ZMX Proposal: Decentralised Cross-Chain Swapping Platform
Abstract
This proposal seeks to launch and maintain ZMX, a credibly neutral front-end built on 1inch’s Fusion+ infrastructure. ZMX requests funding to bootstrap its development and will enter into a profit-sharing arrangement with the 1inch DAO for the duration of the funding period. By leveraging the 1inch Fusion+ infrastructure, ZMX aims to provide a seamless, decentralised, intent-based cross-chain swapping platform while sharing the profits generated with the 1inch DAO.
Motivation
The 1inch DAO has been exploring the potential of operating open-source, neutral front-ends to further decentralise the 1inch ecosystem. Previously, the DAO funded an Angular-based UI.
In this journey, we propose ZMX: an intent-based, cross-chain swapping platform built on the 1inch Fusion+ framework. ZMX will implement a profit-sharing model with the 1inch DAO, contributing revenue from positive swap slippages, fees, and other future income streams. This initiative aims to:
- Increase user adoption.
- Improve accessibility.
- Drive more traffic to the 1inch DAO.
- Enhance the decentralisation of the ecosystem.
Specification
The ZMX team will develop and launch a user-friendly swapping interface that integrates seamlessly with 1inch’s Fusion+ infrastructure. Our vision is to simplify DeFi access for a broader audience, regardless of location, technical expertise, or familiarity with DeFi.
Key Technical Components:
- 1inch API Integration: Direct integration with 1inch Fusion+ APIs for efficient cross-chain swaps.
- Backend Infrastructure: Decentralised infrastructure solutions, such as Pocketnetwork RPCs, to ensure reliability and scalability.
By integrating Fusion+, ZMX will serve as a gateway to Layer 2 solutions and EVM chains, enhancing cross-chain accessibility.
Revenue Sharing with 1inch DAO
ZMX will operate a front-end that generates revenue using the core infrastructure provided by the 1inch DAO. In return, ZMX will share 50% of its profits with the DAO, including revenue from:
- Positive Swap Slippage: Benefiting from favourable price differences during swaps.
- Swap Fees: Competitive fees for cross-chain swaps.
- Future Revenue Streams: Potential income from premium features or partnerships.
This profit-sharing model will remain in effect as long as the 1inch DAO supports the project.
Why Fund an Alternative Front-End?
Funding ZMX will enhance decentralisation within the 1inch ecosystem, currently reliant on a primary front-end managed by 1inch Labs.
Benefits of ZMX:
- Increased Accessibility: Intuitive and user-friendly interface for diverse user groups.
- New Revenue Source: Profit-sharing model generating additional revenue for the DAO treasury.
- Enhanced Resilience: Mitigating single points of failure by introducing alternative front-ends.
Implementation Timeline
Milestone 0: Setup and Development
Key Activities:
- Legal incorporation, compliance, and tax structuring.
- Onboarding a frontend engineer and designer.
- Initial development setup, including integration with Fusion+ APIs, cloud infrastructure, and RPC nodes.
Cost: $126,977.83
Milestone 1: Launch
Key Activities:
- Final testing and bug fixes.
- Marketing and community engagement.
- Compliance with Swiss regulations.
Cost: $72,572.94
Milestone 2: Post-Launch Operations and Optimisation
Key Activities:
- User feedback collection and platform optimisation.
- Expanded marketing campaigns.
- Customer support system rollout.
Cost: $72,572.93
Infrastructure Costs
Annual backend costs are as follows:
- Etherscan: $9,169.80
- Cloudflare: $5,000
- DigitalOcean: $4,032
- Pocketnetwork RPCs: $2,220
- 1inch APIs (Fusion+ Business): $23,988
Total Annual Infrastructure Costs: $44,409.80
Total Cost Breakdown
| Category | Cost |
|---|---|
| Personnel | $128,800 |
| Infrastructure & APIs | $44,409.80 |
| Legal & Compliance | $59,000 |
| Marketing & Community | $20,000 |
| Buffers (Contingency) | $19,913.90 |
| Total Budget | $272,123.70 |
Team
ZMX is a sister organisation of DAOplomats and includes:
- Baer.eth: Governance consultant; governance analyst at DAOplomats; active delegate in multiple DAOs.
- Jengajojo: Co-founder of DAOplomats; governance steward for Gitcoin; delegate in Ethereum DAOs since 2021.
- Anoy Roy Chowdhury: Head of Product; 5+ years in shipping web3 products and full-stack development.
- Gautam Raj: Tech Lead; 4+ years in web3 product development.
Rationale
The core rationale is to explore revenue streams for the DAO and reduce dependency risks. Currently, the DAO lacks neutral front-ends and struggles with generating revenue. ZMX aims to introduce an open-source, decentralised, and scalable front-end for cross-chain swapping.
Considerations
Success hinges on marketing efforts and adoption in a competitive landscape dominated by players like app.1inch, Jumper, and Matcha. Entering an already concentrated ecosystem poses potential risks, but ZMX’s focus on decentralisation and revenue-sharing offers a compelling case.