Decentralising Market Making Tools

[GENERAL] Name and surname of main applicant

Sebastián Aravena

[GENERAL] Email address of main applicant

individuodigital@gmail.com

Additional applicants

Trading Different

Ivan Paz y equipo

@ivan.paz

[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?

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.” .

https://tradingdifferent.com/ are creating the algorithm and codes for the project and have the ownership the products they are selling.

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

No

[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 the context of the project, where some products will be delivered as open source while others will be kept for commercial use and monetization, the specific outputs that will not be open source would depend on our project's decisions. These outputs could include proprietary algorithms, customized software tools, data analysis models, or any other components that are considered proprietary and intended for commercial use. It is important to define and clearly communicate which specific outputs will not be open source to avoid confusion and ensure compliance with licensing and intellectual property rights.

[METADATA] Category of Proposal

Data tools

[IMPACT] Please describe your proposed solution.

Our proposed solution aims to address the lack of market making tools for retailers in the Cardano ecosystem, enabling them to make informed decisions and compete effectively against centralized market manipulators. We have developed a system based on algorithms that track high-frequency bots operating on centralized exchanges, specifically focusing on $ADA liquidity.

The system collects data from these bots and generates informative graphs that highlight liquidity zones for the $ADA asset. These graphs provide valuable insights to retailers, empowering them to make better decisions when providing liquidity on decentralized exchanges and engaging in trading activities.

By leveraging these liquidity zone graphs, retailers gain visibility into where significant liquidity is located, helping them optimize their trading strategies and compete more effectively. This tool enhances transparency and levels the playing field, allowing retailers to actively participate in decentralized exchanges while being aware of the flow of big money that can impact price movements.

To ensure the integration of our solution with the Cardano ecosystem, we plan to collaborate with DApp developers and integrate our tools with relevant decentralized exchanges. This integration will provide retailers on Cardano with access to real-time liquidity information, enabling them to make well-informed decisions and contribute to the growth and liquidity provision within the ecosystem.

Overall, our proposed solution empowers retailers by providing them with valuable insights and tools to navigate the market, compete against centralized manipulators, and contribute to the decentralization of liquidity provision in 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 by providing market making tools to retailers in the Cardano ecosystem. By tracking high-frequency bots operating on centralized exchanges and generating liquidity zone graphs for $ADA, our solution empowers retailers to make informed decisions and compete effectively against centralized market manipulators. This addresses the problem of retailers lacking the necessary tools to navigate the market and participate actively in decentralized exchanges.

The benefits our solution brings to the Cardano ecosystem are significant. First, it levels the playing field by providing transparency and visibility into liquidity zones. This allows retailers to compete on a more equal footing with centralized market makers and make better-informed decisions when providing liquidity on decentralized exchanges.

Second, our solution enhances liquidity provision within the Cardano ecosystem. By equipping retailers with the tools to identify liquidity zones, they can strategically contribute liquidity to decentralized exchanges, thereby increasing overall liquidity and trading activity. This benefits the entire ecosystem by fostering a more vibrant and active marketplace for $ADA.

Third, our solution promotes the decentralization of liquidity provision. By empowering retailers to actively participate in decentralized exchanges, it reduces reliance on centralized exchanges and encourages the growth of decentralized finance (DeFi) within the Cardano ecosystem. This aligns with Cardano's vision of a decentralized and sustainable financial system.

Additionally, our solution contributes to the adoption and understanding of Cardano among traders and market makers. By providing market making tools for $ADA, we attract traders and market makers to the Cardano ecosystem, exposing them to the technology and potential of the blockchain. This can lead to increased interest, engagement, and adoption of Cardano as a whole.

Overall, our proposed solution addresses the challenge by empowering retailers, enhancing liquidity provision, promoting decentralization, and fostering adoption and understanding of Cardano. These benefits contribute to the growth, vibrancy, and maturity of the Cardano ecosystem.

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

To measure the success of our project, we will use the following key metrics:

1. Adoption and Usage: We will track the number of retailers and liquidity providers who actively utilize our market making tools within the Cardano ecosystem.
2. Liquidity Contribution: We will monitor the increase in liquidity provided by retailers on decentralized exchanges in the Cardano ecosystem.
3. User Feedback and Satisfaction: We will gather feedback from retailers and liquidity providers who use our tools to assess their satisfaction levels and gauge the effectiveness of our solution
4. Trading Volume and Activity: We will analyze the trading volume and activity on decentralized exchanges for $ADA before and after the adoption of our market making tool.
5. Integration with DApps: We will track the number of integrations with decentralized applications (DApps) within the Cardano ecosystem.
6. Community Engagement: We will measure the level of engagement and interaction within the Cardano community regarding our market making tool.
7. Impact on Price Manipulation: We will assess the impact of our solution on reducing price manipulation by centralized market makers.

By tracking these metrics, we can evaluate the success and effectiveness of our project in addressing the challenge, fostering liquidity provision, promoting decentralization, and driving adoption within the Cardano ecosystem.

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

We have a clear plan to share the outputs and results of our project to ensure transparency and contribute to the wider Cardano Community:

1. Open Source Components: Any components of our project that are intended to be open source will be shared publicly on platforms like GitHub.
2. Knowledge Sharing: We will actively participate in knowledge-sharing initiatives within the Cardano Community.
3. Documentation and Guides: We will create comprehensive documentation and guides that explain the functionalities, usage, and integration of our market making tools within the Cardano ecosystem.
4. Community Engagement: We will engage with the Cardano Community through various channels, including social media platforms, forums, and dedicated community space.
5. Collaboration with DApps: We will actively seek collaborations with decentralized application (DApp) developers within the Cardano ecosystem.
6. Data Analysis and Research Reports: We will conduct data analysis on the liquidity provision, trading volume, and market behavior within the Cardano ecosystem, leveraging the insights gained from our market making tool.

Through these channels and activities, we aim to share the outputs, results, and knowledge gained from our project with the Cardano community. By fostering transparency, collaboration, and open communication, we can contribute to the growth and development of the ecosystem while encouraging further innovation and adoption.

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

We are committed to delivering our project with high levels of trust and accountability. Here's how we ensure these principles:

1. Expertise and Experience: Our team consists of professionals with expertise in engineering, software development, trading, and market analysis.
2. Transparent Communication: We believe in maintaining open and transparent communication with the Cardano community, users, collaborators, and funders.
3. Clearly Defined Goals and Metrics: We establish clear goals, objectives, and success metrics for our project.
4. Documentation and Reporting: We maintain thorough documentation of our project activities, including development processes, testing, and quality assurance
5. Feedback and Continuous Improvement: We actively seek feedback from the Cardano community, users, and stakeholders to ensure continuous improvement of our project.

We are not only a dedicated team but also a community of educators, developers, and traders who share a common objective: to learn, develop tools, and collaborate in the crypto market. Our community consists of individuals from around the world who contribute their expertise, ask questions, provide opinions, solve problems, and generate new ideas. We foster an environment of respect and collaboration, promoting knowledge-sharing and innovation.

Our professional team includes experienced engineers, senior developers, and educators. We have accumulated thousands of hours in crypto market analysis, enabling us to develop advanced and unique tools, as well as strategies and systems for market making and trading. Our deep understanding of the market dynamics allows us to track high-frequency bots operating in centralized exchanges, leading to consistent results with the products we offer.

Furthermore, we have a strong connection to the Cardano community. Many of our team members and community participants are holders of the $ADA asset, actively engaging with the Cardano ecosystem and collaborating with Cardano Stake Pool Operator (SPO) communities. This firsthand experience within the Cardano community provides us with valuable insights and helps us tailor our solutions to meet the specific needs and challenges of the ecosystem.

By incorporating these elements into our project approach, we ensure that we deliver with high levels of trust and accountability. We are committed to upholding these principles to foster a strong and reliable partnership with the Cardano community and all stakeholders involved.

[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:

1. Develop Effective Market Making Tools: Our primary goal is to develop market making tools that provide valuable insights and empower retailers in the Cardano ecosystem.
2. Enhance Liquidity and Trading Activity: We aim to increase liquidity and trading activity on decentralized exchanges for $ADA within the Cardano ecosystem.
3. Foster Decentralization: We strive to promote decentralization within the Cardano ecosystem, particularly in the context of liquidity provision.
4. Drive Adoption and Awareness: We aim to attract traders and market makers to the Cardano ecosystem by providing market making tools for $ADA.

To validate the feasibility of our approach, we will undertake the following steps:

1. Technical Assessment: We will conduct a thorough technical assessment to ensure that our algorithms and systems can effectively track high-frequency bots and generate accurate liquidity zone graphs for $ADA.
2. Pilot Testing: We will conduct pilot testing with a select group of retailers and liquidity providers within the Cardano ecosystem.
3. Data Analysis: We will analyze real-time market data, liquidity patterns, and trading activities to validate the impact of our market making tool.
4. User Feedback and Satisfaction: We will actively seek feedback from users, including retailers and liquidity providers, to validate the usability, effectiveness, and value of our tool.

By combining technical assessments, pilot testing, data analysis, and user feedback, we can validate the feasibility and effectiveness of our approach. This iterative process allows us to make necessary adjustments, improvements, and optimizations to ensure the successful delivery of our market making tools within the Cardano ecosystem.

[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.

Based on a total budget of 150,000 $ADA, here is a detailed breakdown of our project milestones, tasks, activities, and expected timeline:

Milestone 1: Project Initiation and Design (Estimated Timeline: 1 month)

• Task 1: Project planning and team alignment
• Task 2: Conduct initial research and analysis of market making tools in the Cardano ecosystem.
• Task 3: Define the scope, objectives, and requirements of the project.
• Task 4: Design the architecture and infrastructure for the market making tools.

Milestone 2: Algorithm Development and Testing (Estimated Timeline: 2 months)

• Task 1: Develop algorithms for tracking high-frequency bots on centralized exchanges.
• Task 2: Collect and analyze data to identify liquidity zones for $ADA.
• Task 3: Implement the algorithm into a functional system.
• Task 4: Conduct rigorous testing and optimization of the algorithm's accuracy and performance.

Milestone 3: Integration with Cardano Ecosystem (Estimated Timeline: 1 month)

• Task 1: Collaborate with DApp developers within the Cardano ecosystem.
• Task 2: Integrate the market making tools with decentralized exchanges and relevant DApps.
• Task 3: Ensure seamless connectivity and data exchange between the tools and Cardano ecosystem.

Milestone 4: Pilot Testing and Feedback (Estimated Timeline: 1 month)

• Task 1: Select a group of retailers and liquidity providers for pilot testing
• Task 2: Deploy the market making tools to the pilot group
• Task 3: Gather feedback and evaluate the usability, effectiveness, and value of the tools
• Task 4: Incorporate feedback into the refinement and improvement process

Milestone 5: Full Deployment and Launch (Estimated Timeline: 1 month)

• Task 1: Finalize the development and optimization of the market making tools
• Task 2: Prepare comprehensive documentation and user guides
• Task 3: Deploy the tools to the wider Cardano community
• Task 4: Conduct marketing and promotional activities to generate awareness and adoption

Milestone 6: Monitoring, Evaluation, and Updates (Estimated Timeline: Ongoing)

• Task 1: Monitor the performance and impact of the market making tools
• Task 2: Gather user feedback and suggestions for improvements
• Task 3: Implement updates and enhancements based on feedback and market dynamics
• Task 4: Continuously evaluate the effectiveness and efficiency of the tools

Please note that the provided timeline estimates are approximate and can vary based on project-specific factors and resource availability. It is important to regularly review and adjust the timeline as needed to ensure the successful delivery of the project.

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

Here's a description of the deliverables, outputs, and intended outcomes for each milestone:

Milestone 1: Project Initiation and Design

Deliverables:

• Project plan and team alignment document.
• Initial research and analysis report on market making tools in the Cardano ecosystem.
• Defined project scope, objectives, and requirements.
• Architecture and infrastructure design for the market making tools.

Outputs:

• Clear project plan outlining the steps and timelines.
• Research report providing insights into existing market making tools.
• Well-defined project scope and requirements to guide development.
• Designed architecture and infrastructure for the market making tools.

Intended Outcomes:

• Alignment among the project team on goals and objectives
• Understanding of the market landscape and existing tools
• Clarity on project scope and requirements
• Foundation for the development and implementation of the market making tools

Milestone 2: Algorithm Development and Testing

Deliverables:

• Developed algorithms for tracking high-frequency bots on centralized exchanges
• Data analysis reports highlighting liquidity zones for $ADA
• Implemented functional system with integrated algorithms
• Testing and optimization documentation

Outputs:

• Functioning algorithms capable of tracking high-frequency bots
• Data analysis reports showcasing liquidity zones for $ADA
• Tested and optimized system for accuracy and performance
• Documentation detailing testing processes and optimization results

Intended Outcomes:

• Effective algorithms for tracking market dynamics
• Identification of liquidity zones to inform decision-making
• Reliable and performant system for market making activities
• Confidence in the accuracy and efficiency of the algorithms

Milestone 3: Integration with Cardano Ecosystem

Deliverables:

• Collaborative partnerships and agreements with DApp developers and stakeholders
• Integrated market making tools with decentralized exchanges and relevant DApps
• Seamless connectivity and data exchange between the tools and Cardano ecosystem

Outputs:

• Established collaborations with DApp developers and stakeholders
• Integration of market making tools with decentralized exchanges and DApps
• Functional connectivity and data flow between the tools and Cardano ecosystem

Intended Outcomes:

• Access to a wider user base through integration with popular DApps
• Enhanced usability and availability of the market making tools within the Cardano ecosystem
• Seamless exchange of data and information between the tools and Cardano DApps

1. Milestone 4: Pilot Testing and Feedback

Deliverables:

• Pilot testing documentation and reports
• User feedback and evaluation summaries
• Identified areas for refinement and improvement

Outputs:

• Completed pilot testing with a selected group of retailers and liquidity providers
• Detailed documentation of the pilot testing process and results
• Gathered feedback and evaluation reports from participants

Intended Outcomes:

• User feedback to assess usability, effectiveness, and value of the market making tools
• Identification of strengths and areas for improvement
• Insights to refine and enhance the tools based on user experiences

Milestone 5: Full Deployment and Launch

Deliverables:

• Comprehensive documentation and user guides for the market making tools
• Fully deployed market making tools within the Cardano community
• Marketing and promotional materials

Outputs:

• User documentation and guides for seamless adoption of the market making tools
• Widely available market making tools accessible to the Cardano community
• Marketing materials to generate awareness and adoption

Intended Outcomes:

• Wide adoption and usage of the market making tools within the Cardano ecosystem
• Increased liquidity provision and trading activity on decentralized exchanges
• Greater visibility and awareness of the tools among the Cardano community

Milestone 6: Monitoring, Evaluation, and Updates

Deliverables:

• Regular monitoring and evaluation reports
• Updates and enhancements based on user feedback and market dynamics
• Documentation of updates and improvements made to the tools

Outputs:

• Ongoing monitoring and evaluation of the market making tools' performance and impact
• Updated versions of the tools with bug fixes, feature enhancements, and optimizations
• Documentation highlighting the updates and improvements implemented

Intended Outcomes:

• Continuous improvement of the market making tools based on user feedback and market conditions
• Optimized performance and functionality of the tools
• Long-term sustainability and effectiveness of the market making solution within the Cardano ecosystem

Please note that these deliverables, outputs, and intended outcomes are subject to refinement and adjustments throughout the project as per feedback, evaluation, and evolving needs of the Cardano ecosystem.

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

Based on the total budget of 150,000 $ADA, here is a detailed breakdown of the proposed work and resources:

Development and Engineering (50% of budget)

• Salaries and fees for engineers, developers, and technical experts involved in the project.
• Resource allocation for algorithm development, coding, and system implementation.
• Costs associated with software tools, libraries, and development environments.
• Testing and quality assurance expenses to ensure the reliability and performance of the market making tools.

Research and Analysis (10% of budget)

• Costs for conducting in-depth research on market making strategies, liquidity analysis, and high-frequency bot tracking.
• Data collection and analysis tools and platforms.
• Research-related subscriptions, publications, and resources.

Integration and Collaboration (10% of budget)

• Collaboration and partnership expenses with DApp developers and stakeholders within the Cardano ecosystem.
• Costs associated with integrating the market making tools with decentralized exchanges and relevant DApps.
• Communication and coordination expenses for effective integration and collaboration efforts.

Documentation and Communication (5% of budget)

• Creation of comprehensive documentation, user guides, and technical specifications for the market making tools.
• Costs for communication channels, community engagement platforms, and project updates.
• Marketing materials, website development, and branding-related expenses to promote awareness and adoption of the tools.

Pilot Testing and User Feedback (10% of budget)

• Costs for organizing and conducting pilot testing with a select group of retailers and liquidity providers.
• Gathering and analyzing user feedback and evaluation.
• Expenses for any necessary iterations, refinements, and improvements based on user feedback.

Monitoring and Support (10% of budget)

• Ongoing monitoring, evaluation, and reporting of the market making tools' performance and impact.
• Maintenance and support costs for ensuring the tools remain up-to-date, secure, and functional.
• Helpdesk or support channels for addressing user inquiries and issues.

Contingency (5% of budget)

• A contingency fund to account for unforeseen expenses or adjustments during the project's lifecycle.

It's important to note that the percentage allocations provided above are estimates and can be adjusted based on the specific needs and priorities of the project. The budget breakdown ensures that adequate resources are allocated to each aspect of the project, including development, research, integration, documentation, testing, monitoring, and support, to ensure its successful execution and delivery within the allocated budget.

[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. Enhanced Liquidity and Trading: By investing in the development of market making tools, the Cardano ecosystem can attract more liquidity providers and traders to decentralized exchange
2. Improved Accessibility and Competitiveness: The market making tools enable retailers and liquidity providers to make informed decisions, compete effectively with centralized market manipulators, and provide liquidity in decentralized exchange
3. Decentralization Promotion: The project aligns with Cardano's vision of decentralization by encouraging retailers to participate in decentralized exchanges instead of relying solely on centralized platform
4. Attraction of Traders and Market Makers: The development of market making tools makes Cardano an attractive platform for traders and market maker
5. Long-term Sustainability: Investing in the project ensures the long-term sustainability of the Cardano ecosystem by nurturing a strong trading and liquidity provision communit

It is important to note that the cost of the project should be considered in relation to the expected benefits and impact it brings to the Cardano ecosystem. By providing value for money, the project aims to create a more robust, competitive, and decentralized ecosystem that attracts participants, fosters liquidity provision, and ultimately drives the overall growth and adoption of Cardano.

[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