Author: Couch_Adventures (@couch_adventures)
Date: April 7, 2025
DISCLAIMER: This study can take place AFTER the Polygon research!
(1) Summary
This proposal seeks approval to allocate a portion of the K9 Finance Operations budget to fund a 10-week feasibility study on expanding our Liquid Staking Derivative (LSD) product to the SUI network. SUI represents a significant opportunity for K9 Finance as a newer, well-funded, US-based Layer 1 blockchain built with unique technology (Move language, object-centric model) and experiencing considerable growth. Unlike many EVM-compatible chains, SUI offers a distinct technological foundation, potentially opening new avenues for innovation in liquid staking.
This study will allow the development team to evaluate the technical, financial, and strategic requirements necessary for K9 to potentially enter the SUI ecosystem with a product like knSUI (placeholder name) and bring the $KNINE token across via a cross-chain bridge (likely Wormhole).
Acknowledging the learning curve associated with the non-EVM Move language and cross-chain bridging complexities, this study is scoped for 12 weeks. Rather than committing to a full deployment at this stage, the goal is to assess viability, risks, and potential benefits before making a formal launch proposal.
(2) Benefits to K9 Finance Community
• First-Mover Advantage: Assess the opportunity to become a leading LSD provider on a rapidly growing, non-EVM L1 network.
• Diversification: Explore expansion beyond EVM-compatible chains, tapping into a different user base and technological paradigm.
• Innovation: Leverage SUI’s unique features (e.g., Move language, parallel transaction processing) to potentially build a more efficient or novel LSD product.
• Ecosystem Growth: Position K9 Finance as a forward-thinking DAO contributing to the growth and liquidity of the SUI ecosystem, and potentially bringing $KNINE utility to a new chain.
• Informed Decision-Making: Provide the DAO with comprehensive data to make a strategic decision about deploying resources to SUI, minimizing risks associated with launching on a new platform.
(3) Proposal Details
(a) WHAT:
A 12-week feasibility study to evaluate the potential for K9 Finance to launch a Liquid Staking Derivative (LSD) product (e.g., knSUI) on the SUI network. The study will cover:
• Technical Feasibility:
• Smart contract development requirements using the Move language.
• Implications of SUI’s object model for LSD design.
• Validator integration specifics on SUI.
• Cross-chain Bridging: Assessment of bridging $KNINE between Ethereum/Shibarium (EVM) and SUI (non-EVM). Wormhole is identified as a primary candidate for this, enabling the creation of a wrapped KNINE asset on SUI. The study will evaluate the integration effort, security considerations, and user experience associated with using Wormhole or alternative SUI-compatible bridges.
• Potential security considerations unique to the SUI architecture and bridging protocols.
• Financial & Liquidity Assessment: Estimated costs for development, deployment, audits (including bridge integration), and potential validator operation on SUI. Analysis of initial liquidity requirements for a knSUI pair and strategies for bootstrapping liquidity. Research into SUI Foundation grants and ecosystem funding opportunities.
• Strategic Alignment & Market Analysis: Market demand for LSDs on SUI, competitor analysis (existing SUI LSD protocols like Haedal, Volo, etc.), potential partnerships within the SUI DeFi landscape (e.g., DEXs like Cetus, Turbos; lending protocols like Navi), and alignment with K9’s long-term strategic goals.
• Risk Assessment: Identifying potential technical (including bridge security), financial, regulatory, and adoption risks specific to operating on SUI.
(b) WHO:
• K9 Finance Development Team: Responsible for conducting the technical analysis, including bridge integration assessment, estimating development costs, and evaluating SUI infrastructure.
• K9 Finance Management Council: Responsible for overseeing the study, strategic analysis, potential partnership outreach, and presenting the findings to the DAO.
• SUI Foundation/Ecosystem Projects/Wormhole Team (Potential): Engagement for potential grants, technical support, or partnerships related to bridging and integration.
• K9 Finance Community: Ultimate decision-makers based on the feasibility study’s findings.
(c) WHERE:
• The study will focus on the SUI Network mainnet and testnet environments.
• Research will involve analyzing SUI documentation, Wormhole documentation, engaging with the SUI developer community, and potentially interacting with SUI-native DeFi protocols.
(d) WHEN:
• Study Duration: 12 weeks (estimated).
• Phase 1 (Weeks 1-6): Technical and Infrastructure Analysis (Move language assessment, SUI object model/validator mechanics, initial bridge assessment with Wormhole).
• Phase 2 (Weeks 6-8): Financial, Liquidity, Grant Assessment, and Deeper Bridge/Security Analysis (Cost modeling, liquidity strategies, SUI grant research, Wormhole integration specifics, security audit scoping).
• Phase 3 (Weeks 8-12): Strategic Review, Competitor Analysis, Risk Finalization, and Final Report Development.
• Final Report Submission: End of Week 12, presented to the K9 Finance DAO community for review and discussion before any subsequent deployment proposal.
(e) HOW:
• Funding: Requesting allocation from the existing K9 Finance Operations budget.
• Execution: The K9 Development team, guided by the Management Council, will conduct the research and analysis outlined in the objectives over the 12-week period.
• Deliverable: A comprehensive feasibility report detailing findings, risks (including bridge-related), opportunities, estimated costs, and a preliminary roadmap if expansion is recommended.
(4) Budget Request
• We propose an allocation of $1,000 USD per week for 12 weeks (Total: $12,000 USD) from the Operations budget.
• These funds will compensate development team members for their dedicated time and expertise in conducting this SUI-specific feasibility study, covering:
• Smart contract analysis (Move language).
• Technical research on SUI validator setup and network architecture.
• Assessment of Wormhole bridge integration.
• Economic modeling and liquidity planning for knSUI.
• Competitor and partner analysis within the SUI ecosystem.
• Research into SUI Foundation grants and application processes.
(5) Impact Assessment
• Short-Term Impacts: Allocation of developer resources to the study for 12 weeks. Delivery of a detailed report enabling an informed DAO decision on SUI expansion. Potential identification of grant opportunities. Understanding of bridging requirements and challenges specific to SUI/Move/Wormhole.
• Long-Term Impacts: Potential expansion of K9 Finance’s LSD product and the $KNINE token to a new, high-growth L1 network. Diversification of the DAO’s ecosystem presence. Opportunity to establish K9 as a key DeFi player on SUI. Avoidance of wasted resources if the study finds expansion non-viable.
• Risks and Mitigation:
• Risk: The study might find SUI expansion is not currently feasible or strategically sound.
• Mitigation: This is an intended outcome of a feasibility study – preventing costly deployment failures. The cost is limited to the study budget.
• Risk: Developer bandwidth constraints impacting current roadmap progress over a 12-week period.
• Mitigation: Clearly define resource allocation and ensure the study doesn’t unduly delay critical existing workstreams. The proposed budget compensates for dedicated time.
• Risk: SUI ecosystem or bridge technology (Wormhole) might evolve rapidly during the study.
• Mitigation: The study will incorporate ongoing monitoring of the SUI and Wormhole landscapes.
• Risk: Security vulnerabilities associated with cross-chain bridges.
• Mitigation: The technical feasibility study will explicitly assess the security track record and architecture of Wormhole (or alternatives) and factor this into the risk assessment.
• Metrics for Success:
• Completion of a comprehensive feasibility report within the 12-week timeframe.
• Clear assessment of technical challenges (including Move language and bridging), costs, and market opportunities on SUI.
• Thorough evaluation of Wormhole integration requirements and security.
• Identification of potential grant funding from the SUI Foundation or ecosystem partners.
• A well-supported recommendation to the DAO (either proceed with a deployment proposal or postpone/cancel SUI expansion plans).
Note:
- There is a hackathon on July 27th with prizes like 25M staked SUI tokens and $125K USD in SUI tokens: Sui Developers | Liquid Stacking Hackathon
- There are bootcamps, grants, and incubators to help funding: Sui Grants | Apply to Receive Funding for Your Project
