Stargazer: DeFi Yield Optimizer for Cardano

[GENERAL] Name and surname of main applicant

Christoph Waffler

[GENERAL] Email address of main applicant

info@stargazer.finance

Additional applicants

-/-

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

10

[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.”

The smart contracts will be fully open source for verification and trust reasons after a successful full audit of our on-chain and off-chain code.

The back-end and front-end code, which contains essential intellectual property and is not relevant to public auditability, will be closed source.

[METADATA] Category of Proposal

dApp

[IMPACT] Please describe your proposed solution.

1) Problem Perception:

Despite its considerable potential, the complexity and associated risks of DeFi are barriers preventing many potential investors from fully engaging with its offerings.

For more context, yield farming is a process where users provide liquidity to DeFi protocols in exchange for rewards, usually in the form of tokens. However, this process requires constant monitoring and strategic reinvestment which is costly because of e.g., daily transaction fees.

The overall goal — which is to maximize returns — is fraught with risks, such as volatile loss and potential smart contract failures. These challenges often deter inexperienced users and those without a deep understanding of DeFi mechanics, limiting the proliferation and adoption of DeFi services.

2) Approach:

Our submitted solution, Stargazer, is an AI-driven Yield Optimizer (= Yield Aggregator) designed specifically for the Cardano DeFi ecosystem. We aim to make yield farming more accessible by simplifying and streamlining the process.

By using our products, you will achieve a much higher return on your invested money through efficient reinvesting and more safety through diversification across multiple dApps. These will include such as the most popular DEXes (e.g., Minswap or Mueliswap) and lending protocols (e.g., LenFi).

This means that Stargazer has the following capabilities:

• By bundling all users’ transactions, reinvesting the reward token costs fewer transaction fees.
• In addition, the daily reinvestment generates a high compound interest.
• Through the use of AI, users (1) will also be informed about the risks associated with each yield strategy and (2) will be able to choose between low-risk/low-return and high-risk/high-reward strategies using the AI

3) Engagement:

Stargazer targets both current DeFi users who are looking for improved yield optimization strategies and newcomers who have been discouraged by the complexities of yield farming. By making DeFi more accessible, we hope to broaden its user base, thereby promoting Cardano as a DeFi platform.

4) Demonstrating Impact:

Our impact will be demonstrated by closely monitoring and sharing key metrics such as the total value locked (TVL) in Stargazer, the number of active users, and the returns generated for our users. These metrics will serve as clear indicators of Stargazer's positive influence on the Cardano ecosystem.

Unique Features and Benefits:

Stargazer stands out from other Yield Optimizers through the integration of AI technology and risk diversification strategies. This combination will benefit both existing DeFi users seeking better yield optimization and newcomers attracted by a simplified yield farming experience. Increasing the DeFi user base is pivotal for stimulating growth and innovation in the Cardano ecosystem.

Importance to Cardano:

Stargazer plays a crucial role in the Cardano ecosystem as it fills a significant gap. While Cardano shines in scalability and security, its DeFi ecosystem is less developed compared to other blockchains. Stargazer, with its user-friendly interface and accessibility, will contribute to the maturation of Cardano's DeFi space, attracting more liquidity and fostering innovation.

Ongoing Engagement & Progress Transparency:

To maintain commitment and provide clear evidence of progress, we plan to release functional prototypes frequently, allowing users to interact with intermediate results. This will create an engaging growth journey and provide insights for continuous improvement. Furthermore, we will share updates and release results on the preproduction testnet as soon as they become available, allowing the public to assess our progress.

We are committed to contributing to the evolution of DeFi on Cardano and are excited about the transformative potential that Stargazer brings to the community.

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

Our proposed solution, Stargazer, directly aligns with the “Products & Integrations” challenge by creating a valuable product designed to significantly enhance the Cardano ecosystem's DeFi experience. Specifically, Stargazer addresses two primary areas outlined in the challenge:

1. DeFi: As a Yield Optimizer, Stargazer not only introduces a new product to the Cardano DeFi landscape, but also aims to improve the current state of yield farming within the ecosystem
2. Artificial Intelligence: Stargazer leverages AI to optimize yield farming strategies, introducing an advanced technology component to Cardano's DeFi space.

Addressing the Challenge:

The “Products & Integrations” challenge aims to encourage the creation or improvement of products that add value to the Cardano community and wider ecosystem. Stargazer aims to fulfill this goal by simplifying and optimizing yield farming, thereby making it more accessible to all potential investors.

As an AI-driven Yield Optimizer, Stargazer will greatly improve the end-user experience by providing an easy-to-use interface, making yield farming more approachable to the average investor. By automating and diversifying investment strategies across multiple dApps, it introduces a more efficient and safer way for users to engage in DeFi activities, ultimately improving user adoption and interaction with the Cardano blockchain.

Benefits to the Cardano Ecosystem:

Stargazer will bring a wealth of benefits to the Cardano ecosystem, including:

1. Attracting more users: By simplifying the complexities of yield farming, we expect to draw more users, especially newcomers, to Cardano's DeFi space.
2. Increasing liquidity: With more users participating in yield farming, the liquidity of Cardano's DeFi ecosystem will improve.
3. Driving innovation: Our solution will set a new standard for DeFi applications on Cardano, encouraging further innovation in the space.

Qualifying and Quantifying Impact:

The critical success metrics we will use to track our project's impact include the total value locked (TVL) in Stargazer, the number of active users, and the returns generated for those users.

In terms of numbers, while it's challenging to provide precise figures, we aim for a reasonable user base within six months after launch. This will be followed by a significant increase within the next couple of years as the DeFi space matures and adoption rates increase. This growth will contribute to Cardano's overall mission to increase blockchain adoption by creating more efficient and user-friendly decentralized services.

By addressing a key problem in the Cardano ecosystem and adding significant value to its DeFi space, Stargazer will not only bring more users to the community, but also strengthen the ecosystem. Making it more attractive to both developers and end-users.

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

Stargazer's success will be measured by a combination of key quantitative and qualitative metrics, all connected to our goal of enhancing the Cardano DeFi ecosystem.

Quantitative Metrics:

• Total Value Locked (TVL): As a key performance indicator for DeFi platforms, the TVL will reflect the trust level and usage of the Stargazer platform within the Cardano community. Growth in TVL would indicate increased usage and adoption.
• Number of Active Users: By tracking the number of active users, we can measure the reach and adoption rate of Stargazer within the Cardano community. An increase in this figure will signify successful user acquisition.

Qualitative Metric:

• User Satisfaction: Through regular user feedback sessions and surveys, we will measure user satisfaction with our platform, services, and overall user experience. Feedback is invaluable for continuous improvement and aligning our platform with user needs.

These metrics offer a realistic and pragmatic approach to measuring the success of Stargazer. They provide direct insights into user adoption, trust, and satisfaction, all of which are integral to our projects' success in both the short and long term.

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

• Regular Updates and Functional Prototypes: We will regularly release functional prototypes for users to interact with, aiding an engaging and informative growth journey. Updates will be shared promptly on our preproduction testnet, allowing the public to evaluate our progress.
• Open-Source Development: Our smart contract code will be routinely shared on our GitHub account, promoting transparency and community engagement. We welcome feedback and contributions to continuously refine Stargazer.
• Utilization of Project Results: The data and insights collected will help us understand user behavior, identify improvements, and guide the development of Stargazer.

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

Profound Technical Knowledge

Christoph Waffler is the creator and designer of Stargazer. He has a robust foundation in writing Python smart contracts for Cardano and web development, both critical components of this project. His ability to rapidly acquire and apply new knowledge allows him to overcome any challenges that might arise during the execution of the project.

Leveraging AI for Accelerated Development

He is also leveraging cutting-edge AI technology to accelerate the development process. This assists me in maintaining a swift and efficient pace of work, ensuring the timely and successful delivery of the Stargazer platform.

Strong Community Connections

Furthermore, Christoph is well-connected within the OpShin community. OpShin is an extension of the Python programming language to write Cardano smart contracts. This network provides him with access to expert knowledge and support, empowering him to overcome any technical hurdles that may come up during the project's development.

Commitment to Transparency

Regarding accountability, Christoph’s commitment is to transparency in all project stages. He is committed to demonstrating the efficient use of resources, maintaining an open line of communication with the Cardano community, and regularly providing project updates.

In conclusion, Christoph’s technical expertise, utilization of AI technology, ties with the OpShin community, and dedication to transparency equip him to deliver the Stargazer project with high levels of trust and accountability.

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

The main goals of the Stargazer project are to simplify yield farming in the Cardano DeFi ecosystem, facilitate access for all users, and optimize yields through AI-driven strategies.

For the user, this means earning higher rewards, saving transaction fees, and saving time spent manually reinvesting rewards. It also reduces the risk through diversification.

To validate the feasibility of our approach, we will conduct rigorous testing and gather feedback from the Cardano community, including a test phase with a select group of users.

We will also track key performance indicators such as Total Value Locked (TVL) and user growth to ensure we achieve our project goals.

[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.

Our detailed plan for Stargazer is as follows:

Q3 2023: Initiation Phase

• Development of a minimum viable product (MVP) on the testnet with at least one liquidity pool (LP) (e.g., MIN/ADA) on one DEX with an automated reinvesting functionality

Q4 2023: Launching Phase

• Release of the MVP on the mainnet
• Expansion of the Yield Optimizer for at least two other LPs

Q1 2024: Expansion Phase

• Launch of diversified Yield Farming: providing liquidity to multiple exchanges, which enables diversified yield farming strategies
• Launch of farming strategies for token pairs that are most in demand by the community (e.g., MILK/ADA)
• Start designing a risk analysis overview for underlying farming opportunities

Q2 2024: Next-Level Yield Farming

• Launch of yield farming strategies that are supported by AI
• AI performs risk analysis and assigns each DEX and LP a specific risk profile
• Users can now choose strategies according to their risk tolerance, ranging from low risk/low reward to high risk/high reward

In summary, Stargazer is expected to become a central part of the DeFi landscape on Cardano through the development and deployment of innovative yield farming solutions.

We are confident that Stargazer will make valuable contributions to yield farming, risk analytics, and much more to drive innovation and growth within the community, with milestones carefully placed to ensure consistent progress.

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

The deliverables, outputs, and intended outcomes for each milestone in the Stargazer project are as follows:

Q3 2023: Initiation Phase

• Deliverables & Outputs: A functional Minimum Viable Product (MVP) on the testnet with an automated reinvesting functionality for at least one liquidity pool (LP), such as MIN/ADA
• Intended Outcomes: To test the functionality and performance of the Yield Optimizer, gain initial user feedback, and make necessary refinements
• Progress Measurement: The successful development and testing of the MVP, user feedback, and successful improvements based on this feedback

Q4 2023: Launching Phase

• Deliverables & Outputs:
• Release of the MVP on the mainnet, and expansion of the Yield Optimizer to include at least two other LPs
• An external Smart Contract Audit will ensure the safety of our protocol
• Intended Outcomes: To launch a fully functional Yield Optimizer on the mainnet that users can trust and use safely, resulting in increased adoption and user satisfaction
• Progress Measurement: Successful launch of the MVP on the mainnet, user adoption rates, TVL, and user feedback

Q1 2024: Expansion Phase

• Deliverables & Outputs:
• The launch of diversified Yield Farming and implementation of farming strategies for the most in-demand token pairs.
• Begin designing a risk analysis system for underlying farming opportunities
• Intended Outcomes: To enhance user experience and increase the platform's usage by offering more options and improving the platform's risk management capabilities
• Progress Measurement: The successful launch of diversified yield farming, increased TVL, user adoption rates, and initial design of the risk analysis system

Q2 2024: Next-Level Yield Farming

• Deliverables & Outputs:
• Launch of AI-supported yield farming strategies and an AI-powered risk analysis system
• New features will be gradually and periodically released based on popular demand
• Intended Outcomes: To provide users with customizable strategies based on their risk tolerance and continuously improve the platform based on user feedback and popular demand
• Progress Measurement: Successful implementation of AI-powered systems, user adoption rates, TVL, and user satisfaction from new features.

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

Since Stargazer hasn’t been able to raise money from VCs or angel investors, some amount of legal costs will need to be covered.

As of July 3rd, the price of $ADA 1 is €0.27.

Since the price payout is in $ADA, the costs will be calculated with a buffer of 20% to hedge against a falling $ADA price. Therefore, we assume the price of $ADA 1 is €0.225.

Info: the price of $USD 1 is €0.90.

The requested funds of $ADA 215,556 will be allocated over the next 10 months as follows:

One-Time Costs:

• Smart Contract Audit: €20,000 ~ $ADA 88,889
• Legal consultation to legally operate a DeFi Business in Germany: €20,000 ~ $ADA 88,889
• Incorporation of a company with limited liability (“UG” in German): €5,000 ~ $ADA 22,222

Monthly Costs:

• Marketing & Community Engagement:
• €350 x 10 = €3,500 ~ $ADA 15,556 ADA

This results in a total budget request for a period of 10 months in the amount of: $ADA 215,556

Please note that this budget breakdown does not include financial compensation for the team.

All funds are allocated towards the development, launch, and promotion of Stargazer. This decision reflects our dedication to the project and our confidence in its potential to significantly enhance the Cardano ecosystem.

Note:

Stargazer has not yet assembled a full team, but we have made great progress in preparing for this project. This includes the development of a project design and implementation plan. This readiness means that once funding is received, we can quickly begin implementation of the project, reducing the risks associated with the project and increasing the prospects for successful and timely completion.

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

Since Stargazer hasn’t been able to raise money from VCs or angel investors, some amount of legal costs will need to be covered.

As of July 3rd, the price of $ADA 1 is €0.27.

Since the price payout is in $ADA, the costs will be calculated with a buffer of 20% to hedge against a falling $ADA price. Therefore, we assume the price of $ADA 1 is €0.225.

Info: the price of $USD 1 is €0.90.

The requested funds of $ADA 215,556 will be allocated over the next 10 months as follows:

One-Time Costs:

• Smart Contract Audit: €20,000 ~ $ADA 88,889
• Legal consultation to legally operate a DeFi Business in Germany: €20,000 ~ $ADA 88,889
• Incorporation of a company with limited liability (“UG” in German): €5,000 ~ $ADA 22,222

Monthly Costs:

• Marketing & Community Engagement:
• €350 x 10 = €3,500 ~ $ADA 15,556 ADA

This results in a total budget request for a period of 10 months in the amount of: $ADA 215,556

Please note that this budget breakdown does not include financial compensation for the team.

All funds are allocated towards the development, launch, and promotion of Stargazer. This decision reflects our dedication to the project and our confidence in its potential to significantly enhance the Cardano ecosystem.

Note:

Stargazer has not yet assembled a full team, but we have made great progress in preparing for this project. This includes the development of a project design and implementation plan. This readiness means that once funding is received, we can quickly begin implementation of the project, reducing the risks associated with the project and increasing the prospects for successful and timely completion.

[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