Request for Proposal
RFP: Terra Anchor — Money Market
Proposal due by: 2020/04/24
Company Name:
Project Overview
The Terraform Labs team has noticed that despite high returns for staking Luna (compared to Cosmos or Tezos), there has been a lack of staking by users due to the volatile nature of Luna’s prices. In light of this problem, Terraform Labs would like to design a solution where the initial deposit principal is protected.
In order to accomplish this goal, we will be looking for partners capable of understanding and implementing the bLuna token (a derivative token representing bonded Luna minus bonding costs) or the fungible money market. We will list the requirements for the latter below.
Current Roadblocks to Success
- Unstable returns due to volatile Luna prices
- Lack of marketability and user-reach of product
- Lack of experience in retail banking space
Project Goals
Potential partners have quite a degree of flexibility in designing the product as well as the architectural/engineering requirements. Ultimately, we value unlimited creativity in the product-type but with solid reasoning based on user-centric experiences. Our potential partner should be able to full the following functions required of the fungible money market.
- Collateralization: users will be able to collateralize their bLuna to borrow Terra stablecoin. Partners should be able to effectively communicate with community members to determine an appropriated LTV under governance. We envision that the borrowing ratio should be quite high due to the fact that liquidation is not required to occur in an open market. When a margin call happens, Luna should be automatically swapped on chain to cover the required amount of Terra.
- Securitization (Lending Pool): To facilitate the Terra stablecoin loan pool, interest must be offered for each deposit. The interest rate is a function of the deposit amount, the total amount deposited by users, and the rewards generated by the staked Luna corresponding to the bLuna positions opened.
For more details about the specific mechanisms, please see: https://agora.terra.money/t/anchor-principal-protected-staking-on-terra/196
Scope of Work
As the mission of this project is to provide an accessible savings-type product to users, the scope of work is quite broad. The chosen partner should have a strong understanding and/or interest in consumer financial products and services with marketable outreach to audiences that Terraform Labs has not tapped into yet.
- Product Definition: Potential partners should provide a draft of the product description as well as a rough business plan and/or go-to-market strategy. Moreover, any perceived potential roadblocks should be mentioned as well. Necessary support from TFL can also be added in this section.
- Schedule & Milestones: Potential partners should have an outlined action plan with rough timelines on both development and execution (ex. T+30 for business plan development, T+60 for development, T+120 for deployment, etc.)
- Reports: Partners will be required to submit periodic reports with data that is amenable to analytics and should provide any necessary updates to the ongoings of running the product.
- Deliverables: In rough chronological order, (1) a short business strategy plan, (2) a product definition/spec, (3) regular progress updates, and the (4) final product should be provided.
- End product: The most important part of this project is to provide users with an alternative financial investment vehicle that is both user-friendly as well as financially incentivizing.
Evaluation Metrics and Criteria
- Carefully thought out operations plan that outlines necessary involvement from both the validator as well as Terraform Labs
- Stability and robustness of program against attacks gaining at the expense of other users with malicious intent
- Team with diverse experiences ranging from development to marketing and with a strong track record
Submission Requirements
- Brief description of company and core team members
- Description of product and/or service
- Outline of business opportunity and plan
- Outline of necessary resources including a timeline
Proposal due by: 2020/04/24
Company POC:
Email:
Phone #: (optional)
