Open Source Yield Optimizer on Cardano

[GENERAL] Name and surname of main applicant

Poppy Finance

[GENERAL] Email address of main applicant

financepoppy@gmail.com

Additional applicants

Poppy Finance team believes in privacy and open source code. With current global regulations we believe it's best to remain anonymous and build transparency through open source code.

[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.” .

Poppy Finance works with Anastasia Labs for technical development and Saturn Labs for marketing services.

[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.”

The Poppy Finance project will be entirely open source following the successful audit of our on-chain and off-chain code.

[METADATA] Category of Proposal

DeFi

[IMPACT] Please describe your proposed solution.

Our protocol objectives are:

1. Maximize Yield Generation by employing sophisticated algorithms and strategies to identify and capitalize on the most profitable opportunities in the Cardano ecosystem.
2. Minimize Risk Exposure by implementing robust risk management mechanisms, such as diversification, risk assessment models, and automated monitoring systems.
3. Contribute to Cardano’s DeFi explosion by seamlessly displaying and offering the best yield generating opportunities on Cardano.

The Poppy Protocol

The primary objective of the protocol is to construct customized vaults for each external DEX pool by deploying parameterized vault contracts and minting policies. These vault contracts serve as a direct interface to the liquidity pools offered by external decentralized exchange (DEX) providers. Their purpose is to effectively manage user interactions involving fund deposits and withdrawals.

When a user deposits LP tokens into the vault, they will be issued cornTokens, which represent the deposited LP token value. Subsequently, when a user intends to withdraw LP tokens from the vault, they must burn the corresponding cornTokens using the minting policy to receive their LP tokens, along with any associated rewards.

To ensure smooth operations and prevent concurrency issues, the protocol will also implement a custom linked list architecture. This architecture allows users to interact with the contract without adversely affecting or stalling the protocol.

Additionally, each vault will accumulate rewards from the external DEX pools.

However, considering the locking periods of certain DEX pools, the protocol will utilize defined locking and withdrawal periods. For instance, some DEXs may have a locking period of 30 days. This implies that every 30 days, the protocol will compound the accrued interest or rewards from these pools.

Our team philosophy stems from the fundamental belief that Cardano is the most secure and decentralized blockchain in existence.

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

We have applied to the Products and Integrations category, and Poppy Finance is a next generation dApp built to foster a seamless yield environment for Cardano's community of DeFi enthusiasts.

With the rapid growth of DeFi, yield optimization platforms have become essential tools for investors seeking to maximize their returns on digital assets.

Poppy Finance stands at the forefront of this revolution on the Cardano blockchain, offering a suite of robust yet user-friendly tools.

Using Poppy Finance, any Cardano user will be able to optimize their earning capacity in a consolidated and sleek platform, without the hassle of manually monitoring all their DeFi activity across different protocols.

We are confident that our strategy of incorporating highly-attractive rewards in an organized and consolidated DeFi environment will position Poppy to be market leader in Cardano yield optimizers.

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

We measure the success of our project with launching our mainnet within 6 months.

We have already competed and delivered a working MVP to the Emurgo hackathon and are awaiting here back on our placement in this competition.

By Q1 2024, we expect to have a robust product with at least 1,000 active monthly and at least 10 million ADA in total value locked (TVL).

A launched product with thousands of users and million of ADA in TVL would be considered fair milestones to accomplish for our team to start.

In doing so, the Cardano ecosystem would have a reliable and secure platform to optimize DeFi users' yield opportunities.

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

Poppy Finance is an open source project so any developer or community member will be free to inspect or use our code to build on top upon and make new innovative projects.

Anyone in the ecosystem can use our code or use our product to help maximize their yield generating opportunities.

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

The Poppy protocol has attained the services of Anastasia Labs and Saturn Labs, two renowned teams of global contributors that are committed to the success of our protocol. These teams have been involved in some of the most well-known projects on Cardano. Together, we believe these teams possess the development and marketing prowess to make Poppy a successful project.

Anastasia Labs is one of the most competent developer organizations on Cardano having built some of the most technically rigorous dApps on Cardano including WingRiders, teaching the haskell classes at Emurgo Academy, and contributing to the Cardano Foundation.

Some projects have attempted to build a yield optimizer, recognizing the benefits it brings to the Cardano ecosystem, however, no team has been able to deliver this product as it requires the utmost knowledge and execution ability to launch a product of this magnitude.

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

We've laid out our technical approach in our v1 litepaper which can be found here.

The main goals for the project is to build the #1 yield optimizer on Cardano by creating a platform that can be used by all Cardano enthusiasts to maximize their yield generating opportunities.

We've validated the feasibility of our approach by delivering a working MVP in the Emurgo hackathon and by building a strong community of Poppy supporters on social media.

[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.

Key milestones include:

• Complete Smart Contracts (Q3 2023)
• Complete working MVP (Q3 2023)
• Public Testnet (Q4 2023)
• Audit (Q1 2024)
• Mainnet (Q1 2024)

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

Deliverable #1: Complete Yield Optimizing Smart Contracts

Deliverable #2: Complete UI (complete)

Deliverable #3: Complete Off-chain Code

Deliverable #4: Integrate Endpoints into UI

Deliverable #5: Internal Testing

Deliverable #6: Public Testnet

Deliverable #7: Mainnet Launch

Deliverable #8: Governance

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

Budget Requested: 350,750 ADA = ~$105,225

2x frontend developer @ $3,000 per month for 6 months = $36,000

2x smart contract developers @ $3,000 per month for 6 months = $36,000

Audit - $40,000

This will cost about $112,000, not including other expenses such as infrastructure and marketing cost, which our team is willing to pay out of pocket.

However, we humbly request these ADA funds to cover the costs of our audit and continued development.

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

This dApp, compared to other yield optimizer's outside of Cardano, have seen valuations up to $1 billion dollars. This value can be enjoyed by the community through the projects token, POP, which is the utility token to be launched prior to our mainnet launch.

Additionally, the collected value earned by individual users is projected to far exceed the value of our request funds of ~$105,225.

[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