1.3 Revised Ocean Protocol Non-Custodial Loan Infrastructure (Revised)

Grant Proposal Template

Part 1 - Proposal Submission (*Mandatory)

Name of Project:

Ocean Protocol Non-Custodial Loan Infrastructure

Proposal in one sentence:

A decentralized, non-custodial and trustless protocol that allows users to create overcollateralized debt instruments across Ocean and Ethereum

Description of the project and what problem is it solving: (You can give more details in “proposal details” section farther down.)

Ocean’s current circulating supply is currently around 613,099,141 OCEAN which accounts for about 43% of the Max supply. The liquidity of ocean protocol is therefore limited. Likewise, many token holders do not have mechanisms to trade the time-value of their holdings. As a consequence, Centralized Lending solutions have emerged to provide liquidity to the market, however, these lending services are centralized entities that can seize or steal funds and are not easily accessible to everyone.

As a solution to this problem, we propose a decentralized, non-custodial and trustless protocol to allow users to create overcollateralized debt instruments across Ocean and Ethereum Protocols. Thus, users will be able to borrow and lend OCEAN using Ethereum tokens as collateral.

To make this a reality, we are moving to design a cross-chain protocol with Hashed Time-Locked Contracts (HTLCs) to enable debt and repayment between parties. We will also adopt an atomic swap functionality that strategically reveals secrets to stand for actions in the loan chain.

Grant Deliverables: (Target deliverables for the funding provided.)

  • Design Uni/UX files and protocol documentation to enable other devs to implement the systems in their respective application environments.
  • Begin the mobile implementation of the Ocean Loans Protocol in a compatible wallet infrastructure.
  • Create Marketing Materials to target crypto enthusiasts and traders to utilize our framework.

Which Project Category best describes your project? Pick one.

Build / improve applications or integrations to Ocean

Are you applying for an Earmark? Pick one.

  • New Project

What is the final product?

Oceanprotocol.loans will be an API that will allow everyone to build a loan application on OCEAN, making it possible for borrowers and lenders to interact and earn with automated APY’s. With the final product, users will be able to use Ocean token as collateral for borrowing Ethereum based tokens.

We will also push to go B2C as we scale in order to target normal users in a bid to reduce the barriers to entry by making fast, appealing and simple to use interfaces - Making borrowing and lending OCEAN/ETH as easy as sending a text message.

**Question on “value add” criteria: which one or more of the criteria will your project focus on? Why do you believe your team will do well on those criteria? **

Creating cross-chain interoperability between Ocean and Ethereum will allow market participants to access liquidity between blockchains by enabling loans to occur between different blockchains without intermediaries.

Some of the benefits to the OceanProtocol ecosystem are:

  • Enabling stablecoin/ERC20 tokens access to Ocean holders.
  • Allowing OCEAN holders to exchange the time value of their tokens without selling.
  • Allowing users to Lend and Borrow tokens without intermediaries or giving up custody of their assets.

Some of the risks to the ecosystem if this system is not implemented correctly:

  • OCEAN market volatility due to lack of liquidity.
  • Centralised OCEAN lending services can be hacked or steal the funds of their users.
  • Lack of OCEAN interoperability with other blockchains.

Risks that could make executing this project difficult:

  • Libraries in early development stages.
  • OCEAN specifications / functionality still not implemented
  • Lack of library support for web/mobile environments.

Funding Requested: (Amount of USD your team is requesting - see the available funding levels here)


Proposal Wallet Address: (must have minimum 500 OCEAN in wallet to be eligible. This wallet is where you will receive the grant amount if selected).


Have you previously received an OceanDAO Grant? If yes, please specify what round(s) and how much was granted each round.


Team Website (if applicable):

oceanprotocol.loans (in progress)

Project lead full name:

Stephen Petras

Project lead email:


Country of Residence:


Part 2 - Team

IMPORTANT: See Criterion (4). One Project/One proposal on communicating “Core Team” versus “Advisor”. You may be ineligible if not correctly updated.

2.1 Core Team

For each team member, give their name, role and background. An example is below.

Name: Steven Petras



Seasoned Entrepreneur with a robust wealth of knowledge and experience in building and managing several IT firms and other startups including Jetbrain, Mainteny, Revolut. Also equipped with over 6 years of experience as a crypto veteran. And over 13 years of experience with managing third-party loan infrastructures. A diversified portfolio cutting across both national and international entities. Also gifted with an unmatched passion to grow the crypto community through massive awareness campaigns.

Part 3 - Proposal Details (*Recommended)

3.1 Details

Details of the proposal:

Already available solutions to the lending of crypto assets are centralized. The fact that these services are centralized raises some concerns such as the funds may be stolen, and the funds are not always available. Oceanprotocol.loans is our unique solution to this problem. It is a decentralized, non-custodial and trustless protocol that allows users to borrow or lend Ethereum based tokens using ocean tokens as collateral or vice versa using a method known as atomic swap.

3.2 If in Category “Build / improve applications or integration to Ocean”:

App will be live at:


Is the software open-source?


**If open-source, please specify the license. If no, please specify why not open-source. **

The software for oceanprotocol.loans will not be open source pending when the necessary protocols and procedures to protect the system are in place, the team may decide to make the protocols open-source. But at this infant stage of the project, in order to protect the community and its users, The team have decided against making the project open-source.

Project software can be found at:


3.7 If the project includes software:

Are there any mockups or designs to date? If yes, please share details / links.



  • Comprehensive research on non collateralized loans.
  • Assembled the founding team.
  • Hired a UI/UX designer and a full stack to start the initial building block set up for the project.

**Please given an overview of the technology stack. **

(1-4 paragraphs, ideally with images)

3.8 If the project includes community engagement:

Which channels will be used? For how long? E.g. “twitter, for 8 weeks”. Other details?

  • Twitter ( 4 weeks) with a target to grow x3.5 MoM.
  • Facebook (2 Weeks)with a target to grow x5 MoM.
  • Instagram (6 Weeks) with a target to grow x3 MoM.
  • Paid Telegram, Discord and Twitter influencers and Micro influencers to increase rareness within the Ocean Communities and the data ecosystem at large

3.9 Project Deliverables - Roadmap

Any prior work completed thus far? Details?

(Y or N; details)

What is the project roadmap? That is: what are key milestones, and the target date for each milestone. Please make sure that one milestone is about publishing your results, e.g. as a medium blog post.

MAR 2022

  • Development and testing of project prototype.
  • Media publication of articles explaining relevant project updates, and roadmaps on Medium.
  • Create public awareness for Oceanprotocol.loans through massive media campaigns.
  • Release Technical whitepaper and lightpaper for Oceanprotocol.loans

2nd Quarter 2022 (APR - JUNE):

  • Create a functional dashboard to enable users to monitor their financial assets.
  • Auditing of oceanprotocol.loans by renowned crypto and financial auditors to build public trust of the protocol.
  • Integrate/Connect to the Ocean Protocol Marketplace.

3rd Quarter 2022 (JUL - SEPT):

  • Auditing of oceanprotocol.loans by renowned crypto and financial auditors to build public trust of the loaning institution.
  • Obtaining Certik Certification for embedded smart contracts within the oceanprotocol.loans system.

4th Quarter 2022 (OCT - DEC):

  • Release a mobile application on the App Store and Play Store.
  • ​​Research multi-chain deployment of the Oceanprotocol.loan service
  • Research expansion of the protocol to include tokens outside the scope of ETH.

What is the team’s future plans and intentions? Is there maintenance? Possible extensions to the work?

Our long-term plans to maintain this software and upgrade it over time include:

  • Maintain & update the Web dApp to implement newer oceanprotocol.loan browser-based wallets.
  • Migrate Oceanprotocol.loans protocol from using Payment Channels to the native virtual machine smart contracts once it is released.
  • Create interoperability with other EVM based blockchains.

3.10 Additional Information

Any additional information to add? E.g. custom fields or images? E.g. other grants or fundraising to date?


Makers propose their borrow/lend interest rates to market takers. To initiate the position, they have to collateralize at least 120% in ETH or Ocean as the case may be.


Takers see the proposal and take a deal. In a loan deal, they will be borrowers or lenders. To make a deal, they have to collateralize a proportional value of Ocean or ETH-based token as the case may be.


Ocean used to settle and verify the transfers of tokens involved in loan deals.


Market smart contracts used to gather market information. It works like an on-chain two-sided order book.


Based on Ethereum smart contract that takes ETH/USDT as collateral and manages the funds’ ownership based on its state.


It is a smart contract that stores all the loans to manage schedules for coupon payments, calculate PV (present value), and control its state.

Thank you @Petrasi22 for submitting your proposal, it has now been accepted into R15.

Hi @Petrasi22

Thank you for submitting your proposal for R-15!

I am a Project-Guiding Member and have assigned myself to help you.

I have reviewed your proposal and would like to thank you for your participation inside of the Ocean Ecosystem!

Your project looks promising and I believe it’s aligned with our evaluation criteria of generating positive value towards the Ocean Ecosystem and the W3SL. This project really opens up the door to Defi world and also increases ocean token’s visibility. Timeslines and specificity in deliverables are much appreciated and duly noted. Brownie points for Additional Info/Glossary section at the end. Looking forward to reading the whitepaper !!!

Based on the reasons above, I am in support of your project and proposal. I look forward to continuing providing support and feedback to your project.

All the best!

-Trishul, PGWG Guide

1 Like

@Petrasi22 we have tried reaching out to you a few times but we seem unable to connect.

I’m responding here because we have noticed several applications but no other response from you.

I would recommend reaching out to the community and making some effort to present your project so we can hopefully, facilitate your journey here and help you earn a grant.


@idiom-bytes thanks for your message. We will get across to the community using, channels.

Hello @idiom-bytes, thanks for your interest in our project, and your desire to help facilitate our application for a grant. We are fully aware that this project is a massive endeavor, however the team is more than capable of handling the task and meeting up with the project deliverables. The structure to follow up with the timelines are already in place. The advantages of this project after completion which include but are not limited to

  • Enabling stablecoin/ERC20 tokens access to Ocean holders.
  • Allowing OCEAN holders to exchange the time value of their tokens without selling.
  • Allowing users to Lend and Borrow tokens without intermediaries or giving up custody of their assets.
    We are available for a chat. Inform us on your availability via

Hi @Petrasi22, I said what I did because I think if you:

  • Say hi to everyone on Discord #ocean-dao
  • Attend a Town Hall
  • Drop a message by #core-tech

You’d likely get a lot more support, and votes. I say these things because I have wanted to bring more attention to your project but have been unable to. You dropping by these places rather than us reaching out to you via your e-mail address is more effective.

Having said that, I’ll try my best.


@Petrasi22 I didn’t see any mention of H20 anywhere, have you familiarized yourself with what’s being done there?

Could you perhaps expand on your plans and benefits in light of it?