Shogun

Neutron Grants Program Batch #1 — Shogun

Thesis

As part of our first grant batch, we have decided to award Shogun a grant of 150,000 USDC to build their MEV-minimizing order matching engine and DEX aggregator on Neutron. We consider Shogun a very interesting experiment in interchain finance and would be a great example of our thesis as Neutron as the interchain decentralized finance hub. The grant consists of an upfront payment of 50,000 and two milestone-based payments (with KPIs).

Grant Deliverables

The deliverables are as follows. Completing the implementation and launch of Shogun on Neutron:

MVP Launch:

• CoW matching. The first iteration of the product will be the release of the CoW (Coincidence of Wants) matching engine, which is a type of intent-based Peer-to-peer trade matching. This component would be deployed on Neutron. CoW matching enables slippage-free trades for users and DAOs alike, as it does not rely on an AMM curve.
• Smart Order Routing: The 2nd phase would build out smart order routing between highly liquid DEXs such as Osmosis, Astroport, Injective, and Canto, whereby order flow would originate on and route through Neutron, strengthening its position as the center of trading flow in the interchain. This routing would enable much larger trades to be executed by Shogun and drive cross-chain and IBC activity from Cosmos to the ATOM Economic Zone as assets are moved and traded across the Interchain.
• JIT LP Vaults: Just-in-time Vaults enable users and DAOs to provide liquidity with customizable risk/exposure parameters. JIT Vaults, therefore, enable LPs to earn yield while granularly controlling risk and play a crucial role in building liquidity and improving trade execution.

For Milestone 1 completion, the criteria are as follows:

• Launch of the Cow matching engine, JIT Liquidity, and Interchain Routing on Neutron Mainnet

For Milestone 2 completion, the criteria are as follows:

• Reaching the following KPIs:
• 20% of total Neutron daily trading volume on a single day based on data here or a suitable alternative: https://defillama.com/chains/Cosmos  
• Reaching $5M in total value locked on a single day for the just-in-time liquidity vaults
• An average of 500 daily active addresses across a month for the collective Shogun products. All KPIs are contingent on there being no evidence of wash trading.

Grant Payment Terms

• Upfront Payment: 50,000 USDC
• Milestone 1 Payment: 50,000 USDC
• Milestone 2 Payment: 50,000 USDC (33% per KPI)

Further information

• Website: https://shogun.fi/
• Social Media: https://twitter.com/shogunfi
• Summary: https://x.com/shogunfi/status/1680615590669565953?s=20

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