Mystic is building a permissioned lending and borrowing market for RWAs. For context, over $10 trillion worth of financial assets are expected to be tokenized until 2030, driven by institutional adoption. However, existing lending markets both lack the compliance rails to support these assets and don't have mechanisms in place to prevent liquidity fragmentation caused by different parties tokenizing the same underlying asset (e.g. there are 10+ US Treasury Bill tokens on Eth Mainnet alone).

Mystic solves this by requiring every participant to KYC/KYB, which allows us to modularly support any asset and its legal requirements (e.g. non-US investors only). Not only that, Mystic has an optimizer system in place which helps balance liquidity across assets of the same asset class (e.g. distribute liquidity amongst tokens representing US Treasuries). Both of these characteristics combined make Mystic the perfect lending playground for institutions and high-networth individuals looking to leverage their real-world asset holdings.

Seeing as our current infrastructure is all Ethereum-based and EVM-focused, we lack the ability to support Stellar assets. We are very interested in being on Stellar, as the ecosystem seems like a perfect fit with our value proposition. Hence, we are requesting this Activation Award so we may reproduce our infrastructure on Soroban and go live on Stellar!

After completing the previously laid out deliverables, Mystic's next steps will be:

- Get code audited by a third party

- Deploy Smart Contracts on Mainnet

- Onboard first borrower and lender on Mainnet to run Proof of Concept loan

- Build Optimizers, for yield optimization across assets of the same asset class

- Launch rewards program

After all these steps, our focus will be on expansion and onboarding an ever-increasing number of institutions and asset classes to enable more and more loans.

The scope of work of the requested Activation Award for Mystic is to develop an MVP for the lending and borrowing protocol we intend to operate and deploy it on Testnet, as well as close a partner to run a PoC with. Let's look at the deliverables required to make this happen.

Deliverable 1: Smart Contract and Testnet Deployment

Brief description: Develop the first version of the Soroban lending protocol and deploy a fully operational version on Testnet.
- Write a Soroban smart contract with key Aave-like functionalities, namely the ability to lend/borrow and receive/pay interest for doing so, as well as a few other core functionalities to our use case (see technical architecture document to see the differences).

- Testing - run deep unit testing as well as static analysis, fuzzing (both stateless and stateful) and formal verification to ensure the reliability and safety of the smart contracts, especially in oracle usage.

How to measure completion: To be complete, the contract must be fully functional and live on Testnet. We will provide all relevant documentation as well as the links to the public smart contracts and the respective code in our codebase for this to be verifiable.

Estimated date of completion: 1.5 months.

Budget: $30,000

Deliverable 2: frontend/backend adjustments and and KYC/KYB integrations

Brief description:
- Adjust frontend and backend to include Stellar Network and modularly change functions being called according to blockchain the user is connected to.
- Make all designs necessary for frontend adjustments.
- Integrate KYC/KYB provider to be compliant with all relevant AML regulations.

How to measure completion: Complete UI support for Stellar on Testnet.

Estimated date of completion: 1 month.

Budget: $12,000

Deliverable 3: Business Development and PoC

Brief description: Talk to several potential lenders and borrowers in the Stellar ecosystem to line up a Proof of Concept, namely a first institutional loan backed by RWAs. Help from the Stellar team in this milestone is appreciated but not required. We are taking into account we'll need time to produce commercial documentation and materials, negotiate loan terms and even undergo any potential legal checks necessary as well.

How to measure completion: Contract or LOI signed with borrower and lender for an initial loan.

Estimated date of completion: 1 month.

Budget: $5,000

The Mystic team has been building products in web3 for two years now. We've grown with the space, going from working on an OTC Desk for NFTs in 2022, to a marketplace-generator platform in 2023 to now Mystic in 2024. With the increasing adoption of blockchain technology by institutions and a team with a proven background in executing bold projects, we possess what it takes to make the most of this opportunity.

João Moreira, CEO

7+ years of experience in building software products and enterprise sales. Second-time founder and previous SaaS General Manager who nearly doubled his company's revenue over 2020-2022. Founder of Mysticswap.io, an OTC Desk for NFTs with thousands of registered transactions.

John Agbanusi, CTO

3+ years experience in blockchain and fullstack development. Previously founder of a portfolio tracking startup and also the core Rust engineer behind GooseFX, a ~$700 million volume DeFi protocol on Solana. John is a proven Rust engineer and one of the main contributors to one of Solana's largest DeFi protocols.

Ugnius Neimantas, CMO
5 years experience in web2 and web3 marketing. Previously CMO at Divine Anarchy, where he achieved 50k Twitter followers and minted out their NFT collection in under 2 hours. Ugnius has experience working with both enterprise clients and web3-native protocols, making him the perfect fit for Mystic.

Fernando Enoch - Fullstack Software Engineer

Julio Patiño - Fullstack Software Engineer