Decentralized (Index) Funds: Native Assets on Cardano

[GENERAL] Name and surname of main applicant

The Linkage Finance Team

[GENERAL] Email address of main applicant

contact@linkage.finance

Additional applicants

No additional applicants.

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

3

[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?

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.”

We are planning on open sourcing our smart contracts within six months after protocol launch.

[METADATA] Category of Proposal

DeFi

[IMPACT] Please describe your proposed solution.

The perception of solving the Problem

Cardano’s growing ecosystem becomes home to more and more projects and business ideas. While the enormous number of projects creates a flourishing ecosystem, it challenges investors. The Native Asset market comes with interesting and valuable investment possibilities. As the the Cardano DeFi-Space has grown, more and more projects choose Cardano. It get’s increasingly difficult to do proper research on new incoming projects. Having to buy all Assets individually drives costs up too, as DEXs demand fees for their services. A Decentralized (Index) Fund approach can save investors money AND time, while being able to fully participate in the growing market.

Reasons for said approach

While Index Funds are a well-established and appreciated method of investing in the traditional finance world – this concept is not used in decentralized finance yet, where it could bring the same kind of benefits to digital assets and even more. The Linkage Protocol built by Linkage Finance does not only leverage blockchain technology it also brings various benefits compared to traditional Index Funds. By leveraging smart contracts, funds are non-custodial.

 

Who will our project engage with?

Everybody! We aim on making the Linkage Finance Protocol a great example for inclusivity, transparency and trustlessness. The Decentralized nature of Cardano and Linkage Finance helps/allows our community and us to be a innovative place that isn’t gatekept by centralized players and/or institutions.

 

How will we demonstrate or prove our impact

Certain metrics can help us to demonstrate and visualize our impact and success.

TVL (Total Value Locked) can show how much money is involved in the Protocol and therefore allow for conclusions on users trust in the Protocol.

Partnerships: We are already closely partnered with MuesliSwap, one of the leading DEXs on Cardano. As exchange of information and communication is vital to success we see forming partnerships as very important on having impact and success.

Follower numbers/Number of visits/mentions on Social Media Platforms. These kind of numbers can help to evaluate the size of the community. Comparing these numbers over time allow for conclusions regarding potential growth of our community.

Number of created funds demonstrate involvement in the project and use of the protocol. As users will be able to create funds, a high number and in comparison to prior moments growth, can show how actively involved community members and users of the Linkage Finance Protocol actually are.

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

Linkage Finance aims on bringing an important part of Traditional Finance – Index Funds, to Decentralized Finance. The decentralized character brings even more benefits to this kind of investment vehicle. As well, a new hurdle-free way of investing makes it easier for people to invest in Native Assets.

This allows for a bigger user-base, even with people that have not engaged with the Cardano blockchain and its projects before. As the use of the Linkage Finance Protocol is permissionless there is no group that will exclusively be allowed to use the Linkage (Index) Funds. It therefore is difficult to narrow the user-base down to a specific group/organization/kind of investor. In the beginning it will most likely attract people within the Cardano Community that research new projects launching on Cardano.

As the Linkage Finance Team is confident that Cardano will grow and because of its qualities attract new investors from other Blockchains, we envision new people from other blockchains using the Linkage Finance Protocol. A new group that is hard to define in terms of quantity we believe that the Cardano will grow over the years and even attract new users that haven’t used Blockchain technology before. We think that these people will use Linkage Finance because a) they want to invest in Native Assets in a cheap and easy way and b) they become increasingly aware of the disadvantages of Traditional Finance Index Funds and are looking for decentralized alternatives with the useful characteristics of a blockchain like Cardano.

Regarding the usage of the Linkage Finance Protocol we aim for a TVL of more than 1,000,000 USD in the next six months in all Decentralized (Index) Funds combined which would underline the benefits and usefulness of the Protocol to its users.

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

With less boundaries (saving money and time), better accessible ways of investing are very beneficial to Cardano. A difficult process of buying a variety of Native Assets hampers DeFi growth. Ultimately Linkage Finance aims on being a growth accelerator for Cardano and its DeFi-Space. In our opinion, a striving DeFi-Space is vital for blockchains like Cardano.

Our strategy is focused on longterm growth, yet, it is important to mention that our short term strategy and longterm strategy differ. Short term, we aim on showing the community the value a Decentralized (Index) Fund approach brings to the table. We intend to measure this via numbers of community growth, TVL and community member feedback as well. This feedback is important as the Linkage Finance Protocol will be developed to benefit the Cardano Community and needs therefore to be tailored to their likings.

The longterm strategy doesn’t differ in gathering feedback, but the additional goal will be to attract new users, with experience or not. As well showing people in the Traditional Finance world the benefits of DeFi will be a major goal in our longterm strategy.

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

We have the following plans to share the outputs and results of Linkage Finance

1. Mainnet Launch: The launch of Linkage Finance on the Cardano mainnet will be a significant milestone. This achievement will be widely shared and communicated to the community, showcasing the successful implementation of the Linkage Finance Protocol within the Cardano DeFi space.
2. Metrics and Success Measurement: We will utilize various metrics, as described above, to measure the success of Linkage Finance. These metrics will be shared transparently with the community, providing insights into the performance and impact of the protocol on the Cardano DeFi ecosystem.
3. Research and Safety: Throughout the development process, we will conduct rigorous research and perform safety checks, including Smart Contract Audits, to mitigate the risks associated with smart contract bugs. The results of these research efforts will be shared within the community to foster trust and confidence in the Linkage Protocol.
4. Community Engagement: As a community-driven project, we value the input and feedback of our community members. We will actively engage with the community to discuss and share the project's results. This feedback will play a crucial role in shaping the future direction of the Linkage Protocol, ensuring it meets the needs and preferences of its users.
5. Shaping Research and Development: The generated results will serve as valuable insights for shaping future research and development efforts. By analyzing the community's preferences and preferences regarding funds, we can tailor our offerings to align with the needs of investors. Feedback will continue to be a key component in our journey towards the success of the Linkage Finance Protocol.

In summary, we are committed to transparently sharing the outputs and results of the Linkage Finance project with the community. Through open communication, community engagement, and continuous feedback, we aim to build a strong and successful Linkage Finance Protocol within the Cardano ecosystem.

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

The Linkage Finance team is a dynamic group of 6 team members. The team compromises of core developers from the renowned MuesliSwap decentralized exchange, alongside talented finance and community professionals who share a deep passion for Cardano and decentralized finance (DeFi). This exceptional team combines their expertise in blockchain development, financial strategies, and marketing to drive the advancement of Linkage Finance. Their collaborative efforts aim to revolutionize the world of finance by leveraging the power of Cardano's blockchain technology and creating innovative solutions in the realm of DeFi. With a shared commitment to transparency, accessibility, and transformative financial experiences, the Linkage Finance team is dedicated to reshaping the future of decentralized finance on the Cardano platform.

The passion towards Cardano makes us suitable for a financed proposal as we aim on bringing Cardano and its DeFi space forward with the receivable funds. As well, regular updates will inform the community on how the Linkage Finance team is making progress in building the Linkage Finance Protocol. Being transparent about how the money is going to be used, brings transparency regarding the funding received.

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

We aim on making Native Assets, and especially an investment in the fast-growing Cardano DeFi-Space more accessible. It is time to bring the benefits of Index Funds to Cardano. Linkage Finance wants to help in creating a flourishing Native Asset market and in being a useful protocol to the Cardano Community.

Linkage Finance is working hard for the Linkage Finance Protocol to be a useful tool and the protocol of choice for people looking to diversify in an easy, less time consuming and cheaper way. We want to be a key part in improving DeFi.

As a protocol build for the community, community feedback will play a crucial role in building and later on improving the Linkage Finance Protocol. Furthermore, important metrics are as already mentioned: TVL, exchange of information with partners like MuesliSwap, number of funds created and of course a growing community.

We are sure that our approach is feasible, as the Linkage Finance Protocol is a solution to a known problem which urgently needs to be solved. We think that we gain traction by being a one-stop-shop for investing in a growing market.

[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.

Milestone 1: Protocol Development and Testing

Develop the Linkage Finance Protocol based on the concept of Decentralized (Index) Funds.

Conduct rigorous research and analysis to ensure feasibility and safety.

Perform smart contract audits to validate the security and integrity of the protocol.

Timeline: 2 months

Milestone 2: Mainnet Launch

Launch the Linkage Finance Protocol on the Cardano mainnet.

Enable users to access and utilize the protocol for investing in Native Assets.

Provide a seamless user experience and ensure the protocol is user-friendly.

Timeline: 1 month after completion of Milestone 1

Milestone 3: Community Engagement and Growth

Engage with the Cardano community to raise awareness about the Linkage Finance Protocol.

Share information, updates, and progress through various social media platforms.

Foster partnerships with other projects, such as MuesliSwap, to enhance communication and collaboration.

Measure community growth through follower numbers, website visits, and mentions on social media platforms.

Timeline: Ongoing throughout the project duration

Milestone 4: Fund Creation and Adoption

Enable users to create Decentralized (Index) Funds using the Linkage Finance Protocol.

Encourage community members and users to actively participate in creating and using the funds.

Measure the number of funds created and their adoption rate as a metric of community involvement.

Collect feedback from users to improve and tailor the protocol to their needs.

Timeline: Ongoing throughout the project duration

Milestone 5: Continuous Improvement and Iteration

Gather feedback from the community and users regarding their experience with the Linkage Finance Protocol.

Use feedback to identify areas of improvement and implement necessary updates.

Continuously iterate on the protocol to enhance functionality, security, and user satisfaction.

Timeline: Ongoing throughout the project duration

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

Milestone 1: Protocol Development and Testing

Deliverables:

1. Developed Linkage Finance Protocol based on the concept of Decentralized (Index) Funds.
2. Detailed technical documentation outlining the protocol's architecture, functionalities, and integration guidelines.
3. Research and analysis report, showcasing the feasibility and potential of the protocol.
4. Comprehensive test suite with unit tests, integration tests, and stress tests.
5. Smart contract code for the protocol, audited and verified for security and integrity.

Intended Outcomes:

1. A fully functional and secure protocol that enables decentralized (index) fund creation and management on the Cardano blockchain.
2. Increased understanding of the protocol's features, benefits, and potential use cases through the research and analysis report.
3. Confidence in the protocol's security and resilience, established through rigorous smart contract audits and testing.
4. Foundation for the subsequent milestones, ensuring a solid base for mainnet launch and community engagement.

Milestone 2: Mainnet Launch

Deliverables:

1. Deployed and operational Linkage Finance Protocol on the Cardano mainnet.
2. User interface and experience design, providing a seamless and intuitive experience for users to access and utilize the protocol.
3. Documentation and guides on how to interact with the protocol, including tutorials and step-by-step instructions.
4. Integration with relevant native asset markets and DEX platforms to enable users to invest in Native Assets.

Intended Outcomes:

1. Live availability of the Linkage Finance Protocol on the Cardano mainnet, allowing users to create, manage, and invest in decentralized (index) funds.
2. Increased accessibility for users to participate in the growing Native Asset market on Cardano, facilitating broader adoption and diversification.
3. Positive user experiences with the protocol, enhancing user satisfaction and encouraging continued engagement.
4. Seamless integration with existing native asset markets and DEX platforms, providing users with a seamless investment experience.

Milestone 3: Community Engagement and Growth

Deliverables:

1. Active engagement with the Cardano community through social media platforms, forums, and community channels.
2. Regular sharing of information, updates, and progress on the Linkage Finance Protocol's development and milestones.
3. Partnership collaborations established with projects like MuesliSwap, fostering communication, knowledge exchange, and potential integrations.
4. Tracking and reporting of community growth metrics, including follower numbers, website visits, and mentions on social media platforms.

Intended Outcomes:

1. Increased awareness and understanding of the Linkage Finance Protocol within the Cardano community, generating interest and engagement.
2. Transparent and effective communication channels that keep the community informed and involved in the project's progress.
3. Collaborative relationships with partner projects, enhancing the ecosystem and potential integrations.
4. Measurable growth in the community, demonstrated through the growth of social media followers, website visits, and positive mentions.

Milestone 4: Fund Creation and Adoption

Deliverables:

1. Functionality for users to create and manage decentralized (index) funds using the Linkage Finance Protocol.
2. Community-driven fund creation and adoption, with users actively participating in creating and utilizing funds.
3. Metrics tracking the number of funds created and their adoption rate, providing insights into community involvement and protocol usage.
4. Continuous collection of user feedback to improve and tailor the protocol based on user needs and preferences.

Intended Outcomes:

1. Increased participation and engagement from the Cardano community in creating and utilizing decentralized (index) funds.
2. Variety of funds created, representing diverse investment strategies and opportunities for users.
3. Adoption rate as a metric of community involvement and satisfaction with the protocol.
4. User feedback as a valuable resource for continuous improvement, ensuring the protocol meets the needs and expectations of its users.

Milestone 5: Continuous Improvement and Iteration

Deliverables:

1. Regularly gathered user feedback and suggestions for improving the Linkage Finance Protocol.
2. Iterative updates and enhancements to the protocol's functionality, security, and user experience.
3. Documentation updates reflecting the latest features and improvements.
4. Ongoing security audits and bug fixes to ensure the protocol's resilience and reliability.

Intended Outcomes:

1. Responsive development process based on user feedback, ensuring the protocol evolves to meet user needs and preferences.
2. Enhanced functionality, security, and user satisfaction through regular updates and improvements.
3. Updated documentation that reflects the latest features and best practices.
4. Continued commitment to maintaining a secure and reliable protocol through ongoing security audits and bug fixes.

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

Milestone 1: Protocol Development and Testing (2 months)

• Development Costs: Lead Developer: 160 hours = $12,000
• Senior Developer: 120 hours $7,200
• Total Development Costs: $19,200

• Research and Analysis: Research and Analysis Team: 80 hours $4,000
• Total Research and Analysis Costs: $4,000

Total Budget for Milestone 1: $23,200

Milestone 2: Mainnet Launch (1 month after Milestone 1)

• Launch Costs:Lead Developer: 40 hours at $75/hour = $3,000
• Senior Developer: 30 hours at $60/hour = $1,800
• Total Launch Costs: $4,800

• User Experience Enhancement:UX/UI Designer: 40 hours at $50/hour = $2,000
• Total User Experience Enhancement Costs: $2,000

Total Budget for Milestone 2: $6,800

Milestone 3: Community Engagement and Growth (Ongoing)

• Community Engagement:Community Manager: 80 hours at $50/hour = $4,000
• Marketing Specialist: 60 hours at $60/hour = $3,600
• Total Community Engagement Costs: $7,600

• Partnership Collaborations:Community Manager: 20 hours at $50/hour = $1,000
• Total Partnership Collaboration Costs: $1,000

• Community Growth Measurement:Marketing Specialist: 20 hours at $60/hour = $1,200
• Total Community Growth Measurement Costs: $1,200

Total Budget for Milestone 3: $9,800

Milestone 4: Fund Creation and Adoption (Ongoing)

• Fund Creation Functionality:Lead Developer: 60 hours = $4,500
• Senior Developer: 40 hours = $2,400
• Total Fund Creation Functionality Costs: $6,900

• Community Participation Encouragement:Community Manager: 40 hours = $2,000
• Total Community Participation Encouragement Costs: $2,000

• User Feedback Collection:Support Specialist: 40 hours = $2,000
• Total User Feedback Collection Costs: $2,000

Total Budget for Milestone 4: $10,900

Milestone 5: Continuous Improvement and Iteration (Ongoing)

• Feedback Gathering and Analysis:Lead Developer: 20 hours = $1,500
• Senior Developer: 20 hours = $1,200
• Total Feedback Gathering and Analysis Costs: $2,700

• Iterative Enhancements:Lead Developer: 20 hours = $1,500
• Senior Developer: 20 hours = $1,200
• Total Iterative Enhancement Costs: $2,700

Total Budget for Milestone 5: $5,400

Total Project Budget: $56,100

We are only requesting $30,000 USD (100k ADA) while the remaining budget will be covered by the Linkage Finance team.

[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 providing a comprehensive and well-distributed allocation of funds across key areas of development and growth. Here's how the costs previously described contribute to the value for money:

Protocol Development and Testing:

• Developer salaries and wages: By allocating a significant portion of the budget to experienced developers, the project ensures the development of a robust and efficient protocol. Skilled developers can deliver high-quality code and optimize performance, enhancing the overall value and functionality of the protocol.
• Research and analysis expenses: Investing in research and analysis ensures that the protocol aligns with industry standards, addresses potential challenges, and offers innovative solutions. Thorough research helps in creating a protocol that brings unique value to the Cardano ecosystem.
• Smart contract audits: The cost of smart contract audits is essential for ensuring the security and integrity of the protocol. By conducting external security audits and code reviews, the project mitigates the risk of vulnerabilities and safeguards users' assets, providing value through trust and reliability.

Mainnet Launch:

• Marketing and promotion: Allocating funds to marketing and promotion activities helps in raising awareness about the Linkage Finance Protocol. Effective marketing strategies can attract users and investors to the protocol, driving adoption and usage.
• User interface and experience design: Investing in user interface and experience design ensures a seamless and user-friendly interaction with the protocol. A well-designed interface enhances user satisfaction and encourages continued engagement, providing value through a positive user experience.
• Technical infrastructure and hosting: Allocating resources for technical infrastructure and hosting ensures a stable and reliable platform for the Linkage Finance Protocol. This contributes to the ecosystem's overall stability and accessibility, increasing its value as a trustworthy and accessible solution.

Community Engagement and Growth:

• Social media management: Investing in social media management enables effective communication and engagement with the Cardano community. Building an active and supportive community fosters collaboration, feedback sharing, and growth opportunities, adding value through community involvement and participation.
• Content creation and distribution: Allocating funds for content creation and distribution helps in educating and informing the community about the benefits and features of the Linkage Finance Protocol. Informative content can attract users, developers, and investors, expanding the ecosystem and enhancing its value.
• Partnership collaborations: Building partnerships with projects like MuesliSwap creates synergies and collaborative opportunities within the Cardano ecosystem. Partnerships facilitate knowledge exchange, resource sharing, and community growth, generating value through enhanced network effects.

Fund Creation and Adoption:

• Technical development for fund creation feature: By investing in the technical development of the fund creation feature, the project enables users to create Decentralized (Index) Funds easily. This functionality encourages broader participation and diversification, offering value by making investment opportunities more accessible and cost-effective.
• Community outreach and education: Allocating resources for community outreach and education helps in spreading awareness about the benefits and use cases of the Linkage Finance Protocol. Educating the community fosters adoption and active participation, adding value through increased utilization and engagement.
• User support and assistance: Providing user support and assistance ensures a positive user experience and helps users navigate the protocol effectively. This support contributes to user satisfaction, retention, and overall value by offering a helpful and responsive ecosystem.

Continuous Improvement and Iteration:

• Feedback collection and analysis: Investing in feedback collection and analysis enables the project to gather valuable insights from users and stakeholders. This feedback-driven approach ensures that future development and updates align with user needs and expectations, adding value through continuous improvement based on real-world feedback.
• Development and implementation of updates: Allocating resources for development and implementation of updates enables the project to enhance the protocol's features, address any identified issues, and stay up to date with the evolving needs of the Cardano ecosystem. Regular updates and improvements contribute to the protocol's long-term value and competitiveness.
• Security audits and bug fixes: The cost of security audits and bug fixes demonstrates the project's commitment to maintaining a secure and reliable protocol. Regular audits and bug fixes reduce vulnerabilities, instilling trust in users and providing ongoing value through a resilient and robust ecosystem.

By thoughtfully allocating resources to these key areas, the project maximizes the value it brings to the Cardano ecosystem. The costs associated with protocol development, testing, marketing, community engagement, and continuous improvement ensure a well-rounded approach that benefits users, developers, and the overall growth and success of 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