Nomos: Side-Chain & Cross-Chain Bridge for Cardano

[GENERAL] Name and Surname of Main Applicant

Okada Murai

[GENERAL] Email address of Main Applicant

support@nomoschain.com

Additional Applicants

The Nomos Dev Team

TFL Labs in the development of Feather

[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.” in this field.

No

[GENERAL] Will your project outputs 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.” in this field.

Open Source

[METADATA] Category of Proposal

DeFi

[METADATA] SDG rating

9

[IMPACT] Please describe your proposed solution.

Our proposed solution is to establish Nomos as a side-chain to Cardano. By doing so, we are addressing the existing limitations in scalability and high transaction costs, as well as the current fragmentation between different blockchains.

Our strategy is to leverage Nomos low fees and scalability, as well as its capacity to act as a bridge between Cardano and other blockchains in the Cosmos Hub, therefore also Ethereum. This approach is not only technically sound, but it also comes from a place of recognizing the needs of the broader crypto ecosystem for more interconnectedness and fluidity.

Our project primarily engages Cardano users, but it also aims to attract and engage other blockchain users by providing a means of interoperability between Cardano and various other chains. The impact of our project will be demonstrated by the increased volume of cross-chain transactions, interoperability, and enhanced new functionalities in Cardano Dapps as a result of our bridge.

What sets our solution apart is our ability to effectively act as a bridge, thus creating a more interconnected blockchain ecosystem. We are fortunate to have the technical support of TFL (Terraform Labs), the powerhouse group behind Terra, a testament to the solidity and potential of our initiative. This collaboration strengthens our confidence and capacity to bring and launch this ambitious project to fruition.

The primary beneficiaries of our project will be Cardano users who can enjoy lower transaction fees and enhanced connectivity, but it will also benefit the broader crypto community by enhancing interoperability.

This is of utmost importance to Cardano because it bolsters the usability and reach of Cardano, aligning with Cardano's vision of creating a more interconnected and efficient blockchain ecosystem.

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

The project will strengthen the Cardano ecosystem and resolve key problems as follows:

1. Enhanced Interoperability: Cardano users will be able to fluidly transact with a variety of cryptocurrencies from different blockchains, increasing Cardano's utility.
2. Lower Transaction Costs: Our solution offers an avenue for users to transact at significantly lower fees by using Nomos as a side-chain, enhancing the user experience.
3. Increased Scalability: Nomos will provide a pathway for Cardano to handle increased transaction volumes effectively, thereby enabling the ecosystem to grow and scale without compromising performance.

In terms of impact, we anticipate attracting more developers to the Cardano ecosystem due to its increased functionality, interoperability. This could potentially result in hundreds of new DApps built on Cardano within a year of the project's completion.

Furthermore, by simplifying cross-chain transactions, we expect an increase in Cardano's daily transactions, potentially boosting it by 5-20% within a year, given the expanded access to other blockchains.

Overall, our project strengthens Cardano's position as a leading blockchain platform and expands its influence across multiple blockchain ecosystems, contributing to its long-term growth and success.

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

Our project's success will be determined by several quantitative and qualitative metrics.

Quantitative Metrics:

1. Cross-Chain Transactions: We'll monitor the number of cross-chain transactions conducted through the Nomos-Cardano bridge. An increase in these transactions will indicate that more users are leveraging the interoperability provided by our solution.
2. DApp Development: A key measure of success will be the number of new DApps developed on Cardano following the integration. We'll track this metric to assess the increased utility of the Cardano network.
3. Increase in Daily Transactions: We'll monitor the daily transactions on Nomos and on the Cardano network pre and post-implementation.

Qualitative Metrics:

1. User Feedback: We will actively engage with the Cardano community to gather their feedback on our solution. User satisfaction, insights, and testimonials will be crucial in determining how well our solution is received.
2. Developer Feedback: As part of our goal is to attract more developers to the Cardano ecosystem, we will seek out their opinions and feedback on the new functionality and flexibility provided by our solution.

In the short term, these metrics will help us understand the immediate impact and acceptance of our solution within the Cardano ecosystem. In the long term, they will enable us to gauge the sustained growth and productivity of Cardano and ensure that our solution continues to add value to the ecosystem.

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

1. Social Media: We will utilize our Twitter and Telegram accounts to keep our community informed about our progress. We plan on posting regular updates, announcements, and educational content on these platforms.
2. Medium and Blog Posts: We will create detailed articles and blog posts that delve deeper into our project's progress, explaining the technical aspects, developments, and what they mean for both the Cardano and Nomos ecosystems.
3. AMA Sessions: We plan on hosting regular AMA sessions to provide an open platform for anyone to ask questions about our project on Twitter.

By employing a mix of frequent updates, engaging content, and direct interaction, we plan to keep the community engaged and informed throughout the project's lifecycle.

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

Our team is uniquely positioned to successfully deliver this project, ensuring high levels of trust and accountability.

1. Collaboration with Terraform Labs (TFL): We have secured a partnership with TFL, who are assisting us with the development of Nomos, which will be utilizing their Feather protocol. This partnership provides us with valuable technical insights and joint debugging support, ensuring a successful and reliable delivery of the project.
2. Transparent Management of Funds: We uphold the highest standards of transparency and accountability. Every stage of the project's development, from cost allocation to project updates, will be clearly communicated to all stakeholders.

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

The primary goal of our project is to create an efficient, secure, and reliable cross-chain bridge between Cardano and the Cosmos Hub, which will also provide access to Ethereum through Cosmos' existing bridge functionality.

1. Method for Bridging: We intend to utilize a method similar to that employed by many successful cross-chain bridges, which use liquidity pools as 'banks' for an array of assets. When a user wants to bridge an asset from one chain to another, the bridge utilizes funds from the corresponding liquidity pool on the destination chain to fulfill the request. This proven method ensures swift, secure, and efficient cross-chain transactions.
2. Funding Liquidity Pools: To populate these liquidity pools, we plan to implement staking and farming programs, similar to established practices. Users can lock their assets in the pool, which we will use to settle bridging requests, in exchange for periodic rewards. This mechanism not only ensures liquidity but also incentivizes user participation, adding value to both the Cardano and Cosmos ecosystems.
3. Feasibility Validation: We will validate the feasibility of our approach through rigorous testing and debugging. Our iterative development process will allow us to continually refine our solutions, ensuring that we meet our goals and adhere to the highest security standards.

Through this approach, we aim to greatly enhance interoperability in the blockchain space, extending the reach and utility of Cardano, Cosmos, and Ethereum.

[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. Initial Development (Month 1-3): Begin coding for the cross-chain bridge, collaborate with Terraform Labs to integrate Feather Protocol.
2. (Testnet) First Prototype (Month 3-5): Completion of the first prototype of the cross-chain bridge. Begin initial testing and debugging.
3. (Testnet) In-depth Testing and Debugging (Month 5-7): Rigorous testing of the bridge in various scenarios, and ironing out any bugs that are found.
4. (Testnet/Mainnet) Implementation of Staking and Farming Programs (Month 8-9): Development and implementation of staking and farming programs to ensure liquidity in the cross-chain bridge.

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

1. Development of Cardano Cross-Chain Bridge

• Deliverable: A functional prototype of the Cardano cross-chain bridge.
• Outcome: A bridge between Cardano and Nomos is established, ready for testing and debugging.

1. Implementation of Staking and Farming Programs

• Deliverable: Fully operational staking and farming programs.
• Outcome: Users are incentivized to participate, contributing to the liquidity of the bridge.

1. Launch of Cardano Bridge

• Deliverable: Official launch of the Cardano cross-chain bridge.
• Outcome: Cardano network becomes accessible to Cosmos Hub, enhancing its usability and reach.

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

The funds will be used to kickstart the liquidity pool of ADA

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

This project represents significant value for money for the Cardano ecosystem, not just for its strategic importance, but also in terms of cost efficiency.

To start with, our team has already secured venture capital funding for the development and launch of the Nomos blockchain. This means that the Cardano ecosystem will not bear the burden of these initial costs, which are typically the most significant in any project of this nature.

The funding requested from the Cardano grant will be primarily utilized to jump start the liquidity pool of ada.

[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