Thank you for your insightful questions. We appreciate the opportunity to clarify aspects of our proposal. Here are the responses to each of your queries:
[1/2 Regarding the superiority of our approach over existing batch transaction extensions] - The BundleSwapFeature does not just batch transactions like the generic Multicall contracts out there. In addition, it also allows users to define specific error behaviour if trades fail and due to just calling the proxy once and not with every trade, as it would be with multicall, gas fees can be saved as well.
[3 On the necessity of developing this feature in the protocol and its demand] - Besides that based on our customer research/interviews, we still see a lot of asset managers and crypto hedge funds performing a semi-automatic rebalancing process based on Excel and 1to1 swaps on DEX. Especially in the low-frequency segment. (e.g. index funds). In the high-frequency segment, it looks different and they build everything in-house. But still could benefit from a batch functionality if offered by 0x protocol. As you mentioned in general the “best” approach for protocols would be to implement their own logic to optimize the process, however, we learned from speaking with asset management protocols that their backlog might be too full to develop this in-house.
[4 Inclusion of NFTs and meta transactions] - We initially focused on ERC20 tokens due to our expertise in this sector and the clear need we identified. However, we acknowledge the potential of expanding this to include NFTs. Regarding meta transactions, we think that not the BundleSwapFeature should implement meta transactions but it should be the other way around since meta transactions are one level “higher”. We are open to discussing this further and possibly broadening the scope of the proposal, while also ensuring a focused approach in the initial phase.
[5 Budget breakdown and timeline] - The current request for $25,000 USD is to kickstart the project and develop a Proof of Concept in line with the PZEIP program. The total estimated cost for project implementation is $64,000, with an additional $25,000 for an audit, totaling $89,000. This includes the audit but is not limited to this phase of the project.
Here is a more detailed breakdown of how we calculated the effort estimation:
Protocol Integration: 30 PD
Pair-reviewing with Sha: 3 PD
Automated Integration Tests: 11 PD
Documentation: 5 PD
Project Management and Testing: 9 PD
Audit process support: 6 PD
We estimate 5 month lead time (roughly 5 weeks per milestone). Considering Christmas, feedback loops, discussions and the audit process we estimate an go live by the end of April in case of a kick-off in the first december week.
[6 31Third’s rebalancing volume and product demand] - To date, 31Third has processed a volume of approximately 200k, primarily from beta testing. Our target market is institutional clients, and we are still finalizing and co-creating compliance-related aspects before productive customer rollout. The demand for this product is multifaceted, coming from feedback from various asset managers, on-chain analysis, and observing industry trends and developments.
To provide more context: Our initial product in 2021 was building an asset management solution based on setprotocol. While performing our own tests and talking to other peers we figured out that there is a need for advanced rebalancing solutions. So we decided to pivot and shift focus to building a dedicated rebalancing solution.
[7 Difference from the 0x EVE grant project] - The key distinction between the 0x EVE grant project and this proposal is that the former involves building a solution on top of the 0x protocol which also involves off-chain components, whereas this proposal aims to enhance the 0x protocol directly.
[8 Public availability of smart contracts] - Our existing smart contracts are not open source. However, the smart contracts developed through this proposal will be open source as part of the 0x protocol. However, the contracts are deployed on several chains (e.g. Ethereum) and verified on Etherscan where you can check it out.
[9 On developing a dedicated test suite] - There might have been a miscommunication in our proposal but of course, we are adding the tests to the existing test suite. We don’t want to build our own pipeline and just wanted to mention that the newly added tests will work with the existing test pipeline.
[10 Estimation of smart contract size and audit costs] - We estimate the smart contract to have a similar size as MetaTransactionsFeatureV2. Regarding the audit, we are open to suggestions and are flexible in our approach. The $25,000 figure is an estimate based on our experience and is not part of this funding request.
[11 Background and experience of team members] - Before venturing into Defi in 2019 Manuel spent 20 years in the Web1/Web2 space, with significant experience in banking and asset management. In 2013 he co-founded and led a mobile marketing startup serving over 1000 B2B clients in the DACH region. Philipp, a blockchain and full-stack developer with over 7 years of experience, has previously also worked for a company creating AI solutions for call centers.
We hope this addresses your questions and clarifies our position. We look forward to further discussions.