Cross-DEX order aggregator - Trades seamlessly across DEXes and liquidity pools on Cardano

[GENERAL] Name and surname of main applicant

Genius Yield Team

[GENERAL] Email address of main applicant

hello@geniusyield.co

Additional applicants

NA

[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

[IMPACT] Please describe your proposed solution.

Every decentralized exchange (DEX) within the Cardano ecosystem operates its unique 'processor' to manage end-user transactions. To elaborate, regardless of the DEX model in question—whether it's one of the predominant options: automated market makers or order books—each project must employ a specific bot. This bot is responsible for scanning the blockchain for orders, deciding which orders to process, and then creating and submitting a transaction to fulfill these orders. Two key stages can be discerned in this process: 

• The selection of orders 
• The transaction creation phase

Typically, these 'processors' are not accessible to the general community. 

These stages are deemed critical since the end-user relies on a private system to which they have no access. It is difficult for a user to comprehend why their order has not been processed, let alone understand how to construct their own transactions in an attempt to circumvent these processors.

The principal concept underpinning the Smart Order Routers (SORs) framework involves the collection of orders, their selection, and eventually, the construction and submission of corresponding matching transactions. The term 'framework' is crucial here, as a primary feature of the SOR is the capacity to implement various order selection strategies, tailored to the diverse actors within the blockchain ecosystem. While some individuals might choose to optimize their arbitrage, others may prefer to collaborate with the community, accepting minimal or no profit margins. Furthermore, the framework offers the possibility of devising other strategies or altering existing ones. In addition to this, the SOR will encapsulate the transaction creation logic, enabling users to concentrate on implementing and devising strategies. This is made feasible by the open-source nature of the framework, allowing the community to run, replicate, enhance, and extend it as needed.

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

This new Cross-DEX open sourced framework will introduce a novel and powerful tool to the Cardano ecosystem. This framework will empower the Cardano community to run their own Smart Order Router (SOR) capable of matching orders from multiple DEXes. This is will transform the entire DeFi ecosystem on Cardano bring connecting DEXes and aggregating liquidity together. As a result, bringing better financial stability and capital efficiency to the ecosystem. This is an unsolved problem in most other blockchain, therefore the long term impact of this proposal has the potential to make Cardano the best DeFi environment in the industry!

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

The Smart Order Routers (SOR) framework introduces a novel concept to the ecosystem. In the immediate future, this framework will empower users to operate their own instances capable of matching orders from GeniusYield DEX, among other DEXs. Notably, given the innovative nature of this proposal, it could serve as a new gateway for users interested in implementing and executing new matching strategies, circumventing the initial technical complexities associated with the Cardano blockchain.

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

This SOR framework will be open-sourced and available on Github for the community to track progress and verify that deliverables are met. We commit to the milestones based reporting and keep the community updated via our social media channels, as well.

• Telegram
• Discord
• Medium
• Twitter
• YouTube

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

A talented 11-person team of developers and engineers whose combined decades of experience has created one of the most innovative DeFi platforms to date.

Some accomplishments include:

1. Genius X Launchpad - The first KYC-platform launchpad on Cardano with operations completely run by smart contracts, providing protection for user funds. No centralized entity, including the Genius Yield team, ever has access to user funds during the token sale process. In addition, the platform has an oversubscription feature, where any unused funds not exchanged for a token are automatically refunded back to all users. The Genius X Launchpad platform is live and has successfully conducted three token sales, raising over 3.1 million ADA for startups. https://launchpad.genius-x.co/projects
2. Genius Yield Staking Platform - The Genius Yield team has also created a staking platform that allows projects to have their utility token on Cardano staked by holders. The staking program is unique in that offers
3. Customizable lock-up periods for a set Annual Percentage Yield (APY %). For example, projects could offer different APY for token holders who decide to lock their token for 3, 6, 9, or 12 months.
4. Special features with NFTs - NFTs can be used to boost APYs or implement other features for holders.
5. Flexible reward claiming - Users accrue rewards daily and can claim accrued rewards anytime during the staking-lock up period. This flexible claiming process allows users to withdraw accrue rewards at their discretion multiple times during the lock-up period and create new staking vaults for additional rewards. The Genius Yield Staking platform is live and as of June 30, 2023, the platform had a Total Value Locked (TVL) of $5.5 million USD from four projects. https://defillama.com/protocol/genius-yield
6. Atlas - Atlas is Genius Yield's state-of-the-art Plutus Application Backend (PAB) in Haskell. Atlas is an off chain, backend tool that allows dApps to interface with the Cardano blockchain and execute Plutus smart contracts. Genius Yield has open-sourced Atlas, making the solution available to any Cardano developer. A high-quality PAB will increase innovation and developer adoption on Cardano by significantly reducing the resources new developers would need to create dApps. Some of the biggest projects on Cardano, such as World Mobile, which is building the first mobile network built on the blockchain, is utilizing Genius Yield's PAB for its technology. http://bit.ly/3LXfFPn

In conclusion, our development team has delivered on three innovative products that are live and providing value to the community. With our proven ability to deliver high quality products, we firmly believe our strong development team will also be able to deliver an options protocol that provides immense value and utility to users.

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

The proposal sets forth two primary objectives.

Objective 1

The first objective involves launching the Smart Order Routers (SOR) framework as an open-source software solution. Expanding on this notion, the SOR is designed to be a user-friendly software, accessible to users with a broad spectrum of programming skills. A particular emphasis is placed on catering to those who are less experienced; it should not only be simple to install and operate but also be easily adaptable for the implementation and enhancement of new order matching strategies. This will be accomplished by the notion of an order book (totally abstracted from the blockchain) where you have sell and buy orders and can focus only on the most convenient way to match them.

Objective 2

The second objective seeks to provide comprehensive documentation detailing the key components of the framework, along with a tutorial specifically addressing the development of strategies.

[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.

Milestones 1: DEX, querying-orders and transaction-building API

Time required: 1 month

Milestones 2: Order Book design and implementation

Time required: 1 month

Milestones 3: Strategy system

Time required: 1 month

Milestones 4: Matching Order Bot

Time required: 1 month

Milestones 5: QuickCheck properties and safety mechanisms + Dockerization

Time required: 1 month

Milestones 6: Technical documentation + Usage Tutorial + Open-sourcing

Time required: 1.5 months

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

Deliverables 1: DEX, querying-orders and transaction-building API

Design of a general API in charge of querying orders abstracting the source of the information. It will be possible to use many options like Blockfrost, Maestro, among others. The API will also need to support transaction building, signing, and submissions. Implementation of the particular instance for the Genius Yield DEX.

Deliverables 2: Order Book design and implementation

Design and implement a general notion of an order with the main goal of abstracting any complexity related to the blockchain.

Deliverables 3: Strategy system

Related to the previous milestone, design a strategy environment that uses the order book to create matching between the orders. Implement a couple of concrete strategies that will help as examples.

Deliverables 4: Matching Order Bot

Assembly all the previous points to have a first running version of the SOR.

Deliverables 5: QuickCheck properties and safety mechanisms + Dockerization

Given the SOR will be an autonomous bot, the framework will provide QuickCheck properties to “try out” the implemented strategies checking they behave as expected, before running in the real environment.

The SOR framework will come with everything ready to start performing order-matching after some quick configurations.

Deliverables 6:Technical documentation + Usage Tutorial + Open-sourcing

The framework, in the mid-long term, must be easy to understand and more interesting extend. Thus, a complete documentation of each component of the SOR is key.

One of the key points of this framework is usability for non-expert users that, in the beginning maybe, just what to run the bot and implement their own strategies. Thus, the framework will provide a proper tutorial about order books and how to implement strategies.

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

DEX, querying-orders and transaction-building API

$50/hr x 2 devs x 5 weeks x 40hr/week = $20 000 

Order Book design and implementation

Time required: 1 month

$50/hr x 2 devs x 5 weeks x 40hr/week = $20 000  

Strategy system

Time required: 1 month

$50/hr x 2 devs x 5 weeks x 40hr/week = $20 000  

Matching Order Bot

Time required: 1 month

$50/hr x 2 devs x 5 weeks x 40hr/week = $20 000  

QuickCheck properties and safety mechanisms

Time required: 2 weeks

$55/hr x 2 devs x 2 weeks x 40hr/week = $8 000 

Dockerization

Time required: 2 week

$55/hr x 1 devs x 2 weeks x 40hr/week = $4 000 

Technical documentation

Time required: 2 weeks

$55/hr x 1 devs x 2 weeks x 40hr/week = $4 000  

Usage Tutorial

Time required: 2 weeks

$55/hr x 1 devs x 2 weeks x 40hr/week = $4 000  

Prepare for open sourcing

Time required: 2 weeks

$55/hr x 1 devs x 2 weeks x 40hr/week = $4 000  

TOTAL ($) = $104 000

TOTAL ($0.3/ADA) = 346 666 ADA

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

DEX Order batcher are highly valuable on Cardano and play a foundational role in the operation of all DEXes on Cardano. In particular, given that Cardano uses the eUTxO paradigm, the interface between placing orders and consuming them is critical in the flow and availability of liquidity on DEXes. These cross-DEX order matching frameworks will fuel growth and innovation across the Cardano dApp 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.

I Accept