Grant Proposal: Regulated Custody, Trading, and Staking Solutions for the Polkadot Ecosystem

To the Polkadot Ecosystem:

We are excited to present a comprehensive proposal aimed at fostering institutional adoption and participation in the Polkadot ecosystem. Our goal is to address key infrastructure challenges by integrating secure fiat gateways, enhancing liquidity, and fostering institutional-grade participation - unlocking Polkadot’s full potential through custody, staking, trading, and treasury management solutions.

Join us in driving sustainable growth and robust ecosystem development.

Title: Regulated Custody, Trading, and Staking Solutions for the Polkadot Ecosystem

The Polkadot’s ecosystem lacks critical infrastructure. The absence of institutional-grade fiat on/off ramp solutions results in reduced liquidity and limited trading pairs beyond USDT. This inadequacy severely hinders institutional participation, leading to decreased trading activity, investor confidence, and ecosystem growth. Integrating diverse fiat gateways and compliant trading pairs will significantly boost liquidity and drive robust ecosystem development.

SCRYPT, a leading player in financial services specializing in crypto assets, proposes a strategic partnership to bridge the gap between traditional finance and the decentralized web3 world. This will unlock Polkadot’s full potential through Custody, Staking, Trading Solutions, Treasury Management, and Education.

Proposal Overview and Objectives

Objective: Enhance institutional participation and significant growth of the Polkadot ecosystem through advanced technologies and strategic collaborations.

Secure institutional capital through regulated custody, staking, and trading solutions.

Benefits:

Foster tTrust by providing regulated custody solutions for Polkadot assets, instilling confidence to traditional institutions.

Enhance Trading Activity: Increase liquidity, minimize slippage, and improve execution efficiency, providing deeper liquidity and reducing price volatility.

Improve institutional access and capital inflow by removing barriers to entry with seamless on-ramping: Facilitate effortless treasury management for web3 companies and dApps.

Challenges in the Polkadot Ecosystem

The Polkadot ecosystem faces significant challenges in institutional adoption due to the lack of robust infrastructure

1. No Institutional Custody Solution:

  • Challenge: Lack of regulated custody solutions restricts liquidity and trading volume. Institutional investors face significant risks in managing Polkadot-based assets.

  • SCRYPT’s Solution: Develop a comprehensive, regulated custody solution tailored to Polkadot assets.

  • Expected Outcome: Enhanced trust and confidence from institutional investors, increased asset inclusion in portfolios, and overall market stability and growth.

2. Poor Liquidity and Investor Confidence:

  • Challenge: Insufficient trading volume and shallow order books deter large-scale investments.

  • SCRYPT’s Solution: Introduce liquidity pools and incentivize market-making activities to deepen order books and boost trading volume. Collaborate with major exchanges to list Polkadot assets.

  • Expected Outcome: Improved trading conditions, reduced price volatility, and increased attractiveness for institutional investors and high-volume traders.

3. High Barriers to Entry:

  • Challenge: Absence of robust fiat on/off ramp solutions limits capital inflow and accessibility. Limited trading pairs beyond USDT, problematic for European users and compliance with MiCA regulations.

  • SCRYPT’s Solution: Develop secure fiat on/off ramp solutions, integrating diverse fiat gateways and compliant trading pairs.

  • Expected Outcome: Increased capital inflow, higher investor participation, and a more vibrant and accessible ecosystem.

4. Limited Access and Distribution:

  • Challenge: Institutional investment remains limited due to the aforementioned barriers.

  • SCRYPT’s Solution: Create dedicated investment products and channels to attract institutional capital. Engage with asset managers and institutional investors to educate them about the benefits within the Polkadot ecosystem.

  • Expected Outcome: Significant capital inflow, accelerated project development, and enhanced overall growth of the Polkadot ecosystem.

Proposed Solutions

Custody Solutions:

  • SCRYPT’s Offer: Develop and provide regulated, institutional-grade custody solutions for Polkadot assets, ensuring secure and compliant storage options.

  • Expected Outcome: Secure and compliant storage, enhanced investor trust, and increased asset inclusion.

Staking Services:

  • SCRYPT’s Offer: Introduce staking services that allow institutional investors to earn rewards on their Polkadot holdings, enhancing liquidity and market participation.

  • Expected Outcome: Increased liquidity, higher market participation, and additional revenue streams for investors.

Enhanced Trading Offering:

  • SCRYPT’s Offer:

    • Establish liquidity pools and incentivize market-making activities.

    • Collaborate with major exchanges to list Polkadot assets.

    • Develop secure fiat on/off ramp solutions.

  • Expected Outcome: Boosted trading volume, reduced price volatility, and improved market access.

Treasury Management:

  • SCRYPT’s Offer: Create dedicated investment products and channels to attract institutional capital. Provide strategic financial planning and analysis for Polkadot-based projects.

  • Expected Outcome: Efficient treasury management, increased institutional investment, and project development.

Education and Outreach:

  • SCRYPT’s Offer: Engage with institutional investors and the broader financial community to educate them about the benefits and opportunities within the Polkadot ecosystem. Host webinars, create educational content, and participate in industry conferences.

  • Expected Outcome: Greater understanding and adoption of Polkadot technologies, increased investor confidence, and wider ecosystem engagement.

Final words:

The Polkadot ecosystem stands at the cusp of significant transformation. By addressing critical infrastructure challenges and fostering institutional participation, we believe we can unlock significant growth. SCRYPT is committed to bridging traditional finance with decentralized solutions, ensuring that Polkadot reaches its full potential.

We invite you to support this proposal and join us in driving sustainable development and robust ecosystem advancement

SCRYPT