A peer-to-peer marketplace for trading Cardano and Cardano native assets with fiat.

[GENERAL] Name and surname of main applicant

Musa Lawal

[GENERAL] Email address of main applicant

moosalawal04@gmail.com

Additional applicants

PalmerEK

Eya Mahmud

Mahdi Abuhuraira

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

8

[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?

Yes

[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.” .

Cardano Serialization Library (Lucid): For off-chain infrastructure and transaction building on Cardano.

Aiken Cardano Smart Contract Development Language: Aiken is our Smart Contract Language of choice. Chosen for it's simplicity and well-packed built-in functions which makes it simpler and easily maintainable.

Nuxt/Vuejs: Back-end/front-end infrastructure. This will also be used to build the chat channels, transaction filter and other UI/UX functionalities.

MongoDB/Postgres: Database for storing user data and performing other CRUD operations involving user validation

[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

Exchange

[IMPACT] Please describe your proposed solution.

Our solution outlines the concept of a peer-to-peer (P2P) cryptocurrency marketplace where individuals can act as arbitrators (Escrow Managers). These arbitrators provide a specific number of assets (in iUSD, DJED or any available stablecoin) as collateral or insurance for them to be eligible to serve as intermediaries/facilitators of trades (Escrow Managers), enabling traders to establish trades on a secure and insured spot or node. The tradeable amount on each escrow manager's node cannot exceed the collateral provided by the escrow manager.

The marketplace will feature a scoring system that rewards users who engage in fair play. Escrow managers will have the ability to dynamically set/select their percentage fee per trade and earn from every trade conducted on their spot. This approach aims to promote a genuine and truly permissionless, decentralized, and competitive marketplace, thereby generating income opportunities for a wider range of participants rather than a select few.

Trades will be filtered based on a user's chosen location during registration in the marketplace (unless chosen otherwise), users will be required to undergo at-most, a three-option registration process (This will be required to enable the marketplace algorithm to filter and display trades and escrow managers that are from your "chosen" country of residence) for fiat transfer purposes.

Here's how the process works:

Escrow managers will serve as facilitators of trades in the marketplace and as such, each escrow manager will provide their terms of trade and same will be published on their profile for users who might trade on their spot.

The crypto seller lock assets (crypto) into a smart contract through a arbitrator's/escrow manager's spot and same will be published on the marketplace, If the trade finds a match (Buyer), the asset moves to a multi-sig validator script where both buyer and seller are signatories and can only be validated by fulfilling either of the following conditions for assets to be released either way:

A) If a seller "OK's" and a Buyer "OK's" the transaction script (It implies that buyer has sent fiat to seller and seller has confirmed receipt of funds). in this case, the crypto get released to the buyer. (This will be a simple message signing through user wallets).

B) If Buyer CANCELS a trade, crypto asset moves back to seller's ONLY script where seller can singled-handedly withdraw their assets (Trade cancellation after finding a match can ONLY be done by the BUYER in any case except if the trade did not find a match i.e open trades). Open trades are trades that have no match on-lock while closed trades are trades with a match on-lock (Buyer).

C) If seller fail to sign their "OK" transaction script after a specific time frame (Trades that find a match "closed-trades" will have a standard wait time-frame for sending and confirmation of fiat transfers from/to buyer and seller), crypto assets will not move either way, but a SUBMIT-CONFLICT button activates for the buyer that calls for the action of the arbitrator/escrow manager when clicked. Crypto assets will now move to a script/contract where ONLY the arbitrator/escrow manager can release asset to either buyer/seller.

D) If seller signs "OK" and buyer fail to sign their "OK" transaction script, Crypto asset moves to buyer's wallet regardless with no wait time.

E) If both parties fail to OK the confirmation message after the standard transaction wait time, crypto assets move back to seller ONLY wallet.

A dedicated channel of communication will be provided within the app for both parties at any point/stage of the trade.

In the event of a conflict arising during the trade, the arbitrator steps in to resolve the issue. If the conflict involves the arbitrator, the collateral they provided is used to settle the dispute. This final stage of arbitration using the arbitrator's collateral will be effected by a specific arm of the marketplace's DAO through smart contracts holding the collaterals provided by arbitrators. The collateral smart contract will function in concurrence with the current live trades (closed-trades) on a arbitrators node, for example, if an arbitrator provides $1000 as collateral, trades higher than $1000 cannot be opened on that node and buyers will not be able to take those trades. Consequently, if a trade less than the collateral is published and taken, exact amount of the trade (1:1 in collateral) will be locked and can only be unlocked after a successfully completed trade or by the final arbitrators (The marketplace DAO in the event of a conflict that involves the arbitrator). This way, all parties involved in the trade are rest assured that the trade secured and fully insured.

Collaterals locked by arbitrators will earn yield in the marketplace for as long as they are locked. This is additional to the fee they may/may not charge per trade. This will boost total value locked, liquidity and provide a fair incentive for people to serve as arbitrators.

This system offers a decentralized approach to trading cryptocurrencies with minimal to almost no KYC requirements and providing security through collateralized arbitrators. It ensures that all live trades are fully insured, funds are only transferred when all parties involved have completed their respective obligations, and any conflicts are fairly resolved by the escrow manager. It also minimizes trust issues and promotes confidence in cryptocurrency transactions.

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

The solution contributes to the development of decentralized application on the Cardano blockchain in many ways. By providing a framework for secure and trustless p2p trading, it enhances the functionality and utility of dapps built on Cardano. 

The marketplace will also serve as a foundational infrastructure for various p2p fiat to crypto on/off ramp trading and exchange which will boost adoption and ease entrance into the Cardano ecosystem.

Moreover, the marketplace is expected to bring additional economic activity and new users into the Cardano ecosystem. By providing a secure and efficient platform for cryptocurrency trading, it attracts traders and investors to utilize Cardano as their preferred blockchain for conducting transactions. Increased usage and adoption of Cardano can lead to increased demand for its native tokens and enhance the overall liquidity and value of the ecosystem.

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

The success of our solution can be measured through some metrics and indicators which includes but not limited to:

1. Adoption and User Growth: Tracking the number of wallets participating in the marketplace.

1. Trading Volume: Monitoring the total trading volume within the marketplace.

1. Security and Trust: Assessing the number and severity of conflicts or disputes arising within the marketplace.

1. Feedback and Reviews: Involves gathering feedback and reviews from users regarding their experience with the marketplace.

1. Financial Performance: This includes revenue generation, profitability and sustainability. 

1. Community Engagement: Increased participation in community forums, social media and contribution to the development and improvement of the platform reflects success

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

We will maintain open and accessible channels of communication with the community which will include regular updates on our website, transparent reporting on Discord and Twitter, open source development (anywhere feasible), collaboration with community leaders and virtual meetings with the community.

Revenue generated through the platform will be split between community members (through a governance asset) and some will be reserved for further development and maintenance of the project.

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

Our team consists of software engineers and developers with many years of experience in building and delivering products on Cardano and other niches. FIND more details about team members and their respective portfolios below:

Palmer EK: 25 years of experience in Object Oriented software development, design and architecture, full lifecycle experience throughout all positions. Held real world experience producing well documented, well tested, reliable and maintainable software with superior performance and limited maintenance costs. A Cardano Smart Contract developer using Aiken and the lead developer for https://tekmirio.xyz ( A protocol that incentivizes Cardano testnet participation)

LinkedIn: https://www.linkedin.com/in/palmerek/

Twitter: https://twitter.com/palmerek

Github: https://github.com/PalmerEk

Eya: Software and Cardano smart contract developer using Aiken, building off-chain infrastructure using Lucid.

LinkedIn: https://www.linkedin.com/in/mohamed-mahmoud-a54aa173/

Twitter: https://twitter.com/EyaAShmsuoHor

Github: https://github.com/mmahmoudlibert-nettt

Mahadi Abuhuraira: A seasoned full-stack developer using MERN stack. currently the lead developer of Metera protocol Demo web-app https://meteraprotocol.vercel.app/

LinkedIn: https://www.linkedin.com/in/mamt4real/

Twitter: https://twitter.com/Mamt4real

Github: https://github.com/mamt4real

Lawal Musa: Front-end developer with React and Aiken Smart Contract development intern. founder of OsmiumDAO (https://osmiumdao.io) and Metera protocol demo web-app development lead (https://metera.io, https://meteraprotocol.vercel.app/ ). Also, the Astarter DeFi Hub on Cardano ambassador program pioneer member as STAR AWL (https://astarter.io).

LinkedIn: https://www.linkedin.com/in/musalawal04/

Twitter: https://twitter.com/ADA_Dolphin04

Github: https://github.com/musalawal04

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

Foster an All-Inclusive Ecosystem by Limiting KYC Requirement: We aim to create an all inclusive environment on Cardano that has the potential to expand the reach of Cardano and cryptocurrency trading to individuals who have been previously hindered by harsh KYC requirements.

Eliminate Delays in Fiat On/Off-Ramping: One of our crucial goals is to eliminate the delays typically encountered when on/off-ramping fiat currencies through centralized exchanges. By allowing traders to directly transact with each other (Wallet-2-wallet), the marketplace bypasses the need for intermediaries and the too many KYC processes required by exchanges and traditional banking systems. This also promotes financial autonomy and decentralization within the cryptocurrency ecosystem.

Drive Innovation in P2P Trading: Our solution aspires to be an innovative solution in the realm of P2P cryptocurrency trading. The goal is to introduce novel features and functionalities that improve upon existing centralized trading platforms. With delays in fiat off/on-ramping, our goal is to improve and ease the process.

Create a Secure and Trustless Trading Environment: By leveraging smart contracts and collateralized arbitrators, the platform aims to minimize the risk of fraud and provide a reliable trading environment.

Enhance User Experience: Our product aims to simplify the trading process by streamlining transactions, providing clear guidelines for trade execution and to make trading more accessible.

Foster Confidence and Trust: To instill confidence by implementing a robust dispute resolution and fair conflict resolution mechanism facilitated by arbitrators.

Drive Adoption and Liquidity: To attract a significant user base within and outside the Cardano community.

[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.

A) Technical Design and Architecture (2 - 4 weeks)

Determine the smart contract infrastructure required for the marketplace.

Design data models and transaction flow within the marketplace.

B) Smart contract Development (8 - 12 weeks)

Develop and test smart contracts that govern the marketplace's functionality.

Implement features such as trade initiation, fund transfers, dispute resolution and collateral management.

Ensure proper security and auditing of smart contracts to mitigate vulnerabilities.

Integrate first set of Cardano native tokens to be used in the platform.

C) User interface and User Experience Design (3 - 6 Weeks)

Create a simple, intuitive and user-friendly UI/UX design.

Design the interface for traders to initiate and publish trades, monitor transactions and communicate with arbitrators.

Implement features that enhance usability such as real-time notifications and trade history tracking.

D) Marketplace Backend Development (8 - 12 weeks)

Build backend infrastructure to handle trade requests, transaction processing and communication between traders and arbitrators.

Integrate smart contracts, wallets and other encryption mechanisms to protect user data and funds. 

E) Testing and Quality Assurance (4 - 8 weeks)

Conduct extensive testing of the marketplace's functionality, security and performance.

Identify and fix bugs or vulnerabilities discovered during testing.

Collaborate with the Cardano community to conduct thorough testing and security audits.

F) Deployment and launch (2 - 4 weeks)

Prepare the Marketplace for deployment on Cardano's Mainnet.

Establish a robust infrastructure to handle production-level traffic and scalability.

Roll out the product in a phased manner, starting with a limited user base.

Iterative enhancements and future development

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

Technical Design and Architecture Deliverables:

Comprehensive technical design document specifying smart contract infrastructure and data models.

Architectural diagrams illustrating the transaction flow and integration with Cardano blockchain.

Smart Contract Development Deliverables:

Developed and tested smart contract codes governing trade initiation, asset locking and unlocking, dispute triggers. 

User Interface and User Experience Design Deliverables:

Fully designed UI/UI mockups and prototypes.

User journey and interaction flows to guide UI development.

Marketplace Backend Development Deliverables:

Functioning backend infrastructure, fully integrated with the developed smart contract codes and capable of handling trade requests, transaction processing and communication with concerned parties.

Testing and Quality Assurance Deliverables: 

Comprehensive test plan and test cases covering functionality, security and performance.

Debugged and stable marketplace application addressing issues identified during testing.

Deployment and Launch Deliverables:

Production-ready marketplace on Cardano mainnet.

Scalable infrastructure to handle increasing user volumes.

Operational launch plan, including marketing and user onboarding strategies. 

Documentation, guides and tutorials.

Regular updates and release of new features.

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

We are team of 4 developers out of which, 2 are Cardano smart contract developers and 2 full-stack (MERN Stack) developers working full-time on this project with a monthly payment schedule. Below is the budget breakdown according to our milestones (The breakdown also cover roles that are yet to be hired/employed into the team like marketing and UI designer):

Technical Design and Architecture: 2 developers at 5000ADA monthly = 10,000ADA

Smart Contract Development: 2 developers working full-time at 5000ADA monthly for 3 months = 30,000ADA ( This involves designing and coding smart contracts for locking seller assets, multisig scripts to lock funds when a trade finds a match (buyer), escrow manager's smart contract, smart contract to lock arbitrator's collateral, collectors smart contract for fee distribution and staking dapp to distribute yield to arbitrators and stakers).

User Interface and User Experience Design: 1 designer and one time payment of 8000ADA.

Marketplace Backend development and Integration with Frontend: 2 developers working full-time at 5000ADA monthly for 3 months = 30,000ADA

Testing and Quality Assurance (Audit not inclusive): 1 Marketing professional 7000ADA (1 time pay), incentivized test-net 2000A, bounty programs 2000A = 11,000ADA

Deployment and Launch: Restrategized marketing 5000A (one time pay), written guides (docs) 2000A, visual guides (videos) 3000A = 10,000ADA

NOTE: We are all in-house developers and no aspect of the project development will be outsourced except for marketing.

Also kindly note that a separate fundraiser will be conducted within the community to facilitate audit before main-net launch.

[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 by delivering tangible benefits such as enhanced functionality, increased adoption, financial inclusion, trust and security, long-term growth potential and overall, a truly permission-less marketplace where the community actually runs it. It aligns with Cardano's vision of creating a robust and inclusive blockchain ecosystem that empowers individuals and fosters innovation in the world of decentralized finance.

Furthermore, allocating funds to the project ensures the implementation of robust security measures, rigorous testing and secure backend that safeguards users' funds and data. The project's cost also contributes to providing equal opportunities for all individuals, aligning with Cardano's mission of promoting decentralized and inclusive global financial operating system.

Lastly, the budget allocated for the project allows for the development of a high quality marketplace that can attract traders and investors to 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.

I Accept