CypherSwap

CypherSwap is a P2P coordination mechanism that enhances traditional and charitable grant models. It establishes direct commerce between creators and collectors, anchored by verifiable milestones and decentralized social vetting via Lens.

Operational Flow: Grant teams submit their proposals through CypherSwap, leading to the minting of an NFT that acts as a claim ticket for milestone-based rewards. After each milestone, grantees can withdraw their share from a dedicated treasury contract.

In instances where the community’s contributions exceed the initial grant, the NFT opens access to a bonus pool. Grantees can "stamp" their NFTs to generate ERC-20 claim receipts, drawing from this pool. Bonus eligibility and amounts are adjusted automatically in 24-hour cycles using Lit Protocol PKPs.

Technological Composition: Uniswap Hooks: Enable smooth liquidity tasks, providing seamless integration for liquidity management.

Lens: Empowers decentralized social vetting, crucial for transparent, community-driven funding approvals.

Lit: Offers advanced security features like Programmable Key Pairs, Conditional Signing, and Autonomous Functions. It also provides Token-Gated Authorization & Access and enables Personal, Transactional, and Message Data Encryption, fortifying both credibility and data integrity.

Smart Contracts: Operating on the EVM, optimized for Polygon, these contracts manage the treasury, the issuance of NFTs, and ERC-20 claim receipts.

Distinguishing Features: Direct Uniswap hook integration for efficient liquidity tasks.

Lens integration for robust decentralized social vetting.

Advanced security and functionality via Lit.

CypherSwap creates an evolved ecosystem for project funding, adeptly replacing dependency on venture capital elements and traditional grants, with public goods development funding through a transparent and efficient web3 commerce based coordination mechanism.

CypherSwap uses Lens Protocol to post grants and send on-chain funds to the CypherSwapTreasury contract. Lit Protocol's PKPs automate the signing of grant details like grantee addresses and milestone amounts. This prevents bad actors from messing with the CypherSwapTreasury and the related smart contracts, as well as the custom Uniswap pool.

All funds collected via Lens go straight to the CypherSwapTreasury. These funds stay there until grantees hit their milestones and claim their amounts. When grants get more funds than their target, this extra money goes into a custom Uniswap Pool, managed by a special CypherSwap hook contract.

Grantees get a ClaimReceipt NFT that tracks milestones and rewards. Lens Protocol's social features—collect, mirror, like, and comment—are checked daily for each grant post. This data adjusts the weight of each grantee's share in a bonus pool. More active grants get a larger slice. When milestones are done, grantees can trade this NFT for a ClaimReceipt ERC-20 token, which they can then swap for USDC in the custom pool.

The Uniswap hook contract sets the rules for trading in the custom pool, only allows the CypherSwapTreasury to deposit USDC, and manages all receipt details for the grantee's NFTs.

The tech stack includes Uniswap, Lens Protocol, and Lit Protocol. The balance between end2end encryption, social media and programmable liquidity fit perfectly together to make CypherSwap, almost like a conditionally encrypted pair of locks and keys.