A Community First 1inch DAO NFT Marketplace

2.1 General Proposals
1

Simple Summary
** **The 1inch network has successfully positioned itself as the leading decentralized exchange and DEX aggregation platform across multiple networks enabling liquidity and while continuing to enhance capabilities (e.g. wallet, fusion engine) for their community. Because 1inch has been positioned as a leader in DeFi, and given competitor entrance into the NFT marketplace aggregator space, for 1inch to remain competitive within this space, 1inch needs to bring to market a no platform fee NFT marketplace aggregator solution that is sustainable and benefits their community of users while expanding market share to new users. Based on our deep expertise in building web3 solutions, Solidity.io is looking to help create a new NFT marketplace aggregator protocol for the 1inch network. Solidity.io will open source the 1inch marketplace to the desired specifications of the 1inch DAO in order to maintain security, decentralization, and transparency for the community.

Breakdown of Costs

Front-end:
Design: 20k
Development: 70k

Back-end:
Order Indexer/Orderbook: 110k
NFT Indexer/CDN (content delivery network): 55k

Onchain:
** **Order Router: 40k

Maintenance:
** **Estimated at 50k annual

Total One Time Implementation Costs: $295K (Reduction of $92k from competitor proposal ~24%)

Platform Maintenance & Ongoing Indexer Updates
**Ongoing Costs **

Project Milestones
** Milestone:**
** **Milestone 1: Project commencement
Milestone 2: Wireframes complete
Milestone 3: UxUI High fidelity complete
Milestone 4: Onchain router architecture defined (in collaboration with the 1inch foundation)
Milestone 5: Onchain router ready for testnet deployment
Milestone 6: Onchain router deployed to testnet/ audit commencement
Milestone 7: NFT indexer architecture (in collaboration with the 1inch foundation)
Milestone 8: NFT indexer deployed to testnet
Milestone 9: Centralized marketplace aggregated order book architecture (in collaboration with the 1inch foundation)
Milestone 10: 1 Inch limit order protocol Integration
Milestone 11: Aggregate orderbook deployment
Milestone 12: NFT metadata indexer and Contend Delivery Network (CDN)
Milestone 13: Frontend layout complete
Milestone 14: Frontend Development complete

Abstract

A community marketplace is a natural next step for the 1Inch ecosystem. A successful community marketplace will: drive traffic to the 1Inch ecosystem and DEX aggregator product, decrease fees to community members by building a 1Inch-native marketplace with rich user experience, leverage 1Inch’s brand equity to continually acquire marketshare in the DeFi, NFT, & Web3 ecosystem more broadly. In order to compete, this marketplace must be cost competitive with fees in-line with or lower than competitors like X2Y2.

The 1inch NFT aggregator aims to provide a comprehensive platform for buying, selling, and trading non-fungible tokens (NFTs). The proposed platform seeks to simplify the process of purchasing and managing NFTs by aggregating listings from various popular marketplaces and enabling seamless exchange of NFTs with other cryptocurrencies.

The 1inch NFT marketplace aggregator offers users a streamlined experience by allowing them to browse, buy, and sell NFTs from multiple marketplaces in one place. The aggregator also offers advanced search and filtering options to help users find specific NFTs based on criteria such as price, rarity, and creator. Additionally, the platform will provide a unified wallet that allows users to store and manage their NFT collections across multiple marketplaces.

Given 1inch network’s existing platform, the NFT aggregator will also enables users to exchange their NFTs with other cryptocurrencies such as Ethereum and ANY other ERC-20 tokens. This allows for more liquidity in the NFT market and provides a pathway for NFT investors to trade their assets in a decentralized and secure manner.

For standard marketplace buy and selling, there is no platform fees.

Beyond the table stakes expectations of an NFT marketplace and NFT aggregator, as part of this implementation, the 1inch NFT protocol will leverage the 1inch limit order protocol and bring true limit orders to the NFT space.

For example, I am a holder of a bored ape yacht club NFT, and the currently floor is 69E. I would like to leave my NFT unlisted to avoid creating additional depth and sell walls, but when the floor reaches a TWAP of 420E, I want my NFT to automatically be listed at any desired price (ex. 2% above a 420E floor).

Another example of limit orders, would be you are currently traveling by airplane and unable to get connected to internet and the floor of an NFT I am holding is crashing. Fortunately, on the 1inch NFT aggregator platform, I created a stop loss limit order that would allow me to automatically list my NFT if the TWAP floor hits.

Aligned to 1inch limit order protocol and the no platform fees model, for NFT limit orders there is also no fees.

Motivation

Based on the current weekly volume data and market share data, it is clear that volume is currently significantly down as compared to the NFT bull run of 2021 and 2022. Additionally, the current farming rewards associated with Blur, have skewed volume and market share. The best example of the effectiveness of aggregators was during the 2021 and 2022 bull run with market share distributed across gem, genie (now Uniswap), and via direct marketplaces (OpeaSea).


While this can be seen as a challenging market, similar could have been said in the period prior to 1inch network DEX aggregator launch. The value proposition of 1inch network is that 1inch continues to build protocols that can be shared and leveraged across the 1inch network. 1inch is able to bring very large market makers within the 1inch network to act as market makers for NFTs with the limit order capabilities, additional product overlap and connection with the existing 1inch network. This creates a pathway for exceptionally more liquidity to enter the NFT space and drive marker makers to be more decentralized.

Specification
The proposed marketplace will have the following features:

  • Limit order creation
  • 1inch wallet integration (1inch Token)
  • Wallet connect integration Ethereum
  • Native 1inch nft marketplace
  • NFT aggregation from (1 inch, openSea, X2Y2, Looksrare, )
  • Buy Now
  • Bids
  • Offers
  • Users can purchase NFTs with any token in one transaction on 1inch marketplace using the wallet of their choosing
  • Users can search of nfts though set of filters. Users will enter the details such as trait type, floor price, price, rarity, ect. All bids will be made on their respective marketplace and stored inside of the 1inch orderbook.
  • Sellers will be able to accept bids from the users.
  • Utilizing the underlying protocol (1 inch, seaport, X2Y2, ect) transaction will be executed onchain exchanging assets from the maker to the take.
  • Collection search engine displaying pertinent collections to users
  • Get instant alerts sent to your browser, Telegram, or Discord
  • Upcoming drops (though application)
  • Add any collection with token address
  • Suggested Collections
  • Users will be able to share the collectible with their social media accounts such as Facebook, Twitter, and Telegram
  • Get live floor prices, volume, and sales data on any collection, wallet, or mint
  • Deep dive into sales history, floor price, volume, and trends. Detailed live and historical charts help you find the perfect entry and exit
  • Access to metrics such as the moving averages over the last sales, profits and losses, and many other insights
  • Unique holders and numbers of transactions
  • Metrics such as assets purchased below current floor, assets never sold since mint, etc.

Considerations(Enhancements)

Integration with the broader 1inch ecosystem:
The 1 inch network is expansive encompassing multiple protocols the close integration of the NFT aggregator and marketplace with services already provided by the network will assist in capturing marketshare

  • Tight integration with the 1 inch limit order protocol
  • Orderbook integration with the existing 1 inch aggregation protocol
  • Markeplace integration inside of the 1inch wallet
  • 1 inch earn derivatives integration

1inch api Integration:
Expanding the existing automations created for the fundgable token market to NFTs though the integration of the NFT aggregator into the 1inch API product offering. This will allow institutional liquidity players already familiar and trusting of the 1inch APIs an easy entry into this new market

Updates to the indexer:
The marketplaces aggregated by the 1inch protocol are perpetually updating their on and off chain systems the orderbook indexer and onchain router will require updates to maintain compatibility. This will be a consistent effort as the marketplace space evolves.

Vendor Team

Solidity.io is a full-stack Web 3.0 solutions firm, and venture studio focused on supporting some of the biggest brands, protocols, and startups in developing software solutions in Web3.0. Solidity.io is a leading custom software solutions provider for top DAO’s in Web3. The Solidity.io team is comprised of industry-leading engineering and product design professionals, fully doxxed and North America based.

Solidity.io are active DAO participants and have already successfully delivered value to several DAOs, most notably ApeCoin DAO, with dedicated work as well supporting venture-backed DAO infrastructure companies as well.

With full-stack Web3 development resources and experience, Solidity.io will be able to deliver a top-of-the-line NFT marketplace aggregator, quickly, securely, and cost-effectively in order to generate maximum value return for the 1inch network.

3 Likes
2

Hey Alex, your proposal is already competing with a similar one on the forums.
I prefer to combine both proposals as both can complement them elegantly.
let’s get maximum value out of these proposals

1 Like
3

good move. 1 inch needs this

4

I never heard this team were aligned with any other 1inch contributor.

Unfortunately don’t see any real experience of the team (having no GitHub link on website looks suspicious in Web3 space), only bunch of landing pages and blog posts, 90% of which were written in February and March 2023.

Moreover most of these texts were generated by ChatGPT (https://chat.openai.com), which I confirmed with the official OpenAI Text Classifier: https://platform.openai.com/ai-text-classifier

I think we need to investigate who and why voted for this proposal, especially large delegates (DAOplomats). I afraid this could be considered as Governance Attack.

1 Like
5

This team is not aligned with any 1inch core contributor and declined to collaborate with the original team with the first idea of NFT market place which is already long time in discussion and work.
It is agains our 1inch Network spirit which is not about competition but for collaboration.
I didn’t receive any proofs that this team has any experience in product development and software development. I don’t understand how the due diligence was done by the team daoplomats.eth which voted for yes.

1 Like
6

In light of the information that @k06a has presented regarding the author’s qualifications, I have voted No on this proposal.

In addition to these qualification issues, I believe there are other issues with the proposal (these views are my own):

Clerical Issues:

These are minor things, but they compound on other issues described in the later sections.

  • No 1IP-# – As described in the governance documentation, all 1IPs must start with a sequential 1IP number. This helps with the record-keeping process and allows DAO members to reference past proposals.
  • No Rationale section – This section is important when a proposal directly competes with another proposal that is already in the final voting phase. The rationale section should clearly describe what this proposal offers over an alternate implementation.

Logistical Issues:

Execution Issues:

Though not explicitly stated in the governance documentation, all proposals must ultimately be actionable.

  • Milestones 4, 7, and 9 require direct collaboration with the 1inch Foundation:

    • Milestone 4: Onchain router architecture defined (in collaboration with the 1inch foundation)
    • Milestone 7: NFT indexer architecture (in collaboration with the 1inch foundation)
    • Milestone 9: Centralized marketplace aggregated order book architecture (in collaboration with the 1inch foundation)

  • The milestones listed above may mislead voters into believing that there has been an agreement to collaborate between the 1inch Foundation and the proposal author – there is no such agreement. Without the prior agreement in place, this proposal is wholly unactionable.

7

The founders of the 1inch have called DAOplomats out for organising a governance attack on the DAO for voting Yes on a competing proposal and asked how we have done our due diligence.

Posting the replay which we have given to Sergej and Anton in telegram

Hey Sergj, Calling this a Governance attack is shortsighted; we have gathered some information on Solidity.io before voting!

Based on the evidence about Solidity.io

  1. https://www.prweb.com/releases/2023/2/prweb19171408.htm

** Team:**
1. McCurry

Solidity.io’s precious DAO engagement

  1. AIP-223: A Community-First ApeCoin DAO DEX - Ecosystem Fund Allocation
  2. ​​AIP - 155 Informational: Planned Implementation Process
  3. AIP-224: Ape Protocol Extension (.ape domains )

And the absence of any information on Shai Other than a LinkedIn https://www.linkedin.com/in/shaisand/

We have concluded that:

  • That there is more public evidence of past work from [Alex team] have been active ecosystem contributors in the NFT space
  • The fact that Shai is a 1inch contributor and the marketplace is preseeded by 1inch Foundation offers unfair grounds for the DAO to make an optimal decision

Based on the overall situation, we choose to abstain from both proposals. We hope that a formal body to review each proposal in the future could make expert recommendations to the DAO.

8

Hey Sergej, I appreciate your response and feedback although I would have liked an opportunity to discuss this proposal with you or any of the other 1inch community that held issues with the proposal. I would like to clarify a few of the things you mentioned so that the truth is clear for everyone.

We were adamant about collaborating with the 1inch community, core contributors, and even the original team who presented the first marketplace proposal from the beginning, and we still hold that stance. In crafting our proposal, we reached out to the most active delegates in 1inch in: daoplomats, stablelabs, and roundelephant to discuss, collaborate, and find the best way to bring a proposal forward that would add value to the 1inch ecosystem. (I even reach out to you directly on Twitter)

Both DAOplomats and stablelabs were willing to discuss with us, give feedback on our proposal, and both of them recommended that we seek a conversation with Shai to find a way for us to add value to their existing 1inch marketplace proposal. (Jordan did not reply to our message about meeting and getting feedback and we did not receive response from you)

Following the feedback we received, we were introduced and had several conversations with Shai and spent multiple hours rewriting collaborative proposals that would de-scope our existing proposal and integrate with Shai’s proposal in areas that we felt it could benefit from our support. On Friday evening March 17, we held our final call where we spoke with Shai and Misha. The conclusion of the call was that Shai and Misha would go back and speak with Shuly to see where and how we can collaborate as a team and put together a proposal that would work for everyone, in the best interests of 1inch. Shai and Misha said they would follow up with another time for us to meet and some recommendations around avenues for collaboration. (I mentioned this update to daoplomats and stablelabs at the time)…

On Monday morning March 20 at 5am CET, Shai decided to post his proposal to snapshot with zero communication to our team, or inside of our “1inch NFT marketplace” shared telegram chat. This was very concerning and disappointing to us, as we felt like we were front ran after putting many many hours into exploring collaboration. We did not even receive a single text message prior to the snapshot post.

After this happened, we decided to post our original proposal anyway to give the community an opportunity to decide which proposal they felt was best. We felt our proposal was stronger with lower cost, faster timeline, and a more detailed technical scope, however, we preferred to augment Shai’s existing proposal in the spirit of collaboration over competition. (As you mention is a core tenant of this community.)

Additionally, one of our lead engineers joined the calls with Shai and team to discuss technical details of the marketplace build, with Shai admitting he felt our team was more than capable of delivering on the NFT marketplace needs. The concerns he cited were that he did not want to replace BAF (his contractor) out of business principles. In our opinion, this lack of flexibility does not serve 1inch to receive the best possible product development experience. Still, we were happy to share in the scope and only take on a portion of the scope so that BAF could remain involved and so that we could remain flexible with Shai’s requirements. At no point in time did Shai, after his assessment of our capabilities, feel that we couldn’t deliver on the software development or product development needs, and the overwhelming consensus from those we spoke to, including Shai was that we were more equipped than BAF. I could go more in depth on unethical actions, but I would not like to go there as we would like to move forward on a positive note.

In response to RoundElephant’s concerns, none of these were brought up to us until minutes after DAOplomats cast their vote in our favor. I reached out to @RoundElephant on telegram and discord asking to meet or if there was anything else we needed to do to add to our proposal so that it could meet guidelines, he did not reply. @RoundElephant Provided feedback however to Shai in asking him to assign an 1IP number to his proposal, which he never directed us to do or inform us on how to best format our proposal information to maintain DAO compliance.

Our proposal has been live for 17 days, with the only mention of concern coming 2 hours ago, within 1 day of voting closing and within 30 mins after receiving support from a major contributor.

Curiously, after us receiving 6 ‘Yes’ to 0 ‘No’ votes in the temp check, and with over 90% yes/no votes on Snapshot, within 30 minutes of one of the largest votes turning in our favor, 19m votes appeared against our proposal within a flash, with a swarm of attacks on our proposal in the forums immediately sent at the same time.

We are very disappointed in this process and have done our best to add value to the 1inch ecosystem in way that is transparent, honest and collaborative. I think that there should be an open forum in the next governance call to have a discussion about what has occurred here. We welcome collaboration with the community, however we have been met with only personal attacks, deception, and lies. We hope to get a resolution to this in a way that is amicable and is in pursuit of the 1inch ecosystem’s best interests. Hope to hear from you and the community on this. - Alex

1 Like
9

In addition to my above message I would like to add that we reached out to you Jordan asking if there is anything we need to do with our proposal to be in compliance. You did not reply.

So, effectively, you voted against us for not being in compliance because you did not give us the adequate information or direction that you provided to the other proposal to be within compliance. Not fair.