[Grant Application] LICX - Token for DeFi solutions

Project title
Liquid ICX (https://licx.finance)

Project category
Development – DeFi

Project duration
3 Months to create MVP (minimal viable product)

Project description
We believe in providing people with more options for their crypto assets and thus we are bringing DeFi to the ICON network. LICX is the basis for our DeFi solutions and it is an IRC2 token that represents staked ICX making it possible to be transferred without compromising the security of the network. This provides an alternative option to exchanges for ICONists to receive rewards while keeping liquidity of their ICX. This will reduce the amount of control that exchanges can get over the network by providing extra liquidity to the network as well as allow the ICONists to be in possession of their private keys, ICX in the pool will be controlled by a smart contract so there is no central authority involved. LICX will also increase the number of transactions on the network as it will allow stakeholders to do other transactions than claiming and restaking.

What is included in MVP
MVP includes:

  1. Smart contract
    The smart contract will allow the minting/burning of IRC2 tokens as well as staking/voting and distribution of rewards to LICX owners.

  2. Web application
    The web application will provide an easy and secure way to interact with the smart contract as well as all the documentation and information about LICX.

At the MVP stage, we want the smart contract to be able to mint LICX by sending ICX to it or burn LICX by sending it to the smart contract and get an appropriate number of ICX in the pool transferred to the user. LICX represents a share of the staked ICX pool, so users will always be able to receive the appropriate rewards of staked ICX allocated to them as well as all the ICX that they initially sent to the pool. LICX will be transferable so users can stay liquid with their staked ICX.

The web application will provide the possibility to easily connect ICONex wallet to it and convert ICX into LICX or vice versa. Transferring from your wallet to another address option will also be implemented for easier user interaction. All the documentation, information and statistics will be provided so that users can see the current state of the project, information on how to use the web application and verify its integrity.
We already did a technical proof of concept which demonstrates that a design concept is feasible.

Below you can see the early design concept for the web application and the creation of the LICX logo.


Timeline

Project milestones
We want to implement 3 major milestones for this project

  • Milestone #1 - α-Version
    Alpha testing. Functionalities: Minting/burning LICX via a simple web application.
  • Milestone #2 - β-Version
    Beta testing. Functionalities: Staking and voting implemented. Improve web application UI.
  • Milestone #3 - MVP
    Deployment of MVP on the main net. Web application functions finished.
    We will have 6 sprints each lasting 2 weeks after every sprint we will provide a progress report. We dedicated 2 sprints or 1 month for each version of the project. Estimated release date is at the end of Q2 2020

    User stories
    We have already defined users stories for our development:
  • US1 - As a user, I want to login to my existing ICONex wallet, because then I will be able to interact with the LiquidICX web-app.
  • US2 - As a user, I want to deposit my ICX to the smart contract, because I want to stay liquid and also earn the rewards at the same time.
  • US3 - As a user, I want to withdraw my ICX from the smart contract, because I want to get my ICX and rewards back into my wallet.
  • US4 - As a user, I want to transfer my LiquidICX to another wallet, because I still want to transfer my ICX, even though it’s staked.
  • US5 – As a user, I want to be able to see information about the unstaking period, because I want to know when I will be able to claim my ICX and get them back into my wallet.
  • US6 - As a user, I want to get general information about the project in FAQ, because I want to gain additional information about the project/application.
  • US7 - As a user, I want to see general information/statistics about the application, because I want to see the current state of it.
  • US8 - As a user, I want to see great documentation about the smart contract and how the project works in general, so I can verify its integrity.

Funding the project

Work package - Frontend/Web app (33 SP)
Work package - Backend (8 SP)
Work package - Smart contract (59 SP)
Total number of SP: 100 SP
Estimation for SP = 320€
Estimated costs: 32,000€ or 35,200$ -> €:$ ratio 1:1.1
Costs covered by block42: 11,800$ (1/3)
Costs covered by grant 23,400$ (2/3)

The grant funds will be used for the development of the project:
-2 developers – in charge of developing the smart contract with all the functionalities for issuing/burning LICX, staking/voting, and reward distribution as well as any other frontend or backend development needed.
-1 Technical advisor – in charge of overviewing how the functionalities are implemented from a development side
-1 UX/UI designer – in charge of providing a user-friendly interface for web application in charge of interacting with LICX smart contract
-1 Project manager – in charge of assigning tasks to members of the team, keeping track of deadlines as well as communicating with the community about the progress of the project.

The funding requested is to enable us to provide an MVP, if the community feedback is good we want this to be a larger project and this is just the first stage of the project.


Functionalities in future versions
This MVP is the fundamental basis where we want to build a whole ecosystem on-top of it. We will continue to update the project after the release and utilize its full potential. Already thinking ahead we have discussed some possibilities. We want to:

  • Provide future use cases for LICX, we will collaborate with ICON Dapp providers to implement functions that allow LICX to be utilized by their Dapps (already in discussions).
  • Fully integrate LICX in the upcoming ICON DeFi ecosystem.
  • Provide faster unstaking times without hurting the security of the network (not actually unstaking ICX, but enabling users to swap their LICX for ICX of other users).
  • CDPs, Upfront interest rates (staking rewards), Flash loans, …

About block42

Block42 was founded in the year 2018 focusing exclusively on blockchain technology. At the time of the founding, the four co-founders had already extensive experience in the fields of software development, business consultancy, and scaling their own businesses. Since the nearly two years of existence, the company steadily grew, consisting now out of eleven team members. Most of them are software engineers, all of them able to provide full-stack software solutions. Here are some of our projects:

ICON Network:
Block42 is providing network security and stability for the ICON blockchain by running a validator node.
We are providing information and developing applications, like block42’s https://icxstakr.io/, https://iconwhale.watch/, https://medium.com/block42-blockchain-company.

KTCHNG GmbH – Ethereum Wallet Integration:
KTCHNG is a mobile app utilizing augmented reality technology to scan real-world products. Block42 was responsible for developing the Ethereum Smart Contract, the backend application as well as the integration of the already existing app to the blockchain. More information can be found here: https://ktchng.com/

Fantom Staker Info:
https://fantomstaker.info is a tool similar to the P-Rep overview on ICON. Our goal is to provide delegators with reliable information about the network and all its validators to help token holders to choose the “right” validator to stake to. Most importantly we want to do that in an easy way.

Smart “Wedding” Contract:
In August 2018 Lukas Götz, CEO and co-founder of block42 got married. A few months later he and his spouse signed a wedding contract – but not in written form as it would be usual. The team of block42 developed an Ethereum-based Smart Contract, which represents – legally binding according to Austrian’s law – a wedding contract for the couple. More information could be found at one of those references:

https://www.ico.li/smart-wedding-contracts/
https://www.btc-echo.de/bis-dass-der-code-uns-scheidet-erster-smart-wedding-contract-in-oesterreich/
https://de.cointelegraph.com/news/osterreicher-fuhrt-erste-blockchain-hochzeit-mit-smart-wedding-contract-durch