on the vault’s assets. CzarDAO will provide and maintain the UI, infrastructure and indexers to power a simple and wonderful user experience for this project.

In accordance with Prop 64 all smart-contracts will released as open-source and furnished to the Juno community through the CzarDAO GitHub.

Grant Details and Timeline

Funds will be distributed after completion of each milestone via Juno Growth Fund.

We expect that this project will take us 4~5 months from the passage of this proposal to mainnet with a request of 75k USD equivalent in JUNO. Additionally, we will give the Juno Growth Fund wallet 20,000 CZAR to be staked (10% of current staked, so the SubDAO wallet will get 10% of all CzarDAO-wide revenue). That way as the wallet receives real yield, we can contribute to funding future development on Juno.

Milestone 1: Proposal and Project Start

• 15k released to bootstrap smart-contract development

Milestone 2: Smart Contracts

• Time: approx 4-6 weeks, 15k Released
• Gnosis/Batch Auction Contract implementation
• Option Vault Contract implementation
• Scripts to deploy and simulate protocol on Local Testnet

Milestone 3: MVP w/ UI

• Time: approx 4 weeks, 15k Released
• UI MVP Hooking into the option contracts
• Deposit, Withdrawal, Chart, Auction
• Main functionality

Milestone 4: Feature Complete and Beautifying

• Time: approx 4 weeks, 15k Released
• Polishing UI
• Indexer for User History + Vault Performance + APY
• Akash Hosting
• Public Testnet Deployment

Milestone 5: Open Sourced + Mainnet Launch

• Time: approx 2-4 weeks, 5k Released
• Open-source
• Testing, testing, testing
• Mainnet deployment
• Documentation

Milestone 6: 150k TVL Success Metric

• Time: approx 4-8 weeks,
• 10k used to bootstrap Vault TVL
• Creation of DAO with key stakeholders to manage vault funds
• Upon reaching 150k TVL, vault funds are unlockable by the team

75K USD on Jan 16 at $1.23 is 61k Juno.