Maximize staking yields with Sharpe x Aave

Project Name: Sharpe

Author’s name and contact information:

  • Sharpe – Rishabh Narang (Project lead) rishabh@sharpe.ai

Project Description:

Sharpe is a DeFi protocol that aims to simplify access to yield generation in the DeFi. The protocol is named after the “Sharpe Ratio,” a measure of risk-adjusted returns. As a layer 2 protocol, Sharpe builds on top of existing DeFi protocols to improve their composability, capital efficiency, and ease of use. Sharpe offers high-performance, institutional-grade middleware infrastructure.

Sharpe Stake is Sharpe’s latest institutional offering, which builds on top of the Aave protocol to improve the capital efficiency of staking yields and offer higher yields on users’ staked deposits. By leveraging the Aave protocol, Sharpe Stake is able to boost staking rewards and provide users with enhanced returns on their staked assets without increasing their risk exposure. Sharpe also plans to be the first protocol to build investment products on top of Aave’s stablecoin $GHO once it goes live, allowing its users to invest in $GHO and earn higher returns through leveraged staking.

Sharpe Stake is a non-custodial platform that uses trustless, decentralized smart contracts. It employs on-chain keepers to continuously monitor risks and automatically deleverage in the event of potential losses. Sharpe Stake offers a unique solution for institutional investors looking to earn higher yields on their staked assets while leveraging the security and stability of the Aave protocol.

To use Sharpe Stake, a user simply stakes stETH or stMATIC on the platform. Sharpe then uses a flashloan from Aave to borrow a larger amount of ETH or MATIC, allowing the user to increase their exposure to stETH or stMATIC through leveraging. This results in higher staking yields for the user. The process is automated and happens on-chain, providing transparent and efficient yield-boosting for staked assets.

Project Links:

Website: https://www.sharpe.ai/

Docs: https://docs.sharpe.ai/

Twitter: https://twitter.com/sharpe_ai

Discord: Sharpe

Medium: https://sharpeai.medium.com/

Any additional link: Sharpe | Twitter | Linktree

Aave ecosystem value preposition:

Sharpe provides high-performance, institutional-grade middleware infrastructure that improves the capital efficiency of staking yields through Aave. Higher usage of Sharpe encourages more users to interact with Aave, increasing deposits, transactions, and total value locked on the platform. Sharpe’s success can also boost Aave’s and $GHO’s overall value, as Aave is the base layer on which Sharpe is built. The success of Sharpe Stake, which leverages the Aave protocol to offer higher yields on staked assets, can further cement Aave’s dominance in the DeFi space. Additionally, Sharpe can bring new users to Aave by offering investment products built on the Aave protocol, and help to increase Aave’s network effects by providing a high-quality, user-friendly platform.

Team introduction:

Rishabh is the founder and project lead of Sharpe, and has previously run a hedge fund that specialized in market-making and high-frequency trading. He has expertise in quantitative asset management and financial engineering.

The Sharpe team is composed of 8 individuals with experience in building scalable products in DeFi from companies such as State Mount Capital, Microsoft, and JP Morgan. They have the knowledge and experience necessary to develop high-quality crypto products.

Sharpe is incubated by Alpha Venture DAO.

Date of deployment/expected deployment:

30th January, 2022 10 AM UTC

Requested grant and KPIs:

The total grant amount requested is $60,000. The proposed breakdown of the grant into individual milestones is as follows:

  • In early January, we will launch $ETH-stETH and $MATIC-stMATIC leveraged staking products on the testnet, along with integrations with core integrations with Aave and Chainlink. During this time, we will provide regular updates on our progress, including timelines, weekly sprints, and development roadmaps, to show how the funds are being used.
  • By mid-January, we will complete unit tests, peer review reports, and frontend development.
  • At the end of January, we will launch the products on the mainnet and begin post-deployment monitoring.

In addition to the grant, we are requesting the following forms of support from Aave:

  • Technical support to ensure the smooth integration of Sharpe’s products with the Aave protocol.
  • Help with outreach and joint marketing efforts, such as retweets, to help spread the word about Sharpe.
  • Mentorship and feedback from the Aave team to help improve Sharpe’s products and services. We believe that this support will be crucial in helping Sharpe succeed and provide value to the Aave ecosystem.
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