JSON to MD files

README.md

@@ -1,4 +1,5 @@
 # hydro-bid-descriptions
+
 This repository contains the descriptions and metadata for proposals on the Hydro liquidity auction platform.
 
 We keep these descriptions off-chain to allow for transparent yet easy to manage updates
@@ -9,5 +10,50 @@ are working out templates and processes.
 
 This information is expected to live on-chain in the future.
 
-The bid information is stored in the `bid-description.json` file.
-See the [example-bid-description.json](example-bid-description.json) file to see the structure of those descriptions.
+## File Structure
+
+Each file follows the naming convention: `${bidId}--${kebabCase(title)}.md`
+
+## Front Matter
+
+Each file contains YAML front matter with the following properties:
+
+- `title`: The bid title
+- `projectLogoUrl`: URL to the project logo
+- `projectUrl`: URL to the project website
+- `requestAmount`: Array containing the amount and token type
+- `minMaxTargetPolApr`: Array containing minimum and maximum APR targets
+- `points`: (optional) Array containing points amount and type
+- `pointProgramUrl`: (optional) URL to the points program
+
+## Content Sections
+
+The markdown content is organized into the following sections (when available):
+
+1. **About the Project**: Project background and description
+2. **Bid Description**: Detailed description of the bid proposal
+3. **Committee Review**: Comments and review from the committee
+
+## Example
+
+```markdown
+---
+title: 'Example Bid Title'
+projectLogoUrl: '/images/logo-example.png'
+projectUrl: 'https://example.com/'
+requestAmount: [[10000, 'ATOM']]
+minMaxTargetPolApr: [5, 10]
+---
+
+# About the Project
+
+Project description...
+
+# Bid Description
+
+Bid details...
+
+# Committee Review
+
+Committee comments...
+```

bids/0--margined-redemption-rate-arb-liquidity.md

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+---
+title: 'Margined Redemption Rate Arb Liquidity'
+projectLogoUrl: '/images/logo-margined.png'
+projectUrl: 'https://www.margined.io/'
+requestAmount: [[50000, 'ATOM']]
+minMaxTargetPolApr: [0, 0]
+---
+
+# Bid Description
+
+## Use case
+
+Redemption Rate Arbitrage and LPing in stATOM<>ATOM Pool. The liquidity would be deposited in [vaults](https://trade.margined.io/vaults/atom-redemption-rate) and then the liquidity would arbitrage LSDs including stATOM, dATOM and qATOM. Liquidity will be deposited into two vaults.
+
+## Performance goals
+
+The committee may monitor the position by navigating to trade.margined.io and selecting the appropriate vault (Neutron ATOM / Osmosis ATOM). This will display assets held by account and give projected performance.
+
+The vaults are projected to earn:
+
+- **Osmosis ATOM**: discount 1.13% APR (estimate): 23.65%
+- **Neutron ATOM**: discount 0.42% APR (estimate): 8.73%
+
+## Tribute & Target
+
+The tribute will be paid in USDC. The PoL target is 50,000 ATOM.
+
+## Risk mitigation
+
+LP Bid Limitation: LPing will be subject to cap the bid at 33% of total existing deposits, we will monitor future deposits to the LP.
+
+## Security
+
+The Margined code is open-source and is available [here](https://github.com/margined-protocol), the current on-chain code is not audited. The documentation for the Margined protocol can be found [here](https://docs.margined.io/). Emergency security contact has been provided to the hydro committee.
+
+## Deployment
+
+- **Osmosis ATOM Redemption Rate Arbitrage Vault**: osmo1hvl5kj4xzdj4udxjv2dzk2zfqhzkd9afqygwq3t84tn53e0250zqrltj48
+- **Neutron ATOM Redemption Rate Arbitrage Vault**: **neutron1puedrclm6rn33x3zv66xg6m23qcdagayqua6jj2wqzvfznlqef8qe53wr2**
+
+# Committee Review
+
+In the arbitrage strategy, we recommended limiting the tranche to 50,000 Atoms. Any proposition beyond that would likely hinder the profit factor.
+
+In the LPing strategy, we required the project to bootstrap the pool first as the whitelisted allocation for Hydro will be sized to a maximum 33% of that pool's deposits. The Margined team didn't perform any security audits on their public on-chain code.

bids/1--demex-atom-lending-supply-proposal.md

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+---
+title: "Demex ATOM Lending Supply Proposal"
+projectLogoUrl: "/images/logo-demex.png"
+projectUrl: "https://dem.exchange/"
+requestAmount: [[10000,"ATOM"]]
+minMaxTargetPolApr: [0,0]
+---
+
+# Bid Description
+
+## Use case
+
+Deploying ATOM liquidity to Demex's lending market through a phased implementation approach. This will increase the available ATOM for borrowing, potentially reducing borrowing rates and improving overall market efficiency. The supplied ATOM will be used exclusively within Demex's lending protocol, allowing users to borrow ATOM at more competitive rates.
+
+This bid aims to enhance Demex's ATOM lending market liquidity through a cautious, phased approach. It prioritizes transparency and community involvement while seeking to benefit both lenders and borrowers in the Cosmos ecosystem.
+
+## Performance goals
+
+The performance of this proposal can be monitored through Demex's lending market interface called [Nitron]([https://app.dem.exchange/nitron](https://app.dem.exchange/nitron) ), which will display:  
+1. Total ATOM supplied  
+2. Utilization rate  
+3. Supply APY  
+4. Borrow APY
+
+The current lending APY for ATOM is at 14% and the borrowing rate is at 23% due to high borrowing demand and insufficient lending supply. The additional ATOM supply will help reduce the ATOM borrowing rate while keeping the lending APY competitive. 
+
+Hydro Committee can also monitor the performance of deployed liquidity on the following [link](https://scan.carbon.network/cdp/ibc%2FA4DB47A9D3CF9A068D454513891B526702455D3EF08FB9EB558C561F9DC2B701?net=main).
+
+We project the supply APY for ATOM to be competitive with other lending platforms, estimated at 5-8% APY (variable based on market conditions). 
+
+## Tribute & Target
+
+The tribute will be paid in SWTH. The PoL target is 10,000 ATOM.
+
+Phased Supply Target
+
+* Phase 1 (Initial): 10,000 ATOM  
+* Phase 2 (Evaluation): Monitor for 1 month  
+* Phase 3 (Scaling): Gradually increase the target in the coming rounds to 50,000 ATOM, based on performance and demand
+
+## Risk mitigation
+
+We will start with a smaller supply to assess the market dynamic. We will monitor the utilization rate to ensure it remains at a healthy level, with a target at 70-80%. Demex also uses a dynamic interest rate model that adjusts based on utilization, helping to maintain market balance
+
+ATOM's LTV (Loan-to-value ratio) on Demex is set at 70% which is competitive while remaining safe due to the deep liquidity that ATOM possess
+
+Demex will also provide a withdrawal guarantee. If ATOM cannot be withdrawn at the end of the loan period due to high utilization, additional ATOM will be added to the pool to ensure all loans are repaid.
+
+We will also have a dedicated team that will monitor the market health and performance of the Demex platform.
+
+## Security  
+The Demex code is open-source and is available [here](https://github.com/Switcheo/carbon-js-sdk), the current on-chain code is audited by Peck Shield and can be found [here](https://drive.google.com/drive/folders/1BCgTTyFNW946Z1N-Hxqyz7uGLApF75EM). The documentation for the Demex can be found [here](https://guide.dem.exchange/) and [here](https://docs.carbon.network/carbon-core/collateralized-debt-position-cdp-module/cdp-operations/borrow). Emergency security contact has been provided to the hydro committee.
+
+## Deployment
+
+The ATOM will be supplied to the following Demex lending market contract address:  
+[swth1wq9ts6l7atfn45ryxrtg4a2gwegsh3xh7w83xl](https://scan.carbon.network/account/swth1wq9ts6l7atfn45ryxrtg4a2gwegsh3xh7w83xl)
+
+# Committee Review
+
+The risk from adding liquidity to the existing borrowing LP for ATOM on Demex is small. The committee will enforce the 50% cap on LTV, on the overall borrowing LP, shares owned by Hydro.
+

bids/10--neptune-finance-lending-liquidity-provision.md

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+---
+title: "Neptune Finance Lending Liquidity Provision"
+projectLogoUrl: "/images/logo-neptune.png"
+projectUrl: "https://nept.finance/"
+requestAmount: [[20000,"ATOM"]]
+minMaxTargetPolApr: [0,0]
+---
+
+# About the Project
+
+Neptune Finance is a next-generation credit network and high-yield lending protocol designed to provide unmatched capital efficiency for lenders, borrowers, and builders.
+
+Neptune rates lead the market by dynamically shifting to encourage borrowing and ultimately deliver a narrower spread between lend and borrow rates,
+constantly calibrating to the most competitive rate.
+
+# Bid Description
+
+## Use case
+
+ATOM liquidity would be deposited in the [Neptune Lend](https://app.nept.finance/lend/) where it can be borrowed by third parties with over-collateralized positions to generate returns from the cost of borrowing.
+Deposits mint nATOM, the yield-bearing receipt token.
+
+## Duration, Tribute, Yield & Target
+
+The tribute will be paid in USDC.
+In this pilot phase, the PoL target is 20,000 ATOM.
+
+The deployment duration will be 3 months.
+
+The historic 30-day average return for ATOM lending is 5.5% APY.
+
+## Risk mitigation and Security
+
+The target PoL will account for only ~15% of the lending pool, reducing the liquidity risk due to excess loans.
+Should ATOM loans exceed past target utilization levels, the dynamic Neptune interest rate model will increase exponentially and incentivize the return of loans.
+
+The committee will also hold the nATOM receipt token for their deposit position and can trade it on the open market if needed.
+
+Neptune Finance has been audited by Oak Security [here](https://github.com/oak-security/audit-reports/tree/master/Neptune).
+Docs can be found [here](https://docs.nept.finance/).
+Emergency security contact has been provided to the Hydro committee.
+
+## Monitoring
+
+The committee may monitor the performance of ATOM lending Neptune lending [page](https://app.nept.finance/asset-details/?denom=ibc%2FC4CFF46FD6DE35CA4CF4CE031E643C8FDC9BA4B99AE598E9B0ED98FE3A2319F9).
+
+## Deployment
+
+Neptune Money Market Contract
+Inj1nc7gjkf2mhp34a6gquhurg8qahnw5kxs5u3s4u
+
+# Committee Review
+
+The project currently holds approximately 30K ATOMs in deposits. To prevent disrupting natural market dynamics and an excessive dilution of rewards, we propose a bid limit set at 50% of overall shares, similar to other participants. Based on these figures, we recommend capping the liquidity deployment to 30K ATOMs. As protocol utilization increases, we can consider introducing larger tranches in future bidding rounds.
+

bids/11--drop-adding-liquidity-to-astroport-osmosis-lp.md

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+---
+title: "Drop Adding Liquidity to Astroport & Osmosis LP"
+projectLogoUrl: "/images/logo-drop.png"
+projectUrl: "https://www.drop.money/"
+requestAmount: [[500000,"ATOM"]]
+minMaxTargetPolApr: [0,0]
+points: [10000000,"DROPLETS"]
+pointProgramUrl: "https://droplets.drop.money"
+---
+
+# About the Project
+
+Drop is a liquid staking protocol for Interchain assets and a member of the Lido Alliance.
+Led by ex-Lido and P2P contributors, Drop is on a mission to strengthen the economic viability of sovereign blockchain economies
+by transforming stagnant, frozen capital into flowing streams of opportunity.
+
+Built as an Integrated Application on Neutron, Drop's smart contract architecture leverages the Inter-Blockchain Communication (IBC) protocol
+and Neutron's Interchain Transactions (ICTX) and Interchain Queries (ICQ) modules,
+enabling the protocol to provide trust-minimized liquid staking services and scale with minimal additional overhead and risk.
+
+Drop's architecture consists of CosmWasm contracts controlling the flow of assets between multiple blockchains using IBC, ICTX, and ICQ.
+Upon receipt of supported assets, the protocol mints liquid staking receipt tokens (called dAssets) using the Token Factory standard.
+
+# Bid Description
+
+## Use case
+
+Adding DEX LPing on Astroport and Osmosis on the ATOM/dATOM pairs. 50/50 split
+
+## Duration, Tribute, Yield & Target
+
+The tribute will be paid in Droplets (point system) which will be converted into DROP tokens upon the TGE.
+In total, 100 Million DROP tokens will be distributed to the Droplets owners, in proportion to their share of the overall Droplet amount.
+
+The PoL target is 50,000 ATOM.
+
+The deployment duration will be 3 months
+
+Depending on the size of the POL we manage to get in the Hydro Pilot Rounds, we might deploy a portion of the POL on Osmosis pools.
+
+ATOM -> dATOM conversion does not incur any cost.
+The current pool APR is 0.83%, we expect this to fluctuate around 1% for the next month.
+
+## Risk mitigation
+
+LPing will be subject to cap the bid at 33% of total existing deposits.
+
+The Drop code is open-source and is available [here](https://github.com/hadronlabs-org/drop-contracts),
+the current on-chain code is audited by OAK security and can be found [here](https://github.com/oak-security/audit-reports/tree/main/Drop).
+The documentation for the Drop protocol can be found [here](https://docs.drop.money/).
+Emergency security contact has been provided to the Hydro committee.
+
+## Monitoring
+
+The committee may monitor the position using [Astroport Pools UI](https://app.astroport.fi/pools/neutron1yem82r0wf837lfkwvcu2zxlyds5qrzwkz8alvmg0apyrjthk64gqeq2e98).
+
+## Deployment
+
+Astroport ATOM/dATOM pool
+Neutron1yem82r0wf837lfkwvcu2zxlyds5qrzwkz8alvmg0apyrjthk64gqeq2e98
+
+# Committee Review
+
+The risk from adding liquidity to the existing Astroport LP ATOM/dATOM is small. The committee will enforce the 33% cap on overall LP shares owned by Hydro.
+

bids/12--shade-atomstatom-lp-on-shade-swap.md

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+---
+title: "Shade ATOM/stATOM LP on Shade Swap"
+projectLogoUrl: "/images/logo-shade.png"
+projectUrl: "https://shadeprotocol.io"
+requestAmount: [[10000,"ATOM"]]
+minMaxTargetPolApr: [0,0]
+---
+
+# About the Project
+
+Shade Protocol is a suite of DeFi applications built on Secret Network that provides data confidentiality by default.
+Shade's DeFi suite currently includes privacy-preserving DEX, CDP stablecoin pegged to a basket of currencies and commodities, bonds, LSTs, as well as a privacy-preserving Money Market planning to be launched in Q1 '24.Value accrual for all the Shade apps goes back to the SHD token.
+
+All contract interaction data including token balances, tx history, and allowances are only visible to the data's owner by default,which provides protection from value extraction across all of Shade's apps.
+
+# Bid Description
+
+## Use case
+
+Pairing stATOM/ATOM in Shade's DEX on Secret Network in the existing LP.
+stATOM is used as collateral to mint out SILK on Shade Protocol (over $1M+ TVL) with the ShadeDAO holding over $30k+ of ATOM.
+Shade is focused on expanding and growing ATOM liquidity.
+
+## Duration, Tribute, Yield & Target
+
+The tribute will be paid in SHD tokens.
+The PoL target is 10,000 ATOM.
+
+The deployment duration will be 3 months.
+
+The expected APY is around 20%, with the addition of 2-4% in trading fees.
+
+## Risk mitigation and Security
+
+LP Bid Limitation: LPing will be subject to cap the bid at 33% of total existing deposits, we will monitor future deposits to the LP.
+
+The Shade Protocol code is open-source and is available [here](https://github.com/securesecrets/shade),
+the current on-chain code is audited by Certic and can be found [here](https://skynet.certik.com/projects/shade-protocol).
+The documentation for the Shade protocol can be found [here](https://docs.shadeprotocol.io/shade-protocol).
+Emergency security contact has been provided to the Hydro committee.
+
+## Monitoring
+
+The committee may monitor the position [here](https://app.shadeprotocol.io/swap/pools)
+and search by ATOM/stATOM and select the appropriate pool.
+This will display assets held by the account and give projected performance.
+
+## Deployment
+
+Secret1a65a9xgqrlsgdszqjtxhz069pgsh8h4a83hwt0
+ATOM/stATOM pool
+
+# Committee Review
+
+The 33% cap is in place for the LP, The committee deems this bid safe, with a proper risk mitigation strategy in place. The ATOM/stATOM LP's have a very low Impermanent loss risk.
+