Total to date

[GENERAL] Name and surname of main applicant

[GENERAL] Email address of main applicant

Additional applicants

Not applicable

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.” .

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

[GENERAL] If NO, please describe which outputs are not going to be open source. If YES, please write “Project will be fully open source.”

Project will be fully open source.

[METADATA] Category of proposal

[IMPACT] Please describe your proposed solution.

Our proposed solution is to develop a decentralized exchange (DEX) protocol on the Cardano blockchain that integrates a secure DIDs layer using Atala Prism's digital identity system. By incorporating DID functionality into the DEX protocol, we aim to address the key challenge of regulatory compliance while maintaining the principles of decentralization.

The integration process will involve leveraging the existing infrastructure of the MuesliSwap DEX protocol, a proven and reliable platform for decentralized trading. We will enhance the protocol by adding smart contract functionality that facilitates the verification and validation of user identities through Atala Prism.

This solution will provide several significant benefits to the Cardano ecosystem. Firstly, it will enable businesses and users to engage in compliant trading activities, ensuring adherence to KYC regulations without sacrificing the decentralized nature of the exchange. This bridge between decentralized finance and traditional financial systems will attract a wider range of users and businesses, fostering greater adoption of Cardano's blockchain.

Moreover, the integration of Atala Prism's digital identity system will introduce an additional layer of trust and transparency to the DEX protocol. Users will have their identities securely verified, reducing the risk of fraudulent activities and enhancing the overall integrity of the trading platform. This heightened level of trust will attract more users to the Cardano ecosystem, further solidifying its position as a reliable and secure blockchain platform.

In summary, our proposed solution of developing a DEX protocol with a DID layer using Atala Prism will address the challenge of regulatory compliance while promoting decentralization. By doing so, it will drive adoption, attract traditional businesses, and enhance trust within the Cardano ecosystem.

[IMPACT] How does your proposed solution address the challenge and what benefits will this bring to the Cardano ecosystem?

Our proposed solution directly addresses the challenge of integrating a decentralized identity layer into a DEX protocol, providing significant benefits to the Cardano ecosystem:

1. Regulatory Compliance: By incorporating a secure and decentralized identity layer, our solution enables businesses and users to engage in compliant trading activities on the Cardano blockchain. This addresses the regulatory challenge faced by decentralized exchanges and opens doors for collaborations with traditional financial institutions.
2. Expanded User Base: The integration of a DID layer attracts traditional businesses and users who require KYC-compliant trading platforms. This expansion of the user base brings new participants into the Cardano ecosystem, increasing network activity and liquidity.
3. Enhanced Trust and Transparency: The integration of Atala Prism's digital identity system adds an additional layer of trust and transparency to the DEX protocol. Users can have confidence in the authenticity and verifiability of identities, reducing the risk of fraud and improving the overall integrity of the trading platform.
4. Improved Reputation: By providing a DEX protocol with a decentralized identity layer, Cardano establishes itself as a pioneer in decentralized finance with robust compliance capabilities. This enhances the reputation of the Cardano ecosystem, attracting more projects and partnerships that value compliance and trust.
5. Ecosystem Growth: The availability of a DID-compliant DEX protocol encourages the development of additional decentralized applications and services within the Cardano ecosystem. It fosters an environment conducive to innovation and collaboration, driving the growth of the Cardano ecosystem as a whole.

Overall, our proposed solution addresses the challenge of regulatory compliance while promoting decentralization, bringing benefits such as expanded user base, enhanced trust, improved reputation, and ecosystem growth to the Cardano blockchain. By providing a secure and compliant trading environment, we pave the way for the mass adoption of blockchain technology in both decentralized finance and traditional financial sectors.

[IMPACT] How do you intend to measure the success of your project?

Measuring the success of our project involves assessing its impact on the Cardano ecosystem and the benefits it brings. We intend to use the following metrics to evaluate the project's success:

1. User Adoption: We will measure the number of users onboarded and actively participating in trading activities on the DEX platform. Increased user adoption indicates the attractiveness and usability of the DEX protocol with the decentralized identity layer.
2. Business Integration: We will track the number of traditional businesses that integrate with the DEX protocol due to its KYC compliance. The successful integration of businesses demonstrates the protocol's ability to bridge the gap between decentralized finance and traditional financial systems.
3. Feedback and Satisfaction: We will collect feedback from users and businesses regarding the usability, effectiveness, and compliance aspects of the decentralized identity layer. Positive feedback and high satisfaction levels indicate that the project is meeting the needs and expectations of stakeholders.
4. Third-Party Adoption: We will monitor the integration and adoption of our DEX protocol by third-party projects within the Cardano ecosystem. The inclusion of our protocol in other projects signifies its recognition and value within the broader blockchain community.
5. Network Activity and Liquidity: We will measure the increase in network activity and liquidity within the Cardano ecosystem as a result of the DEX protocol's adoption. Higher trading volumes and liquidity indicate a thriving ecosystem and the success of our project in attracting users and facilitating seamless trading experiences.
6. Community Engagement: We will evaluate the engagement and involvement of the Cardano community in the development and utilization of the DEX protocol. Community participation and support signify the project's acceptance and its contribution to the overall growth and vibrancy of the ecosystem.

By monitoring and analyzing these metrics, we can effectively measure the success of our project in terms of user adoption, business integration, stakeholder satisfaction, network activity, and community engagement. These measurements provide valuable insights into the project's impact on the Cardano ecosystem and its benefits for the broader blockchain community.

[IMPACT] Please describe your plans to share the outputs and results of your project?

We have comprehensive plans to share the outputs and results of our project with the Cardano community and the wider blockchain industry. Our goal is to disseminate knowledge, promote transparency, and encourage the adoption of our DEX protocol with a decentralized identity layer. Here are our plans for sharing the outputs and results:

1. Technical Documentation: We will create detailed technical documentation that outlines the integration process of Atala Prism's digital identity system with the MuesliSwap DEX protocol. This documentation will include step-by-step instructions, code snippets, and best practices, enabling developers to understand and implement similar solutions.
2. We will prepare an article highlighting the challenges, methodologies, and lessons learned during the integration of the decentralized identity layer.
3. Collaboration with the Cardano Community: We will actively engage with the Cardano community, participating in forums, online discussions, and developer groups. By sharing our project updates, milestones, and challenges, we aim to foster collaboration and gather feedback from the community, which will further enhance the quality and adoption of our DEX protocol.
4. Open-Source Contributions: We believe in the power of open-source development and will contribute the necessary components of our project to relevant repositories. By making our codebase openly available, we encourage collaboration, peer review, and the potential for further improvements and innovations.
5. Partnerships and Integrations: We will seek partnerships and collaborations with other projects and platforms within the Cardano ecosystem. By integrating our DEX protocol with their applications or services, we can demonstrate the interoperability and value of our solution, leading to wider adoption and use cases.
6. Social Media and Blog Posts: We will leverage social media platforms and maintain an active blog to regularly share updates, insights, and milestones of our project. This will enable us to reach a broader audience, including developers, traders, enthusiasts, and potential users, and keep them informed about the progress and benefits of our DEX protocol.

Overall, our plans focus on creating comprehensive documentation, publishing research papers, delivering presentations and workshops, collaborating with the Cardano community, contributing to open-source repositories, forming partnerships, and utilizing social media and blog posts. Through these channels, we aim to share our project's outputs, results, and knowledge, ensuring broad accessibility and promoting the adoption and development of decentralized finance solutions within the Cardano ecosystem.

[CAPABILITY/ FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability?

Our team, the MuesliSwap Team, has a proven track record of delivering high-tech solutions with a strong reputation for trust and accountability. We have demonstrated our capabilities in the following ways:

1. Pioneering DEX Development: We were the first to launch a decentralized exchange (DEX) on the Cardano blockchain, establishing our position as innovators in the ecosystem. Our hybrid AMM-Orderbook DEX with integrated DEX Aggregator sets us apart from the competition, showcasing our technical expertise and commitment to pushing the boundaries of decentralized finance.
2. Successful Funded Projects: We have already completed two projects funded through Fund 9 of Catalyst, the Cardano project funding platform. One of these projects has been publicly deployed and is accessible to users, highlighting our ability to deliver on our commitments. We have a track record of meeting project timelines and delivering tangible results.
3. Competent and Dedicated Team: Our team consists of a large group of dedicated technologists who are passionate about blockchain and decentralized finance. We have the necessary competence, skills, and capacity to successfully complete this project within the allocated time frame while ensuring high-quality outcomes.
4. Trustworthiness and Accountability: We prioritize trust and accountability in all our endeavors. Our reputation within the community reflects our commitment to transparency, integrity, and delivering on our promises. We understand the importance of maintaining the trust of our stakeholders and strive to exceed expectations in terms of project delivery and outcomes.

Given our experience in pioneering DEX development, successful completion of funded projects, a competent and dedicated team, and our commitment to trust and accountability, we are confident in our capability to deliver this project with high levels of trust and accountability.

[CAPABILITY/ FEASIBILITY] What are the main goals for the project and how will you validate if your approach is feasible?

The main goals for our project are to develop and implement a decentralized exchange (DEX) protocol on the Cardano blockchain that incorporates a decentralized identity layer using Atala Prism's digital identity system. We will validate the feasibility of our approach through the following means:

1. Technical Feasibility: We will conduct a thorough technical assessment to ensure the compatibility and feasibility of integrating Atala Prism's digital identity system with the MuesliSwap DEX protocol. This assessment will involve evaluating the existing infrastructure, identifying any potential technical challenges, and designing solutions to address them.
2. Proof of Concept: To validate the feasibility of our approach, we will develop a proof of concept (PoC) that demonstrates the integration of the decentralized identity layer within the DEX protocol. The PoC will serve as a tangible demonstration of the technical viability of our solution and allow for early validation of its functionality and performance.
3. Prototyping and Testing: We will develop prototypes of the DEX protocol with the decentralized identity layer and conduct extensive testing to ensure its functionality, security, and scalability. This testing will involve simulating various user scenarios, stress testing the system, and assessing its performance under different network conditions.
4. External Beta Testing: We will engage external users and businesses to participate in a beta testing phase of the DEX protocol. Their feedback and insights will provide valuable information regarding the usability, effectiveness, and practicality of the decentralized identity layer. This feedback will be incorporated into the project's development and refinement process.
5. Iterative Development: Throughout the project, we will adopt an iterative development approach, allowing us to continuously validate and refine our approach based on feedback, testing results, and emerging best practices. This iterative process ensures that our solution remains adaptable, responsive, and aligned with the evolving needs of the Cardano ecosystem.

By employing these validation methods, including technical assessments, proof of concept development, prototyping, testing, external beta testing and iterative development, we will ensure that our approach is feasible, reliable, and capable of delivering a robust DEX protocol with a decentralized ideneity layer on the Cardano blockchain.

[CAPABILITY/ FEASIBILITY] Please provide a detailed breakdown of your project’s milestones and each of the main tasks or activities to reach the milestone plus the expected timeline for the delivery.

Apologies for the confusion. Here is the adjusted breakdown of the project's milestones and the expected timeline for each:

Milestone 1: Research and Design Phase

• Review MuesliSwap DEX protocol and Atala Prism's digital identity system
• Design integration architecture for decentralized identity layer
• Define smart contract infrastructure for DID verification
• Establish communication channels with Atala Prism team
• Expected Timeline: Month 1

Milestone 2: Smart Contract Development and Integration

• Develop and test smart contracts for DID verification
• Conduct internal testing for functionality and compatibility
• Address any security or performance issues
• Expected Timeline: Months 2

Milestone 3: External Beta Testing and Iteration

• Conduct external beta testing with selected users and businesses
• Gather feedback on usability, effectiveness, and compliance
• Iterate on the protocol based on received feedback
• Refine user experience and address identified issues
• Expected Timeline: Months 3

Milestone 4: Protocol Finalization and Commercial Launch Preparation

• Finalize DEX protocol with decentralized identity layer
• Conduct additional testing and quality assurance
• Prepare documentation, user guides, and tutorials
• Plan commercial launch strategy and marketing efforts
• Expected Timeline: Months 4

Milestone 5: Deployment and Documentation

• Deploy fully functional DEX protocol with decentralized identity layer
• Prepare technical documentation on integration and functionalities
• Document best practices and lessons learned
• Ensure comprehensive documentation is available
• Expected Timeline: Months 5

[CAPABILITY/ FEASIBILITY] Please describe the deliverables, outputs and intended outcomes of each milestone.

Milestone 1: Research and Design Phase

Deliverables:

1. Integration architecture: A detailed design outlining how Atala Prism's digital identity system will be integrated into the MuesliSwap DEX protocol.
2. Smart contract infrastructure: Definition of the necessary smart contracts and their functionalities for DID verification.
3. Communication channels: Established communication channels with the Atala Prism team for collaboration and coordination.

Outputs:

1. Integration architecture document: A comprehensive document outlining the technical specifications and requirements for integrating the decentralized identity layer.
2. Smart contract specifications: Detailed specifications of the smart contracts, including their functions, parameters, and interactions.
3. Communication channels: Active communication channels established with the Atala Prism team for ongoing collaboration.

Intended Outcomes:

1. Clear direction for integration: A well-defined integration architecture guides the subsequent development and integration processes.
2. Defined smart contract infrastructure: Detailed specifications enable the smooth development of the smart contracts for identity verification.
3. Collaborative partnership: Establishing communication channels with the Atala Prism team fosters collaboration and ensures a cohesive integration process.

Milestone 2: Smart Contract Development and Integration

Deliverables:

1. Integrated DEX protocol: DEX protocol modified and enhanced to incorporate the decentralized identity layer.
2. Internal testing reports: Documentation of the internal testing process, including identified issues and their resolutions.

Outputs:

1. Smart contracts: Deployable and tested smart contracts that handle the verification and validation of user identities for DIDs compliance.
2. Internal testing reports: Reports highlighting the results of internal testing, addressing any security or performance issues encountered.

Intended Outcomes:

1. Functioning smart contracts: Developed smart contracts ensure accurate and reliable KYC verification within the DEX protocol.
2. Enhanced DEX protocol: Integration of the decentralized identity layer enhances the usability and compliance capabilities
3. Resolved issues: Identified issues during internal testing are addressed, ensuring a stable and secure implementation.

Milestone 3: External Beta Testing and Iteration

Deliverables:

1. External beta testing reports: Feedback and testing reports from external users and businesses on the functionality and usability of the DEX protocol with the decentralized identity layer.
2. Iteration plans: Documentation outlining planned iterations and improvements based on the received feedback.
3. Refined user experience: User experience enhancements based on the feedback and suggestions gathered during the beta testing phase.

Outputs:

1. Beta testing reports: Consolidated reports summarizing the feedback, suggestions, and identified issues from external beta testers.
2. Iteration plans: Documented plans for iterating and improving the DEX protocol based on the feedback received.
3. User experience refinements: Implemented improvements to the user interface and overall user experience based on the feedback.

Intended Outcomes:

1. User-centered improvements: Incorporating user feedback ensures a DEX protocol with a decentralized KYC layer that meets user expectations and needs.
2. Enhanced protocol usability: Addressing identified issues and suggestions improves the overall usability and effectiveness of the DEX protocol.
3. Iterative development approach: Documentation of iteration plans ensures a structured approach to refining the protocol based on real-world testing and feedback.

Milestone 4: Protocol Finalization and Commercial Launch Preparation

Deliverables:

1. Finalized DEX protocol: A fully functional and stable version of the DEX protocol with the decentralized identity layer.
2. Documentation and user guides: Comprehensive documentation and user guides for businesses and users on utilizing the DEX platform and the KYC functionality.
3. Commercial launch strategy: A well-defined strategy outlining the marketing and promotion plans for the commercial launch of the protocol.

Outputs:

1. Finalized DEX protocol: A production-ready DEX protocol with a decentralized identity layer, ready for deployment and commercial use.
2. Documentation and user guides: Comprehensive resources that provide clear instructions and guidelines for businesses and users to interact with the protocol.
3. Commercial launch strategy: A documented plan outlining the marketing, outreach, and adoption strategies for the protocol's commercial launch.

Intended Outcomes:

1. Production-ready protocol: Finalizing the DEX protocol ensures a stable, secure, and fully functional solution for decentralized trading with KYC compliance.
2. User empowerment: Documentation and user guides empower businesses and users to confidently engage with the DEX platform and utilize the DID functionality effectively.
3. Effective commercial launch: A well-planned commercial launch strategy facilitates adoption, drives user engagement, and maximizes the impact of the protocol within the Cardano ecosystem.

Milestone 5: Deployment and Documentation

Deliverables:

1. Deployed DEX protocol: The fully functional DEX protocol with the decentralized identity layer deployed on the Cardano blockchain.
2. Technical documentation: Comprehensive technical documentation detailing the integration process, functionalities, and architecture of the DEX protocol.
3. Best practices and lessons learned: Documented best practices, recommendations, and lessons learned from the development and integration process.

Outputs:

1. Deployed DEX protocol: The protocol is successfully deployed on the Cardano blockchain, accessible for users and businesses to utilize for decentralized trading.
2. Technical documentation: Detailed documentation that provides insights into the integration process, smart contract functionalities, and operational guidelines for developers.
3. Best practices and lessons learned: Documented knowledge that can be shared with the Cardano community and the wider blockchain industry to facilitate future developments.

Intended Outcomes:

1. Live and accessible protocol: Deployment ensures the protocol is available for use, enabling decentralized trading with a secure and compliant KYC layer on the Cardano blockchain.
2. Knowledge dissemination: Technical documentation and best practices sharing contribute to the broader blockchain community's knowledge and understanding of integrating KYC functionality in decentralized protocols.
3. Continuous improvement: Lessons learned and best practices allow for ongoing enhancement of future blockchain projects and foster a culture of continuous improvement within the Cardano ecosystem.

[RESOURCES & VALUE FOR MONEY] Please provide a detailed budget breakdown of the proposed work and resources.

Research and Design Phase:

• Funds requested through Catalyst: $10,000
• MuesliSwap team coverage: $15,000

Smart Contract Development and Integration:

• Funds requested through Catalyst: $20,000
• MuesliSwap team coverage: $24,000

External Beta Testing and Iteration:

• Funds requested through Catalyst: $8,000
• MuesliSwap team coverage: $15,000

Protocol Finalization and Commercial Launch Preparation:

• Funds requested through Catalyst: $12,000
• MuesliSwap team coverage: $18,000

Deployment and Documentation:

• Funds requested through Catalyst: $10,000
• MuesliSwap team coverage: $15,000

Total Funds Requested through Catalyst: ~$60,000

Total MuesliSwap Team Coverage: $87,000

The remaining funds will be covered by the MuesliSwap team:

Note: The budget breakdown reflects the portion of funds requested through Catalyst and the substantial coverage provided by the MuesliSwap team for the successful completion of the project.

[RESOURCES & VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The cost of the project represents value for money for the Cardano ecosystem in several ways:

1. Innovation and Advancement: By integrating a decentralized identity layer into a DEX protocol, the project brings innovation to the Cardano ecosystem. This advancement enhances the ecosystem's capabilities and attracts users and businesses that require DID compliance, expanding the network's reach and potential.
2. Ecosystem Growth: The project's successful implementation and commercial launch contribute to the growth of the Cardano ecosystem. The availability of a secure and compliant DEX protocol with a decentralized identity layer attracts users, businesses, and developers, leading to increased network activity, liquidity, and the emergence of new applications and services.
3. Reputation and Partnerships: The project enhances the reputation of the Cardano ecosystem by demonstrating its commitment to compliance and security. This reputation attracts potential partnerships with traditional financial institutions, regulatory bodies, and other blockchain projects, opening up avenues for collaboration and expanding the ecosystem's influence.
4. Long-term Sustainability: The project's focus on providing a robust and scalable solution ensures long-term sustainability within the Cardano ecosystem. By incorporating best practices, thorough testing, and iterative development, the project lays the foundation for a resilient and adaptable DEX protocol that can evolve alongside the changing needs of users and the industry.
5. Value for Investment: The budget allocated to the project represents value for money as it covers the essential activities required for successful development, testing, and deployment of the DEX protocol with a decentralized KYC layer. The funds contribute to the project's progress, ensuring the delivery of a high-quality and impactful solution that aligns with the goals of the Cardano ecosystem.

In summary, the cost of the project represents value for money by driving innovation, addressing compliance needs, fostering ecosystem growth, enhancing reputation and partnerships, ensuring long-term sustainability, and delivering a valuable solution that aligns with the goals and requirements of the Cardano ecosystem.

[IMPORTANT NOTE] The Applicant agreed to Fund10 rules and also that data in the Submission Form and other data provided by the project team during the course of the project will be publicly available.