The 14th KIR: Audit Fund Proposal_Quantstamp


KLAY Funding

  • Proposed: KLAY worth USD $1,200,000


Brief Introduction of the Project

This is a proposal for Quantstamp to become a regularly available audit firm for Klaytn ecosystem partners and projects.
The goal of this proposal is to set up an audit fund for the Klaytn ecosystem and help the ecosystem projects audited by Quantstamp in a timely manner.

Key Deliverables

Audit certificates for the projects audited.

  • Project Description: Klaytn Ecosystem Audit Fund
    Quantstamp proposes to create a Klaytn Ecosystem audit fund for audit services as
    ● Starting at the time of project approval (defined in Section 4 below)
    ○ A total yearly budgeted fund of $1.2M USD to be used to subsidize Klaytn approved audit work
    ○ Unused funds will carry over to the following year.
    ● Actual audit costs for each project will be scoped and settled on a per project basis: 50% of the costs will be paid using the above-mentioned audit funds, and the other 50% of the costs will be paid by the ecosystem companies (the audit customers) themselves.
    ● Quantstamp reserves the right to receive payment of the audit customers 50% portion in customer’s project token. The price per token will be pegged to the company’s valuation in the first round of financing, or to be agreed upon between Quantstamp and the customer.
    ● In case any audit customer does not pay its own bill for any reason within one month after Quantstamp issues a completed audit certificate, the unpaid 50% will also be paid from the audit fund allocation.
    ● The Klaytn Foundation shall inform Quantstamp of the audit needs by one month before each quarter, and Quantstamp will reserve audit slots for that quarter. Quantstamp will provide up to 3 audits per quarter.
    ● Each project should complete and provide an Audit Questionnaire to Quantstamp at least one month before the audit starts.
    ● A 20% discount will be given to a project when it submits the Audit Questionnaire at least two months before the audit starts.
    ● 50% of audit costs of any reserved but unused slots will be forfeited and paid from the audit fund.
    ● If at any time, the audit fund is used up, Klaytn can decide to recharge the fund.
    ● In case the fund is not used up in one year, the remaining amount will be carried over to be used to fund the following year term. For the avoidance of doubt, following years will be made whole up to the agreed amount $1.2M USD.
    ● Quantstamp reserves the right to not to audit a certain project after scoping and evaluation (e.g. below standard, any legitimate concern, against policy, etc.)
    ● Any project exceeding the scope and complexity of three audit weeks cost will require a custom scope and is subject to additional discussion within the given time. As such, very large projects may use multiple audit slots per quarter at Quantstamp’s discretion.

Hey there! What’s the status of this proposal?

We’d love to get an audit before our mainnet launch this quarter.

For quick background, we are building Sigma — a Convex Finance fork — to reward Klayswap (KSP) stakers and lockers with additional DeFi yields.

Please reach out if that’s an option we can discuss.