Indigo Protocol: Typescript Off-chain SDK

[GENERAL] Name and surname of main applicant

Cody Butz, CTO Indigo Labs

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Requested funds in ada

200000

[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] Summarize your solution to the problem (200-character limit including spaces)

Develop an open-source SDK built on Anastasia Labs Lucid Evolution that allows developers to build transactions for many of the Indigo Protocol interactions: CDPs, Stability Pool, Staking, etc!

[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?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

The entire project will be open-source, following a transparent and community-driven development process. We plan to:

1. Codebase: All code will be released under an MIT or Apache 2.0 license. This ensures that anyone can freely use, modify, and distribute the software.
2. GitHub Repository: The code will be hosted in a public GitHub repository, where the community can contribute, review, and track development progress. This will encourage collaborative development and improvements.
3. Documentation: We will provide comprehensive documentation, including setup guides, making it easier for developers to host and maintain their own instance of the multi-sig wallet tool.
4. Community Contributions: As part of the open-source ethos, we will actively engage with the Cardano developer community to accept pull requests, implement feature requests, and fix bugs, ensuring continuous improvement and maintenance of the tool beyond the initial year.

[METADATA] Horizons

DeFi

[SOLUTION] Please describe your proposed solution

We propose developing an open-source SDK built on top of Anastasia Labs’ Lucid Evolution library. This SDK will enable developers to easily interact with the Indigo Protocol on the Cardano blockchain. The SDK will provide a set of tools and APIs for building and submitting transactions related to core Indigo Protocol functionalities such as:

• CDP (Collateralized Debt Position) Management: Allow developers to open, manage, and close CDPs on the protocol.
• Redemptions: Enable the redemption of synthetic assets and other assets on Indigo Protocol.
• Liquidations: Provide functionality to handle the liquidation process when CDPs become undercollateralized.
• Stability Pool Management: Offer tools for developers to interact with the stability pool, including deposits and withdrawals.
• Staking and Voting: Allow users to participate in Indigo Protocol’s governance by staking tokens and voting on governance proposals.

The SDK will be designed for ease of use, allowing developers to quickly integrate Indigo Protocol interactions into their dApps and platforms. 

Our solution will include thorough documentation, examples, and community support to empower developers of all levels to use the SDK effectively.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

The development of an open-source SDK for the Indigo Protocol will have several significant positive impacts on the wider Cardano ecosystem:

• Lowering Development Barriers: By providing a pre-built, well-documented SDK, we will lower the technical barriers for developers seeking to interact with the Indigo Protocol. This will encourage more developers to build applications on Cardano, expanding the utility and adoption of the network.
• Increased Adoption of DeFi on Cardano: Indigo Protocol is a key player in the Cardano DeFi ecosystem. An SDK that simplifies integration with the protocol will encourage more projects to build decentralized finance (DeFi) solutions, driving overall growth in the Cardano DeFi space.
• Open-Source Collaboration: By releasing the SDK as open-source, we will foster collaboration within the community. Other developers will have the opportunity to contribute to the project, propose improvements, and extend its functionality. This community-driven approach will ensure that the SDK evolves and remains relevant to the needs of the Cardano ecosystem.
• Education and Accessibility: Comprehensive documentation and example use cases will make it easier for new developers to learn how to build on Cardano, helping to grow the developer base. In turn, this will lead to a more vibrant and skilled community of developers contributing to the Cardano blockchain.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

As the core developers behind Indigo Protocol, our team is uniquely positioned to deliver this project with the highest levels of trust, expertise, and accountability. We have an in-depth understanding of the protocol’s architecture, having successfully designed, developed, and launched various components that power the Indigo DeFi ecosystem. This gives us a significant advantage in creating an SDK that is efficient, secure, and fully aligned with the protocol’s needs.

Our experience in delivering mission-critical projects within the Cardano ecosystem underscores our capability to manage this initiative effectively. We have consistently met development timelines, produced high-quality open-source software, and contributed to the growth of DeFi on Cardano.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Scaffold Typescript SDK, Develop CDP Endpoints

A: Milestone Outputs

• Scaffolded TypeScript-based SDK structure.

• Core endpoints for managing Collateralized Debt Positions (CDPs).

B: Acceptance Criteria

• SDK structure is implemented and functional.

• CDP endpoints (open, manage, and close, redemption) are functional, allowing basic interaction with the Indigo Protocol.

C: Evidence of Completion

• GitHub repository updated with the scaffolded SDK and working CDP endpoints.

• Unit tests demonstrating the successful interaction with CDPs.

• Demo video showcasing the use of the CDP endpoints within the SDK.

Develop Stability Pool, Staking, and Voting Endpoints

A: Milestone Outputs

• Implemented endpoints for interacting with the Stability Pool.

• Added functionality for staking and governance voting within Indigo Protocol.

B: Acceptance Criteria

• Stability Pool endpoints (deposit, withdrawal, liquidation) are functional and meet Indigo Protocol’s specifications.

• Staking and voting functionalities are implemented and fully operational within the SDK.

C: Evidence of Completion

• GitHub repository with added Stability Pool, staking, and voting endpoints.

• Unit tests confirming that the SDK successfully interacts with these features.

• Demo video showcasing the new features in action.

End-to-End Testing and Documentation

A: Milestone Outputs

• Full end-to-end testing of all SDK features.

• Complete user documentation, including setup instructions and code examples.

B: Acceptance Criteria

• All SDK functionalities pass end-to-end tests without errors.

• Documentation is published and reviewed, ensuring it covers all necessary use cases and SDK features.

C: Evidence of Completion

• GitHub repository with finalized SDK, passing all end-to-end tests.

• Documentation hosted on GitHub (or an accompanying website).

• Demo video showcasing the entire SDK workflow, from installation to feature use.

Project Close-out Report and Video

A: Milestone Outputs

• Final project report summarizing the development process, key achievements, and impact on the Cardano community.

• Closing video demonstrating the SDK’s functionality and its use cases.

B: Acceptance Criteria

• The final report is submitted to Project Catalyst.

• Closing video is produced, showing the SDK’s successful implementation and how it can benefit developers in the Cardano ecosystem.

C: Evidence of Completion

• Submission of the final report and video to the Catalyst community.

• Public availability of the closing video for the broader Cardano ecosystem.

[RESOURCES] Who is in the project team and what are their roles?

Cody Butz - CTO

Cody is a seasoned software developer with over 10 years of experience. Leading the development of Indigo Protocol, a top DeFi protocol on the Cardano Blockchain. Cody will be leading the development of this SDK.

LinkedIn: https://www.linkedin.com/in/cody-butz-b4b16a37/

Zachary Sluder - Developer

Zach is a TypeScript developer with experience building open-source SDKs in the Cardano ecosystem, such as Iris and Dexter. Zach will assist Cody with the development of this project.

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

This proposal is also supported by Indigo Labs, developers of Indigo Protocol. Indigo Labs has a few recent successful proposals such as the following :

Indigo Iris - https://cardano.ideascale.com/c/idea/113424

V2 Audit - https://cardano.ideascale.com/c/idea/112532

Multi-DEX SDK - https://cardano.ideascale.com/c/idea/60673

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Milestone 1 - Scaffold Typescript SDK, Develop CDP Endpoints

75,000 ₳, estimated 100 hours of Developer(s) labor time.

Milestone 2 - Develop Stability Pool, Staking, and Voting Endpoints

75,000 ₳, estimated 100 hours of Developer(s) labor time.

Milestone 3 - End-to-End Testing and Documentation

50,000 ₳, estimated 70 hours of Developer(s) labor time.

Total Cost - 200,000 ₳

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

This project offers significant value for money for the Cardano ecosystem due to several key factors:

• Multiplying the Impact of DeFi Growth: As a critical enabler of decentralized finance (DeFi) projects on Cardano, this SDK will contribute to the expansion of DeFi activities in the ecosystem. By simplifying the process of building on top of Indigo Protocol, we will help unlock new use cases, products, and services, which can generate more economic activity on the network. The ripple effect of this project could lead to increased transaction volume, greater token utility, and the growth of the Cardano DeFi ecosystem, all of which add substantial value.
• Open-Source Contribution: By making this SDK open-source, we provide the developer community with an example of a dApp on Cardano.

In summary, the project’s cost is justified by its potential to significantly accelerate DeFi adoption on Cardano, its reuse potential across multiple projects, and its long-term value as an open-source tool available to the entire developer community.