What is your proposal/project that you are requesting a grant for?
This grant would help Notional launch a leveraged vault that would deposit capital into Balancer boosted pools and stake the LP tokens on Aura. For background on leveraged vaults see here: https://blog.notional.finance/introducing-leveraged-vaults/
Notional already has one Balancer / Aura leveraged vault live that has deposited ~$3M into the wstETH/ETH pool on Balancer and has staked the LP tokens on Aura. You can see the UI for this leveraged vault here: Notional Finance - DeFi Fixed Rates
This grant would allow Notional to launch leveraged vaults that put capital into the Aave boosted pool, the upcoming Euler boosted pool, and any other boosted pool that Balancer and Aura launch in the future and then stake the LP tokens on Aura. This grant would pay for the audit of the boosted pool leveraged vault code.
How does the grant aim to provide value to the Balancer and Aura Ecosystems?
This grant would primarily increase TVL for Balancer and Aura and establish a steady source of LP capital by integrating directly with Notional.
Leveraged vaults allow users to borrow from Notional to put capital into yield sources like Balancer and Aura. This integration would directly increase the TVL of Balancer boosted pools and Aura.
What is the requested grant and individual milestone/tranche amounts?
We are requesting $37.5k to cover the cost of the audit. We would propose the full payment at the end.
What are the milestones and the timeline?
The milestone would be the launch of the leveraged vault. We are currently setting up the audit and would expect to have the vault live in January.
Can you quantify the expected value add?
We would launch with an initial capacity of $5M (leading to $5M of initial TVL boost for Balancer and Aura). We would expect to ramp this capacity up per pool and to launch further leveraged vaults like the Euler boosted pool vault as Balancer lists additional boosted pools. So I think the impact over time could be very large.
Is this proposal value for money for the Balancer and Aura Ecosystems?
Yes. This grant is only for the audit expense - all the backend development as well as the frontend development and marketing of the product will be covered by Notional.
Who is the team and what is their experience to successfully deliver the project?
This is the Notional core team. We have a proven track record - we already have one Balancer/Aura leveraged vault live in beta that has put about $3M of TVL into Balancer and Aura at this point.
What information/resources do you need from us?
Nothing more than the grant.