- The project name: Baklava Space
- Summary of your project and how it would help our ecosystem: To launch Baklava Space, a synthetic asset creation and exchange defi protocol, on Function X
- Team Name: Keith Yong
- Payment address (fx address, 0x address - Specify network and currency): fx1js3hx66gmmct6rxq6lqxkeecdvhh4zefp2fkpp - f(x)Core Mainnet, $FX
- The level of amount you are requesting for? Level 1,2, 3, 4: Level 3
- Category your project belongs to: Derivative and synthetic market
Baklava Space aims to be a synthetic asset platform that allows the creation and exchange of synthetic assets. Synthetic assets are assets minted on a blockchain that mirror the price of another asset, for example, a synthetic BTC can be minted on Function X chain. The synthetic asset derived its price from price oracles and therefore exchanging synthetic assets incur minimal slippages.
As seen in the matured traditional asset markets, the synthetics and derivatives market size exceed the underlying asset market by size 10 times. We believe the same trend will happen in the blockchain market as it matures. Therefore, Baklava Space is positioning itself for the next phase of explosive growth in the derivative and synthetic market in the blockchain space.
- Stage of your project: Launched with first milestone completed
- Online resources: https://baklava.space/, https://baklavaspace.gitbook.io/main/
The Team:
Keith Yong
Crypto OG since 2016 Operations Director of Litecoin Foundation(LF), with LF since day1 Ex Senior Vice President in Singapore’s UOB Bank Ex Head of IT of a department under Singapore’s Ministry of Finance
Marketing and community - 3 pax
Developers - 3 pax
Potential cooperations and Partnerships (both confirmed and in talks with):
GSR for market making Chainlink for oracle pricing and cross-chain message protocol Cointelegraph for marketing Pangolin, TradeJoe, Kyber for LPs
Target Markets: Defi synthetic asset minting and exchange.
Projected TVL: $10m - 1st year $50m - 2nd year $200m - 3rd year
Products: - Mint stablecoin
Mint synthetic crypto assets Stake to participate in protocol fee Allow exchange of synthetic asset for another through mint/burn process Benefits to FunctionX: Volume generated on MarginX for hedging any exposures on Baklava Space. Allow LP on FX chain to be collateralised for minting.
Currently, the synthetic asset market is dominated by Synthetix.io as the leader in ETH. In the other networks, there are no prominent synthetic asset projects as competitor. Therefore, having a synthetic asset project in the FX chain will offer FX chain users an additional utility not found on other chains.
In terms of fee revenue, the Synthetix.io is mostly in the top 20 of all projects. In some days, their fee matches that of Uniswap. This illustrated the need for and demand of synthetic asset and synthetic asset exchange in the ETH ecosystem. Therefore, Baklava Space aims to be the top synthetix asset platform of the other non-ETH networks.
Unique selling point:
One key difference with our main competitor Synthetix.io is that they are using the global debt system whereas in Baklava Space each user is responsible for his own mint.
In the global debt system, all the SNX stakers will be responsible for all the synthetic assets minted by Synthetix.io. This means that the debt level of SNX stakers changes every day and there is no certainty.
In Baklava Space, if a user mint 1 synthetic BTC he will be responsible for making sure his collateral is sufficient to cover that amount. Therefore, it offers a cleaner and much easier to understand concept.
https://baklava.space/, https://baklavaspace.gitbook.io/main/, Forum discussion: https://forum.starscan.io/t/baklava-space-proposal-synthetic-asset-minting-on-fx/4729
Proposed Total Budget: 300,000 $FX (100,000 $FX for protocol migration and launch; 100,000 $FX for Bava token migration to FX and launch; 100,000 $FX for liquidity on FX chain.)
Proposed Fund disbursements: Funding based upon completion of 3 separate milestones; target till Q2 2023.
Roadmap:
Phase I (completed)
Baklava Space and Bava token launched in Avalanche network allowing LP to be deposited for auto-yield compounding. TVL $8m-$10m Phase 2 (by Q4 2022)
Baklava Space accepts collateral for the minting of synthetic assets. Real token reward and Bava staking mechanism Phase 3 (by Q4 2023)
Expand to other EVM compatible networks such as FX chain Liquidation vault Integrate with core wallets of FX and Avax protocol Transitioning to DAO governance Listing of token on CEX Phase 4 (by Q4 2024)
Expand synthetic asset and collaterals offering Synthetic vaults where users can do carry trade Cross-chain collateralization where ETH can be used as collateral for minting.