Hello Cora Community, we are MachinaLabs, the current developers of the Cora Protocol.

This is a proposal to approve a grant request for MachinaLabs(the beneficiary), that will use the Treasury Bootstrapping contract to raise funds that can help us to develop and maintain the Cora protocol over the next 2 years.

Background

As part of the Governance initiation ceremony, there is a Treasury Bootstrapping contract that has 10M Cora tokens. The contract is at https://arbiscan.io/address/0xcce17361a9e7632f6f601361f98a5ac143b6adc3#code

The contract contains a function "approveAndSchedule" that allows the DAO to bootstrap its treasury or to be used for grants, where the beneficiary will receive the funds after the Treasury Bootstrapping event finishes.

The contract also has a "cancel" function that can simply reject this proposal and transfer all the tokens to the Cora DAO.

The "approveAndSchedule" has the following parameters:

• Fully diluted valuation
• Target amount (Amount to raise via TreasuryBootstrapping)
• Duration (Full duration of the treasury bootstrapping event)
• Private period (Optional: used to whitelist certain users to participante in the TreasuryBootstrapping event before the public)
• Beneficiary (The party who will receive the funds after the Treasury Bootstrapping finishes)
• Min contribution size
• Max contribution size
• Start time after approval
• Stablecoin token (The token to be accepted as contribution)
• Merle root (for whitelisted addresses in the private period)

Proposal

MachinaLabs will complete the following milestones:

Milestone 1: Release Cora Core or Advanced mode

Timeline: 3 months

Deliverables: Cora UI for Advanced Mode Smart contracts audited

Milestone 2: Release of the Cora Managed version

Timeline: 6 months

Deliverables: Cora UI for the Managed version Smart contracts audited

Once these milestones are completed, we will continue supporting them and explore new products in collaboration with the Cora DAO.

Some ideas we have in mind are: Leverage without liquidations and decentralised fund managers.

On top of that we are currently exploring the introduction of a RFQ model into the Cora Core advanced mode, similar to what UniswapX is doing to outsource liquidity from Off-chain parties (i.e Market Makers) in addition to the On-Chain pools liquidity. Considering the architecture of Cora Core. This change should be beneficial and compatible with the latest architecture.

For more details about Cora Core, we wrote about the vision here: https://blog.cora.money/the-future-of-cora-introducing-cora-v2-4aa7f4d0c1f

Treasury Bootstrapping Parameters

The following parameters are proposed:

• Fully diluted valuation: 12M
• Target amount: 1.2M
• Duration: 10 days
• Private period: 5 days
• Beneficiary: Machina Labs
• Min contribution size: 1200 LUSD
• Max contribution size: 24,000 LUSD
• Start time after approval: 2 days
• Stablecoin token: LUSD
• Merle root: To be calculated whitelisting DegenScore beacon holders and Cora token holders.

The target amount has been calculated with the estimation of a 2 years runway for a team of:

• 2 Solidity engineers
• 1 Financial engineer
• 1 Designer
• 1 Front end developer
• 1 Community manager

Our team is formed by some ex Consensys/Coinbase members with experience in the crypto space since 2017.

Final Thoughts

We hope the Cora DAO supports this initiative and we are super excited about what is coming for Cora. In particular we are seeing new trends in protocol design that give us a validation that what we are building is the right thing to do. For instance, having a Cora Core layer that can be enhanced on a second higher level to facilite the interaction with the protocol(Cora managed version) but preserving advanced features for sophisticated users.