[Proposal] DataX - DEX built on Ocean for trading datasets

Project Overview


Name of project: DataX - DEX for datasets

Website : https://www.datax.fi/

Proposal Wallet Address :

0xeFB850EA4963Eb6d1A914D4Eb0b114026da51623

Funding Request

32,000 OCEAN

Note - We are first time grant receiver

The proposal in one sentence :

DataX is a decentralised exchange dedicated to trading datasets in Ocean Market.

Which category best describes your project? Pick one or more.

Build / improve applications or integrations to Ocean.

Project Description :

We are building a decentralised exchange especially for trading datasets. Our aim is to bring datasets (and by proxy - datatokens) to the attention of DeFi community. Our vision is to be pioneers of datadefi movement and kickstart adoption to a new data economy led by Ocean Protocol. We want to start implementing this vision with following features which we have planned in our roadmap -

  • Support to swap any datatokens to OCEAN within a unified UI (Uniswap style)
  • Support for datatoken to datatoken swap in a single transaction (with additional router contracts)
  • Buy, sell or trade datasets using any ERC20 tokens (using liquidity aggregration)
  • Placing limit orders for trading datasets at best prices so that you don’t have to actively manage your positions.

What problem is your project solving?

Ocean Market is an awesome marketplace with DeFi built in. Its really very intuitive for data publishers and data consumers but user experience for data stakers and traders is not so best. Because -

  1. To perform datatoken to datatoken swap, users have to go to each individual dataset, swap datatoken back to OCEAN and then go to other dataset and swap OCEAN to that dataset. Apart from it being a bad user experience, it also costs more gas fees because 2 txs are involved. We solve this using our router contracts that will allow users to swap datatokens to datatokens within 1 tx.

  2. Data traders/investors currently have to always stick to their screen to be able to sell datatokens they bought at the price they want to. This is time consuming and leads to less engagement of traders who can benefit from Limit order features of other DEXs like 1inch. So, they prefer trading other ERC20 tokens. By allowing traders to put limit orders, we will provide a better onboarding and profitability option to traders and thereby bringing more traders/investors to Ocean ecosystem and more swap fees generated for Ocean ecosystem.

  3. Currently Ocean ecosystem has a lack of dapps that can provide investment option into datasets natively using any ERC20 token. Ocean Market only supports OCEAN token. Ocean Data pools only supports OCEAN token. As a result, Ocean Protocol has only attracted users who are close to OCEAN ecosystem and are holders of OCEAN token to interact with their datasets. There is a big open market of degens and investors for whom new assets like datatokens creates lucrative speculative and investment opportunity. But to attract them there needs to be support for all ERC20 tokens natively. We aim to solve this problem and bring greater exposure to Ocean Ecosystem from DeFi degens and investors alike. This will immensely benefit all datasets registered on Ocean and bring in more data liquidity onto Ocean Protocol leading to greater adoption.

What is the final product?

Web based Dapp

How does this project drive value to the Ocean ecosystem?

Explained in detail above in Problem being Solved section. But tl;dr this project will help with -

  1. Increase no. of daily active users on Ocean Protocol
  2. Increase TVL
  3. Vastly improve user experience for buying, selling, stacking and trading datasets
  4. Increase daily trading volume
  5. Increase consumption volume
  6. Generate more revenue for Ocean community

Calculations for ROI

Calculation of ROI is not straight forward but its easy to see that when live this project will bring more users (and many new ones) to Ocean Ecosystem. It will help bring more TVL, increase daily users, increase trade volume, increase consumption volume and increase more revenue for Ocean community.

Lets consider if this project eventually helps to generate monthly trading volume of 1,000,000 OCEAN.

Swap revenue

Then considering an average of 2.5% swap fee for the volume traded brings in swap revenue to Ocean community as 25,000 OCEAN. And thats just swap fees.

Swap Revenue = 25,000 OCEAN

Consumption Revenue

If we consider consumption volume at an average 2.8% conversion rate (source). Then that brings revenue of about 28,000 OCEAN to the data publishers and Ocean Ecosystem

Consume Revenue = 28,000 OCEAN

Marketplace Fee

If we consider an average of 2.5% marketplace fee for the volume traded, then it brings about another 25,000 OCEAN as revenue back to Ocean ecosystem marketplace.

Marketplace Fee = 25,000 OCEAN

Increase in Users & txs

This is an intangible metric but a very important one. Better user experience will and attract and onboard new users to the Ocean Protocol. This will not only bring new investments but also bring in word-of-mouth popularity with a multiplier effect.

Increase in users -> adoption = priceless

Calculation

Swap Revenue = 25,000 OCEAN
Consume Revenue = 28,000 OCEAN
Marketplace Fee = 25,000 OCEAN

Total = 78,000 OCEAN (Bang)

Buck = 32,000 OCEAN

So ROI = bang / buck = 78,000 / 32,000 = 2.43

Proposer’s estimate of % chance of success = 90%

expected ROI = 0.9 * 2.43 = 2.18 (without considering intangible ROI)

Project Deliverable - Build / Integrate

Using this grant, we will build following features and artifacts -

  1. datax.js library that supports datatoken <> OCEAN and datatoken <> datatoken swaps with smart routing built-in to find pools with best price.
  2. Non-custodial Router smart contract which allows to interact will different datapools in a single tx (thereby saving gas fees)
  3. Webapp UI (like uniswap or sushiswap) using React.js, web3.js and integrated with Metamask so users can use above features in a convenient way

Project Deliverables - Roadmap

We aim to get the above mentioned deliverables live in beta by end of August,2021

Team members

Akanksha Trambadia
Project Owner & Team Lead
8 years of experience with product management & leading teams

Hruday Kumar Reddy
Lead Developer and Architect

2 Likes

Hey @aks,

very interesting proposal!
To support any ERC20 you will do a swap between ERC20 -> $OCEAN -> datatoken? Or am I missing something here? This would then be another Gas fee added on top?
Or do you want to create a seperate liquidity pool for each ERC20 <-> datatoken pool?

Best,
Robin

1 Like

They say in their deliverables:

Support for datatoken to datatoken swap in a single transaction (with additional router contracts)

They want to deploy a non-custodial router, which I’m welcoming very much. Indeed, I also suggested this to the OP team. You can find a technical description of how this could work here.

2 Likes

Thanks @TimDaub. Yes exactly. We will deploy the non-custodial smart contract (similar to Uniswap and Balancer) and write a router lib that will find ideal routes to maximize the returns. We will not create liquidity pools but build on existing pools. And support new ones (in case if Pool owner decides to create another datatoken pool on Uniswap). Hope this helps.

Hey @aks your proposal looks super promising and like something that we at rugpullindex.com want to actively support. I’m hoping that your proposal will be successful in Round 7. If so, I’d be interested in sharing notes. Maybe there are topics we could collaborate on.

1 Like

Thank you for the clarification!

Wow! Here at Solipay we would be happy to connect and explore listing our various data products with their corresponding data tokens on this DEX concept once it is ready for such a technical integration.

1 Like

Super cool. Having our own pools are not in near term roadmap yet.
Our main priority is to provide better user experience to Ocean Community and onboard new users to Ocean ecosystem.

But, even in our first release, users will be able to trade ‘Solipay’ datasets with other datasets using DataX.

@dataX @aks how much grant funding are you requesting for OceanDAO Round 7? Please post this answer as soon as possible as the deadline is approaching.

Please also add if you are a first time project or not for the community.

See https://github.com/oceanprotocol/oceandao/wiki/Grant-Proposal-Template for help.

Thank you.

Hi Alex, Amount is 32000 OCEAN. It is mentioned in ‘Buck’ but probably not clear enough.

Requested Amount = 32,000 OCEAN

And yes we are the first time project. We will update the proposal accordingly

I really like where you are going with this and see definite potential. My only concern as a data provider on the Ocean Network, what if one person buys a static data set or even a streaming websocket dataset and then immediately sells it on the dex, undercutting the marketplace and in the end, providing near endless users access to this data set for the price of a single consumption to the data owner?

I think for live data streams this could be curbed by Ocean providing each data consumer a different WSS address with 1 or 2 max session limit per address. It still feels like a secondary market for Ocean static data-sets would kill the primary market. Do you guys intend to address that issue or possibly exclude the trading of static data-sets to prevent the destruction of Ocean’s primary (static) data markets?

Either way, I think this concept has potential to be a fantastic value providing a secondary market for selling partially consumed streaming data subscriptions. Already thinking of great ways we could produce demand for this data exchange in the future as both our projects mature. Good luck!

1 Like

Thanks for the feedback @Vantagecrypto. And really looking forward to our future synergies.

Regarding your feedback, there seems to be some confusion on your end.

  1. Once user buys dataset (consumes Datatokens), Datatokens are already transferred to data owner’s account so there is no way to ‘double-spend’ it. That’s how Ocean works.

  2. We are not creating a secondary data market (atleast not yet). Our primary objective is to provide a better user experience for users of Ocean Market. So, e are building on top of existing datapools. We are not moving liquidity out of Ocean Market but help to increase TVL, trading Volume on Ocean Protocol and consumptiom volume. We have mentioned it clearly in our proposal. Think of us as 1inch of Uniswap where Uniswap is Ocean Market.

Hope it helps !!