Bootstrap DeFi Farming Rewards in ADA

[GENERAL] Name and surname of main applicant

Ben Gordon

[GENERAL] Email address of main applicant

bgordon@tangent.art

Additional applicants

Clint Alexander

Marjan Zadeh

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

6

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

No

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

No

[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?

Yes

[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

DeFi

[METADATA] SDG rating

Goals:

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Subgoals:

9.b Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities

Key Performance Indicator (KPI):

9.c.1 Proportion of population covered by a mobile network, by technology

[IMPACT] Please describe your proposed solution.

Our proposed solution aims to address the problem of limited understanding and awareness of decentralized finance (DeFi) among the Cardano community. We believe that DeFi is a crucial aspect of the blockchain ecosystem and it is essential for the community to grasp its concepts and actively participate in it.

We approach this challenge by creating a fun and educational community farming pool where users can stake LP tokens and earn a share of the 40,000 ADA as a learning experience. By providing a hands-on opportunity to engage with DeFi, we empower community members to gain practical knowledge and experience in liquidity provision and LP token staking.

Objectives:

1. Educate the Cardano community about DeFi concepts, liquidity provision and LP token staking.
2. Encourage community members to actively participate in the DeFi ecosystem and bootstrap liquidity.
3. Foster a collaborative and supportive environment for learning and sharing knowledge.
4. Reward users with ADA for participating and learning about Cardano DeFi

Deliverables:

1. Use an existing online service to host the community farming pool. Potential options include Tangent (https://app.tangent.art), Minswap (https://app.minswap.org), WingRiders (https://app.wingriders.com) and VyFi (https://www.vyfi.io)
2. Provide clear instructions and educational resources on DeFi and LP token staking such as online articles, blogs, step by step guides, twitter spaces and videos
3. Distribute the 40,000 ADA rewards proportionally to users based on their stake in the pool

Our project will engage the Cardano community, particularly those who are interested in exploring DeFi but lack the necessary knowledge or experience. We aim to foster a collaborative learning environment where participants can ask questions, share insights, and support each other's growth. We also will provide educational resources in the form of online guides, videos and forum discussions about to use interact with DeFi using the most popular web3 wallets (Nami, Eternl, Yoroi, NuFi, etc).

To demonstrate the impact of our project, we will measure the number of participants in the community farming pool, their level of engagement and active participation and gather feedback and testimonials from participants on their learning experience and understanding of DeFi. The goal is to see an increase in awareness, understanding and engagement in the Cardano community regarding DeFi concepts.

Our solution is special because it is a combination of education and hands-on experience through a fun and community-driven approach. By creating an environment that encourages learning and sharing, we believe that participants will develop a deeper understanding of DeFi, which will benefit both themselves and the community. Empowering community members with the knowledge and experience in DeFi will contribute to the growth and strength of the Cardano network as it evolves into a thriving decentralized financial 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 limited understanding and awareness of decentralized finance (DeFi) within the Cardano community. By creating a fun community farming pool where users can stake LP tokens and receive a share of the 40,000 ADA as a learning experience, we aim to bridge the knowledge gap and encourage active participation in DeFi.

Our project aligns with the following aims of the challenge:

1. Increasing community engagement: We provide a hands-on opportunity for community members to actively engage with DeFi concepts, learn about liquidity provision, LP token staking and the benefits of participating in DeFi farming pools.
2. Enhancing education and knowledge sharing: Through the community farming pool, participants can acquire practical knowledge, ask questions, share insights, and learn from one another in a collaborative learning environment.
3. Encouraging participation in the Cardano ecosystem: By enabling community members to earn rewards through staking LP tokens, we incentivize participation and foster a sense of ownership in the Cardano ecosystem.

The impact of our project goes beyond funding the project team. It brings value to the Cardano ecosystem by:

1. Increasing awareness and understanding of DeFi: By providing a fun and educational platform, we empower community members to develop a deeper understanding of DeFi, its benefits, and its potential for the Cardano ecosystem.
2. Fostering community growth and engagement: The project will attract new participants to the Cardano community who are interested in exploring DeFi. This will contribute to a more vibrant and active community, leading to increased discussions, knowledge sharing, and collaboration.
3. Building liquidity and strength in DeFi: As participants stake LP tokens in the community farming pool, it will bootstrap liquidity, making it more attractive for other users to join and contribute. This strengthens the Cardano DeFi ecosystem as a whole.

While it is challenging to provide specific quantitative projections, we anticipate attracting a significant number of participants to the community farming pool. We aim to have hundreds of users actively staking LP tokens and engaging in discussions within a reasonable timeframe after the project completes. The specific LP tokens to be staked can be chosen by the Cardano community via vote. The success of the project will be measured by the level of community engagement, the amount of liquidity generated (TVL) and the feedback and testimonials from participants regarding their learning experience and understanding of DeFi.

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

Measurement of Success:

1. Number of participants in the community farming pool.
2. Level of engagement and active participation from community members.
3. Feedback and testimonials from participants on their learning experience and understanding of DeFi.

Our solution includes staking rewards, we will monitor the staking activity of users who receive rewards in different tokens. Tracking the amount of tokens staked and the growth of staking pools indicates the attractiveness and success of our staking rewards system.

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

We will leverage various online channels to disseminate information about our project. This includes publishing articles, blog posts, videos and case studies on our website and other relevant platforms. We will also utilize social media platforms such as Twitter, Medium, Youtube, Discord and Telegram to engage with the community, share updates, and encourage discussions around our project's outputs and results.

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

Successfully launched F9 funded project:

https://cardano.ideascale.com/c/idea/64039

Proven track record of delivering projects with trust and accountability.

Visit: app.tangent.art to view our staking app (live). TVL: 550K ADA +

Our capability to maintain these standards is grounded in our experience as a team.

Full time 9 strong.

Transparent communication - be it in Town Hall breakouts of elsewhere

Community engagement - 5k + active community

We want to stress that we are a full time team with commitments to build on Cardano.

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

Goal 1: Increase community understanding and engagement with DeFi.

Validation: We will measure the number of views and participants that our online guides, videos and twitter attract to see validate and quantify the level of engagement from the Cardano community.

Goal 2: Bootstrap liquidity in DeFi farming rewards.

Validation: We will measure the amount of liquidity generated in the farming pool by tracking the value of LP tokens staked by participants. Additionally, we will monitor the trading volume and activity within the pool to assess the effectiveness of liquidity provision.

Goal 3: Foster a collaborative learning environment.

Validation: We will evaluate the level of knowledge sharing and interaction among community members within the farming pool. This can be assessed through the number of questions asked, answers provided, and overall engagement in posts, articles and videos shared on social media.

Goal 4: Attract new participants to the Cardano community.

Validation: We will track the number of new wallets setup that shows new users joining the community farming pool and their level of engagement in other Cardano-related activities. This can be done via online services such as Taptools (https://www.taptools.io/) and Cardanoscan (https://cardanoscan.io/). Additionally, we will seek feedback from new participants to gauge their satisfaction and likelihood of continued involvement.

[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.

1/ Setup of the Farming Pool using Cardano DeFi existing native asset staking pool infrastructure providers*

[7 working days] Community reach out; find out which ADA trading pair (LP token) and from which DEX the community would like to see accepted in the farming pool to receive rewards and why. After making a list, a transparent public vote can be held on Twitter as this has an active Cardano community who are vocal.

[1 working days] Setup the Farming pool: By using Tangents* DeFi Liquidity Farm app we can create a LP farm for the chosen token, with a GUI that users can then use to interact with the farm.

[90 working days] Farming Begins: The pool is open and will last for a period of 3 months. At this moment users can deposit/withdraw LP tokens freely and also claim their share of the 40,000 ADA.

*potential solution Tangent, VyFi, Minswap, Sundaeswap, MuesliSwap or WingRiders. Obviously the solution that is provider who gets behind this proposal the most and provides the most support and lowest cost. Most of the suggest DeFi apps charge a fee to create a farming pool. Tangent charges no fees and is permissionless.

2/ Community DeFi Education Course, Video Production, Documentation, and Resources:

[60 working days] Educational resources: Share information on popular social media channels to distribute knowledge and how to guides to Cardano community. These resources will become go to DeFi for dummies guides for new users who want to learn how to interact with smart contracts and understand DeFi in the web3 world. Use Twitter, Discord, Telegram, Youtube, Medium, Gitbook and others. Make sure to include demos, video, blogs, tweets, articles and step by step how to guides. Setup breakout rooms teaching members of the community the basics of DeFi, as well as the risks/benefits.

By breaking down the project into these two milestones, it delivers the most important value right from the start; the live farming pool open to the public, and then continues with DeFi educational course in the second phase.

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

Milestone 1: Farming Pool Setup and Community Engagement

Deliverables:

1. Transparent public vote results on the ADA trading pair and DEX for the farming pool.
2. Set up the farming pool using the chosen DeFi infrastructure provider (e.g., Tangent).
3. Documentation of the pool setup process and guidelines for users to interact with the farming pool.

Outputs:

1. Live farming pool accessible to the public, where users can deposit/withdraw LP tokens and claim their share of the 40,000 ADA.
2. Increased community engagement through active participation in the voting process and subsequent use of the farming pool.

Intended Outcomes:

1. Foster community involvement and ownership in the selection of the trading pair and DEX.
2. Enable users to experience the benefits of staking LP tokens and earning rewards in a user-friendly and accessible manner.
3. Cultivate a sense of excitement and participation within the Cardano community, promoting the understanding and adoption of DeFi concepts.

Measurement of Progress:

1. Number of community members participating in the transparent public vote.
2. Amount of LP tokens deposited into the farming pool.
3. Number of users claiming their share of the 40,000 ADA.
4. Feedback and engagement metrics from the community, such as comments, questions and suggestions shared on social media platforms.

Milestone 2: Community DeFi Education Course, Video Production, Documentation, and Resources

Deliverables:

1. Educational resources shared across various platforms (Twitter, Discord, Telegram, Youtube, Medium, Gitbook, etc.).
2. Demonstrations, videos, blogs, articles and step-by-step guides explaining DeFi concepts and providing instructions on interacting with smart contracts.
3. Breakout room sessions or workshops to teach community members the basics of DeFi, including risks and benefits.

Outputs:

1. Comprehensive DeFi education course accessible to the Cardano community.
2. Engaging and informative video content, documentation and resources to support learning and understanding of DeFi.
3. Interactive breakout room sessions to facilitate community engagement and enhance knowledge sharing.

Intended Outcomes:

1. Empower Cardano community members with the knowledge and skills to participate confidently in DeFi activities (how to guides, etc).
2. Increase understanding of DeFi concepts, teach about key issues such as impermeant loss, slippage, volume and liquidity. With the aim to informed decision-making about risks and benefits.
3. Foster a supportive and collaborative environment where community members can learn, share experiences and ask questions related to DeFi.

Measurement of Progress:

1. Number of individuals accessing and engaging with the educational resources across different platforms.
2. Feedback and engagement metrics, such as likes, shares, comments and views on video content and written materials.
3. Participation rates in breakout room sessions and the level of interaction during workshops.
4. Community surveys or feedback forms to gather insights on the effectiveness and usefulness of the educational materials.

Overall, the progress of the project will be measured by tracking community engagement, knowledge acquisition and the adoption of DeFi practices within the Cardano ecosystem.

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

Budget Breakdown (45,000 ADA):

• 40,000 ADA for reward distribution to participants
• 3,000 ADA for educational resources and materials (50 hours work at $15/hr)*
• 2,000 ADA for marketing and community outreach (36 hours work at $15/hr)*

*Based on ADA/USD price of $0.27

[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. Firstly, the proposed budget of 45,000 ADA is allocated towards bootstrapping liquidity in DeFi farming rewards. This injection of funds will incentivize users to participate in the farming pool, fostering liquidity and engagement within the ecosystem.

In terms of cost justification, the budget has been determined based on the expected scope of activities, including the setup of the farming pool, community engagement, and educational resources. The cost allocation takes into account the resources needed to develop and maintain the farming pool infrastructure, create high-quality educational materials, and support community engagement initiatives.

While the specific breakdown of costs may vary, the proposed budget aligns with typical project expenses in the DeFi industry, considering factors such as development costs, content creation and community management. It is also important to note that the value for money is not solely derived from the financial investment but rather the overall impact and benefits generated for the Cardano ecosystem.

The value of this project lies in its ability to educate and engage the Cardano community in DeFi practices, ultimately fostering a more knowledgeable and participatory ecosystem. By empowering users to stake LP tokens and earn rewards, the project promotes a deeper understanding of DeFi concepts and encourages community members to actively participate in the Cardano ecosystem.

Overall, the cost of the project is justified by the potential long-term benefits it brings to the Cardano ecosystem, including increased liquidity, enhanced community engagement and the development of a more robust and informed DeFi scene.

[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.

I Accept