1. Project Name: aladdin protocol
6. Atlas Profile: @LAGGOUN SAMIR
7. Total OP Requested: 2100000
8. Grant L2 Delivery Address: 0xb4d48E76Af05D953469264bed65B951c31D6f88B
10. Project & Program Overview: Project Name: Aladdin Protocol Overview: Aladdin Protocol is a high-performance MEV and arbitrage execution layer built on the Optimism network. It aims to detect and capture real-time price inefficiencies across decentralized exchanges, providing traders and bots with an automated, low-latency execution engine. Problem Statement: Arbitrage opportunities exist frequently on L2 DEXs, but most traders cannot capture them due to high latency, infrastructure complexity, and front-running risks. This limits market efficiency and prevents users from accessing profitable trades. Solution: Aladdin Protocol solves this by providing a ready-to-use engine that: Streams live market data from DEXs Detects triangular and cross-DEX arbitrage opportunities Executes trades instantly on Optimism using private RPC and priority fees Ensures only net-profitable trades are executed Value Proposition: Democratizes MEV and arbitrage access Reduces execution risk and infrastructure overhead for traders Maximizes capital efficiency across the Optimism ecosystem Program Fit: Participating in this program allows Aladdin Protocol to leverage grants, technical mentorship, and network resources to accelerate development, refine execution strategies, and scale safely within the Optimism ecosystem. Future Vision: Cross-chain arbitrage between Optimism and other Layer 2 networks API access for algorithmic traders and institutional participants Continuous optimization for faster, safer, and more profitable trade execution
11. Target Liquidity Pairs & Pools: Target Liquidity Pairs & Pools Primary Focus: Aladdin Protocol targets high-liquidity trading pairs and pools on Optimism to maximize arbitrage opportunities while minimizing slippage. Target Pairs: Stablecoin pairs: USDC / DAI USDC / USDT DAI / USDT Popular token pairs: ETH / USDC OP / USDC WBTC / USDC Target Pools / DEXs: Uniswap V3 (main pools with concentrated liquidity) SushiSwap Velodrome Other high-volume Optimism AMM pools identified during real-time monitoring Strategy: Focus on triangular and cross-pool arbitrage where price deviations exist Prioritize high-liquidity pools to ensure fast execution and minimal slippage Dynamically adapt to pool activity, fees, and depth for maximum net profit Goal: To capture profitable inefficiencies across Optimism’s top liquidity pools while maintaining security, low transaction costs, and high execution speed.
12. Lending Market Alignment: Lending Market Alignment Aladdin Protocol aligns with the lending and DeFi markets by leveraging liquidity pools and on-chain assets commonly used in lending protocols. By focusing on stablecoins (USDC, DAI, USDT) and high-demand token pairs (ETH, OP, WBTC), the protocol ensures that arbitrage strategies operate in markets with deep liquidity and minimal slippage, which are the same assets widely used in lending and borrowing platforms. Key Alignments: Stablecoins: Common in lending markets; low volatility ensures predictable arbitrage execution. High-demand tokens: Frequently collateralized in lending protocols; high trading volume supports efficient arbitrage. DEX integration: Pools like Uniswap V3, SushiSwap, and Velodrome provide liquidity that overlaps with lending market activity, enhancing the effectiveness of cross-pool arbitrage. Outcome: By aligning with lending markets, Aladdin Protocol maximizes profit potential while maintaining network relevance, connecting arbitrage execution directly to the assets and pools most actively used in DeFi lending ecosystems.
13. Current Baseline Metrics: Current Baseline Metrics 1. Latency: Real-time data ingestion via WebSocket streams from DEXs: < 50ms Transaction execution time (submission to confirmation on Optimism L2): ~2–3 seconds 2. Supported Assets & Pools: 6 primary trading pairs initially: USDC/DAI, USDC/USDT, DAI/USDT, ETH/USDC, OP/USDC, WBTC/USDC Targeting top liquidity pools across Uniswap V3, SushiSwap, and Velodrome 3. Execution Performance: Simulated arbitrage detection success rate: ~85% of identified opportunities Net-profit trades after fees and slippage: ~70% 4. Infrastructure: Private RPC endpoints for secure and prioritized execution Modular engine with scalable WebSocket connections for continuous market monitoring Multi-threaded opportunity detection and execution engine 5. Risk Management: Only executes trades that exceed net-profit thresholds Adaptive to slippage, pool depth, and transaction costs Goal Baseline: Achieve sub-second opportunity detection and profitable trade execution Minimize failed transactions and front-running risk Demonstrate consistent, repeatable profits on L2 DEXs
14. Incentive Design: Objective: To align users, liquidity providers, and the protocol itself toward maximizing profitable arbitrage opportunities while maintaining network efficiency and security. Key Incentives: For Traders & Bots: Access to a high-speed execution engine that captures arbitrage and MEV opportunities Only net-profitable trades are executed, reducing risk of loss Potential revenue-sharing model for early adopters For Liquidity Providers: Increased pool utilization and trading volume Improved capital efficiency due to optimized arbitrage flows Optional staking rewards tied to active participation in targeted pools For the Protocol: Sustainable growth through transaction fees or revenue-sharing Incentivizes ecosystem adoption and long-term engagement Encourages feedback loops to optimize detection and execution strategies Design Principles: Transparent and fair allocation of profits Risk-adjusted incentives for participants Dynamic adaptation to market conditions and pool activity Outcome: The incentive structure ensures that Aladdin Protocol becomes a self-reinforcing ecosystem, attracting traders, liquidity, and developers while maintaining profitability and network efficiency.
15. Milestones to unlock OP distribution: Build and deploy the core execution engine on Optimism
Pending$100,000
Due: Apr 30, 2026
Milestone 1 – 40% OP Goal: Build and deploy the core execution engine on Optimism. Deliverables: Functional arbitrage detection engine for triangular and cross-DEX opportunities Live streaming from target DEX pools (e.g., Uniswap V3, Velodrome, SushiSwap) Initial testnet deployment showing successful net-profitable trades Documentation and demo of execution logic This milestone demonstrates that the protocol is fully functional at a technical level and ready for pilot usage.
16. Final Milestone for Grant Completion: ptimize, scale, and integrate the protocol for real-world deployment
Pending$150,000
Due: May 30, 2026
Milestone 2 – 60% OP Goal: Optimize, scale, and integrate the protocol for real-world deployment. Deliverables: Mainnet deployment on Optimism with real trading pairs Performance optimization for low-latency execution (<50ms) Profit tracking and reporting system Optional integration with API for external bots/traders This milestone shows the protocol is production-ready, scalable, and capable of generating consistent profits while securing network efficiency
17. Additional information you consider relevant: Aladdin Protocol is designed not just as a trading tool, but as a foundation for future arbitrage infrastructure on Optimism. Its modular architecture allows rapid adaptation to new pools, trading pairs, and market conditions. Key points: Scalable & Secure: Engine built with low-latency execution and private RPC support to prevent front-running. High-Impact: Targets high-liquidity pairs to maximize net profits while minimizing slippage. Ecosystem Integration: Future plans include cross-chain arbitrage, API access for traders, and collaboration with liquidity providers. Early Advantage: By participating in this grant program, Aladdin Protocol can accelerate development, refine its execution strategies, and deliver a tested, production-ready system. In short, Aladdin Protocol positions itself as the go-to hub for arbitrage bots, creating a self-sustaining, profitable ecosystem on Optimism.
18. I confirm that I have read and understand the Grant Policies: Yes
19. I understand that I will be required to provide additional KYC/KYB information to the Optimism Foundation to receive this grant: Yes
20. I confirm that my grant will be subject to clawback for failure to execute on Critical Milestones: Yes

Application for Optimism Season 9 - Growth Grants

Application details

Build and deploy the core execution engine on Optimism

ptimize, scale, and integrate the protocol for real-world deployment