[1IP-58] Streamline Grants with Papaya's Snapshot Integration for 1inch DAO

[sokravtsov]

Simple Summary

Papaya will develop a convenient and useful tool for 1inch DAO to stream grants directly from Snapshot. There’s no product like this on the market yet, and you need it. 1inch DAO has distributed over 2 million USD in grants, so you should have an easy way to start grant streaming directly from Snapshot and revoke it if the agreed conditions aren’t met.

Abstract

Papaya is a cool scalable money streams protocol, that makes convenient tokens streaming and subscription-based services on-chain. Imagine things like Netflix, Spotify, or OnlyFans. It can handle thousands to billions of subscribers with fixed gas costs, ensuring infinite scalability and minimal transaction fees. Our smart contract, audited by Stronghold Security, is deployed on 7 chains: Ethereum, Polygon, BNB Chain, Arbitrum, Avalanche, Base, and Scroll. Dapp v1 has been released.

Motivation

• 1inch DAO will have the ability to initiate grant streaming directly from Snapshot after a vote.
• 1inch DAO will be able to revoke the grant stream and secure their funds from Snapshot if the terms of the agreement are not met.
• 1inch DAO can also use this tool to pay their contributors. Since large sums are often allocated, it would be better to distribute them in portions and control the process with streaming tool.

Specification

Papaya protocol will be integrated into Snapshot, allowing 1inch DAO to conveniently start grant streaming immediately after a vote.

When creating a proposal, you specify the recipient’s address, the amount, and the duration of the stream in months.

The progress of the streaming, including how much has been streamed and how much remains, will be displayed on snapshot.

A proposal can be created to revoke a previously issued grant if the agreed-upon conditions are not met by the other party.

After the vote, the grant stream will stop and 1inch DAO will be able to save its funds from unauthorized spending.

Flow diagram.

Papaya protocol supports multiple use cases:
Grants: Gradual funding with the flexibility to revoke based on performance.
Payrolls: Daily payouts to contributors, ensuring transparency and reducing end-of-month uncertainties. In the case of a long-term contract, 1inch DAO doesn’t need to transfer the entire amount upfront; a stream can be started at the necessary rate.

• Website / Dapp
• X
• Anton Bukov Speech
• Medium Article
• Github

Rationale

Our primary motivation for developing and launching the Papaya Streams Snapshot Tool is to provide the 1inch community with a secure, scalable, and user-friendly solution for managing grant distributions.
To date, we have achieved several milestones including:

• Integration of Papaya protocol with 7 major blockchains: Ethereum, Polygon, BNB Chain, Arbitrum, Avalanche, Base, and Scroll.
• Development and release of Dapp v1.
• Completion of a comprehensive audit by Stronghold Security.
  By using Papaya’s protocol, 1inch DAO will be able to distribute grants more efficiently and transparently.

Considerations

Our team comprises seasoned professionals with extensive experience in web3, blockchain technology, and DeFi. The team has a strong background in computer science and has worked with leading blockchain companies.
We can develop this product within max 10 months for $200k. Once the product is ready, we ask the foundation to choose the preferred audit company and allocate the necessary funds to ensure the max grade of security of the protocol.

The implementation of the Papaya protocol will enable 1inch DAO to significantly enhance the transparency and efficiency of grant distribution, ensuring careful use of funds and the ability to revoke streaming grants if conditions are not met. This innovative tool will be developed and ready for use within 10 months, allowing you to quickly start reaping its benefits. Our product will provide convenient and comfortable management of grants and payments, with flexible fund flow regulation and daily payouts to participants. The Papaya protocol is deployed on 7 blockchains and has been audited by Stronghold Security, ensuring reliability, security, and compliance with high standards.

We would like to receive the grant funds to our multisig address 0xEd892bCBf52B4A18e793D66025e64F52dccCd5De through our streaming protocol at app.papaya.finance in USDC. Just set the stream rate to $20k/month (Total 10 months - $200k).

Note: The DAO Operations Multisig: eth:0x45e84e10e8E85c583C002A40007D10629EF80fAF will be used to create the papaya payment stream. Details in this comment.

*From our side, we will recognize that 1inch DAO supported Papaya in its early stage.

[jengajojo]

Thanks for the proposal @sokravtsov

Can you help us understand:

1. How are you planning to fund the rest of the amount required for this development?

2. Are there any customers using the v1 of the protocol?

3. Can you highlight any specific direct benefits for the 1inch DAO?

4. When can we expect the v2 launch?

5. Am I correct in understanding that this request is a payment stream? How many days do you suggest the stream to last?

[sokravtsov]

Thank you for your questions and for considering our proposal @jengajojo

1. How are you planning to fund the rest of the amount required for this development?

We are actively engaging with other strategic partners and angels to secure the remaining $150,000 needed for the development of Papaya Protocol v2. Our discussions are progressing well, and we are confident in our ability to raise the full amount. Additionally, our team is exploring potential grants and funding opportunities from other blockchain ecosystems that align with our mission and technology. However, if 1inch DAO decides to increase the grant amount to $250,000, we would be more than happy to accept it! (:

Our project is open-source and free to use. We are not focused on making a profit at this stage, as our primary goal is to contribute to the development of the community. At Papaya, we believe that only an open ecosystem can truly drive the growth of DeFi.

2. Are there any customers using the v1 of the protocol?

We have just completed the development of the first version, conducted a security audit, and deployed it on major L2 EVM networks. We are currently in the process of finding product-market fit. To be candid, we are at a very early stage of our project. However, we are actively exploring opportunities to work with DAOs that openly pay developer salaries, as this is one of the use cases for our money streaming protocol. Additionally, we are seeking integration opportunities with SaaS payment solutions, as our protocol essentially acts as a SaaS payment solution for web3. Our protocol is capable of handling infinitely scalable incoming streams and consolidating all payments into a single short transaction.
Another exciting use case is for grants. Streaming grants through the Papaya Protocol is highly convenient for foundations. There is no need to send the entire amount upfront; instead, grants can be streamed evenly over a specified period, allowing for periodic checks on the progress of the promised deliverables. Here’s a recent example in DeFi: Sablier & Uniswap Tweet

3. Can you highlight any specific direct benefits for the 1inch DAO?
By using Papaya protocol, 1inch DAO can distribute grants more efficiently and transparently. Plus, Papaya could significantly benefit 1inch by becoming a strong DeFi project that boosts overall transaction volume in the ecosystem. Our protocol supports subscription-based platforms on-chain, which aligns perfectly with 1inch’s role as a DeFi leader. This synergy promotes innovation and growth in DeFi, making subscription services more efficient and accessible, and it strengthens 1inch’s market position. Papaya will drive DeFi development by offering a scalable and efficient subscription protocol, attracting more users and developers, increasing transaction volume, and fostering broader DeFi adoption.

4. When can we expect the v2 launch?

We anticipate the launch of Papaya Protocol v2 by the end of Q4 this year. Our development timeline includes rigorous testing and auditing phases to ensure the protocol’s robustness and security.

5. Am I correct in understanding that this request is a payment stream? How many days do you suggest the stream to last?

Yes, this proposal is structured as a payment stream through Papaya Protocol v1. We suggest a stream duration of 180 days (approximately 6 months) to align with our development and marketing timeline. This period will ensure continuous funding support while demonstrating the practical benefits of our money streaming technology.

Thank you again for considering our proposal. We look forward to your support and collaboration in bringing Papaya Protocol v2 to fruition.

[Kene_Anode]

Thank you for this proposal, could you please show some top-line metrics that demonstrate how much traction you were able to gather with V1?

Due to the size of the grant, we would like to know if you can estimate how much transaction volume you can add to 1inch through this Grant.

[sokravtsov]

Hey @Kene_StableLab,

Thanks for the questions! Really appreciate you taking the time to dive into our proposal.

The answers to your questions have already been provided earlier; you can find them under numbers 2 and 3 in the previous message.

If there’s anything else you need or want to discuss further, feel free to reach out.

[RoundElephant]

Hey @sokravtsov, thanks for the updated proposal. One administrational comment I have: Because this proposal is completely different than the original one, please re-run the 3-day temperature-check vote.

Below are my comments on the contents of the proposal:

There’s no product like this on the market yet, and you need it.

Doesn’t Superfluid already offer this functionality? We currently use it to stream grant funds to the Recognized Delegates.

1inch DAO will have the ability to initiate grant streaming directly from Snapshot after a vote.

Are you in contact with the Snapshot team regarding this integration? There will be UI changes required on their side, so there is some work that they will need to commit to before this is viable.

I would need to see the Snapshot team’s explicit buy-in, and an ETA on integration, before I personally supported this proposal.

1inch DAO will be able to revoke the grant stream and secure their funds from Snapshot if the terms of the agreement are not met.

Another issue I see with creating, and revoking, these streams directly through a Snapshot vote is the slow speed at which votes are executed. Even if we ignore the temperature-check vote, the proposal lifecycle consists of a 5-day Snapshot vote, 3-day bonded escalation game, and 3-day timelock. 11-days minimum.

Because of these time constraints, our current RD program uses an operations multi-sig to manage the streams.

We can develop this product within max 10 months for $200k. Once the product is ready, we ask the foundation to choose the preferred audit company and allocate the necessary funds to ensure the max grade of security of the protocol.

Just to make sure I understand the cost implications of this proposal: you are asking for $200k for development, and then there will need to be a subsequent audit funded by the foundation? Is that the 1inch Foundation that will fund the subsequent audit? Have they committed to that in writing? I ask because the DAO is a totally separate entity from the 1inch Foundation.

Thank you!

[sokravtsov]

Thank you @RoundElephant for the feedback. We have initiated the 3-day temperature-check vote again as requested.

Doesn’t Superfluid already offer this functionality? We currently use it to stream grant funds to the Recognized Delegates.

The rough part using Superfluid or other grant stream providers that it was impossible to do through snapshot though so you had to use an operation multisig to execute the transaction. Doing directly through a DAO vote is cleaner. Our proposal focuses on direct integration with Snapshot, enabling grant streaming directly following a vote. This seamless integration provides a unique and more efficient solution tailored specifically for 1inch DAO’s needs, including features such as easy revocation of funds and real-time progress tracking.

I would need to see the Snapshot team’s explicit buy-in, and an ETA on integration, before I personally supported this proposal.

Yes, we are in contact with the Snapshot team regarding this integration. They would be happy working with our team to get this plugin released.

• Snapshot team are working on a new interface and plan to revamp the plugin system later this year. This revamp will make integration for plugins much easier and won’t require manual approval from them.

• Fabian (founder of Snapshot) mentioned that the new interface launch is expected within ~2 months, but the plugin system will come about 2 months after that.

• Snapshot team are happy to work with Papaya team to get our stream plugin released on the launch of their new plugin system. They can approve the integration and provide an approximate release date for the plugin system.

Another issue I see with creating, and revoking, these streams directly through a Snapshot vote is the slow speed at which votes are executed. Even if we ignore the temperature-check vote, the proposal lifecycle consists of a 5-day Snapshot vote, 3-day bonded escalation game, and 3-day timelock. 11-days minimum.

To strat streaming funds, 11 days is acceptable. For revoking the stream, we are implementing it as follows:

• The ability for multi holders to end the stream autonomously using multi-sig.
• If the 1inch DAO wants to end any specific grant stream, they could do a “signaling proposal” to the multi-sig holders.

Is that the 1inch Foundation that will fund the subsequent audit? Have they committed to that in writing? I ask because the DAO is a totally separate entity from the 1inch Foundation.

The 1inch DAO or the 1inch Foundation can fund the subsequent audit; it’s up to you to decide who will be responsible for that. We will provide a ready-to-use solution in the form of a Snapshot plugin and commit to fixing bugs and making adjustments identified in the audit of the protocol and the plugin. The number of audits is not limited and is open for a year after the completion of development.

Thank you for taking the time to thoroughly review our proposal. We are confident that we can make your work more convenient and secure with the Papaya plugin in Snapshot.

[RoundElephant]

Hey everyone, the author and I discussed the payment logistics for this grant and came to the conclusion that streaming the grant payment via app.papaya.finance over a 10-month period is the way to go.

As described in this proposal, there is currently not a way for payment streams to be automatically set up via a Snapshot vote. Instead, the funds will be sent to the 1inch DAO operations multisig listed in the Treasury page of the governance docs – https://app.safe.global/balances?safe=eth:0x45e84e10e8E85c583C002A40007D10629EF80fAF

If the proposal passes, the funds will be sent to the 1inch DAO operations multisig and then the multisig signers will create the $20k/month money stream to the Papaya team. Their address is listed in the proposal: 0xEd892bCBf52B4A18e793D66025e64F52dccCd5De